Parliament news 

Promotion of Agricultural Markets

As per the Millennium Study conducted by Ministry of Agriculture (2004), the producer’s share in the consumer’s rupee varies from 56% to 89% for paddy, 77% to 88% for wheat, 72% to 86% for coarse grains, 79% to 86% for pulses, 40% to 85% in oilseeds and 30% to 68% in case of fruits, vegetables and flowers. Agri marketing is the domain of the States. However, in order to strengthen the agri marketing sector, the Government has taken various measures from time to time including engaging with the States to reform their respective agri marketing sectors. These measures include formulation of Model Act in 2003 as a template for reform of the agri marketing regulations of the States/Union Territories (UTs). The Model Act inter-alia provides for promotion of alternate channels of marketing such as direct marketing of farmers’ produce outside the market yard by processors, bulk buyers, exporters, contract farming, setting up of markets in private/cooperative sector, farmers consumer markets and e-marketing. Such channels, when implemented, will provide the farmer with many more options for sale of his produce at more remunerative price. Moreover, the recent Government advisory to States and UTs to deregulate fruits and vegetables outside the marketing yards is, if implemented, expected to promote more and more such channels. Such measures could help reduce the role of middle men and more such channels. Such measures could help reduce the role of middle men especially where there is no value addition. Further, Small Farmers Agri Business Consortium (SFAC) is promoting formation of Farmer Producers Organisations (FPOs) to enable farmers to get the benefit of aggregation specially for market linkages. Other measures are implementation of schemes for creation and strengthening of marketing infrastructure including scientific storage namely Agriculture Marketing Infrastructure (AMI) sub-scheme of Integrated Scheme for Agricultural Marketing (ISAM) and Market Research Information Network (MRIN) scheme, under which information on prices and arrivals of agri commodities is disseminated through Agmarknet portal to farmers to enable them to take more informed production and marketing related decisions. This information was given today by the Minister of State for Agriculture, Shri Mohanbhai Kundaria in the Lok Sabha. Plantation of Fruit Bearing Trees The Department of Agriculture and Cooperation, Govt. of India is implementing the centrally sponsored scheme, Mission for Integrated Development of Horticulture (MIDH) for promotion of horticulture crops including fruit bearing trees like mango, guava, sapota, citrus etc. under area expansion programme. Under MIDH, assistance is provided for establishment of new gardens with integrated package and without integrated package. Under integrated package, assistance is provided up to the maximum of Rs.0.60 lakh per ha. (40% of actual cost) for meeting expenditure towards planting material, cost of drip irrigation, integrated nutrient management, integrated pest management and canopy management etc. For area expansion programme without integration, maximum of Rs.0.40 lakh per ha. (40% of actual cost) is provided for meeting the expenditure on planting material, cost of integrated nutrient management and integrated pest management. The above assistances are provided in three instalments with a maximum coverage of 4 ha per beneficiary. In case of North Eastern Himalayan States, Tribal Sub-Plan Areas, Andaman & Nicobar and Lakshadweep Islands, assistance will be at the rate of 50% of cost. National Mission for Sustainable Agriculture (NMSA) under Rainfed Area Development (RAD) provides financial assistance of 50% of input cost limited to Rs.25000/- per ha. for fruit bearing trees like mango, ber, guava, tamarind and jackfruit etc. up to 2 ha per beneficiary. The ‘Guidelines on Landscaping and Tree Plantations’ published by the Indian Road Congress provide for plantation of fruit bearing trees on both sides of National Highways, along with other species, based on the suitability of particular species to a particular climate and ground conditions. Ministry of Rural Development is implementing a scheme on Roadside Tree Plantation under Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). Fruit bearing as well as non fruit bearing trees are planted along National Highways. The selection of tree species is done in consultation with the local gram panchayat, forest/horticulture departments considering the suitability & availability of the plants. The cost incurred for a period of five years (1+4) is borne by MGNREGA and National Highways Authority of India (NHAI) in convergence. After five years period, the beneficiary (to whom tree patta is provided) takes care of the tree. This information was given today by the Minister of State for Agriculture, Shri Mohanbhai Kundaria in the Lok Sabha. Organic Spices Hub The Department of Agriculture and Cooperation under Government of India implements two schemes viz., Mission for Integrated Development of Horticulture (MIDH) and National Mission for Sustainable Agriculture (NMSA) for promotion of organic farming. Under MIDH, financial assistance is provided for horticulture crops including spices as per details given below :- For adoption of organic farming – 50% of cost limited to Rs.10000/- per ha. for a maximum area of 4 ha in three instalments. For organic certification – Rs.5 lakhs for a cluster of 50 ha. in three installments. For establishment of vermicompost units- 50% of the actual cost of Rs.1 lakh per unit for permanent structure i.e. Rs. 50000/- and 50% of the actual cost of Rs.16000/- per unit for high density poly ethylene vermibed i.e. Rs.8000/-. Financial assistance is provided to the States as per their proposals in the Annual Action Plan under organic farming component. Under NMSA, assistance is also extended for soil health management, agro vegetable waste compost production unit etc. The National Bank for Agriculture and Rural Development provides back ended subsidy for adoption of organic farming through cluster approach as well as through adoption of organic village under participatory guarantee system. Financial assistance to the tune of Rs.10 lakhs per village is provided for organic village adoption (maximum 10 villages per annum/state). Spices Board under the Ministry of Commerce and Industry is also promoting cultivation and export of organic spices from India with special emphasis on organic production of spices in North Eastern States. Various development programmes are being implemented by Spices Board by providing financial assistance to growers and growers groups producing organic spices. 