New Agricultural Marketing Infrastructure (AMI)

October 16, 2025

New Agricultural Marketing Infrastructure (AMI)

Introduction

The New Agricultural Marketing Infrastructure (AMI) is a central scheme launched by the Government of India under the Integrated Scheme for Agricultural Marketing (ISAM) to strengthen storage and market linkages for farmers. It offers financial support in the form of a subsidy (typically 25 % in plains, 33.33 % in hilly or special areas) toward the capital cost of approved projects like godowns, warehouses, rural haats, processing and marketing units.

Many farmers, especially small and marginal ones, lack access to safe storage or nearby markets. Without proper storage, they may sell produce early at lower prices or suffer losses from spoilage. AMI targets these gaps by helping build infrastructure so that farmers, FPOs, SHGs, cooperatives, and agripreneurs can store, process, and market produce better.

The policy need is clear: reduce post-harvest losses, enable better price realization, and modernize rural marketing systems. By supporting infrastructure investment and easing the burden on producers, AMI aims to promote more equitable agricultural markets across India.

Overview of the Scheme

The Ministry of Agriculture & Farmers’ Welfare, Government of India, launched AMI as a sub-scheme under the Integrated Scheme for Agricultural Marketing (ISAM). The Directorate of Marketing & Inspection (DMI) acts as the nodal technical agency, while NABARD is the channelising agency that releases subsidies to financing institutions.

Key Features & Structure

Funding pattern: It is a credit-linked, back-ended subsidy scheme. Subsidy is offered at 25 % of capital cost in plains and 33.33 % in hilly / special areas or for priority categories.
The subsidy is released only after the project is complete and loan repaid (i.e., back-ended) through NABARD.
Projects are eligible only if a term loan is sanctioned by eligible financial institutions from 22 October 2018 onwards.

Coverage / Components

AMI supports infrastructure in storage, marketing, and allied facilities. Some covered components include:

Godowns, warehouses, cold storage
Market yards, rural haats
Grading, cleaning, sorting, handling infrastructure
Internal roads, loading/unloading, boundary walls within project site
Support for pledge loan (hypothecation of stored produce) for farmers using these facilities

Current Status & Recent Changes

The scheme has been extended / continued up to 31 March 2026 under the current guidelines.
Revised Operational Guidelines were issued recently, applicable to projects whose term loan is sanctioned on or after 10 November 2024.
As of June 2025, implementation was suspended temporarily because the budget under AMI had been fully utilised.

For example: a farmer group plans to build a small warehouse and gets a term loan from a bank; under AMI they may get 25 % subsidy (if in plain) on the capital cost via their financing bank, but subsidy is paid only after project completion and verification.

Objectives

The core purpose of AMI is to strengthen agricultural markets by supporting infrastructure and capacity building for farmers and related entities. Below are its official goals (rewritten in plain language):

Promote creation of agricultural marketing infrastructure by giving a back-ended subsidy to farmers, cooperatives, FPOs, private sector, and state agencies.
Develop scientific storage capacity in rural and semi-urban areas to reduce post-harvest losses and help farmers avoid distress sales.
Support infrastructure for grading, standardization, quality certification, and post-harvest handling of agricultural, horticultural, and allied produce.
Facilitate pledge financing and marketing credit, including negotiable warehouse receipts, so that farmers can use stored produce as collateral.
Encourage private and cooperative investment in marketing infrastructure to create competitive alternatives and broaden access.

