National Conference on Agriculture For Kharif Campaign2009

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National Conference on AgricultureFor Kharif
Campaign-2009
POST-HARVEST MANAGEMENT MARKETING
By Shri Rajendra Kumar Tiwari Joint
Secretary Department of Agriculture and
Co-operation Ministry of Agriculture
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Agricultural Markets in India

• No. of Regulated wholesale Markets 7566
• Rural Primary markets
  20,887
• Average area served by a market 116 sq km
• Average, area served by regulated market 435 Sq
  Km
• Recommendation by National Farmers Commission
  availability of markets within an area of 5 Km
  radius
• (approx. 80 sq km)
• Area served per Regulated Markets varies from 115
  Sq Km in Punjab to 11215 Sq Km in Meghalaya.

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Challenges Ahead

• Reforms in Agricultural Marketing Adopt model
  Acts Rules
• Encourage Private and Co-operative Sectors in
  market development
• Improvement in post-harvest management through
  adoption of appropriate technology practices
• Improving forward backward linkages and supply
  chain
• Providing farmers with access to market
  information

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POST HARVEST MANAGEMENT- A PERSPECTIVE Perisha
ble Agricultural produce (including that from
horticulture, dairy, fisheries and animals)
Losses - Dairy 1 - Food grains 10
- Horticulture 30-40
600 M.MT
gt Estimated Rs. 80,000 Crore annually
Loss can be reduced substantially by providing
appropriate Post Harvest Technology
Management (Cleaning, Sorting, Grading, Drying,
Cooling, Packaging, Storage, Milling, Refining
etc ) in value chain
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Status of Agricultural Marketing Reform
(Progress of APMC Act Amendments)
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STATUS OF MARKET REFORMS

• Professional management of APMCs
• Nagaland, Sikkim
• Single point levy of Market fee
• Chattishgarh, Gujarat,
  Goa,H.P., M.P., Nagaland,
• Sikkim, Punjab, UT of Chd.
• Provision for Non-alienation of land in Contract
  Farming
• Arunachal, Assam, Goa, Haryana,
  Maharastra,
• Nagaland, Orissa, Rajasthan,
  Sikkm, Tripura, A.P.,
• Karnatak, Jharkhand
• Setting up Standards Bureau Extension Cell in
  Boards
• Nagaland, Sikkim, Karnatak

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Major Initiatives

• Marketing Research and Information Network (MRIN)
  AGMARKNET
• -- To provide ICT based Info (Mkt
  Price) to Farmers
• -- To cover 360 wholesale markets
  during XI Plan by way of computer connectivity
• -- Daily arrival and prices of 300
  commodities from more than 1900 markets in
  10 languages
• Gramin Bhandaran Yojana
• -- Credit-linked back-ended subsidy
  scheme
• -- Creation of Scientific Storage
  capacity in rural areas mainly to avoid distress
  sale by farmers
• Marketing Infrastructure Development
• -- Reform-linked
• --Capital investment subsidy scheme for
  development of new Infrastructure projects,
  upgrade wholesale markets/rural primary markets
• --Beneficiaries Individual
  Entrepreneur, Cooperatives, State Agencies
• Venture Capital Scheme
• --Venture Capital assistance to
  farmers/producers group for setting up
  Agribusiness Ventures
• Terminal Market Complex Scheme
• --Subsidy to P.E. through NHM/SHM for
  establishing TMC

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Status of Marketing Research and Information
Network Scheme as on February,2009
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AGMARKNET- Problems Specific to States

• States with inadequate Computer Connectivity
• Data Reporting
• Bihar(35,100)
• Gujarat(48,50)
• Haryana(40,40)
• JK(37,66)
• Kerala(55,48)
• U.P. (35, 63)
• W.Bengal (23,37)

• States with inadequate Data Reporting
• Maharashtra (30)
• Punjab (18)
• Rajasthan (33)
• Tamil Nadu (21)
• Arunachal (100)
• Mizoram (100)
• Nagaland (100)
• Sikkim ( 100)
• Rest NER States (lt50)

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Progress of Marketing Infrastructure Scheme
during X Plan and XI Plan
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Venture Capital Assistance (SFAC)

