51 Chapter – 10
1. Name of the Mission / Scheme
Central Sector Integrated Scheme on Agricultural Co-operation 2. Type of the
Mission / Scheme i.e. CSS/CS/State Plan
Central Sector Plan Scheme
3. Year of
commencement of the Scheme
01.04.2014
4. Components of the Scheme
A. Assistance to National Cooperative Development Corporation
52 6. Salient Features of
the Scheme
Streamlining Cooperative marketing structure; diversification of activities; capacity building of cooperatives to undertake value addition;
enabling cooperatives to have storage / cold storage facilities; undertake business operations; improving activities in the allied areas like diary, poultry, fishery, coir, handloom and sericulture; involving grass-root level cooperatives in integrated area development; helping cooperatives in the cooperatively least developed and underdeveloped states and those of weaker sections through special programmes and schemes; providing appropriate managerial and technical inputs to cooperatives besides manpower/ skill development in cooperatives through training of middle level and senior level personnel of the cooperatives and state Government officials by NCCT and VAMNICOM. Implementation of special scheme for intensification of cooperative education and field projects through implementation of educational programmes for women, youth, minority community through the state cooperative unions, convening of Indian Cooperative Congress and other conferences, seminars etc. for cooperative develoment, international promotional activities, running of cooperative data bank, publication of books, journals etc., conducting training courses/workshops/seminars on various aspects of agricultural banking, promoting technical cooperation among sub regional countries of SAARC through CICTAB.
7. Structure of the Mission / Scheme
As mentioned under point No.4 above.
8. Leveraging the Role of Panchayati Raj Institutions (PRIs) to ensure their inclusiveness
in the
implementation of the Mission / scheme.
NCDC is being advised to involve Panchayati Raj Institutions in ensuring the genuineness of the applicant societies functioning in the rural areas before sanctioning funds to these Societies. Besides, implementing agencies will be advised to make efforts for convergence of the scheme
with other schemes of DAC&FW other
Departments/organizations/agencies/Panchayati Raj Institutions etc. to avoid any overlapping and duplication of subsidy linked assistance.
Further, Panchayati Raj Institutions (PRI) may be asked for dovetailing their funds / schemes with NCDC, NCCT, NCUI etc. for effective implementation of their schemes.
9. Funding Pattern of
the Mission / Scheme including subsidy, if any (componentwise )
Ministry of Agriculture, Department of Agriculture, Cooperation and Farmers’ Welfare would provide subsidy to NCDC in the pattern of 15%, 20% and 25% of the project cost in cooperatively developed, cooperatively under developed and cooperatively least developed States respectively. Remaining portion of the project cost would be met by NCDC from its own corpus as term loan / working capital loans. The overall outlay proposed for assistance to NCDC programmes for 12th Five Year Plan is Rs.3535 crores, out of which subsidy of Rs.802 crores including Rs.10 crores for assistance to National level Cooperative Federations / Multistate Cooperative Societies (MSCS) / will be provided by the Department of Agriculture, Cooperation and Farmers Welfare.
The Cooperative Education & Training Programmes will be implemented through National Cooperative Union of India (NCUI) and National Council for Cooperative Training (NCCT). For Cooperative Education Programmes, 50% of the expenditure will be met by the
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Government of India in the form of grants-in-aid to NCUI and the remaining to be met by the NCUI from Cooperative Education Fund.
Cooperative Training Programmes are conducted by NCCT and VAMNICOM, Pune . Interest income on corpus fund of Rs.200 crores provided by the Department of Agriculture & Cooperation to NCCT will be utilized and thereafter gap in resources to be filled by Government of India in the form of grants in aid to NCCT. Besides, assistance in the form of grants-in-aid will also be provided to VAMNICOM, Pune for the training of senior level personnel of co-operative organizations and State Governments and to Junior Cooperative Training Centres for the training of personnel of base level cooperative organizations.
