Marketing Strategy of Bank of Maharashtra

Document Sample
Marketing Strategy of Bank of Maharashtra Powered By Docstoc
					      WORLD BANK FUNDED




         MAHARASHTRA
        AGRICULTURAL
   COMPETITIVENESS PROJECT
               (MACP)




PROJECT IMPLEMENTATION PLAN (PIP)




  GOVERNMENT OF MAHARASHTRA


         Date: 20th August, 2010




                    1
     MAHARASHTRA AGRICULTURAL COMPETITIVENESS PROJECT (MACP)
                           PROJECT IMPLEMENTATION PLAN (PIP)
                                             CONTENTS

Chapter No.        Component / Subcomponent                                     Page No.
    I(i)           Introduction                                                    3
    (ii)           Project Development Objectives                                  6
    (iii)          Project Design                                                  8
     II            Project Components
Component A : Intensification and Diversification of Market Led Production
    A.1            Market Led Agricultural Technology Transfer                    16
                   Institutional Strengthening for Market Led Agricultural
          A.1.1                                                                   20
                   Technology Transfer
                   Preparation and Implementation of Production and Marketing
          A.1.2                                                                   26
                   Strategies
    A.2            Agri Business Promotion Facility                               41
    A.3            Market Information Services                                    55
    A.4            Livestock Support Services                                     74
Component B: Improving Farmer Access to Markets
    B.1            Promoting Alternative Markets                                  85
          B.1.1    Product Aggregation and sale through Producers Association     87
          B. 1.2   Warehouse Receipts Development                                 101
          B. 1.3   Rural Haat Markets                                             111
          B. 1.4   Introducing E-Marketing Platforms                              122
    B.2            Modernizing Existing Markets                                   126
          B.2.1    Modernizing Wholesale Markets                                  127
          B 2.2    Upgrading Livestock Yards                                      147
Component C: Project Management
      C. 1         Project Coordination Unit and Project Implementation Units     154
      C. 2         Environmental & Social Management                              160
      C. 3         Procurement                                                    169
      C. 4         Financial Management                                           179
      C. 5         Monitoring and Evaluation                                      191
      C. 6         Governance and Accountability Arrangements                     197
                   List of Abbreviations                                          215
                                                 ***




                                                   2
                                     I. (i) INTRODUCTION
1. The Maharashtra State is spread over an area of 3.07 Lakh Sq. km. The total population of the
   State is 10.3 Crore (estimated 2004-05), out of which, 57.8 % population is dependent on
   agriculture. Agriculture plays an important role in the State’s economy. The total number of
   farmers in the State is 1.66 Crore, of which, 43 % and 27 % are small farmers and marginal
   farmers, respectively. The average land holding is 1.66 Ha.
2. In the year 2008-09, the area under cultivation in the State was 22.66 Million Ha, which is
   73.66 % out of the total physical area of 30.76 Million Ha. In the same year, the area under
   irrigation was 4.03 Million Ha, which is 17.78%. The food crops including cereals and pulses
   occupy 12.91 Million Ha (56.97%) area. The important Kharif crops are sorghum, millets, rice,
   pulses, soybean, groundnut, sunflower, sesame and cotton, while wheat, yellow gram,
   sunflower are grown in Rabi season. Sugarcane is also grown on a large area in the State. In the
   year 2008-09 the production of fruits, viz., grapes, mangoes, banana, oranges, sweet lime and
   pomegranate was 100.54 Lakh tonnes, and, the vegetable production had reached the level of
   77.29 Lakh tonnes per annum.
3. The productivity of important crops in the State is low as compared to average productivity of
   these crops with national averages and averages for many other states. The productivity in other
   sectors of agriculture like Animal husbandry, Dairy, Fisheries is also low as compared to
   National Averages. The productivity levels in Agriculture are low mainly because irrigated area
   is low, most of the area is rainfed and though technology is available, it is not being fully
   adopted and improved practices are not followed to the full extent by farmers.
4. The data on arrivals of different commodities in Agriculture Produce Market Committees
   (APMCs) show that there is a good amount of marketable surplus in the State. The data relating
   to total arrivals of different commodities and total value of the same for the year 2008-09 are
   presented below.
      Sr. No.                                Item                              Units      Particulars
         1      No of APMCs in State (Main Market Yards)                      Number              294
         2      No of Sub Market Yards in State                               Number              612
         3      Total Arrivals                                                Lakh MT             239
         4      Total Value                                                   Rs. Crore     32567.00
         5      Total Cess Collected                                          Rs. Crore        290.68
         6      Supervision fee paid to State Govt. @ 5 Paise / Rs.100 sale   Rs. Crore         15.00
         7      Total No. of APMCs in surplus                                 Number              241
         8      Amount of surplus                                             Rs. Crore        131.18
         9      Total No. of APMCs in deficit                                 Number               53
        10      Amount of deficit                                             Rs. Crore         20.33

5. Though there is a good amount of marketable surplus in the state, the producers do not get
   reasonable price for their produce because of serious deficiencies in the present agricultural
   marketing system. The present marketing system is placed with certain shortcomings, viz., i)
   Value chain is too long and fragmented and therefore, particularly in perishables, share of the
   producer in the consumer’s rupee is very low (it is at times as low as 20%), ii) Lack of
   standardization and enforcement of quality and grades, iii) Insufficient and ineffective services
   to the farmers regarding inputs and information, iv) Lack of facilities of grading, packing, cold
   storage and processing, v) Inadequate transparency in marketing and vi) Lack of private sector
   investment. This results in stress to the farmers.
6. This problem could be better addressed through different interventions resting on two pillars,
   viz., i) Improving Extension support to farmers, and, ii) Improving Agricultural Marketing.
Improving Extension support to farmers

                                                       3
7. During the mid-nineties, the GOI and WB explored a new approach to extension. The result
   was a new, decentralized extension approach to focus directly on agricultural diversification
   and increasing farm income and rural employment. The innovative model revolved around an
   agency called “Agricultural Technology Management Agency (ATMA)”. ATMA was
   introduced at the district level to integrate extension programme across the line departments,
   link research and extension activities, and, de-centralize decision making through bottom-up
   planning procedures. The concept envisioned involvement of farmers and private sector in
   planning and implementation of extension programme at block and district level. The GoM has
   already started implementation of the ATMA model in all the 33 districts of the State. The
   project was initiated under the WB sponsored “National Agriculture Technology Project
   (NATP)” in 1998 which covered 4 districts, viz., Ahmednagar (1998-99), Amravati (1999-
   2000), Aurangabad (2000-01) and Ratnagiri (2001-02). It has been extended to additional 15
   districts in 2005-06 under the Central Government scheme, “Support to Extension Reforms”.
   The ATMA model was introduced during 2007-08 under the aegis of WB assisted
   “Maharashtra Water Sector Improvement Project (MWSIP)” to Raigad, Nasik, Dhule, Jalgaon,
   Solapur, Satara, Beed, Parbhani, Nanded, Osmanbad, Nagpur, Bhandara, Gondia and
   Chandrapur Districts. Washim, Amrawati, Wardha, Akola, Buldhana and Yavatmal Districts,
   which were not already covered by ATMA, were also included in this project in 2006-07. Thus,
   the ground work for implementing de-centralized extension through ATMA has been done. The
   implementation experience has brought out certain inadequacies which need to be addressed to
   make the extension more effective.
8. The public agricultural extension system needs improvement at all levels. The knowledge and
   expertise of qualified and experienced scientists of Agricultural Universities, Research
   Institutes, NGOs, Private Sector, and Senior Specialists from Agriculture and other Line
   Departments would be tapped to provide training to the district, taluka and village extension
   workers, as well as the farmers. Greater emphasis should be given to working more closely with
   farmers on topics such as improved production practices, improving productivity, quality
   production, post harvest techniques, processing, market information, market intelligence and
   adoption of marketing techniques. Modern participatory extension methods based on farmers
   groups and associations would be introduced. ATMA has become weak after the closure of
   NATP project. ATMA is also considered as the scheme of Agriculture Department, though
   Agriculture as an activity includes Crop Husbandry, Horticulture, Animal Husbandry, Dairy,
   Fisheries, and Agricultural marketing. Therefore, ATMA needs to encompass the extension
   activities of all these line departments, if it has to be an effective instrument of knowledge
   dissemination to the farmers.
Improving Agricultural Marketing
9. The key element of Maharashtra Government’s agriculture sector strategy is based on overall
   strategy of GoI relating to agriculture which stipulates 4% annual growth rate in this and allied
   sectors.
10. To ensure better returns of produce to the farmers, agriculture marketing sector needs
   strengthening for which GoM has clear policy embodying long term vision for Agriculture
   Marketing. The GoM has the Vision: “To develop vibrant, transparent, competitive agricultural
   marketing system in Maharashtra by 2015, in which private sector will have very decisive role,
   and, the State acting as facilitator, resulting in better price to producers, non exploitation of the
   consumers, creating huge employment in the sectors allied to agriculture emerging out of
   backward and forwards linkages, which will help the economy to grow at faster pace”. The
   GoM’s policy envisages reduction in the number of commodities which can be regulated over a
   period of time. As on 31/3/2010 the number of commodities included in the schedule
   (Maharashtra Agriculture Produce Marketing (Development and Regulation), Act, 1963 ) which
   can be regulated is 138.