50% subsidy is extended for various programmes like support for vermicompost units, setting up of bio-agent production units, organic seed banks (production of organic planting materials/nurseries), organic value addition/processing unit, organic farm certification assistance. 12.5% of cost of production subject to the maximum of Rs.12500/- per ha. is provided for organic cultivation of spices like ginger, turmeric, chillies, seed spices and herbal spices. This information was given today by the Minister of State for Agriculture, Shri Mohanbhai Kundaria in the Lok Sabha. Rural Cooperative Committees Financial condition of rural cooperative credit institutions including Primary Agricultural Cooperative Societies (PACS) have been impaired due to several factors which, inter-alia, include low resource base, poor recoveries, lack of business diversification, huge accumulated losses, lack of professionalism in the management, lack of skilled manpower poor internal control systems etc. A revival package for the Short Term Cooperative Credit Strcuture (STCCS) was approved by the Government of India in 2006. Assistance under the package was to be released in the phases, on completion of agreed benchmark activities, as per the Memorandum of Understanding (MoU) signed by respective State Governments with Government of India and National Bank for Agricultural and Rural Development (NABARD). The revival package provided financial assistance for cleansing of balance sheets of Primary Agricultural Cooperative Societies (PACS), District Central Cooperative Banks (DCCBs) and State Cooperative Banks (St CBs) as on 31.03.2004 and strengthening their capital base for attaining capital adequacy of 7% as on 31.3.2004. However, such financial assistance was contingent upon the State Governments bringing legal reforms encompassing amendment to Cooperative Societies Act, Rules and Bye laws to strengthen democratic and autonomous functioning and supremacy of the elected Board and institutional reforms to build up proper accounting, monitoring and internal control systems in the cooperative credit institutions with computerization. As per MoU, the period of implementation of Revival Package was for three years from the date of signing of MoU, which was extended till 30.06.2011 for all the States. The package was closed on 30.06.2011. The Government of India had released an amount of Rs. 9245.27 crore under the package. This information was given today by the Minister of State for Agriculture, Shri Mohanbhai Kundaria in the Lok Sabha. Farmer Producer Companies Small Farmers Agri-business Consortium (SFAC) was mandated by Department of Agriculture and Cooperation, Ministry of Agriculture, Govt. of India, to support the State Governments in the formation of Farmer Producer Organizations (FPOs). The initiative which started in 2011-12 under the two Central Sector Schemes of Vegetable Initiative for Urban Clusters (VIUC) and Integrated Development of 60,000 Pulses Villages in Rainfed Areas has expanded in its scope and covers special FPO projects taken up by some State Governments under general Rashtriya Krishi Vikas Yojana (RKVY) funds as well as under the National Demonstration Project under the National Food Security Mission (NFSM) and Mission for Integrated Development of Horticulture (MIDH). So far, 235 Farmer Producer Companies have been registered, and another 370 are in the process of mobilization. The total number of farmers covered in these two categories are 433198. In many of the Central Sector Schemes like National Vegetable Initiative for Urban Clusters (VIUC), Mission for Integrated Development of Horticulture (MIDH) and National Food Security Mission (NFSM) under which funds are allocated to States, there is a provision for promotion of Farmer Producer Organizations (FPOs)’. After Central allocations are made under these programmes to the States in a particular financial year, States prepare the Annual Action Plans for approval by the State Level Sanctioning Committee (SLSC) chaired by the Chief Secretary. In doing so, many of the States provide for adequate outlay for the FPO promotion component also, amongst others. After approval of the Action Plan by the SLSC, many of the States approach SFAC and transfer requisite funds to it for implementation of the FPO promotion work. In order to support the FPOs in terms of strengthening their capital base, SFAC has launched a new Central Sector Scheme “Equity Grant and Credit Guarantee Fund Scheme for Farmers Producer Companies” on 1st January, 2014. The Scheme has two major components: a) Equity Grant Scheme: A grant of upto Rs.10.00 lakh is provided to each registered Farmer Producer Company (which is registered under the special provision of the Companies Act) to mach the member equity raised by the institution. This will enhance the equity base of the FPC and enable it to approach financial institutions for raising working capital. b) Credit Guarentee Fund (CGF): The CGF will offer a cover of 85% to loans extended by banks to Farmers Producer Companies without collateral, upto a maximum of Rs.1.00 crore. This information was given today by the Minister of State for Agriculture, Shri Mohanbhai Kundaria in the Lok Sabha.