Assistance will also be provided for conducting training programmes / workshops / seminars by the Centre of International Cooperation and Training in Agriculture (CICTAB). The total outlay approved (grant-in- aid) for cooperative training and education during the 12th Plan is Rs.118.08 crores.
10. Names of the States / UTs / Districts where the Scheme is being implemented
The scheme will be implemented throughout the country.
11. Eligibility for the Mission Scheme
The scheme primarily envisions for development of agricultural cooperatives. However, cooperatives in the field of fisheries, tribal / SC
& ST / Hill Areas, dairy, poultry, handloom, coir, jute & tobacco, sericulture, women and labour have also been identified by NCDC for assistance. Co-operative training and education programmes will continue to be implemented through NCUI, NCCT, VAMNICOM &
CICTAB for all stakeholders involved in the cooperative system.
12. Procedure to apply
under the
Scheme
The Cooperatives can avail assistance from NCDC through the respective State Government and also directly subject to fulfilment of eligibility criterion indicated at S.No.11 above and the ability of the cooperative in providing security to the satisfaction of NCDC. Co- operative Organizations need to contact NCUI , NCCT, VAMNICOM &
CICTAB, for conducting/ availing co-operative education and training programmes.
13. Outlay
(BE for 2018-19)
Rs.114.50 crore for Restructured Central Sector Scheme for Assistance to NCDC Programmes for Development of Cooperatives.
Rs.14.50 crore for Cooperative Education and Training.
14. Person(s) to be contacted.
(1) Joint Secretary (Coopn.)
(Shri Abhilaksh Likhi)
Department of Agriculture, Co-operation and Farmer’s Welfare, Krishi Bhawan, New Delhi
Tel. No. 23381503 E-mail ID: - [email protected]
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(2) Shri H.Kam Suanthang, Director (Co-operation),
Department of Agriculture, Co-operation and Farmer’s Welfare, Krishi Bhawan, New Delhi
Tel. No.23381507
E-mail ID: - [email protected]
(3) Sh. S.K. Jha, Under Secretary (Cooperation),
Department of Agriculture, Co-operation and Farmer’s Welfare, Krishi Bhawan, New Delhi
Tel. No.23389357
E-mail ID: - [email protected] (4) Shri Sundeep Kumar Nayak,
MD, NCDC, Hauz Khas, New Delhi- 110 016.
Tel. No.26510314
E-mail ID: - [email protected] (5) Sh. Mohan Kumar Misra,
Secretary, NCCT, 3, Siri Institutional Area, Hauz Khas, New Delhi - 16.
Tel. No.26512062
E-mail ID: - [email protected]
55 Price Support Scheme (PSS)
The DAC&FW implements the PSS for procurement of oil seeds and pulses through National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED) and Small Farmers’ Agri-Business Consortium (SFAC) which are Central nodal agencies. NAFED is the central nodal agency for procurement of cotton also under PSS. Central agencies undertake procurement of oil seeds, pulses and cotton under the PSS as and when prices fall below the MSP. Procurement under PSS is continued till prices stabilize at or above the MSP. Losses, if any incurred by central agencies in undertaking PSS operations are reimbursed by the central government. Profit, if any, earned in undertaking PSS operations is credited to the central government.
Market Intervention Scheme (MIS)
The Market Intervention Scheme (MIS) is implemented for procurement of horticultural commodities which are perishable in nature and are not covered under the Price Support Scheme. The objective of intervention is to protect the growers of these commodities from making distress sale in the event of a bumper crop during the peak arrival period when the prices tend to fall below economic levels and cost of production. The condition is that there should be either at least a 10 percent increase in production or a 10 percent decrease in the ruling market prices over the previous normal year. The MIS is implemented at the request of a state / UT government which is ready to bear 50 percent of the loss (25 percent in case of North-Eastern States), if any, incurred on its implementation. The extent of total amount of loss to be shared on a 50:50 basis between the central government and the state government is restricted to 25 percent of the total procurement value which includes cost of the commodity procured plus permitted overhead expenses. Under the Scheme, in accordance with MIS guidelines, a pre-determined quantity at the fixed Market Intervention Price (MIP) is procured by NAFED as the Central agency and the agencies designated by the state government for a fixed period or till the prices stabilize above the MIP, whichever is earlier. The area of operation is restricted to the concerned state only.