                                                   4
11. Some of the major constraints in achieving better results in these sectors are: (i) Lack of
    coordination among concerned line departments, (ii) No convergence of the schemes, (iii) The
    schemes implementation is not integrated, (iv) End to end approach is missing, (v) Inadequate
    availability of funds, (vi) Inadequate infrastructure in agricultural marketing system, (vii) Lack
    of adequate arrangements to carry the marketing information and marketing intelligence to the
    producers, (viii) Inadequate risk mitigation measures, and (ix) Lack of alternate marketing
    system, coupled with poor knowledge of agricultural marketing.
12. The State Government has already amended the Maharashtra Agriculture Produce Marketing
    (Development and Regulation), Act, 1963 (APMC Act) on the lines of Model Act on
    Agricultural Marketing circulated by Government of India (GOI). The amended Act provides
    for various reforms like provision for contract farming, direct marketing, establishing private
    markets and farmer-consumer markets.
Maharashtra agriculture Competitiveness Project (MACP)
13. The Maharashtra Agricultural Competitiveness Project (MACP) is proposed to address the
    issues mentioned above. Agriculture comprises of Crop Husbandry, Horticulture, Dairy,
    Animal Husbandry and Fisheries. The departments that are included in the Maharashtra
    Agriculture Competitiveness Project (MACP) are Agriculture, Animal Husbandry and
    Agricultural Marketing. In view of National Dairy Plan and National Fisheries Development
    Project being formulated at GoI, Sub-Components / activities pertaining to Dairy and fisheries
    have not been included in the project. Explanation: For this project Department of Agriculture
    means “Agriculture, Animal Husbandry, Dairy Development and Fisheries Department”,
    Animal Husbandry Department means “Agriculture, Animal Husbandry, Dairy Development
    and Fisheries Department”, and Cooperation & Marketing Department means “Cooperation,
    Marketing & Textiles Department”.
14. Agriculture as an activity is subjected to serious risk of natural conditions & price risk. Studies
    in this sector and in dairy and fisheries sectors have been proposed in the project which will be
    undertaken by independent consultants under the technical oversight of Agri Business
    Promotion Facility (ABPF) and the Project. The results of these studies so conducted, will be
    reviewed during the First Mid Term Review (MTR) of the project at the end of 2 nd year of the
    project. Based on the recommendations of studies decision whether to include activities relating
    to dairy, fisheries and agriculture insurance in the project for remaining four years would be
    taken.
15. The productivity improvement and production of improved quality of various agricultural
   produce is absolutely necessary to make agriculture viable. The thrust so far has been on
   increasing the productivity, and therefore, the extension machinery of the departments
   concerned was targeting to increase the production. Market led extension was totally lacking
   and this resulted in poor understanding of agricultural marketing by the concerned departmental
   agencies and the producers.
16.Various national programmes like Rashtriya Krishi Vikas Yojana (RKVY), National
   Horticulture Mission (NHM), and National Food Security Mission (NFSM) are implemented in
   the State. The proposed MACP, with the assistance of the WB, is one of the many steps being
   taken by the GoM, to address the various issues and constraints in development of agriculture.
   The components and subcomponents under MACP are based on the ingredients of the overall
   strategy of the State mentioned above. MACP aims to enhance the productivity in agriculture
   and improvement of quality production through capacity building of producers with the help of
   ATMA programs. In order to enable farmer to fetch competitive price for the agriculture
   produce, various alternative channels of marketing are proposed to be developed, besides
   strengthening the present marketing structure, by way of modernization.



                                                  5
              I. (ii) PROJECT DEVELOPMENT OBJECTIVES

1. The Project Development Objective (PDO) and overall objectives of MACP are outlined below.
   The Project proposes to improve the productivity and quality of produce in agriculture and
   allied sector by various interventions proposed under Component A. The objective of better and
   reasonable returns to the farmer of his produce can be achieved if the farmer access to the
   markets is improved. This has been proposed to be achieved by infrastructure development and
   creating alternative marketing channels under Component B. For management of Components
   A & B of the Project, Component C, i.e. Project Management is proposed.
2. Project Development Objective (PDO) is stated as “To increase productivity, profitability and
    market access of the farming community in Maharashtra.” The proposed MACP aims to
    achieve the following:
   i) Build on the reformed extension system based on Agricultural Technology Management
      Agency (ATMA) concept through training, capacity building and knowledge transfer to the
      farmers with emphasis on market-led extension.
   ii) Contribute in increasing productivity, and quality of production, diversification of enterprise
       and income of farmers, thereby improving opportunities for employment and livelihood
       support, both in farm and in the non farm rural economy.
   iii) Aim to increase private sector investment in agriculture and allied sectors, and, promote
        more effective use of the government funds already being allocated to the line departments
        for extension and adaptive research.
   iv) Improve competitiveness of farmers, to capture increased income generating potential
       associated with a shift in the demand towards high value agriculture and higher quality of
       produce to meet greater urban demand.
   v) Enable farmers to respond positively to the changes in emerging markets with the support
      for improved product quality, product standards and realization of value addition
      opportunities.
   vi) Assist the State Government to address the critical issues of linking farmers more
       effectively to the markets and to foster the development of efficient and competitive
       marketing systems.
   vii) Expand market opportunities for the farmers, diversifying marketing channels. It would
        establish and strengthen the backward and forward linkages for the farmers through
        Growers Associations and with the help of private partnership.
   viii) Encourage private investment in the markets and agri-business in the state.
3. Various components and sub components in MACP and their component-level objective can be
    enumerated as follows:
   Component A: Intensification and Diversification of Market led Production
     (i) A1: Market-led Agriculture Technology Transfer (Objective: To increase the productivity
          of agriculture production by adopting modern technology.)
     (ii) A2: Agri Business Promotion Facility (Objective: To create trained manpower to operate
          and manage the infrastructure facilities.)
     (iii)A3: Market Information Services (Objective: To improve market access for enhancing the
          marketing opportunities for farmers.)
     (iv) A4: Livestock Support Services (Objective: To strengthen sources of alternative income
          to farmers.)


                                                 6
   Component B: Improving Farmer Access to Markets
   (i)        B1: Promoting Alternative Markets
             B1.1: Product Aggregation and Sale through Producers Association (Objective: To
              provide improved post harvest handling facilities at village level.)
             B1.2: Warehouse Receipts Development (Objective: To improve the capacity of farmers
              on price risk mitigation.)
             B1.3: Rural Haat Markets (Objective: To strengthen alternative marketing channel of
              traditional rural haats.)
             B1.4: Introducing e-Marketing Platform (Objective: To establish e-trading as one of the
              alternative marketing channels.)

   (ii)       B2: Modernizing Existing Markets
           B2.1: Modernizing Wholesale Markets (Objective: To improve transparency in all
            APMCs and to provide basic and productive infrastructure.)
          B2.1: Upgrading Livestock Yards (Objective: To improve transparency in all Livestock
            Markets and to provide modern infrastructure.)
3. The various interventions are designed in MACP components and sub-components to achieve the
    PDO. The Project Outcome Indicators are enumerated below: (i) The share of wholesale and
    retail price received by the farmer, (ii) Changes in crop yields, (iii) Compliance with business
    standards by office of Director of Marketing, (iv) Degree of price integration across markets in
    Maharashtra, (v) Changes in farmers’ house-hold income in real terms.
4. The Intermediate Outcome Indicators are as follows: (i) Farmers adopting improved production
    techniques and management practices in agriculture, (ii) Increase in farm diversification, (iii)
    No. of agri-preneurs and PAs (FGs, if available) accessing govt. schemes, (iv) No. of farmers
    utilizing market information services via SMS, (v) Increase in no. of goats in the target area,
    (vi) Commodities aggregated through FGs and FCSCs, (vii) No. of farmers obtaining
    warehouse receipts, (viii) Volume and value of sales of market transactions in Rural Haats
    (RHs), (ix) Change in lease value of RHs, (x) Volume and value of sales of products traded
    through the E-marketing pilots, (xi) Volume and value of sales of market transactions in
    APMCs.
5. There are also some important Social and Environmental Indicators such as: (i) Volume of
    organic waste generated at targetted mandis, (ii) Representation of women and tribal in market
    management committees.
6. As regards to improved project management and satisfactory monitoring and evaluation
    following are the indicators: (i) Annual project plan prepared, submitted and approved, (ii)
    Monitoring reports of satisfactory quality submitted every six months, (iii) Submission of 2
    evaluation reports of satisfactory quality.
7. Considering the project development objectives the Project design has been developed which is
    described in the following chapter.
                                                  ***




                                                   7
                              I. (iii) PROJECT DESIGN

1. As mentioned in Chapter I (i), a lot of efforts are being put in by the State Government to
   increase the production with the help of technology up-gradation and dissemination of
   technology amongst the farmers. However there are critical gaps existing in the present system,
   described in Chapter I (i), because of which the producers are not in a position to get the
   reasonable value for their produce.
2. To address these critical gaps the following Components and Sub-components are proposed in
   the MACP. All the subcomponents have been considered in an integrated manner so that
   maximum benefit is achieved by the farmers.
Component A : Intensification and Diversification of Market Led Production
     A.1: Market Led Agricultural Technology Transfer
     A.2: Agri. Business Promotion Facility
     A.3: Market Information Services
     A.4: Livestock Support Services
Component B : Improving farmer Access to Markets
     B.1: Promoting Alternative Markets
     B.1.1 Product Aggregation and sale through Producers Association
     B.1.2 Warehouse Receipts Development
     B.1.3 Rural Haat Markets
     B.1.4 Introducing e-Marketing platforms
     B.2: Modernizing Existing Markets
     B.2.1 Modernizing Wholesale Markets
     B.2.2 Upgrading Livestock Yards
Component C : Project Management
     C.1 Project Co-ordination Unit (PCU) and Project Implementation Units (PIUs)
     C.2 Environnemental and Social Management
     C.3 Procurement Arrangements
     C.4 Financial Management
     C.5 Monitoring and Evaluation
     C.6 Governance and Accountability Action Plan (GAAP)
3. The various components and subcomponents of MACP mainly focus on the empowerment of
    farmers as the principal target group. However, the component wise principal target groups and
    their main project related outputs are enumerated in the following table.
             Component/          Principal Target         Main project-related output
           Subcomponent               Group
    Component A : Intensification and Diversification of Market Led Production
    Market Led Agricultural     Farmers,             Increased productivity, quality
    Technology Transfer         Extension            improvement of production and better
                                personnel            post harvest handling.
    Agri. Business Promotion    Farmers, PGs, PA, Intensification and diversification
    Facility                    specialised agric    options through advisory services
                                service providers,
                                agribusiness
                                entrepreneurs
    Market Information Services Farmers,             Farmers have improved access to
                                Extension            market information and increased
                                personnel            awareness of market opportunities.


