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Developing Marketing Infrastructure in GrAMs from AMIF Fund

This initiative aims to develop and upgrade 22,000 rural haats into Gramin Agricultural Markets (GrAMs) by strengthening physical infrastructure using MGNREGS and other schemes. It also involves integrating GrAMs with e-NAM portal and establishing the Agri-Market Infrastructure Fund with a corpus of Rs. 2000 crore.

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Developing Marketing Infrastructure in GrAMs from AMIF Fund

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  1. Developing Marketing Infrastructure in GrAMsfrom AMIF Fund

  2. Budget 2018-19 Announcement • Develop and upgrade existing 22,000 rural haats into Gramin Agricultural Markets ( GrAMs) • Physical infrastructure to be strengthened using MGNREGS and other Government Schemes • PMGSY(Phase-III) to be used for strengthening road linkages from inhabitations to GrAMs • Setting up of Agri –Market Infrastructure Fund with a corpus of Rs. 2000 crore- • Develop and upgrade agricultural marketing infrastructure in GrAMs • Strengthening 585 APMC markets • GrAMs to be integrated with e-NAM portal • GrAMs to be outside the APMC Act regulation

  3. Agricultural Market Scenario in Country • Avg. area served by a regulated market - 496 sqkm. • Avg. area served by one market (Regulated+RuralHaats) - 112 sqkm • Recommended by National Commission for Farmers (2006) -80 sq.km.

  4. Survey of Rural Haats • Survey of Rural Haats • DAC&FW is undertaking survey through Directorate of Marketing & Inspection(DMI) to ascertain location, status of infrastructure, commodities traded & marketing operations etc. • So far 11,876 Rural Haats surveyed with following results

  5. Agriculture Market Infrastructure Fund ( AMIF) Scheme Guidelines of AMIF circulated to States after approval. NABARD to set up AMIF of Rs.2000 crore for development of Marketing Infrastructure in 10,000 GrAMs and 585 APMC markets through subsidized loan to States/UTs Private run Haatsmay avail subsidy assistance under back ended bank credit-linked AMI Scheme of DAC&FW. Basic Infrastructure in GrAMs will be developed by States/UTs through MGNREGS and connectivity through PMGSY-III Loan will be disbursed for a period of 7 years including grace period of 2 years . Interest Rate to State will be i.e; ( Current market borrowing rate by NABARD plus 0.6% handling charges by NABARD minus fixed interest subvention of 3% by DAC&FW). States will submit Detailed Project Report(DPRs) to DAC & FW for Screening Committee scrutiny, which will recommend to NABARD. In turn, NABARD will carry out due diligence before loan sanction to States Loan is demand driven. Nodal Agencies of States/UTs to be responsible for loan disbursement and Utilization Certificate Monitoring mechanism in Directorate of Marketing & Inspection(DMI).

  6. Indicative list of marketing infrastructure for GrAMs.

  7. Diagrammatic depiction of Routing of Proposal & Flow of Fund in case of GrAMs - fund DPRs GrAMs fund Routing of proposal and flow of fund DPRs fund DPRs

  8. Diagrammatic depiction of Routing of Proposal & Flow of Fund in case of APMC Markets - Consolidated DPRs fund APMCs fund Routing of proposal and flow of fund DPRs fund DPRs

  9. List of Marketing & Auxiliary Infrastructure for APMC Markets under AMIF

  10. Physical and Financial Outlay. • Assistance- • States while forwarding DPR to DAC&FW are to ensure that at least 40% of the total investment is made towards development of marketing infrastructure in GrAMs • Minimum assistance of Rs. 8.0 lakh & upto 25 lakh per GrAM and maximum upto 2.05 crore per APMC market can be availed by States/UTs depending on requirements

  11. Action for States • Identify rural haats and APMC markets for development • Coordinate development of haats simultaneously - Basic infrastructure from MGNREGS and Marketing infrastructure from AMIF • Nominate nodal department and nodal officer for coordination • Prepare DPR and forward DAC&FW for assistance under AMIF • After Loan Fund sanction, States to sign MOA.

  12. THANK YOU

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