Integrated Scheme for Agricultural Marketing

Integrated Scheme for Agricultural Marketing

About Integrated Scheme for Agricultural Marketing

The Government of India has approved the proposal of the Department of Agriculture and Cooperation for the continuation and integration of ongoing Central Sector Schemes as an Integrated Scheme for Agricultural Marketing (ISAM). The ISAM consists of the following sub-schemes namely

Objectives of the Scheme

i. To promote the creation of agricultural marketing infrastructure by providing backend subsidy support to State, cooperative and private sector investments.

ii. To promote the creation of scientific storage capacity and to promote pledge financing to increase farmers’ income.

iii. To promote Integrated Value Chains (confined up to the stage of primary processing only) to provide vertical integration of farmers with primary processors.

iv. To use ICT as a vehicle of extension to sensitize and orient farmers to respond to new challenges in agricultural marketing.

v. To establish a nationwide information network system for speedy collection and dissemination of market information and data on arrivals and prices for its efficient and timely utilization by farmers and other stakeholders.

vi. To support the framing of grade standards and quality certification of agricultural commodities to help farmers get better and remunerative prices for their graded produce.
vii. To catalyze private investment in setting up agribusiness projects and thereby provide an assured market to producers and strengthen backward linkages of agribusiness projects with producers and their groups.

viii. To undertake and promote training, research, education, extension, and consultancy in the Agri marketing sector.

Budgetary Allocation for ISAM

The overall budgetary allocation for ISAM is Rs. 4548 Crores. The sub-scheme break up of the budget provision is Rs. 4000 Crores for AMI, Rs. 12 Crores for MRIN, Rs. 6 Crores for SAGF, Rs. 500 Crores for ABD, and Rs. 30 Crores for NIAM.

Sub-schemes of ISAM

Agricultural Marketing Infrastructure: The Agricultural Marketing Infrastructure (AMI) sub-scheme of ISAM is being implemented by the Ministry of Agriculture and Farmers’ Welfare, Government of India.

NABARD is the channelizing agency for the release of subsidy @ 25% to 33.33% of the capital cost for institutions eligible for refinance by NABARD or any other FI such as State Financial Corporations (SFCs) approved by DAC&FW (Department of Agriculture and Farmers Welfare).

The Ministry of Agriculture & Farmers’ Welfare, Govt. of India, has approved the continuation of the AMI sub-scheme of ISAM up to 31st March 2023.

Marketing Research & Information Network (MRIN): The Research and Information Network a sub-scheme of ISAM was launched in March 2000 to provide electronic connectivity to the wholesale markets of the country. The availability and dissemination of complete and accurate marketing information is the primary requirement for operational and pricing efficiency in the marketing system. In order to completely utilize the new emerging marketing opportunities for the benefit of the farming community, Agricultural Marketing Information Network is being established.

Strengthening of Agmark Grading Facilities (SAGF): SAGF sub-scheme of the ISAM Scheme is anongoing plan scheme to support the grading and marking of agricultural produce, which involves the framing of grade standards and certification of agricultural commodities included in the Schedule of the Agricultural Produce (Grading and Marking) Act, 1937. SAGF sub-scheme aims to help DMI implement the Act including meeting the expenditure for the purchase of equipment, chemicals, glassware, and apparatus,
Annual Maintenance Contract (AMC) of the equipment as well as renovation and repair works in the Agmark laboratories/ Regional and Sub-offices of DMI.

Agribusiness Development (ABD) through Venture Capital Assistance (VCA) and Project Development Facility (PDF): This facilitates in setting up of agribusiness ventures in association with every Financial Institution that is notified by the Reserve Bank of India, where the ownership of the Central/ State Government is more than 50%. The financial institutions include nationalized banks, SBI and its subsidiaries, IDBI, SIDBI, NABARD, NCDC, NEDFi, Exim Bank, RRB, and State Financial Corporation.

Choudhary Charan Singh National Institute of Agricultural Marketing (NIAM): The main endeavor of the subscheme, through capacity building, conducting training, consulting solutions, education, and policy advocacy, will be to escalate the agricultural marketing system in the country to a level where it can go hand in hand with the production and market sentiments.

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