                                                8
            Component/          Principal Target       Main project-related output
          Subcomponent               Group
    Livestock Support Services Farmers/          Sustainability of agriculture as a
                               Livestock         business improved because of
                               producers         subsidiary activity
    Component B : Improving farmer Access to Markets
    Promoting Alternative Markets
    Product Aggregation and    Farmers, PG &     Post harvest management improved and
    sale through Producers     PA                income to farmers increased.
    Association
    Warehouse Receipts         Farmers           Warehouse receipt credit is available to
    Development                                  the farmers and distress sale is reduced.
    Rural Haat Markets         Farmers,          Targeted markets are modernized and
                               Consumers,        farmer access to markets improved.
                               Traders
    Introducing e-Marketing    APMCs, Farmers, Congestion in APMC reduced and
    platform                   Traders           farmer gets advantage of larger market.
    Modernizing Existing Markets
    Modernizing Wholesale      APMCs, Farmers, Targeted markets are modernized and
    Markets                    Traders           farmer access to markets improved.
    Upgrading Livestock Yards  APMCs, Farmers, Targeted markets are modernized and
                               Traders           farmer access to markets improved.

4. The Objectives, Output & Outcome Monitoring Indicators, Policy & Regulatory Environment
    and Proposed / Completed Reforms, Selection Criteria, Activities to be Financed, Estimated
    Cost, Institutional & Implementation Arrangements, Funds Flow, Fiduciary & Safeguards
    Arrangements, Governance Risks & Mitigation Measures, and Sustainability are described in
    detail under each subcomponent.
5. Phase wise implementation: The project would be implemented in all the districts of the State in
    phased manner as shown below. After the commencement of the project all the subcomponents
    in First Phase districts will be initiated. The Second Phase will start one & half year thereafter
    and Third Phase after another one & half year.

                 Phase I                            Phase II                          Phase III
   Sr. No.                             Sr. No.                           Sr. No.
                 Districts                          Districts                         Districts
       1        Amaravati                 1          Nagpur                  1       Sindhudurg
       2          Akola                   2          Wardha                  2        Ratnagiri
       3         Washim                   3         Bhandara                 3         Raigad
       4        Yavatmal                  4          Gondia                  4          Thane
       5        Buldhana                  5        Chandrapur                5         Nashik
       6          Jalna                   6        Gadchiroli                6          Dhule
       7       Aurangabad                 7           Latur                  7         Jalgaon
       8        Parbhani                  8           Beed                   8        Nadurbar
       9         Hingoli                  9        Osmanabad                 9          Pune
      10       Ahmednagar                10          Nanded                 10          Satara
                                         11          Solapur                11          Sangli
                                                                            12        Kolhapur




                                                  9
A brief description of the components of this Project is given below:
Component A: Intensification and Diversification of Market Led Production.
6.     This component has four sub-components:
       A.1     Market Led Agricultural Technology Transfer
       A.2     Agri. Business Promotion Facility
       A.3     Market Information Services
       A.4     Livestock Support Services
7. Market Led Agricultural Technology Transfer: Besides infrastructure development proposed
   under Component B of the project, a number of activities of capacity building are proposed
   under the project so that infrastructure created under Component B is properly operated and
   managed and it gives maximum benefits to the farmers. The programmes of capacity building
   form Component A of the project are going to be implemented in the catchment areas of
   activities under Component B. The objective of this component is to promote intensification
   and diversification of agriculture (including crops, horticulture, and livestock) by
   mainstreaming the Agricultural Technology Management Agency (ATMA) model of extension
   and expanding its scope of activities to include marketing extension, so that improvement
   regarding productivity and quality of production is achieved and Farmer gets better value for
   his produce.
8. The present extension system is largely production centered and little attention is being paid to
   agricultural technology transfer. The capacity building programmes including training,
   demonstrations, field visits proposed under this component will give emphasis on transferring
   the agricultural technology. The extension machinery of Agriculture and Animal Husbandry
   dept. will also be reoriented to carry out agriculture technology transfer besides production
   oriented extension activities.
9. All ATMAs require considerable strengthening for effectively undertaking marketing extension
   and technology dissemination programs to improve competitiveness of agriculture in
   Maharashtra. There is no dedicated manpower for the ATMAs, and the ATMA program is
   being implemented as a stand alone scheme of the Commissionerate of Agriculture rather than
   as a program for promoting convergence and integration of the development and extension
   programs covering crops, horticulture and livestock at the district, block and village levels. The
   VANAMATI also does not have adequate resources for capacity building and mentoring of
   ATMAs in marketing extension. The coordination of the ATMA program with the Animal
   Husbandry department and Agriculture Marketing Department needs to be strengthened.
10. Agribusiness Promotion Facility (ABPF): Component B under the Project envisages
   improvement of the existing market infrastructure and creation of new infrastructure.
   Alternative markets will provide the producer the freedom to make choice of the market. Under
   Component A capacity building programmes have been proposed for improving productivity
   and quality enhancement. Considering the present level of agricultural production in the State,
   there is a tremendous potential for development of agribusiness activities. Agribusiness can
   provide additional support to the farmers by way of value addition, if these activities are taken
   up by the farmers / PGs / PAs / Farmers’ Cooperatives. Agribusiness activities will be related to
   agriculture production, per se, creating backward linkages, e.g. providing organic manure to the
   farmers, and, forward linkages, e.g. food grain handling unit to clean, grade and pack food
   grains. ABPF will be an independent agency which will work in close association with PCU of
   the Project. The ABPF will operate in the catchment areas of subcomponents under Component
   B.
11. The role of the ABPF is to create a body of knowledge, a network of producer / market linkages
    and an ongoing flow of useful information which will accelerate the economic development of
    agricultural sector of Maharashtra. There will be four major components for ABPF: i) Overall
                                                 10
   co-ordination and implementation of the program, ii) Conduct value chain studies, iii) Study
   new business models, and iv) Consultancy studies for (a) carrying out major studies on subjects
   like finance, policy and e-trading, (b) relatively short studies on implementation of APMC laws,
   (c) conducting seminars, workshops, and clinics, (d) bringing out publications, (e) providing
   trading support to PGs / FCSC agribusiness, and (f) training for ATMA business advisors, (g)
   The major Consultancy Studies by ABPF will include study of Dairy, Fisheries and
   Agricultural Insurance for their possible inclusion as project investment at a later date. The
   funding of these studies will be considered at the time of First Mid Term Review (MTR) and
   assessed whether these components can be included for additional Financing under MACP.
   These studies will be contracted out by PCU and will be conducted under the technical
   oversight of ABPF. Two additional activities, viz. process for facilitating Maharashtra
   Agribusiness, and Producers’ Organisation to access GoI grants and process for review
   discussion & development of improved designs for wholesale markets will be developed by
   ABPF.
12. Market Information Services: The Component A of the Project aims to improve the productivity
    and quality of the agricultural produce mainly through training and capacity building of
    farmers, whereas, the Component B of the Project has the objective of providing improved
    marketing infrastructure facilities for the farmers. In accordance of the overall objective of the
    Project, the component of MI empowers the agricultural producers to be able to take advantage
    of the global opportunities. As the absence of awareness about market information and
    intelligence is one of the main reasons for inadequate returns in agriculture, there is a need for
    improvement in agricultural marketing system including dissemination of market information
    and intelligence to the farmers. At present, APMCs disseminate some market information in the
    market yards only and that too in respect of the APMCs market area. Considering the
    globalization, it is necessary that farmer gets the market information about arrivals, prices, and
    quality standards of various commodities, not only from one market area, but from other market
    areas in the country and if possible from various countries of the world. This will enable the
    farmer to have increased access to the markets and will be able to get better prices. MI
    subcomponent is designed to upgrade MSAMBs’ website, and, make market information and
    intelligence available to the farmers. Likewise, SMS service is proposed to be enhanced for this
    purpose. MSAMB will be the implementing agency for this subcomponent with the help of SP.
13. Livestock Marketing Development: The existing extension system is poor which affects rapid
    growth and sustainability of livestock sector. Small ruminant farmers are disorganized resulting
    in their poor financial status. Likewise though the meat trade is growing, slaughter houses are
    unhygienic. The database relating to livestock is also inadequate unlike database for crop sector.
    Considering these gaps in the livestock sector, the subcomponent for livestock market
    development has been proposed which aims at improvement in marketable healthy livestock
    supply and greater access of livestock farmers to the existing markets.
B.1 Promoting Alternative Markets:
14. Produce Aggregation and Sales through Producers’ Associations: Farmars Common Service
    Centers (FCSCs) have been thought as centers for produce aggregation to access alternative
    marketing channel to empower the producers. The FCSCs will be small scale commercially
    viable service entities owned and operated by Producers’ Associations (PAs). The PA may be a
    federation of the Producer Groups (PGs) of 10-15 active farmer members in each group and 15-
    20 PGs in a village or cluster of villages within the radius of 5 KM coming together or by 250
    to 300 producers coming together. The PA may be registered as society under Societies
    Registration Act 1860 or as Producers’ Company under the Indian Companies Act 1956. Each
    PA will have around 250 to 300 members.
15. It is proposed to establish 200 FCSCs of the food grain growers and 200 FCSCs of the
    horticulture producers. The FCSCs will have basic infrastructure for aggregation of the