• Objective
• TO CATALYZE PRIVATE INVESTMENT IN SETTING UP OF
  AGRI-BUSINESS PROJECTS FOR EXTENDING ASSURED
  MARKET TO FARMERS FOR THEIR PRODUCE AND
  INCREASING RURAL INCOME AND GENERATING EMPLOYMENT
• Financial Assistance
• Max. 10 of PROJECT COST or 26 of PROJECT
  EQUITY subject to normal ceiling of Rs 75.00
  Lac.
• HIGHER AMOUNT OF ASSISTANCE FOR PROJECTS IN HILLY
  AND NORTH EASTERN STATES AND PROJECTS
  RECOMMENDED BY STATES / SFACS CAN BE CONSIDERED
• Observations
• States of Maharashtra, Karnataka, T.N., Gujarat,
  Kerala, JK. are relatively better performing
  States
• No projects in the States of Bihar, Orissa,
  Rajasthan

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Terminal Market Complex

• Subsidy Scheme under NHM to promote private
  investment
• Change of financial assistance pattern
  from equity participation to subsidy assistance
• through NHM/SHM to P.E. Subsidy from
  25 to 40 of project cost with subsidy
  ceiling of Rs 50.00 crore.
• Provision of land by State Govt
• Provision upto 26 of equity for Producer
  Association
• Hub-and-Spoke Format Terminal Market (the hub)
  to be linked to number of collection centres (the
  spokes).
• Collection centres (Spokes) to be conveniently
  located at key production centres to allow easy
  access and linkages to farmers
• Provide state of art facilities for
• electronic auction,
• grading, washing and packing lines,
• processing and exports,
• banking, other services etc.
• Commodities to be covered include
• Fruits and vegetables, Flowers, aromatics, herbs
  and Spices
• Meat, Poultry, Fish, Dairy
• Grains, Pulses, Oilseeds,

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POST HARVEST TECHNOLOGY MANAGEMENTSCHEME

• MAIN COMPONENTS
• Establishment of units for transfer of primary
  processing technology, value addition, low cost
  scientific storage, packaging units and
  by-product management in the production
  catchments under tripartite agreement.(40
  assistance limited to Rs 4.00 lac.)
• Establishment of low cost PHT units/supply of PHT
  equipments with Government assistance.(40 of
  total cost of up to Rs 2.00 lac.)
• Demonstration of technologies. (Initially 100
  grant-in-aid for purchase of technology)
• Training of farmers, entrepreneurs and Scientists.

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Post Harvest Management Scheme under NHM

• Under NHM during 2005-06 to 2008-09, total 952
  pack houses,65cold storage units,1 CA storage
  unit,21 refrigerated vans,162 units of
  mobile/primary processing units have been set up.
• Major States which are yet to Use PHM Component
  Bihar, Chhattisgarh, Jharkhand, Kerala, M.P.,T.N.

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Issues for Discussions

• Expedite the process of market reforms by
  bringing amendment on the lines of Model Act
  and Rules.
• Operationalize and ensure regular reporting of
  market data in the interest of farmers and other
  market participants
• To promote standardization grading of
  agricultural commodities and promote producers
  level grading
• To promote Private investment in setting up
  wholesale markets, terminal markets, Direct
  Marketing and Contract Farming
• To develop cold chain to ensure better
  marketability of fruits vegetables
• Progress of Marketing Infrastructure and Rural
  Godown Schemes are slow in NE Region and States
  of Goa, JK, Jharkhand, Uttarakhand

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THANKS
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COLD CHAIN STATUS IN INDIA

• Cold Chain is symbolized by Cold Stores in India
• 5100 Cold Stores with 21M.MT capacity-Av.
  Capacity 3900MT
• UP WB accounts for more than 60
• More than 80 are stand-alone Potato Cold Stores
• Only 0.2 cold stores are for FV
• Use of very low level technology results in high
  electricity use
• Average utilization 6 months a year

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Recommendations of Task Force on Cold Chain
Development in India

• Creation of Additional Infrastructure Capacity
• -- Integrated Pack House, Controlled
  Atmospheric Store, Ripening Chamber, Cold
  Stores
• -- Up gradation of existing potato
  cold stores
• Creation of Mega Perishable Commodity Centers
• Creation of Special Purpose Vehicle for Cold
  Logistics
• Creation of Multi-modal National Green Grid
  System
• Creation of National Centre of cold Chain
  Development (NCCD)
• Subsidy be Linked to Standardized Infrastructure
• Encouraging Use of Renewable source of energy in
  Cold Chain