56 Chapter-11 1. Name of the Mission/
Scheme
Integrated Scheme for Agricultural Marketing (ISAM)
(a) Sub-scheme:- Agricultural Marketing Infrastructure (AMI) 2. Type
Central Sector Scheme (CS)
3. Year of
commencement
2018-19 (in restructured form)
4. Components (i) Agricultural Marketing Infrastructure (AMI)
(ii) Marketing Research Information Network (MRIN) (iii) Strengthening of Agmark Grading Facilities (SAGF).
(iv) Agri-Business Development (ABD) (Venture Capital Assistance) (VCA)
(v) Choudhary Charan Singh National Institute of Agricultural Marketing (NIAM)
5. Objectives (i) AMI
To develop agricultural marketing infrastructure for effectively managing marketable surplus of agriculture including horticulture and of allied sectors including dairy, poultry, fishery, livestock and minor forest produce.
To promote innovative and latest technologies in agricultural marketing infrastructure.
To promote competitive alternative agricultural marketing infrastructure by encouraging private and cooperative sector investments.
To promote direct marketing so as to increase market efficiency through reduction in intermediaries and handling channels thus enhancing farmers’ income.
To promote creation of scientific storage capacity for storing farm produce, processed farm produce and agricultural inputs etc. to reduce post-harvest and handling losses.
To provide infrastructure facilities for grading, standardization and quality certification of agricultural produce with the objective of (a) ensuring a price to the farmers commensurate with the quality of the produce and (b) promoting pledge financing and marketing credit, negotiable warehousing receipt system and promotion of forward and future markets to increase farmers’ income.
To promote Integrated Value Chains (confined up to primary processing stage only) to provide vertical integration of farmers with primary processors. Primary processing means adding value to the produce without change in its form and may include washing, sorting, cleaning, grading, waxing, ripening, packaging, labelling etc.
To create general awareness and provide training to farmers, entrepreneurs market functionaries and other stakeholders on various aspects of agricultural marketing including grading, standardization and quality certification.
57 (ii) MRIN :
To establish a nation-wide information network for speedy collection and dissemination of market information.
To facilitate collection and dissemination of information for better price realization by the farmers.
To sensitize and orient farmers to respond to new challenges in agricultural marketing by using Information and Communication Technology (ICT).
To improve efficiency in agricultural marketing through regular training and extension for reaching region-specific farmers in their own language.
Linking of all important agricultural markets of the country.
Daily prices and arrivals of more than 300 commodities and 2000 varieties are reported on the portal.
(iii) SAGF :
To help farmers get better and remunerative prices by grading of their produce.
To frame grade standards of agricultural commodities as per the provisions in Agricultural Produce ( Grading and Marking ) Act,1937.
To implement AGMARK certification programme for commodities for which grade standards are notified for domestic trade and for exports.
To analyse research samples for creating analytical data base for the framing /revision of grade standards of agricultural commodities.
(iv) Agri-Business Development (ABD)/Venture Capital Assistance (VCA) :
- The Scheme is providing interest free start-up Venture Capital to entrepreneurs, to fill the gap in the means of finance and leverage private and institutional investments in agri-business activities. The purpose of providing Venture Capital is to introduce a catalytic agent to create a conductive environment for mobilization of private and institutional investment in the agribusiness sector for setting up of small / medium enterprises by entrepreneurs and FPOs, backward linkages with farmers, this increasing their income and generating employment in rural areas by supporting the value chain.