                                                 11
   produce, it's cleaning, grading and packing. It is proposed that 10% of FCSCs will graduate to
   the higher level organizations where additional infrastructure like weighing machine, godowns,
   auction hall, and cold storage would be constructed. The wholesale marketing activities will
   take place at these higher level FCSCs besides aggregation, cleaning, grading and packing of
   the produce. The State Govt. has already issued the Order No. KriViA / CR 47 / C-21, dated 18
   /11/2008 exempting AgriMarts / AquaMarts, PGs and Cooperatives from the restrictive
   provisions about minimum requirements to be fulfilled. This exemption is applicable to FCSCs
   also.
16. The actual infrastructure to be created at FCSCs will be need based and will be finalized by
    FCSC with the help of NGO/ company/any other legal entity as service provider (SP). The SP
    will also be responsible for mobilizing groups, formation of PAs and other related activities.
17. Warehouse Receipts Development: The warehouse receipt programme will be promoted to
    minimize the price risk and make the credit available to the producers against the warehouse
    receipts through the banks. The Maharashtra State Warehousing Corporation (MSWC), a profit-
    making State Govt. undertaking having the main function of warehousing, will be the main
    organization implementing this subcomponent. MSWC has identified 40 warehouses in
    Maharashtra for implementing this programme and has entered into an agreement with the
    National Commodities & Derivatives Exchange Ltd. (NCDEX).
18. Rural Haat Markets: There are around 3500 Rural Haats in the State. These Haats are managed
    by the Gram Panchayats at the village level and do not attract the provisions of the APMC Act.
    Around 300 Rural Haats are proposed to be upgraded in the project. The selection process for
    the Haats will be similar to that of the APMCs, i.e. a two stage process of Project Concept Note
    (PCN) and Full Project Proposal (FPP). The scrutiny of the proposals received will be
    performed by the same Approval Committee formed for the scrutiny of the PCN and FPP of
    APMCs. The Rural Haats will be required to provide 10% of their own contribution for basic
    infrastructure with balance of 90% from the project. The details of selection, implementation of
    Haat activities have been spelt out in the relevant chapter. Ten percent of RH will be considered
    for stage II (productive) infrastructure with 75% grant from the project.
19. Introducing E-Marketing Platforms: As a part of developing alternative marketing channels, E-
    marketing to provide virtual trading facilities to the agricultural producers and the respective
    traders is proposed under the Project. The development of this subcomponent will have three
    phases. In the first year of the project first phase will be completed involving study of the
    options, policy implications, and alternative technological solutions. The second year will
    involve testing of two alternative virtual market solutions. During the third year and thereafter
    up to 6th year of the project 294 locations will be covered by promoting E-trading activities.
B.2 Modernizing Existing Markets
20. Besides establishing the alternative marketing channel which is the thrust area of this project,
    the existing agricultural Marketing system, i.e. APMCs and LSMs, need to be provided with
    modern infrastructure so that, the farmer has access to wider marketing system. In large number
    of APMCs the basic as well as productive infrastructure for agriculture marketing is inadequate.
    This component is designed keeping in view the above situation. There are 294 APMCs in the
    State governed by Maharashtra Agricultural Produce Marketing (Development & Regulation)
    Act 1963 (APMC Act). The State Govt. has introduced marketing reforms by amending the
    APMC Act in 2006 and the Rules under the Act were promulgated in 2007. These amendments
    are based on the lines of Model Act circulated by GoI. It is proposed to strengthen basic and
    productive infrastructure in selected APMCs.
21. This program is designed to promote modernization and improvement of 100 APMCs, 20 Live
    Stock Markets (LSM) and 4 markets for Small Ruminants (SRs). The APMCs / LSM to be


                                                 12
   included in the modernization and improvement programme will be selected on the basis of
   predefined selection criteria.
22. Selection Process: Project Implementation Unit (PIU-MSAMB) will undertake awareness
   campaign to inform the potential beneficiaries about the project and on the eligibility criteria to
   access the grant. It will make formal calls for proposal and the PIU-MSAMB may decide on the
   number of calls depending on the demand from the participants. PIU, MSAMB would be
   responsible for handling all matters of the day to day management of calling and scrutinizing
   these proposals. A two-stage screening process will be employed by PIU-MSAMB for
   screening of the proposals viz., Project Concept Note (PCN) and Full Project Proposal (FPP).
   After receipt of the PCN, the same will be examined and short-listing of the eligible institutions
   will be done by the Approval Committee consisting of following members. This committee
   would be called as PCN Technical Evaluation and Approval Committee. Same committee will
   function as FPP Evaluation and Approval Committee.
            i.   Nodal Officer - PIU (MSAMB)                                : Member
           ii.   Sr. Accounts Officer- PIU (MSAMB)                          : Member
          iii.   Civil Engineering Specialist - PIU (MSAMB)                 : Member
          iv.    Market Field Engineer - PIU (MSAMB)                        : Member
           v.    Officer Incharge- APMC PIU (MSAMB)                         : Member Secretary
   The detail selection process has been described under the relevant Chapter on Modernizing
   Wholesale Markets and Upgrading of Livestock yards.
23. Viability Gap Funding (VGF): Objective of the competitive selection process is to provide
    additional financial support to eligible bidder viz. VGF, over and above the subsidy that is
    available under the Project. The eligible bidder would be selected through a transparent and
    open competition where all technical evaluation criteria being equal, the financial support
    requested as VGF, shall be used for selecting the winning bidder. The VGF is available only for
    the basic infrastructure and not for the productive infrastructure in APMCs. These criteria
    would be used only for the selection of APMCs as the APMCs are required to provide, for basic
    infrastructure, 50% of project cost as their own contribution, 25% as the project grant and the
    maximum VGF upto to 25%. For productive infrastructure APMC would get 25% assistance
    from project and 75% will have to be contributed by APMC from own funds. Though actual
    VGF will be calculated in FPP of the short-listed APMCs by the service provider, the initial
    short-listing of APMCs will be based on VGF demanded in PCN provided the other selection
    criteria are met.
Capacity Building & Training:
24. Various training programs are proposed in this project, under Component A, for capacity
    building and empowerment of farmers, farmers groups, personnel involved in extension
    activities of various line departments and the officers and staff concerned in handling and
    management of infrastructure to be created under Component B.
25. The MACP includes a strong element of capacity building through trainings and exposure
    visits. It is estimated that the total number of formal learning courses will amount to over
    6,600. The SP delivering SMS agricultural information will need to provide training to (i) Field
    Extension Officers and (ii) those who will be provided with the SMS service by the project (iii)
    training to the potential buyers of the SMS service. The SP operating the ABPF will organize
    buyer-seller meets, local seminars and trainings to the ATMA Agricultural Marketing Advisers.
26. The bulk of these courses will be provided / organized by the ATMA. The training courses
    provided by ATMA are estimated to be over 4,100 which will be needed to be given to
    mobilize PGs / PAs and other farmer groupings. A further 2,400 courses will be designed to
    enable the group to build expertise and understanding the elements of successful operation.
    These courses will be organized in phases and will include training on markets, access to
                                                 13
   finance, post harvest issues in the first phase, FCSC operation and livestock markets in next
   phase, followed by business management and specialized technical training in subsequent
   phases. The training of Lady Link Livestock Workers (LLLW), which will be focused in the
   areas of the new livestock markets, will require 100 courses.
27. In order to prepare the field functionaries and officers to undertake MSS and to be more market
    focused, including the use of market information, following number of courses would be
    undertaken.
               Estimated Number of Courses to be Provided per Project Year (PY)
          Particulars         PY 1    PY 2      PY 3      PY 4       PY 5      PY 6      Total
    PIU, MSAMB                   0       27        28        29         29        28       141
    SP                           0      500       500       500        500       400      2400
    ATMA                         0      820       820       820        820       820      4100
    Total Courses Per Year       0     1347      1348      1349       1349      1248      6641
   The details of the training programs in Component A and the training cost on various training
   programs proposed in this project are given in cost tables.
Component C: Project Management
28. For the overall policy issues, a High Power Committee, headed by Hon. Chief Minister of
    Maharashtra and all the concerned Ministers as the members, has been constituted. A Steering
    Committee headed by the Chief Secretary has already been set up for coordination in
    implementation. The Principal Secretaries of the line departments, the Principal Secretary
    (Planning) and the Principal Secretary (Finance) are the members of the Steering Committee.
    The Principal Secretary (Coop. & Mktg.) has been designated as the Nodal Officer of the
    Project at the State level. For day to day management of the Project the PCU has been set up at
    Pune, which is functioning under the control of the Principal Secretary (Co-operation &
    Marketing). Similarly Project Implementation Units (PIUs) have been set up for each of the line
    department to monitor and supervise the implementation of the activities pertaining to the
    concerned departments. The issues relating to Environmental and Social Management,
    Procurement, Financial Management, Monitoring and Evaluation, and Governance and
    Accountability Arrangements are addressed under Component C.
29. Integrated Approach: MACP has mainly three components viz.: A) Intensification and
   Diversification of Market Led Production, B) Improving farmer Access to markets, and, C)
   Project Management. While under Component B, the infrastructure is proposed to be created to
   improve farmer access to the markets, under Component A the issue of capacity building of the
   farmers has been addressed. The project is so designed that the subcomponents under
   Component B and the subcomponents under Component A result in an end to end approach.
30. The subcomponents proposed to create backward and forward linkages in such an integrated
    manner that all subcomponents are supplementary and complementary to each other so that the
    objectives of project are best achieved. The activities in the subcomponents of Component A
    will be undertaken in the catchment areas of the various activities proposed to be taken up
    under Component B. This integrated approach has been kept in mind while designing this
    project.
31. Funding pattern and mode of release of Funds / Financial Arrangements: The funding pattern
    for the subcomponents in the project will be as shown in table below:




