The government is implementing Agricultural Marketing Infrastructure, a sub-scheme of the Integrated Scheme for Agricultural Marketing. AMI works to improve agricultural produce storage capacity in rural areas. Depending on the beneficiary group, the program offers reductions of up to 33.33 percent off the capital cost of eligible projects.
Farmers’ associations, self-help groups, agricultural cooperatives, and local panchayats are some of the organizations that qualify. To qualify for the subsidy, project expenses must be spent within two years after the sanction date and completed within three years. Certain standards must be met in order for completed projects to be eligible for the subsidy. The plan’s guidelines, which are available on the Ministry of Agriculture and Farmers’ Welfare’s website, go into great detail on these needs.
Interested individuals should submit their ideas, together with the accompanying paperwork, to the relevant state departments of agriculture, horticulture, animal husbandry, dairy development, and fisheries. Proposals will be reviewed by a committee constituted by the relevant state government, and successful applicants will be picked based on the committee’s recommendations.
With the exception of Arunachal Pradesh, Himachal Pradesh, Jammu & Kashmir, Meghalaya, Sikkim, and Lakshadweep, all states and union territories are currently implementing the program.
Is there anything more the scheme offers? Why is it necessary?
AMI is critical for ensuring farmers have timely and effective market linkages in order to earn greater prices for their goods. Financial assistance is available from the Ministry of Agriculture and Farmers’ Welfare for the development or refurbishment of agricultural commercial infrastructure, including pre- and post-harvest storage facilities. The loan proceeds can be used to fund operating capital, capital expenditures, and civil engineering projects. The maximum loan amount is Rs. 200 crore.
The project must cover at least 10 hectares and be eligible for a loan with a maximum loan value of Rs. 1 crore per hectare. The loan has a 15-year amortization period and a 5-year principal repayment moratorium. The interest rate on the loan will be determined by the lead bank’s current interest rate in the borrowing state.
The collateral for the loan will be chosen by the lending institution, but it must have a minimum sustainable scale and be financially viable. The project’s costs will be paid by a loan and equity combination at a minimum of 1:1.
The Agricultural Marketing Infrastructure Loan is an excellent option for anyone looking for financial assistance to create or upgrade agricultural marketing infrastructure. To qualify for the financing, the project must fulfill particular size and economic viability standards, as well as provide adequate collateral security.
How are the Ecommerce Development Services Beneficial for the Business?
A final conclusion
Agri infrastructure loans’ Agricultural Marketing Infrastructure (AMI) provides farmers with an excellent opportunity to develop their businesses. This effort will provide rural communities with the resources they need to prosper. We should take advantage of this effort and apply for a loan for Agricultural Marketing Infrastructure right away!