(v) : NIAM
- Choudhary Charan Singh National Institute of Agricultural Marketing (NIAM) also an autonomous organisation under DAC&FW, provides training, research and consultancy and conducts educational programme in agriculture marketing sector.
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6. Salient Features The scheme has been designed to provide for enhanced market information, infrastructure, strengthen storage & non storage to reduce post harvest losses, training and skill development and develop virtual unified National Agri Market quality and capacity building for an evolving agri-market scenario.
There is a need to translate self-sufficiency in food production into better remuneration for the producers by increasing focus on agricultural marketing sector. The agricultural marketing sector requires strengthening of supply chain through investments in infrastructure for value addition to agricultural produce, reduction in post- harvest losses, etc. The XII Plan Working Group on ‘Agricultural Marketing Infrastructure, Secondary Agriculture and Policy Required for Internal and External Trade’ has estimated an investment requirement of Rs.56,000 crores for marketing infrastructure and value chain development and a requirement of 35 million MT storage capacity during XII Plan period.
Linkage to agri market reforms :- AMI
State agency projects of those States/Union Territories that have undertaken reforms in their respective APMC Acts to allow/permit (i) ‘Direct Marketing’, (ii) ‘Contract Farming’ and (iii) agricultural produce markets in private and cooperative sectors, will be eligible for assistance under the sub-scheme.
State Agency projects are those promoted by State Government Departments like State Agricultural Marketing Departments, State Agricultural Marketing Boards, Agricultural Produce Market Committees, State Warehousing Corporations, State Civil Supplies Corporations etc.
However, notwithstanding the reform status, State agencies in all States/ UTs will be eligible to avail assistance for storage infrastructure projects.
Projects promoted by private entrepreneurs other than State agencies will however be eligible to avail assistance under the sub-scheme, irrespective of the reforms undertaken by the State Government/UTs in their respective APMC Acts.
MRIN
To establish a nation-wide information network for speedy collection and dissemination of market information.
To facilitate collection and dissemination of information for better price realization by the farmers.
SAGF
SAGF sub scheme of the ISAM Scheme is an ongoing plan scheme o support grading and marking of agricultural produce, which involves framing of grade standards and certification of agricultural
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commodities included in the Schedule of the Agricultural Produce (Grading and Marking) Act, 1937.
Agri-Business Development (ABD) Venture Capital Assistance (VCA)
SFAC would provide Venture Capital to qualifying projects on the recommendations of the Notified Financial Institution financing the project. This venture capital will be repayable back to SFAC after the repayment of term loan of lending Notified Financial institution as per original repayment schedule or earlier.
7. Structure The sub scheme are implemented by (1) The Directorate of Marketing
& Inspection (DMI) an attached office of DAC&FW implements the three sub schemes viz. Agricultural Marketing Infrastructure (AMI), Marketing Research and Information Ntwork (MRIN) and Strengthening of Agmark Grading Facilities (SAGF).
(2) Small Farmers Agri-business Consortium (SFAC), an autonomous organisation, implements the sub scheme of e-NAM and Agri-Business Development (ABD)
(3) Choudhary Charan Singh National Institute of Agricultural Marketing (NIAM), also an autonomous organization under DAC & FW, provides training, research and consultancy in agri marketing sector.
8. Role of Panchayati Raj Institution (PRLs)
The sub-schemes/autonomous organizations are marketing/
grading/research/information dissemination /consultancy oriented. It aims at reforming agri-marketing systems --- Panchayati Raj Institutes (PRIs) will have an important role in ensuring that the infrastructure created / proposed is used for the purpose for which it is designed. To enable PRIs play this role effectively, District Panchayats will be kept informed by DMI, Regional/ Sub-offices, of all the projects approved and subsidy disbursed in their areas. District Panchayats may share this information with concerned Block / Gram Panchayats. In areas where part IX of the constitution does not apply, this information with be shared with equivalent rural local bodies.