                                                14
                                                     Project and GoM   Beneficiary
    Sr. No.      Component & Subcomponent
                                                      Contribution*% Contribution%
    A. Intensification and Diversification of Market Led Production
      A.1    Market led Agri. Technology Transfer         100.0            -
      A.2    Agri-Business Promotion Facility             100.0            -
      A.3    Market Information Services                  100.0            -
     A.4     Livestock Support Services**                 100.0            -
    B.1 Promoting Alternative Markets
     B.1.1 Product aggregation and sale through Producers Associations
             -- Stage-I Investments                       75.0           25.0
             -- Stage-II Investments                      50.0           50.0
    B.1.2    Warehouse Receipts Development               100.0            -
    B 1.3    Rural Haats Markets
             -- Basic Infrastructure (Stage I)            90.0           10.0
             -- Productive Infrastructure (Stage II)      75.0           25.0
    B.1.4    Introducing E-Marketing Platforms            100.0            -
    B.2 Modernizing Existing Markets
    B 2.1    Modernizing of Wholesale Markets
             -- Basic Infrastructure***                   50.0           50.0
             -- Productive Infrastructure                 25.0           75.0
    B 2.2    Upgrading Livestock Yards
             -- Basic Infrastructure                      100.0            -
    C. Project Management
      C.1    PCU & PIUs                                   100.0            -
* This includes 10% from GoM funds and 90% from Project funds.
** 100% grant for capacity building and 50% grant for Supply of buck & Chaff-cutter.
*** Includes 100% grant for setting up computerized auction system.
32. The total cost of the Project is estimated at Rs. 703.95 crore, out of this the World Bank
    contribution would be around Rs. 461.21 crore (65.52%), the beneficiary contribution would be
    Rs. 191.02 Crore (27.13%) and State Government’s contribution to be Rs. 51.72 Crore (7.35%).
   The fund flow arrangement in the project would be largely based on the Budget Distribution
   System (BDS) (electronic fund transfer) except for some components where funds will flow
   through BDS up to a particular stage & beyond that, these will be kept in separate bank
   accounts to be operated by designated authorities. The State’s mainstream accounting system
   maintained by the State Accountant General (Accounts and Entitlements) / monthly Drawing &
   Disbursing Officer (DDO) accounts The fund flow arrangement of the project has been spelt
   out in chapter on Financial Management, wherein the stages of fund disbursement and the roles
   of Drawing Disbursing Officers (DDOs) have been defined. All these Subcomponent are
   described in the following Chapters giving details of activities to be supported by activity
   schedule, cost estimates and other relevant information.
                                              ***




                                               15
                          COMPONENT A
             INTENSIFICATION AND DIVERSIFICATION OF
                    MARKET LED PRODUCTION

                        A.1 MARKET-LED AGRICULTURAL
                            TECHNOLOGY TRANSFER
I. Objectives:
1. This component aims to improve the competitiveness of small farmers that would allow them to
   capture increased income generating potential associated with a number of emerging trends in
   Indian agriculture, including: (i) shifting demand towards high value agriculture and higher
   quality of produce, (ii) greater urban demand, and (iii) the move of large corporations into
   agricultural marketing. The project intends to put in place a process that would empower small
   farmers to be able to respond positively to these changes in the food market by creating
   enabling conditions and support for production systems diversification, increased farm
   productivity, improved product quality and standards, and realization of value addition
   opportunities.
2. The project would support models that allow farmers to obtain a larger slice of the retail rupee
   by fostering the establishment of forward linkages and the emergence of balanced, efficient and
   open supply chains. Doing so would open up a “third marketing front”, besides existing
   regulated markets and direct purchase arrangements. The direct purchase arrangements as
   currently pursued by large corporations also run the risk of excluding small farmers and
   potentially marginalizing farmers into becoming providers of raw materials in closed supply
   chains. The project offers the prospects of both improved prices for producers and increased
   productivity that better match with consumer demand. The farmers should be enabled to tune
   their production to changes in demand and to take advantage of new and alternative marketing
   channels as well as the potential of new technologies.
3. The GoM has already initiated actions to implement Agricultural Technology Management
   Agency (ATMA) model of agricultural extension in all the 33 districts of the state. The ATMA
   model was introduced in Ahmednagar, Amravati, Aurangabad and Ratnagiri districts under the
   aegis of the National Agricultural Technology Project (NATP) from 1998 to 2004. It was
   extended to 19 districts, including previous four ATMAs, in 2005-07 under centrally sponsored
   scheme “Support to extension programme for extension reforms”. The remaining 14 districts
   have adopted the ATMA model of extension during 2007-08.
4. The implementation experience has brought forth certain deficiencies in the working of
   extension system. The main reason for this is that the ATMA concept is being implemented as a
   stand-alone scheme of the Department of Agriculture rather than as a program for promoting
   convergence, integration and inter-departmental coordination at the district, block and village
   levels. The major constraints are:
                Lack of convergence in programs of different line departments.
                Lack of provision for dedicated manpower at various levels.
                Inability to use funds allocated by GOI for ATMAs.
                Lack of infrastructural support below district level.
                Inadequate support for growers associations and farmers organizations.
                Inadequate focus on market-led extension.



                                                  16
5. In this context, knowledge and technology transfer will play an important role, something that
    the project aims to achieve by creating conditions that would allow the ATMA based model of
    extension to reach its full potential. In addition, the project intends to make agricultural markets
    more efficient by creating enabling conditions and support for reducing spoilage, generating
    economies of scale in output marketing and input supply, and fostering increased competition
    among the buyers of agricultural produce.
6. Marketing extension employs the same best practices as in production extension, in that it
   focuses on enabling farmers to learn for themselves (i.e. experiential learning) but the focus is
   on empowering producers to be able to engage directly with the market. The processes
   normally involve the extension officer taking a group of farmers through a semi-structured
   training course. Topics include resources audit, simple economic and costing analysis, carrying
   out own market research, direct interaction with the traders, training in post-harvest handling
   and marketing planning. There is a need to include traceability, sanitary and phyto-sanitary
   standards in the training programs for line department staff and farmers.
7. This component will facilitate intensification and diversification of production by:
      making extension and adaptive research more relevant and accessible to farmers;
      encouraging the introduction and adoption of more effective agricultural production
       systems;
      reducing the risk associated with change, especially for small operators; and
      focusing on marketing extension.
8. This will be primarily addressed by mainstreaming ATMA activities, and improving the ATMA
    focus on market-led extension. The scope of Strategic Research and Extension Plans (SREPs)
    prepared under the centrally sponsored scheme will be enlarged to cover marketing extension
    and marketing related activities. Since the SREPs for most of the districts have recently been
    prepared, for each district a Marketing Strategy Supplement (MSS) will be prepared which will
    supplement the agricultural production enhancing aspects covered under the SREPs.
9. The project component A seeks to focus on the strengthening ATMA programme to facilitate
    market-led extension. This will call for reorientation of the extension functionaries to focus on
    improved productivity, quality, market information and improved methods of marketing based
    on the updated market information and intelligence. This renewed focus on ATMA extension
    system would necessitate strengthening ATMA by institution and operation, making them
    vibrant and efficient to face the emerging challenges in agricultural production, marketing and
    agri-business.
10.The focus would be on ways and means for developing and strengthening interdepartmental
   linkages to support not only Farmers Common Service centres (FCSC) but also for providing
   support to the farmers in all the districts to achieve increased income from their land based
   occupations involving crops, horticulture and livestock. The effort would be to implement
   ATMA programme as an integrated, demand-led and farmer-centered programme of all line
   departments with special focus on marketing extension in all the districts of the state.
11. The SREPs for all the districts in Maharashtra have recently been prepared and cover the
    production aspects of field crops, vegetable, fruit, ornamental, spices and medicinal plants and
    livestock. Under this Project the Marketing Strategy Supplement (MSS) to the SREP will be
    prepared for each district focusing on what needs to be done to improve market- led production,
    marketing related training of line department staff and farmers and linkages with the
    investments proposed for improving marketing infrastructure under component B of the project.




