Development of Agricultural Marketing Infrastructure, Grading and Standardization

1
Development of Agricultural Marketing
Infrastructure, Grading and Standardization
2
New Scheme formulated

• To Attract Private and Cooperative Sector
  Investments for Rapid development of Post harvest
  and marketing infrastructure
• To Strengthen Existing Agricultural Markets,
  wholesale, rural periodic and in Tribal areas
• To Promote Grading, Standardization and Quality
  Certification of Agricultural Produce at Farm/
  Market Level

3
Scope of Infrastructure Projects

• Functional infrastructure for assembly, grading,
  quality certification, labeling, packaging,
  auction and market yard facilities
• Infrastructure to support Contract farming
  arrangements between processing/ trading units
  and farm producers and for Direct marketing to
  consumers/ bulk buyers etc
• Infrastructure for E-Trading, market extension
  and market oriented production planning.

4
Salient Features of Scheme

• Persons Eligible
• Individuals, Farmers, NGOs, Corporations,
  Cooperatives and Marketing Boards in the Entire
  Country.
• State Projects Assisted by NABARD
• Rate of Subsidy
• 25 of the Capital Cost of Project, Subject to
  a Maximum of Rs.50 Lakh in General and Rs.60
  Lakh in NE States, Hilly and Tribal Areas

5
Salient Features of Scheme

• Project should show Direct service delivery to
  Producers/ Farming community
• No Upper Ceiling on Subsidy in Respect of
  Infrastructure Projects of State Governments
• Mobile infrastructure for post harvest operations
  viz., Grading, Packaging, Quality testing etc.
  eligible for assistance (excluding transport
  equipment)

6
Reform Linked

• Scheme to be operational in Reforming States,
  which
• Allow Direct Marketing and Contract Farming
• Permit Setting up of Markets for Agricultural
  Commodities in Private and Cooperative Sectors.
• States to also extend Support in
• Allocation of Suitable Land to Set up Markets
• Approval From Local Authorities and for Services
  Like Electricity, Water, Sewage etc.

7
Agri- Business Sector Development throughSFAC
Venture Capital Operations
8
SFAC Strategy

• . Provide Venture Capital to Agri-Business
  Projects up to
• 10 Of Project Cost, or
• 26 Of Project Equity, or
• Rs 75 Lakhs
• 2. Project Development Facility For Producers
• Provide Assistance Up to Rs. 5 lakhs for
  Preparation of Detailed Project Report.

9
Qualifying Projects

• Dependant Upon Agricultural Produce/outputs
• Encourage Diversification Into High Value Crops
• Provide Assured Markets To Producers
• Result in Increased Income to Small Farmers
• Accepted By Banks For Grant Of Term Loan

10
AGRICULTURAL MARKETING RESEARCH AND INFORMATION
NETWORK( www.agmarknet.nic.in )
11
Agricultural Marketing Information Network

• Launched In March, 2000, To Link Important
  Agricultural Markets All Over The Country. 735
  Agricultural Markets so far connected.
• 600 Plus Markets Regularly Reporting Price
  Related Data in respect of 300 commodities and
  2000 varieties
• During X Plan, Scheme Planned To Be Extended To
  Cover 2000 More Agricultural Markets In The
  Country

12
Agricultural Marketing Information Network

• Linked With Online Commodity Exchange Of India
  Limited, providing Futures and Spot Prices In
  Respect Of Oilseeds, Fiber Crops Etc.
• International Price-trends Of Various
  Agricultural Commodities Available On FAO Website
  Are Also Accessible Through The Portal
• Collaboration with IFFCO for dissemination of
  market information to farmers cooperatives
  through multimedia kiosk

13
Action Plan (2004-05)