Key Features / Benefits

The AMI scheme offers several practical advantages by supporting investment in storage, marketing, and post-harvest services. Here are its major features and benefits:

Subsidy on capital cost
The scheme gives a back-ended subsidy of 25 % (in plains) or 33.33 % (in hilly / special / for SC/ST / women / FPOs / in NER, etc.) toward the cost of approved infrastructure.
Credit-linked assistance
Projects are eligible only if a term loan is sanctioned from a financial institution; subsidy is given after project completion and verification.
Wide range of covered infrastructure
AMI supports storage (godowns, warehouses), market yards, rural haats (GrAMs), grading, cleaning and handling infrastructure, and cold storage (up to a limit) as part of its coverage.
Support for non-storage / market infrastructure
Non-storage projects (market yards, rural haats, direct marketing setups) also qualify, with subsidy rates and ceilings defined per beneficiary category.
Special benefits for priority / disadvantaged groups
Women entrepreneurs, SC/ST promoters, FPOs, and projects in hilly / NE regions are eligible for higher (33.33 %) subsidy rates or more favorable ceilings.
Encourages pledge financing & warehouse receipts
The scheme supports pledge financing using the stored produce (via negotiable warehouse receipts), which helps farmers access credit without needing to sell immediately.
Reduces post-harvest losses, improves price realization
By providing better storage and handling, farmers can avoid spoilage and wait for a better market price instead of selling early in distress.
Promotes competitive and alternative marketing
The scheme encourages private, cooperative, and state actors to invest, thereby providing more choices and better access to markets for farmers.
Aid for project promoters via linkage with NABARD / NCDC
Subsidy release is channelled via NABARD (for projects eligible for NABARD refinance) or via NCDC for cooperative projects.
Ceiling limits and capacity caps to ensure fairness
There are upper limits for subsidy amounts (e.g. caps per metric ton or total subsidy cap) and caps on storage capacity per project.

Eligibility Criteria

Farmers / Individuals / Agri-preneurs

Must be individual farmers or persons engaged in agriculture (resident in India) and able to take term loan from a financial institution. (AMI is credit-linked; only projects with term loan sanction are eligible.)
The term loan must be sanctioned on or after 22 October 2018 by an eligible financial institution.
The promoter must contribute the promoter’s margin (i.e. his own share) as required by the lending institution.

Self-Help Groups (SHGs)

Must be registered and operational (i.e. existing SHG with bank linkage). (Official guidelines allow “SHGs / SHG federations” as beneficiary types.)
Must be able to take a term loan via an eligible financial institution.

Farmer Producer Organizations (FPOs) / Producer Companies

Must be legally registered as a Producer Company / FPO / cooperative / society under relevant Acts.
Must have active operations in agricultural production, collection, marketing, or allied activities. (i.e. they should be functionally real and existing.)
Should have members from farmers (minimum number of members as per registration law or bylaw). (The scheme mentions “registered FPOs / cooperatives / marketing federations” among eligible promoters.)

Entrepreneurs / Startups / MSMEs / Private Entities

Should be properly registered – e.g. under Companies Act, or as a firm, or as a society / NGO / private company.
They must be able to obtain a term loan from an eligible financial institution (bank / cooperative bank / RRB / etc.).
If applicable, registration under UDYAM (MSME registry) / GST / PAN / other statutory registrations may be required as documents for verification – though the scheme’s guidelines emphasize registration / incorporation certificates as mandatory documents.

Special / Priority Categories

Women, SC / ST promoters, projects in North-Eastern / hilly areas are eligible for higher subsidy rates (33.33 %) under AMI.
Such promoters must submit category certification (SC/ST certificate from competent authority, or proof of women entrepreneur status) as part of the documents.

Not Eligible / Exclusions

Projects whose term loan was sanctioned before 22 October 2018 are not eligible under AMI.
New sanctions under AMI are suspended from 10 June 2025 until a fresh budget is allocated – so no fresh projects can be sanctioned during suspension.
Projects that do not comply with technical / financial guidelines or do not go through financing by eligible institutions are ineligible.

Mandatory Documents

Project report with cost estimates, technical and financial appraisal by FI.
Loan sanction letter and statements showing disbursement (especially first disbursement) from the FI.
Land records / title deed / lease agreement (if land is leased) of project site.
Registration / incorporation certificate (for companies, FPOs, NGOs, SHGs).
Category certificate (SC/ST / women) if applicable.
Notarized affidavit on non-judicial stamp paper (as per scheme annexure).
Civil drawings, plans, maps showing dimensions and capacity.