                                                  17
II. Outcome and Output Monitoring Indicators:
12. The outcome and output indicators are as follows:
 Sr.     Outcome                                      Indicators
 No.
   1     Increase in productivity of the agricultural % increase in productivity of important filed
         production                                   and horticultural crops.
   2     Increase in cropping intensity.              % Increase in cropping intensity.
   3     Shift towards high value crops.              % Shift towards high value crops.
   4     Increase in marketed surplus.                % Increase in marketed surplus.
   5     Increase in producer price realization.      % Increase in producer price realization.
   6     Savings from reduction in spoilage.          % Savings from reduction in spoilage.
   7     Reduction in marketing cost.                 % Reduction in marketing cost.
   8     33 ATMA strengthened and functioning         Number of ATMA strengthened and
         regularly                                    functioning effectively.
   9     66 FIAC set up, strengthened and             Number of FIAC strengthened and
         functioning                                  functioning effectively.
  10     Officer Sensitization workshops              No. of Officer Sensitization workshops
         organized (66)                               completed
  11     Documentation of success stories and         No. of success stories and special studies
         Special Studies completed                    completed and presented
  12     State level workshop conducted (12)          No. of State level workshops conducted
  13     Strengthening of VANAMATI (1)                % increase in no. of participants trained
  14     Strengthening of Horti. Processing           % increase in no. of participants trained
         Training Center, Aurangabad (1)
  15     Strengthening of Animal Husbandry            % increase in no. of participants trained
         Training Center, Pune (1)
  16     Total number of activity schedules           % of targeted number of activity schedules
         developed by ATMA (33)                       developed by ATMA
  17    Total number of approvals of MSS by           % of targeted number of approvals of MSS
        ATMA (33)                                     by ATMA
  18    Total number of trainings (batches)           % of total targeted number of trainings
        conducted (24+84+4100+500= 4708)              (batches) conducted
  19    Total No. of FIG / CIG / PG formed % of total targeted number of FIG / CIG
        (6700)                                        formed
  20    Total no. of demonstrations organized         % of total targeted number of
        (Crop Demo. 13050 + Org. Fmg. 380 +           demonstrations organized
        Post HM 1000 + Animal WF 1500 +
        Fodder Pdn. 2500 = 18430 )
  21    Total no. of buyer-seller meets organized % of total targeted number of buyer-seller
        (170)                                         meets organized
  22    Total no. of exposure visits organized        % of total targeted number of exposure
        (141)                                         visits organized
  23    Strengthening of growers associations /       % of targeted growers associations / farmer
        farmer organizations (15)                     organizations strengthened
  24    Total Innovative pilots implemented           No. of Innovative pilots implemented
        successfully (57)                             successfully
Note- CIG / FIG / PG would be the focal point in the catchment area of activities around
infrastructure described in Component B and the activities as described above would be suitably
carried out by each CIG / FIG / PG as per their need based demands. Sub-division of all the above


                                                 18
activities in a project mode under each initiative of Component B would be the precondition for
release of project funds to ATMAs.


III. Policy and Regulatory Environment:
13. Following are the issues related to policy & regulatory environment:
    i. Department of Agriculture (PIU-Agriculture) is the main implementing agency of this
       component. It is the only agency at present for agri-extension.
   ii. It envisages the strengthening of the various institutions within the framework of the
       business rules of those concerned institutions to expand their role in extension.
  iii. The implementation of the component will be guided by the Inter Departmental Working
       Group (IDWG) and its sub-committee on policy and regulatory matters related to extension.
   iv. ATMA is a district level organization under the chairmanship of the District Collector. All
       the districts in Maharashtra are covered. This structure needs to be the main focus point of
       multi-players extension policy.
     This component is described under two sub component namely i) Institutional Strengthening
      for Market-Led Technology Transfer ii) Preparation and Implementation of Marketing
      Strategies.




                                                19
       A 1.1 - INSTITUTIONAL STRENGTHENING FOR MARKET-
                      LED TECHNOLOGY TRANSFER

I. Selection Criteria:
1. All ATMAs and Government Training Institutions of the line departments are considered for
   strengthening under the Project.
II. Activities to be financed:
2. For improving market-led extension in Maharashtra, an assessment of ATMAs have indicated
   the need for strengthening ATMAs in terms of manpower, physical facilities and financial
   support; and promoting inter-departmental coordination at the state, district, taluka and village
   levels. The activities to be supported under this sub-component include:
       Strengthening of ATMAs
       Strengthening of Farm Information and Advisory Centers (FIACs)
       Strengthening of Inter-Departmental Working Group (IDWG) and Inter-Departmental
        Coordination
Strengthening of ATMAs
3. Contractual Services of Agricultural Marketing Expert: The focus of extension would shift from
   production to productivity, quality of production, marketing and increased income of the
   farmers. This would be achieved by following good agricultural practices, cost effective and
   intelligent marketing of the farm produce. Increased emphasis would be placed on post harvest
   management, value addition, traceability. This would create a number of agri-business
   opportunities culminating in formulation of bankable projects, commercialization / business
   plans. The Common Interest Groups / Farmers Interest Groups (CIGs/FIGs) getting organized
   around a particular commodity for services would need to be guided, mentored and facilitated
   to capture emerging marketing and agri-business opportunities. The present structure of ATMA
   does not have expertise in this field. The marketing extension to be strengthened through this
   project would necessitate having the services of one agricultural marketing expert in each
   ATMA. The marketing expert would be supported by an accountant and computer operator at
   the district level. This unit of three persons would function under the Project Director ATMA.
   The services of this unit would, however, be available to all line departments (Agriculture,
   Animal Husbandry and Agril. Marketing) of ATMA. This functional unit of marketing
   extension would also constantly liaise with ABPF at state level, so as to get inputs and guidance
   regarding programme implementation and development of location specific strategies. It will be
   in touch with the service providers facilitating setting up of FCSCs. It will help in developing
   Marketing Strategy Supplement (MSS) to the SREP for the district and identify specific
   production and commercial activities to be focused on every year. The services of agricultural
   marketing expert, accountant and computer operator would be hired on contract for the project
   period in all the districts.
4. Equipment, IT and other support for ATMAs: The project will support need based equipment,
   computers, IT and internet facilities, renovation and rehabilitation of office. Support will also
   be provided for operational costs, special studies, formation and training of FIGs, farmer
   federations and commodity associations, preparation of CDs, videos. The provision for
   information technology support would be available at district / FIAC level which would be
   shared with the relevant line departments involved in MACP.




                                                20
Strengthening of FIACs:
5. The Farm Information and Advisory Centre (FIAC) will act as the extension planning and
   operational arm of ATMA. It is a common meeting point for line departments to prepare
   detailed extension programme and coordinate their implementation at the taluka level. It is a
   level where farmer input can be effectively mobilized through a Farmer Advisory Committee
   (FAC). The FIACs are housed at Agri Clinics / Taluka Seed Farms at taluka level. Support will
   be provided for setting up two FIACs in each district. The selection of blocks where FIACs will
   be set up will be linked with the locations where improvement of marketing infrastructure is
   supported under component B.
6. Special studies: The market potential of major commodity and supply chains in a given district
   needs to be assessed. This will help agri-preneurs and farmer groups to suitably
   organize/modify their business activities taking into consideration the marketing potential. The
   study of this nature requires expertise in agri-marketing /agribusiness. The information
   generated through this kind of special studies will be shared with FIACs, agri-preneurs and
   other stake holders. The special studies would be got done by the reputed experts in private
   sector through ABPF.
   The detailed cost estimates for strengthening of ATMA are given in the Cost Tables.
Strengthening of marketing extension and agribusiness capabilities of VANAMATI, other
training centers of line departments:
VANAMATI:
7. Contractual staff for Agricultural Marketing, Agribusiness and Monitoring and Evaluation: It is
   necessary to shift extension focus from production-orientation to market-led extension for
   increasing farm income by adopting end-to-end approach. Market-led extension will help
   farmers to minimize the production costs, improve the quality of farm produce, access emerging
   markets, increase the value of produce, resulting in increased income. VANAMATI will help in
   technical backstopping, training, capacity building and mentoring of ATMAs with greater focus
   on market-led extension and sensitization of senior officers of the line departments about the
   ATMA concept and approach. For this purpose it is proposed to strengthen VANAMATI. For
   enhancing the managerial capabilities of members of ATMA Governing Board, BTT, FIAC,
   separate training programmes will need to be organized by VANAMATI. For this purpose one
   Agricultural Marketing Expert, one Agri-business Specialist, one Monitoring and Evaluation
   Specialist and one accountant with computer knowledge will be hired on contractual basis and
   resource persons will be hired from other organizations as per need. To prepare district
   Marketing Strategy Supplements, special trainings will be organized for extension personnel by
   VANAMATI. The field level data collection, compilation and preparation of MSS shall be
   done by the district extension staff and ATMAs under the guidance of VANAMATI.
8. The contractual staff to be hired includes one Agricultural Marketing Expert, one Agribusiness
   Specialist, one M & E Specialist and one Accountant with Computer skills.
9. Capacity building of VANAMATI faculty members: The focus of agriculture extension system
   has to be on increasing productivity, improved marketing and enhanced farmer incomes. The
   entire extension machinery in the project areas has, therefore, to be reoriented to create
   awareness and understanding about increasing farm productivity and enhancing income of
   farmers through effective marketing. It would require expanding knowledge base and marketing
   skills and techniques by the extension management personnel. The VANAMATI being the apex
   agricultural extension management institute in the state, its faculty members must get trained in
   the concept and practices of market-led extension and agribusiness to provide leadership and
   training to the master trainers and district agricultural extension officers. The RAMETIs
   working at regional level should also have faculty members competent in this area. The training
   curriculum would include grading, packaging, certification, Agriculture Marketing Act, Rules,
                                                21
   contract farming, quality production, GAP, GMP, HACCP, traceability, Agmark, organic
   certification, market led extension, commodity exchanges, agribusiness opportunities. The
   Additional Director of VANAMATI along with two faculty members and one faculty member
   each from seven RAMETIs would be trained under the project at MANAGE, Hyderabad. In
   addition to the above members 3 persons from the PIU-Agri. will also be sent to MANAGE,
   Hyderabad for the training. Thus a total of 13 persons will undertake training at MANAGE.
   There would be five day intensive training programme. The training would aim at making the
   faculty members expert in this area of knowledge. The cost of this training is shown in the cost
   table. Similarly, 17 officers from the AHD department will undertake training at IIM,
   Ahmedabad, the cost of which has been shown in the cost table.
10. Preparation of Training Material and Organizing Trainings: For shifting the emphasis of
    extension, the apex and regional agricultural extension management training institutes will be
    required to get a team tuned to and geared up for imparting training in market led extension to
    the field extension functionaries. These training institutes would be required to develop training
    material such as training modules, manuals, CDs, videos. Support will also be provided for
    need based training equipment. The project will provide funds for training of core team for
    preparation of Marketing Strategy Supplements to SREPs for each district, organizing other
    trainings, operational funds, TA, DA, vehicle hiring .
Support to Line Department Training Institutes:
11. Horticulture Processing Training Institute (HPTI): The Horticulture Processing Training
    Institute Aurangabad, working under Agriculture Department would focus on giving training to
    women farmers with the objective of turning them into small scale entrepreneurs in agri-
    processing. Being a mobile training institute, the response to this kind of training would
    increase manifold. The training courses are designed for three to five days. Having regard to
    importance of training, the HPTI which lacks laboratory and training equipment at present will
    be supported under the project for acquiring the required facilities. The project would provide
    investment of Rs. 23.00 Lakh spread over the project.
12. Animal Husbandry Training Centre: The Animal Husbandry Department has a state level
    training centre in Pune which runs short term training courses for livestock development
    officers and livestock supervisors. This training centre is in need of training material and
    equipment for running effective courses. The courses to be run in this center would also need
    to be refocused with market-led extension concept as envisaged in the project. Five hundred
    Livestock development Officers and Live Stock Supervisors from the catchments area of
    selected 20 LSM and 4 SRM in MACP will be trained in this institute for marketing
    management, disease management etc. 3-5 days course will be conducted. It will be beneficial
    to motivate and train cattle owners within catchment zone. It will reflect in the increased
    number of cattle owners taking benefit of developed LSM and SRM under MACP. This will be
    a strong backward linkage for the development of LSM and SRM component.
   The cost estimates of these sub-components are given in cost tables of AHD
13. Sensitization workshops: Although the ATMA model of agricultural extension was introduced
    in the state in 1998, the spirit, objectives and methodology of functioning of ATMA are not
    fully understood by all line departments. Better awareness and understanding of ATMA model
    of extension is required at state, regional and district level. The heads, regional heads and
    district level officers of line departments would therefore need to be exposed and oriented in
    this approach of extension system. The state level one day workshops for state and regional
    level officers would be organized. This would help bring about integration in interdepartmental
    working and facilitate clear guidance from the state and regional level officers to district level
    officers. The Commissionerate of Agriculture would organize State level workshops while
    district level workshops will be organized by P.D. of respective ATMAs. This will also

