Agricultural Marketing Infrastructure

Need for rural godowns

It is well known that small farmers do not have economic strength to retain produce with them till the market prices are favourable. A network of rural godowns will enable small farmers to enhance their holding capacity in order to sell their produce at remunerative prices and avoid distress sales.

Accordingly, Government of India has launched ‘Grameen Bhandaran Yojana’ w.e.f. 01.04.2001. The scheme has been subsumed into capital investment subsidy sub-scheme "Agricultural Marketing Infrastructure (AMI)" of Integrated Scheme for Agricultural Marketing (ISAM) scheme w.e.f 01.04.2014.  AMI scheme is temporarily stopped w.e.f. 05.08.2014 for general category promoters due to exhaustion of funds. However, the scheme is open for SC/ST promoters and for promoters in North-Eastern Region.

Objective of the scheme

Main objectives of scheme include creation of scientific storage capacity with allied facilities in rural areas to meet out various requirements of farmers for storing farm produce, processed farm produce, agricultural inputs, etc., and prevention of distress sale by creating the facility of pledge loan and marketing credit.

Salient features

Eligible Organizations

The project for construction of rural godowns can be taken up by individuals, farmers, Group of farmers/growers, Partnership/ Proprietary firms, Non-Government Organizations (NGO’s), Self Help Groups (SHGs), Companies, Corporations, Co-operatives, Local Bodies other than Municipal Corporations, Federations, Agricultural Produce Marketing Committees, Marketing Boards and Agro Processing Corporations in the entire country. Assistance for renovation of rural godowns will, however, be restricted to godowns constructed by cooperatives only.

Location

Under the scheme, the entrepreneur will be free to construct godown at any place, as per his/her commercial judgment except for the restriction that it would be outside the limits of Municipal Corporation area.  Rural godowns constructed in the Food Parks promoted by the Ministry of Food Processing Industries shall also be eligible under the scheme for assistance.

Size

Capacity of a godown shall be decided by an entrepreneur.  However, subsidy under the scheme shall be restricted to a minimum capacity of 100 tonnes and maximum capacity of 30,000 tonnes.

Subsidy

• 33.33% of the capital cost of the project in case of projects located in North–Eastern States,  hilly areas and those belonging to Women Farmers/ their self help groups / co-operatives and SC/ST entrepreneurs & their self-help groups/ Co-operatives.
• 25% of the capital cost of the project to all categories of farmers (Other than Women Farmers),
• For renovation of storage projects by cooperatives financed by NCDC and Cooperative banks subsidy will be 25% of the project cost as appraised by FI or actual cost whichever is lower subject to subsidy ceiling of Rs 187.50 per MT of storage capacity.

Capital  cost  of  the  project  for  the purpose of subsidy  under the scheme shall be calculated as follows:

• For godowns up to 1000 tonnes capacity
• North–Eastern States, hilly areas - Rs 1333.20/- per tonne of storage capacity,  Maximum ceiling is Rs 400 lakhs.
• For Registered FPOs, Panchayats, Women, Scheduled Caste(SC)/Scheduled Tribe (ST) beneficiaries or their cooperatives/Self-help groups - Rs 1166.55/- per tonne of storage capacity, Maximum ceiling is Rs 300 lakhs.
• For all Other categories of beneficiaries - Rs 875/- per tonne of storage capacity, Maximum ceiling is Rs 225 lakhs.
• For godowns exceeding 1000 tonnes and upto 30000 MT capacity

• North–Eastern States, hilly areas - Rs 1333.20/- per tonne of storage capacity, Maximum ceiling is Rs 400 lakhs.
• For Registered FPOs, Panchayats, Women, Scheduled Caste(SC)/Scheduled Tribe (ST) beneficiaries or their cooperatives/Self-help groups - Rs 1000/- per tonne of storage capacity, Maximum ceiling is Rs 300 lakhs.
• For all Other categories of beneficiaries - Rs 750/- per tonne of storage capacity, Maximum ceiling is Rs 225 lakhs.

Source: Ministry of Agriculture and Farmers Welfare, Government of India