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The ministry of agriculture has sought an additional assistance of Rs 1,000 core towards subsidy for new projects under the Agriculture Marketing Infrastructure under the umbrella scheme of “Integrated Scheme for Agricultural Marketing” (ISAM).
According to official sources, the sub scheme for infrastructure development has received good response and the ministry has exhausted the funds allocated to it. Therefore it has advised the nodal rural finance institution – the National Bank for Agricultural and Rural Development (NABARD) to hold on to fresh sanctioning of new projects for subsidy linked term loan temporarily.
Accordingly, the scheme for development of agriculture infrastructure has been stopped for a while till fresh funds are available for disbursement, said official sources.
The scheme envisages a requirement of 35 million MT storage capacities during XII Plan period based on the recommendation of the Planning Commission Working Group on Warehousing Development and Regulation.
Various activities to be developed under market infrastructure are developing infrastructure for effectively managing marketable surplus of agriculture including horticulture and of allied sectors including dairy, poultry, fishery, livestock and minor forest produce.
Besides, basic infrastructure, the scheme will promote innovative and latest technologies in agricultural marketing infrastructure, encouraging private and cooperative sector investments.
Agri infrastructure is also an essential link in the supply chain of the manufacturing sector and at the same time constitutes a big market for industrial products. Currently, India is the world's largest rice exporter and second in terms of wheat exports.
Horticulture exports have also seen good growth. India's agro exports during 2013–14 touched $ 45 billion as against $ 25 billion in 2011–12.
As per report published for the period from Apr 2013- Feb 2014, India has exported agriculture products worth Rs 2, 68,469 crore. Compared to agricultural exports which stood at Rs. 41,600 crore in the year 2004-05, there has been an increase of 6.45 times in the last 10 years.
Direct marketing is one of the main objectives of this scheme so as to reduce the intermediaries in agricultural marketing. Infrastructure facilities for grading, standardization and quality certification of agricultural produce and promoting pledge financing and marketing credit, negotiable warehousing receipt system and promotion of forward and future markets to increase farmers’ income are some of its other objectives.
Marketing Infrastructure permitted under the sub scheme may comprise common facilities in the market yards such as platforms for auctioning of the produce, loading, unloading, assembling, drying, cleaning, grading, weighing, mechanical handling equipments, etc.
The ancillary/supporting infrastructure like parking sheds, internal roads, garbage disposal arrangements, boundary walls, drinking water etc. are also permissible components. However, subsidy for ancillary/supporting infrastructure in the project will be restricted to 25% of total permissible subsidy of the project.
Eligible beneficiaries of this scheme are 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 among others.