                                                 22
   facilitate appreciation of the MACP and the strategy for implementing market-led extension
   through the ATMAs.
14. Documentation of success stories and special studies: It is envisaged that the implementation of
    MACP would generate a number of success stories across the project area involving all line
    departments. The typical success stories need to be replicated to enhance the success of project.
    This would prove as a stimulus for the ordinary farmers to undertake enterprising activity in
    different spheres of development. Print and electronic media would need to be tapped to
    disseminate the success stories to as large a number of farmers as possible. The style of writing
    success stories and treatment of subject is different from normal scientific write up. To make
    the success stories appealable and generate curiosity; the style of writing has to be crisp. This
    would be best done by outsourcing the work to professional organization having adequate
    liaison with media.
Nodal Unit/ Project Implementation Unit (PIU) Agriculture:
15. The project will provide funds for strengthening of the Nodal Unit/PIU Agriculture in the
    Commissionerate of Agriculture which serves as a secretariat for the Inter-Departmental
    Working Group (IDWG). This will include full time Nodal Officer of rank of Class-I Officer
    from the Department of Agriculture, Agriculture Officer and Agriculture Supervisor
    (designated as Community Extension Officer) from the Department besides the contractual staff
    (Agricultural Marketing Expert, Procurement Officer, Accountant with Computer skill, 2
    assistants with computer knowledge and two messengers), need-based renovation of office and
    furniture, computer and other need based equipment, state level workshops, orientation
    workshops, special studies, consultancies, operating costs, TA, DA, vehicle hiring. The nodal
    unit would be headed by the Director Extension & Training. This unit would act as a link
    between Interdepartmental Working Group (IDWG), ATMAs, other PIUs and Project Co-
    ordination Unit (PCU) of MACP. It will guide, supervise and monitor project implementation
    and initiate corrective actions for effective project implementation. This Nodal Unit will also
    act as Project Implementation Unit for the project in the Department of Agriculture. The cost
    estimates for PIU Agriculture are given in cost tables attached in Appendix A1.(i).

III. Estimated costs:
16. The total cost of this component is Rs. 2230.90 Lakh).
IV. Institutional and implementation arrangements:
17. The implementing department for this subcomponent is Agriculture Department with the help
    of the field staff located up to taluka level. The active support and help of all the line
    departments will be taken. Each ATMA will have a Project Director and the District Collector
    being the Chairman of ATMA will coordinate all the departments.
18. The Inter-Departmental Working Group (IDWG) which was set up in 1998 under the World
    Bank funded National Agricultural Technology Project (NATP) will give overall policy
    directions for the functioning of ATMA. For this IDWG needs strengthening for which
    measures are contemplated under the Project.
19. The key functions of IDWG are:
      To provide a mechanism for interactions with the Technology Dissemination Management
       Committee of the Department of Agriculture and Cooperation, GOI; guide the human
       resource development programs and to monitor the district level technology dissemination
       programmes;
      To oversee and support agricultural extension and adaptive research activities being
       undertaken by the ATMA; and to make policy interventions on inter departmental matters,

                                                 23
       including policy harmonization and coordination at the state, district and lower level, and
       issues related to women in agriculture;
      To promote and establish integrated approach in transfer of technology at state, division,
       district and taluka level by agriculture and the relevant line departments;
      To establish effective linkages with different line departments; marketing, input and credit
       institutions; NGOs, private/corporate sector to promote large scale extension reforms;
      To internalize new concepts, operational and institutional arrangement which have
       successfully worked under the pilot ATMAs set up under NATP; and
      To deal with any other policy and administrative issue related to implementation of the
       ATMA program, which emerge from time to time.

20. The composition of Inter-Departmental Working Group (IDWG) is as under:

        Sr. No.                              Designation
          1.       Principal Secretary ,Agriculture                                   Chairman
          2.       Principal Secretary, Planning or his representative                Member
          3.       Secretary, Finance or his representative                           Member
          4.       Secretary, ADF                                                     Member
          5.       Secretary, Rural Development or his representative                 Member
          6.       Secretary, Tribal Development                                      Member
          7.       Secretary, Social Justice                                          Member
          8.       Secretary, Water & Soil Conservation                               Member
          9.       Secretary, Women & Child Welfare                                   Member
          10.      Vice Chancellor, Dr. Punjabrao Deshmukh Krishi                     Member
                   Vidyapeeth, Akola
          11.      Vice Chancellor, Marathwada Krishi Vidyapeth, Parbhani             Member
          12.      Vice Chancellor, Dr. Balasaheb Savant Konkan Krishi                Member
                   Vidyapeeth, Dapoli
          13.      Vice Chancellor, Mahatma Phule Krishi Vidyapeeth, Rahuri           Member
          14.      District Collector of concerned 16 districts                       Member
          15.      Commissioner ( Agriculture)                                        Member
          16.      Commissioner ( Animal Husbandry)                                   Member
          17.      Commissioner (Dairy Development)                                   Member
          18.      Commissioner (Fisheries)                                           Member
          19.      Commissioner (Cooperation)                                         Member
          20.      Commissioner (Sugar)                                               Member
          21.      Director (Marketing )                                              Member
          22.      Director, VANAMATI, Nagpur                                         Member
          23.      Managing Director, Maharashtra Agro                 Industries     Member
                   Development Corporation Ltd., Mumbai
          24.      Managing Director, Maharashtra Sate Seeds Corporation Ltd.,        Member
                   Akola
          25.      Director (Extension and Training), Commissionerate of              Member
                   Agriculture, Maharashtra State, Pune                               Secretary
   Note: It is proposed to include Principal Secretary, Co-operation and Marketing as member of
   IDWG. District Deputy Registrar of Co-operation department will be included as member of
   respective ATMA.