9. Funding Pattern of the Mission/Scheme including Subsidy, if any, (component- wise)
AMI:
The sub scheme envisages back-ended capital subsidy for investment in eligible storage, marketing infrastructure projects is as under:
FOR STORAGE INFRASTRUCTURE PROJECTS:
Capital cost of the project for the purpose of subsidy will be calculated on the project cost as appraised by financial institution or actual cost of eligible components as certified by a Chartered Accountant, whichever is lower subject to the subsidy ceiling per MT as well as overall ceiling given below:
For renovation of storage projects by cooperatives financed by NCDC and Cooperative banks subsidy will be 25% of the project cost as appraised by FI or actual cost whichever is lower subject to subsidy ceiling of Rs. 187.50 per MT of storage capacity.
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Cost norms for computing subsidy for silos will be same as for other storage infrastructure.
Category Rate of Subsidy (on capital cost)
Subsidy ceiling 50- 1000 MT in Rs./MT
More than 1000 MT and up to 30000 in Rs./MT
Maximum ceiling (Rs.
Lakhs) A) North
Eastern States, Sikkim, UTs of Andaman &
Nicobar and Lakshadweep Islands, hilly*
areas
33.33% 1333.20 1333.20 400.00
B) In other Areas 1. For Registered
FPOs, Panchayats, Women, Scheduled Caste (SC)/
Scheduled Tribe (ST)
entrepreneurs or their
cooperatives**/
Self-help groups
33.33% 1166.55 1000.00 300.00
2. For all Other categories of beneficiaries
25% 875/- 750/- 225.00
* Hilly area is a place at an altitude of more than 1,000 meters above mean sea level.
** SC/ ST Cooperatives to be certified by the concerned officer of the State Government.
FOR INFRASTRUCTURE PROJECTS OTHER THAN STORAGE INFRASTRUCTURE:
Capital cost of the project for the purpose of subsidy will be calculated on the Project cost as appraised by financial institution or actual cost of eligible components as certified by a Chartered Accountant, whichever is lower.
Category Rate of
Subsidy (on capital cost)
Maximum Subsidy Ceiling (Rs. in lakhs)
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* Hilly area is a place at an altitude of more than 1,000 meters above mean sea level.
** SC/ ST Cooperatives to be certified by the concerned officer of the State Government
MRIN :
Financial support for organizing training, research, awareness and sensitization campaign to state Govt. organization.
Provision of financial incentive @ Rs 1000/- per month to the APMC Personnel & State level Monitoring Official for uploading data in the portal for more than 20 days in a month.
Agri-Business Development (ABD):
SFAC would provide venture capital to agri-business projects by way of soft loan to supplement the financial gap worked out by the sanctioning authority of term loan under Ministry of Finance with respect to cost of project.
Choudhary Charan Singh National Institute of Agricultural Marketing (NIAM)
DAC & FW provides annual grant in aid to NIAM.
A) North Eastern States, Sikkim, States of Uttrakhand, Himachal Pradesh, Jammu & Kashmir, UTs of Andaman & Nicobar and Lakshadweep Islands, hilly* and tribal areas
33.33% 500.00
B) In Other Areas
1. For Registered FPOs, Panchayati Raj Institutions, Women farmers/
entrepreneurs, Scheduled Caste(SC)/
Scheduled Tribe (ST) entrepreneurs and their cooperatives**
33.33% 500.00
2. For all Other categories of beneficiaries
25% 400.00
10. Names of the States/UTs/Districts
where the
Mission/Scheme is being implemented.
The scheme is being implementing throughout the country including Union Territories.
11. Eligibility for the Mission/Scheme
AMI :-
Assistance under the sub scheme will be available to:
Individuals, Group of farmers / growers, Registered Farmer Producer Organisations (FPOs);
Partnership/ Proprietary firms, Companies, Corporations;
Non-Government Organizations (NGOs), Self Help Groups (SHGs);
Cooperatives, Cooperative Marketing Federations;
Autonomous Bodies of the Government, Local Bodies (excluding