Integrated Scheme for Agricultural Marketing (ISAM) is to provide farmers with access to competitive markets with adequate infrastructure including cold chain logistics, to enable them to realise better prices on the one hand and providing nutritious food to consumers at stable and affordable prices on the other.
Central Government has been promoting creation and improvement of marketing infrastructure, capacity building and generating access to market information. These schemes have been further fine-tuned and will be continued with the objective of encouraging new technologies, promoting investment, improving the outreach of the schemes and removing constraints that hinder efficient and effective outcomes. Further, all schemes for strengthening this sector have been brought under one umbrella namely:
The ISAM will have the following five sub schemes:
- Agricultural Marketing Infrastructure (AMI) [the existing schemes of Grameen Bhandaran Yojana (GBY) and Development/Strengthening of Agricultural Marketing Infrastructure, Grading and Standardization (AMIGS) will be merged as AMI]
- Marketing Research and Information Network (MRIN)
- Strengthening of Agmark Grading Facilities (SAGF),
- Agribusiness Development (ABD) through Venture Capital Assistance (VCA) and Project Development Facility (PDF) and
- Choudhary Charan Singh National Institute of Agriculture Marketing (NIAM)
- To promote creation of agricultural marketing infrastructure by providing backend subsidy support to State, cooperative and private sector investments.
- To promote creation of scientific storage capacity and to promote pledge financing to increase farmers’ income.
- To promote Integrated Value Chains (confined up to the stage of primary processing only) to provide vertical integration of farmers with primary processors.
- To use ICT as a vehicle of extension to sensitize and orient farmers to respond to new challenges in agricultural marketing.
- To establish a nation-wide information network system for speedy collection and dissemination of market information and data on arrivals and prices for its efficient and timely utilization by farmers and other stake holders.
- To support framing of grade standards and quality certification of agricultural commodities to help farmers get better and remunerative prices for their graded produce.
- To catalyze private investment in setting up of agribusiness projects and thereby provide assured market to producers and strengthen backward linkages of agribusiness projects with producers and their groups.
- To undertake and promote training, research, education, extension and consultancy in the agri marketing sector.
Budgetary Allocation: 4548.00 crores for the XII Plan.
Nodal Agency: NABARD
Agricultural Marketing Infrastructure (AMI)
Objectives: The main objectives of the sub scheme are:
- To develop agricultural marketing infrastructure for effectively managing marketable surplus of agriculture including horticulture and of allied sectors including dairy, poultry, fishery, livestock and minor forest produce.
- To promote innovative and latest technologies in agricultural marketing infrastructure.
- To promote competitive alternative agricultural marketing infrastructure by encouraging private and cooperative sector investments.
- To promote direct marketing so as to increase market efficiency through reduction in intermediaries and handling channels thus enhancing farmers’ income.
- To promote creation of scientific storage capacity for storing farm produce, processed farm produce and agricultural inputs etc. to reduce post-harvest and handling losses.
- To provide infrastructure facilities for grading, standardization and quality certification of agricultural produce with the objective of (a) ensuring a price to the farmers commensurate with the quality of the produce and (b) promoting pledge financing and marketing credit, negotiable warehousing receipt system and promotion of forward and future markets to increase farmers’ income.
- To promote Integrated Value Chains (confined up to primary processing stage only) to provide vertical integration of farmers with primary processors. Primary processing means adding value to the produce without change in its form and may include washing, sorting, cleaning, grading, waxing, ripening, packaging, labelling etc.
- To create general awareness and provide training to farmers, entrepreneurs, market functionaries and other stakeholders on various aspects of agricultural marketing including grading, standardization and quality certification.
Assistance under the sub scheme will be available to:
- Individuals, Group of farmers/growers, Registered Farmer Producer Organisations (FPOs).
- Partnership/Proprietary firms, Companies, Corporations.
- Non-Government Organizations (NGOs), Self Help Groups (SHGs).
- Cooperatives, Cooperative Marketing Federations.
- Autonomous Bodies of the Government, Local Bodies (excluding Municipal Corporations for storage infrastructure projects), Panchayats.
- State agencies including State Government Departments and autonomous organization/State owned corporations such as Agricultural Produce Market Committees & Marketing Boards, State Warehousing Corporations, State Civil Supplies Corporations etc.
For Storage Infrastructure Projects
|Category||Rate of Subsidy (on capital cost)||Subsidy ceiling|
|Up to 1000 MT in Rs./MT||More than 1000 MT and upto 30000 MT in Rs./MT||Maximum ceiling (Rs. Lakhs)|
|A. North Eastern States, Sikkim, UTs of Andaman & Nicobar and Lakshadweep Islands, hilly areas||33.33%||1333.20||1333.20||400.00|
|B. In other Areas|
|For Registered FPOs, Panchayats, Women, Scheduled Caste(SC)/ Scheduled Tribe (ST) beneficiaries or their cooperatives/Self-help groups||33.33%||1166.55||1000.00||300.00|
|For all Other categories of beneficiaries||25%||875.00||750.00||225.00|
Other than Storage Infrastructure:
|Category||Rate of Subsidy (on capital cost)||Maximum Subsidy Ceiling (Rs. in lakhs)|
|A. North Eastern States, Sikkim, States of Uttarakhand, Himachal Pradesh, Jammu & Kashmir, UTs of Andaman & Nicobar and Lakshadweep Islands, hilly and tribal areas||33.33%||500.00|
|B. In Other Areas|
|1. For Registered FPOs, Women, Scheduled Caste(SC)/ Scheduled Tribe (ST) beneficiaries or their cooperatives||33.33%||500.00|
|2. For all Other categories of beneficiaries||25%||400.00|
The total subsidy to a maximum ceiling of Rs 4 crores or Rs 5 crores as the case may be.
Capacity of Storage Infrastructure Projects:
- For claiming subsidy under the sub scheme, the capacity of the storage project should normally be between 50 tonnes to 30,000 tonnes.
- However, in hilly areas where the project site is located at a height of more than 1000 meters above mean sea level, the project with capacity of 25 tonnes and above up to 30,000 tonnes will also be eligible.
Projects not eligible for subsidy under the sub scheme of AMI:
- Combined Harvesters (in – Andhra Pradesh, Punjab, Madhya Pradesh & Tamilnadu)
- Standalone cold storages
- Retail shops
- Silos as part of integrated project
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