In the 2018 Budget, the Agri Market Infrastructure Fund was announced to expand and upgrade agricultural marketing infrastructures in the 22,000 Gramin Agricultural Markets (GrAMs), including 585 Agricultural Produce Market Committees (APMC).
GrAMs are now being developed with MGNREGA funds. Because the plan is demand-driven, progress will be determined by state demand.
Agri Market Infrastructure Fund [AMIF]
The Cabinet Committee on Economic Affairs (CCEA) has approved an Rs. 2,000 crore corpus for the Agriculture Market Infrastructure Fund, which will be set up with the National Bank for Agriculture and Rural Development (NABARD) to develop and upgrade Agri marketing infrastructure in rural agricultural markets.
Agri Market Infrastructure Fund Objective
- The Agri Market Infrastructure Fund will offer states and territories subsidised loans for 585 APMC mandis plus 10,000 GrAMs.
- States can also use this fund to develop new integrated market infrastructure initiatives, such as hub and spoke models and public-private partnerships.
- To enhance marketing and infrastructure networks in APMC's GrAMs and regulated wholesale markets by developing marketing infrastructure to improve farmers' market services and decrease post-harvest losses, marketing costs, and the number of intermediaries in the supply chain, resulting in higher net income for farmers.
- Linking GrAMs to the e-NAM site will allow farmers to trade their aggregated produce online, allowing them to take advantage of fair online dealing on the e-NAM platform for a more remunerative price.
- GrAMs as Farmer-Consumer Direct Marketplace will be developed to give a better farmer-consumer interaction.
Importance of the Agri Market Infrastructure Fund
Over 86 percent of Indian farmers are small and marginal, and they cannot always interact directly with APMCs and other distribution companies. Small farmers can increase their holding capacity by using a network of rural godowns to sell their products at remunerative prices and eliminate distress sales.
The Indian government launched the "Grameen Bhandaran Yojana" in 2001, which was later renamed the "Agricultural Marketing Infrastructure Fund scheme" in 2014. The scheme's main goals are to build scientific storage capacity and related facilities in remote regions to suit farmers' diverse needs for keeping agricultural goods, processed agricultural goods, agricultural inputs, etc.
This scheme has been formulated in response to the 2018-19 budgetary announcement in order to provide market facilities closer to the farm gate for farmers to actively sell their products to consumers and potential bulk buyers in the GrAMs and to strengthen and revitalise the advertising and auxiliary facilities in APMC markets in order to improve marketing efficiency.
In response to the Union Budget's announcement in 2018-19 to develop and enhance the current 22,000 rural haats, a whole of 10,000 rural hats are suggested to be covered by the Agriculture Market Infrastructure Fund in 2018-19 and 2019-20.
FAQs on Agri-Market Infrastructure Fund [AMIF]
Q.1. What is the Agri Market Infrastructure Fund's mission?
The Agri Market Infrastructure Fund was announced to expand and upgrade agricultural marketing infrastructures in the 22,000 Gramin Agricultural Markets (GrAMs), including 585 Agricultural Produce Market Committees (APMC).
Q.2. What is the purpose of the Agri Market Infrastructure Fund?
The Agriculture Market Infrastructure Fund would be set up in collaboration with NABARD to construct and upgrade agricultural marketing infrastructures in Gramin Agricultural Marketplace and Regulated Wholesale Markets.
Q.3. What is the Agri Market Infrastructure Fund Scheme's Implementation Period?
The Agri Market Infrastructure Fund Scheme will run from 2018-19 to 2025-26, with a two-year moratorium period in between.
Q.4. Who is in charge of approving the Agri Market Infrastructure Fund?
The Agri Market Infrastructure Fund Scheme is administered by the Government of India's Ministry of Agriculture and Farmers Welfare (MoA & FW).