The Agri-Market Infrastructure Fund (AMIF) is a significant financial initiative designed to enhance market infrastructure in the agricultural sector. Understanding the key details of this fund is crucial for competitive exam preparation, especially for agriculture-related exams. This blog covers the essential points about the Agri Infrastructure Fund Scheme, its objectives, benefits and funding structure.
What is the Agri-Market Infrastructure Fund (AMIF)?
The Agri-Market Infrastructure Fund is a government initiative aimed at developing and modernizing agriculture marketing infrastructure in regulated markets (APMCs) and other rural areas. It ensures better storage, grading and value addition facilities to improve market access for farmers.
Key Objectives of AMIF
- To develop and upgrade market infrastructure in rural and semi-urban regions.
- To facilitate the establishment of cold storage units, sorting facilities and efficient logistics to reduce post-harvest losses.
- To strengthen farmer organizations, cooperatives and market linkage systems.
Funding Structure of AMIF
The Agri-Market Infrastructure Fund Scheme has a well-defined funding structure:
- Central Government Contribution: 50% (Maximum ₹50 crores per project)
- State Government Contribution: 30% (Maximum ₹30 crores per project)
- Beneficiaries Contribution: 20% (Minimum ₹10 lakhs per project)
Interest Subvention and Credit Support
To ease the financial burden on beneficiaries, the following support is provided:
- Interest Subvention: 3% per annum for 5-7 years.
- Credit Guarantee Coverage: 50% credit guarantee support is provided by the National Credit Guarantee Trustee Company (NCGTC) to minimize lending risks for banks.
Loan Tenure and Repayment
The AMIF scheme offers flexible financial terms to ensure smooth repayment:
- Loan Tenure: Up to 7 years
- Moratorium Period: Up to 2 years
- Repayment Schedule: Equated annual installment structure for simplified payments
Benefits of Agri-Market Infrastructure Fund
- Improved marketing infrastructure ensures better price realization for farmers.
- Reduced post-harvest losses by enhancing storage, sorting and grading facilities.
- Strengthened market linkages for better distribution of produce across markets.
- Encouragement for farmer producer organizations (FPOs) to actively participate in modern trading practices.
Key Points for Competitive Exams
- Launched by: Ministry of Agriculture & Farmers’ Welfare
- Implemented through: NABARD (National Bank for Agriculture and Rural Development)
- Targeted Beneficiaries: Farmer Producer Organizations (FPOs), Cooperative Societies and State Marketing Boards
- Primary Objective: Modernizing APMC markets and improving agri-infrastructure in rural areas
The Agri-Market Infrastructure Fund (AMIF) plays a vital role in improving agricultural marketing infrastructure in India. By supporting projects that enhance storage, logistics and value addition, this scheme empowers farmers and strengthens India’s agri-economy. Understanding AMIF’s features, benefits and funding details is crucial for aspirants preparing for agriculture-based competitive exams.
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