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NABARD, which stands for National Bank for Agriculture and Rural Development, focuses on developing the agriculture sector and rural areas. The specific scheme weu2019re talking about here is officially known as the Agriculture Marketing Infrastructure Scheme (AMIS). Itu2019s a crucial sub-scheme of the Integrated Scheme for Agricultural Marketing (ISAM), implemented by the Ministry of Agriculture and Farmersu2019 Welfare, Government of India.
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A Simple Guide to NABARD Subsidies for Agri-Projects - KIP 4 Business ➔ NABARD subsidies help farmers & agri-entrepreneurs cut costs, boost profits, and grow their operations efficiently. ➢ ➢ What Exactly is the NABARD Subsidy Scheme? ➔ AMIS is a key NABARD Subsidy Scheme under ISAM by the Ministry of Agriculture to boost agri-marketing infrastructure. ➔ AMIS supports agri infra, cuts post-harvest losses, boosts food security, and covers 36+ agri businesses pan-India. ➢ ➢ Why Value Addition is Key in Agriculture ? ➔ Farmers boost income by adding value—cleaning, grading, packaging, or processing raw produce for better marketability. https://kip4business.com/
❏ ❏ Benefits of Value Addition: ● Reduces post-harvest losses. ● Increases income for farmers and rural entrepreneurs. ● Creates employment opportunities in rural areas. ● Ensures better prices in the market. ● Supports food processing industries and new agri-businesses. ● Example: Raw turmeric might sell for ₹25/kg, but processed turmeric powder can fetch ₹120/kg or more. ➢ ➢ Primary Processing Units: ➔ These handle the initial cleaning and conditioning of raw farm produce to get it ready for market or storage. https://kip4business.com/
● Examples: Cleaning, sorting, grading, drying, de-husking, ripening chambers, simple packaging, blanching, and cooling units for fruits, vegetables, grains, oilseeds, and more. ● These are often located near farms to reduce transportation losses. ➢ ➢ Secondary Processing Units: ➔ These units add further value by converting raw or semi-processed produce into finished products. ● Examples: Making jaggery from sugarcane, oil from groundnut, powder from dried chilies or turmeric, cashew roasting, desiccated coconut manufacturing, and virgin coconut oil extraction. ● They enhance shelf-life and open up new markets for branded retail products. https://kip4business.com/
➢ ➢ Key Benefits of the NABARD Subsidy Scheme : ★ ★ 1. Capital Subsidy ➔ You can get up to ₹30L subsidy (as per new norms): ● NE states/UTs: 33.33% of project cost or ₹30L ● SC/ST, Women, SHGs: 33.33% or ₹30L ● Others: 25% or ₹25L ★ ★ 2. Interest Subsidy under AIF ➔ AIF-eligible projects get 3% interest subsidy on term loans up to ₹2 crore for a max of 7 years. ★ ★ 3. Credit Guarantee Coverage ➔ Eligible borrowers can get up to ₹2 crore collateral-free via CGTMSE, with the govt bearing the guarantee fee. https://kip4business.com/
➢ ➢ Land Requirements: ➔ The project site should ideally be owned by you. If leased, the lease must be for a minimum of 15 years via a registered lease deed. ❏ ❏ Ensure clear land title documents, free from disputes. ❏ ❏ If agricultural or residential land needs conversion to commercial use, ensure this is completed, or obtain a No Objection Certificate (NOC) if outside controlled areas. ❏ ❏ The cost of land acquisition (or lease payments) can be included in your promoter’s minimum 20% contribution, up to a maximum of 10% of the total project cost. ❏ ❏ Ensure the site has no existing loans or pledges with other banks. https://kip4business.com/
Read the complete story follow the link below:- A Simple Guide to NABARD Subsidies for Agri-Projects - KIP 4 Business https://kip4business.com/