Application Process

Apply for Term Loan
The promoter (farmer, FPO, entrepreneur, etc.) first submits a project proposal (with subsidy request) and a Detailed Project Report (DPR) to a Financial Institution (FI) (bank / cooperative / RRB).
Sanction of Term Loan by FI
The FI appraises the DPR, checks viability, and sanctions the term loan. The promoter may sign an acknowledgement of instructions.
Apply for Advance Subsidy via ENSURE Portal
Within 60 days (or 90 days in some versions) of disbursal of the first instalment of the term loan, the FI must submit a project profile cum claim form for advance subsidy via NABARD’s ENSURE portal.
- This application goes via the FI’s controlling / nodal office to NABARD Regional Office.
- A copy of the claim and documents is also sent to the DMI Regional / Sub Office.
NABARD Sanctions & Releases Advance Subsidy
After checking that the application is complete and consistent with scheme norms, NABARD RO sanctions the advance subsidy and releases it to the FI. The subsidy is held in a Subsidy Reserve Fund (SRF) account.
Implementation of Project / Construction
The promoter executes the project (e.g. storage, market yard, grading facility) as per DPR, using the loan and promoter’s margin.
Completion & Submission of Documents for Final Subsidy
On finishing the project, the promoter submits to the FI:
- Completion certificate (by registered architect / engineer)
- Item‐wise actual expenditure certified by Chartered Accountant
- All invoices, land documents, civil drawings, etc.
  The FI then submits the final subsidy claim to NABARD RO and DMI RO / SO within 60 days of receiving these documents.
Joint Monitoring Inspection (JMI) & Verification
NABARD / DMI arrange a joint inspection (by FI, NABARD, DMI representatives) to verify that the project matches approved plans. Geo-tagged photographs may be taken.
If discrepancies emerge, the promoter must rectify and submit a compliance report.
Release of Final Subsidy
Once inspection is approved and documents validated, NABARD RO sanctions and releases the final subsidy to the FI (into SRF account). FI passes subsidy benefits to promoters via adjustment or credit.
Monitoring and Reporting
FI / promoter submit utilization certificates (UC) to DMI / NABARD. DMI collates project-wise status to DAC&FW / central offices.

Offline / Alternate Route (for State Agencies / Non-loan Projects)

Some state agencies that prefer not to take term loans may submit project proposals directly to DMI Regional Office / Sub Office to avail subsidy under AMI.
These proposals are appraised, and the subsidy is released partially on approval and partly after inspection by DMI / NCDC or concerned bodies.

Important Notes / Suspension

As of 10 June 2025, implementation of AMI is suspended until further notice, as allocated funds are fully used.
ENSURE portal submission for new AMI claims is temporarily disabled.

Tips (to avoid common mistakes)

Ensure the name of the promoter matches ID proofs (Aadhar, PAN, bank records).
Upload complete documents (plans, invoices, land title) to avoid rejection.
Apply for the advance subsidy within the 60/90 day window after first disbursement – missing this may disqualify subsidy.
During inspection, ensure the project is built exactly as per approved drawings – changes may be disallowed.

Challenges or Limitations

Like many government-supported infrastructure programmes, the New Agricultural Marketing Infrastructure (AMI) scheme has faced a few recurring challenges during field implementation. Understanding these helps applicants prepare better and avoid delays.

