The Agri-Market Infrastructure Fund (AMIF) is a significant initiative launched by the Indian Government to enhance and modernize the agricultural marketing infrastructure in the country. With a focus on improving Gramin Agricultural Markets (GrAMs) and Agricultural Produce Market Committee (APMC) markets, AMIF aims to empower farmers, reduce post-harvest losses, and promote efficient trade. Administered by the Ministry of Agriculture and Farmers Welfare (MoA&FW), the scheme is a step forward in creating a robust agricultural marketing ecosystem.
Overview of Agri-Market Infrastructure Fund (AMIF)
- Launch Year: 2019
- Administering Body: Ministry of Agriculture and Farmers Welfare
- Funding Agency: National Bank for Agriculture and Rural Development (NABARD)
- Corpus: ₹2,000 crore
- Objective: To upgrade and develop agricultural marketing infrastructure in 22,000 GrAMs and 585 APMCs.
This initiative was approved by the Cabinet Committee of Economic Affairs, chaired by Prime Minister Narendra Modi, with the goal of improving rural agricultural markets and linking them to modern trade systems like e-NAM.
Key Features of the AMIF Scheme
- Development of GrAMs and APMCs:
- Upgrading rural haats into Gramin Agricultural Markets (GrAMs).
- Creating electronic display mechanisms and linking GrAMs to APMCs.
- Enhancing 585 e-NAM-enabled APMCs to facilitate online trading.
- Financial Assistance:
- Subsidized loans for state/UT proposals to develop agricultural marketing infrastructure.
- Funds can be accessed for innovative market infrastructure projects, including:
- Hub and Spoke Mode
- Public-Private Partnership (PPP) Models
- Implementation Period:
- Operational from 2018-19 to 2025-26, with a two-year moratorium period.
- Interest Subsidy:
- Provided by NABARD, aligned with budgetary allocations for 2018-19 and 2019-20, and valid until 2024-25.
- Integration with Existing Programs:
- Earlier, rural haats were developed under MGNREGS by the Ministry of Rural Development. Under AMIF, this responsibility has shifted to NABARD for GrAM development.
Objectives of AMIF
- Improved Market Access for Farmers:
- Development of marketing infrastructure to reduce post-harvest losses and intermediary costs, increasing farmers’ net income.
- Linkage to e-NAM Portal:
- Connecting GrAMs to the e-NAM platform for transparent online trading, enabling farmers to achieve better price discovery.
- Direct Farmer-Consumer Interface:
- Establishing GrAMs as Farmer-Consumer Direct Markets to eliminate middlemen and facilitate direct trade.
- Modernizing Infrastructure:
- Enhancing storage, processing, and logistics to improve marketing efficiency and promote inter-state trade.
Significance of AMIF
- Enhancing Holding Capacity:
- A network of rural godowns allows small farmers to store produce and avoid distress sales.
- Supporting Small and Marginal Farmers:
- Over 86% of farmers in India are small or marginal, often unable to access APMCs directly. AMIF empowers these farmers by improving market access.
- Integration with Past Initiatives:
- Grameen Bhandaran Yojana (2001): Focused on rural storage, later merged into the Agricultural Marketing Infrastructure (AMI) scheme in 2014.
- Budget 2018-19 Announcement: Targeted the development of 22,000 rural haats, with 10,000 rural haats to be covered under AMIF during 2018-19 and 2019-20.
- Market Facilities Near Farm Gates:
- Enables farmers to sell directly to consumers or bulk purchasers, reducing transportation and intermediary costs.
Implementation and Future Outlook
The scheme focuses on leveraging technology and infrastructure to create a modernized agricultural marketing ecosystem. By connecting GrAMs with e-NAM and developing rural haats, AMIF aims to foster efficient trade and improve farmers’ profitability. With its operational timeline extending to 2025-26, AMIF promises long-term benefits for the agricultural sector.
Conclusion
The Agri-Market Infrastructure Fund (AMIF) is a transformative initiative designed to strengthen India’s agricultural marketing system. By improving rural market infrastructure, linking markets to e-NAM, and promoting direct farmer-consumer trade, the scheme ensures better price realization for farmers while enhancing market efficiency. As the scheme progresses, it is poised to play a crucial role in boosting farmers’ incomes and advancing rural development.