Challenge – Delays in Project Approval and Subsidy Release → What to Do
Many applicants experience long waiting periods between application, inspection, and final subsidy release because of multi-level verification by banks, NABARD, and DMI.
Tip: Submit a complete proposal and follow up regularly with your financing institution. Ensure that all forms and DPR data are consistent to speed up approval.
Challenge – Incomplete or Mismatched Documentation → What to Do
Missing land papers, outdated ownership records, or inconsistencies between PAN, Aadhaar, and bank details often lead to rejection or resubmission.
Tip: Before applying, verify that land records, ID proofs, and ownership details exactly match what’s written in your DPR and bank documents.
Challenge – Limited Budget and Suspension of New Sanctions → What to Do
As of 2025, fresh sanctions under AMI are temporarily suspended due to full utilisation of funds. This limits new applicants’ access.
Tip: Keep checking updates on https://www.nabard.org and https://dmi.gov.in for reopening notices, and prepare your project documents early so you can apply quickly when the window resumes.
Challenge – Field Verification and Joint Inspection Delays → What to Do
The Joint Monitoring Inspection (JMI) involves coordination between NABARD, DMI, and the financing bank, which sometimes takes weeks.
Tip: Stay in touch with your FI and local DMI office to schedule inspections promptly and provide geo-tagged photos or progress reports in advance.
Challenge – Difficulty in Meeting Project Cost or Loan Terms → What to Do
Some promoters face challenges in arranging margin money or completing civil works due to cost escalation.
Tip: Keep a 10–15% contingency in your cost plan and ensure financial closure before beginning construction to prevent midway stoppages.
Challenge – Limited Awareness in Rural Areas → What to Do
Many eligible beneficiaries (especially small FPOs or cooperatives) are unaware of AMI procedures or required documentation.
Tip: Consult your nearest Krishi Vigyan Kendra (KVK) or District Agriculture Office for updated guidance and model DPR templates.
Challenge – Technical Issues in ENSURE Portal → What to Do
Some banks and applicants have reported portal downtime or login issues during claim submission.
Tip: Try submitting during off-peak hours, and keep a scanned backup of all documents. For persistent issues, contact NABARD’s IT or regional office helpline.
Challenge – Seasonal and Weather-Dependent Construction → What to Do
Civil works like godown or market yard construction often halt during monsoons, delaying inspection timelines.
Tip: Plan your project implementation around local climate cycles, and inform your FI in case of unavoidable seasonal delays to extend validity gracefully.

Government Support & Future Outlook

The New Agricultural Marketing Infrastructure (AMI) scheme operates as a sub-scheme of the Integrated Scheme for Agricultural Marketing (ISAM) under the Department of Agriculture and Farmers Welfare (DA&FW), Government of India. It aligns closely with several national agricultural initiatives to promote a stronger and more connected rural marketing network.

AMI complements missions such as the Rashtriya Krishi Vikas Yojana (RKVY) for project funding support, the National Food Security Mission (NFSM) for crop-based infrastructure, and the Agricultural Technology Management Agency (ATMA) for local capacity building. It also works in convergence with credit-linked initiatives from NABARD and with schemes like PM Formalisation of Micro Food Processing Enterprises (PMFME) and PM-KISAN for strengthening post-harvest value chains.

By combining AMI’s infrastructure support (such as storage godowns or grading units) with PMFME’s processing assistance, a Farmer Producer Organisation (FPO) can both store and process produce locally – improving price realization and reducing wastage.

As per official updates from the Department of Agriculture and Farmers Welfare and NABARD, the scheme was restructured and continued during the XII Plan period and later integrated under ISAM. Going forward, its approach is expected to align with modern agri-market reforms and digital integration through initiatives like e-NAM and the Agri-Market Infrastructure Fund (AMIF), aiming for more efficient, technology-driven marketing networks.

Conclusion

The New Agricultural Marketing Infrastructure (AMI) scheme plays a vital role in strengthening India’s post-harvest and marketing systems by supporting the creation of modern storage, grading, and processing facilities. It helps farmers, FPOs, SHGs, and agri-entrepreneurs reduce losses, improve price realization, and access better markets through quality infrastructure. Those who meet the eligibility criteria can apply through their financing institutions or local agriculture departments to benefit from credit-linked subsidies and technical support. The scheme promotes self-reliance in agricultural marketing and complements other national initiatives aimed at value addition and rural employment. Applicants are encouraged to review the latest guidelines and updates on https://dmi.gov.in or their state agriculture office before submission to ensure all documents and requirements are in order.

Explore detailed resources on this scheme and the full suite of programmes at ALL ABOUT AGRICULTURE. For one-on-one assistance, call us at +91 8484002628.

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