                                               24
21. In view of the large size of the IDWG, the following Sub-Committee of IDWG will provide
    oversight and coordination of MACP activities related to this component:

         Sr.   Designation
         No.
       i)      Commissioner ( Agriculture)                                     Chairman
       ii)     Commissioner ( Animal Husbandry)                                Member
       iii)    Director (Marketing )                                           Member
       iv)     Director, VANAMATI, Nagpur                                      Member
       v)      Project Director (MACP)                                         Member
       vi)     Director (Extension and Training) Commissionerate of
               Agriculture, Maharashtra State, Pune                            Member Secretary
   The sub-committee will meet once every quarter (more frequently in the early stages of project
   implementation) to review implementation progress of Component A of MACP.
22. Enhancing Effectiveness of IDWG: Although the IDWG was set up in 1998, the inter-
    departmental coordination for implementing the ATMA programme continues to be weak.
    Under NATP, the ATMAs in Maharashtra performed very well but have weakened since the
    closure of NATP in June 2005. For making the ATMAs vibrant and robust institutions, it is
    imperative to have an effective and efficiently functioning IDWG. Since the field
    implementation of different activities will be undertaken by the line department staff at district
    level and below, it is necessary that heads of the departments convey clear message to their
    field staff that ATMA activities are as important as the specific schemes implemented by their
    departments and should not be considered as additional burden on the field staff. Unless policy
    harmonization, convergence and integration of extension and support programs of all the line
    departments related with agriculture (crops, horticulture, livestock, marketing, credit) happen at
    the state level and is clearly conveyed to the field staff, it will be difficult to achieve optimum
    results on the ground. The pro-active role of IDWG is therefore critical.
23. In order to improve the efficiency and effectiveness of IDWG following steps are proposed:
         Regular half yearly meetings of IDWG, appropriate timely follow up of the IDWG
          decisions by the concerned line departments, and reviewing compliance in the following
          meetings;
         Strengthening the Nodal Unit in Commissionerate of Agriculture for organizing IDWG
          meetings, undertaking follow-up actions, identifying implementation issues and finding
          solution to implementation bottlenecks; and
         Undertaking pro-active actions to promote inter-departmental coordination and integration
          of on-going programs; and
         Regular review of implementation progress of ATMA programs, and take remedial actions
          to address implementation bottlenecks.




                                                  25
              A1.2 PREPARATION AND IMPLEMENTATION OF
               PRODUCTION AND MARKETING STRATEGIES

I. Selection Criteria:
1. The selection criteria for the various activities under this subcomponent are as follows:
   (i)        The officers and field functionaries from various line departments who are concerned
              with the implementation of various activities under the project will be selected for
              training.
   (ii)       The farmers from the catchment area of various activities under Component B will only
              be considered for farmers’ training and demonstrations.
   (iii)      The farmers selected for training will only be considered for field visits within and
              outside the state and demonstrations.
   (iv)       The farmers from the catchment area of various activities under Component B will only
              be considered for formation of CIG / FIG of food grain growers, horticulture farmers
              and animal husbandry farmers. They should be willing to participate in group activity
              and share financial and regulatory responsibility. They should also be the producers of
              the agriculture produce for which the CIG / FIG is proposed to be formed.
   (v)        For agri-business development in the Project area, the potential SME including women
              will be selected by the SP and they will be trained for taking up agri-business
              development activities.

II. Activities to be financed:
2. The following activities have been identified on the basis of SREPs and the general information
   that is currently available. These are for cost estimation purposes and may undergo some
   changes as the project implementation starts and Marketing Strategy Supplements (MSSs) are
   prepared.
A) Preparation & Implementation of MSS and SREP :
3. All the districts in Maharashtra have already prepared the district Strategic Research and
   Extension Plans (SREPs) which include various agricultural extension activities for increasing
   agriculture, horticulture and live stock production. To give focussed attention to market-led
   extension each ATMA district would prepare a Marketing Strategy Supplements (MSS) to the
   SREP. The MSS will be developed under the guidance of experts in marketing extension and
   agribusiness based in the VANAMATI Nagpur who would be trained and oriented in the
   concepts and procedures of preparing MSS and market-led extension at the MANAGE,
   Hyderabad. They would become resource persons to guide, mentor and facilitate district teams
   to prepare MSSs.
4. Preparation of MSS in each district would follow following steps in logical sequence
          Step I: Orientation of District Core Team
          Step II: Training of AES team
          Step III: Data collection, and data analysis and, identification and prioritization of research
           and market led extension issues
          Step IV: Developing strategies for market led extension and focusing issues, developing
           outline /framework for MSS on the basis of the project thrust area
          Step V: Developing activity schedule and approval of MSS by ATMA


                                                     26
   The activities under component B will be kept in view and linkages will be developed with the
   same for improving the markets.
5. The process of preparing MSS will be led by the Agricultural Marketing Expert in the ATMA
   and would involve the district level officers of all line departments. The district core team after
   getting training from expert team at VANAMATI would train AES teams involving taluka level
   officers of all line departments in data collection and data analysis. The development of
   strategies, activity schedule would be carried out by the district core team, under the guidance
   of state level facilitators. The preparation of MSS would be closely monitored by the PIU of the
   line departments. Necessary guidance and assistance would be provided to the districts from
   state level. The process of preparation of MSS of all the districts will start as soon as possible.
   The MSSs of 10, 11 and 12 districts would be completed during the first, second and third
   phase of the project respectively. The expenditure would be incurred on TA/DA, stationery,
   hiring of vehicles and other operational costs. The provision for this activity will be made to
   respective ATMAs.
6. The SREP and MSS documents will act as a template for setting a direction towards market-led
   extension and agricultural productivity enhancing activities in the district. Further, these will
   facilitate resource allocation across programme areas. The MSS and SREPs, therefore, would
   become the basic documents for the development of work plans at village, block and district
   level. The objective is not to duplicate what is already being supported under the centrally
   sponsored ATMA (extension reforms) and other schemes, but to fill critical gaps in the on-
   going schemes with special focus on market-led extension. This will help in making efficient
   use of the public funds provided by the GOI and GOM, including ‘Support to State Extension
   Programme for Extension Reforms’, ‘National Agricultural Development Plan’ and ‘National
   Food Security Mission’.
7. The Block Technology Team (BTT) members of the project areas would identify the activities
   of SREPs and MSSs which are relevant to their Taluka. These will act as guiding principle for
   identifying activities for preparing the Block Action Plans which will be combined to prepare
   District Annual Action Plan. The BTT and FIAC members shall take following issues into
   consideration for preparing the Block Action Plan:
      Extension activities identified in SREPs and MSSs
      Group demand as identified by FIAC members
      Ongoing scheme activities for dovetailing with MACP activities
      Success stories identified for replication
8. The SREP and MSS of each district would give description of the strategy to be followed for
   improving competitiveness of agriculture in a particular district. The specific activities coming
   from SREP and MSS would vary from district to district. Although the SREPs for all the
   districts have been prepared, the MSSs will be prepared after the project becomes effective. The
   execution of extension programme would naturally differ from district to district as it has to
   take into account the needs and priorities of the local communities as reflected in the SREP and
   MSS.
B) Training:
9. All trainings for line department staff and farmers will be specifically targeted at the catchment
   areas of the APMCs, Rural Haats, FCSCs and other markets and marketing channels being set
   up under Component B of the project. The various trainings like training of officers, training of
   field extension functionaries and training of farmers would be undertaken in catchment area of
   the activities under Component B. Similarly the other programs of market led extension and
   capacity building like crop demonstration with field days, demonstrations on organic farming,
   demonstration on post harvest management technology, demonstration of fodder production,
   demonstration cum production units for goat as a high value enterprise would be implemented

                                                 27
   in the catchment areas of the programs under Component B. For this purpose ATMA shall
   prepare the yearly plan for the district showing interface between the beneficiaries falling in the
   catchment area of programs of Component B and the programs of capacity building proposed
   under Component A. The farmers falling in the area of Component B activities like APMCs,
   Rural Haats, Live Stock Markets, FCSCs (Grain, Horticulture) will be identified which could be
   individual farmers / PGs / PAs. For capacity building, training programs, the same farmers, PGs
   / PAs will be involved in the programs of demonstrations, exposure visits depending on the
   locations of the farmers falling in a particular project intervention area.
   a) Training of Line Department Staff:
10. Training of officers: The training of officers is important as they have to act as resource persons
    to impart training to the field extension functionaries who are directly in contact with the
    farmers. The officers will need to be trained not only in productivity and quality improvement
    but also in different aspects of marketing and post-harvest management. The training should
    enable the officers to impart marketing related skills to the field extension functionaries and
    farmers. The training would also cover the project activities envisaged under Component B so
    that the officers are well equipped to implement their respective department’s activities
    effectively. Orientation workshops will be organized to familiarize the line department field
    staff with project design, what is to be done, where, by whom, when and how.
11. The Class I / Class II officers would be selected for training. They would be trained at training
    institutes of respective line departments. Selected officers of Agriculture and other Departments
    will be trained at VANAMATI, Nagpur. IIM, Ahmedabad will develop training module and
    curriculum and arrange training to the officers of Animal Husbandry Department. The cost of
    training would involve expenditure on accommodation, food, training material, honorarium of
    trainers and stationery field visits. The trainings would be well structured and aimed to link the
    officers with project activities effectively. Training of a total 24 batches (30 officers per batch)
    in Agriculture department and 17 officers from the Animal Husbandry Department are
    contemplated under this programme.
12. Foreign training: The project would require continuous capacity building of officers of all line
    departments to carry forward the theme of project in an effective manner. The emphasis of
    capacity building would remain market-led extension, agribusiness and efficient production and
    post-harvest management practices of agri-horti commodities. The knowledge generated in this
    area in foreign countries needs to be studied for replication with necessary modifications in the
    project. A total of 8 officers drawn from different line departments would be deputed for
    training outside the country during project period. The officers working in the project would be
    selected for foreign training. They would be required to work in the project at least for three
    years after returning from training.
13. Training of field extension functionaries: The training of field extension functionaries is very
    important to disseminate the project theme to the farmers. The project would succeed only
    when farmers are motivated to adopt productivity and quality improvement techniques and
    market-led production practices. This would be possible if the field extension workers are
    competent in resource management and efficient production, marketing and post-harvest
    management technologies and practices. The importance of up-gradation of knowledge base of
    village extension functionaries cannot be over emphasized. The village extension functionaries
    from different line departments would be trained in market led extension, productivity and
    quality improvement as well as marketing techniques at respective departmental training
    institutes.
14. The field extension functionaries of all line departments have a definite role to play in
   technology and knowledge transfer to the farmers so as to effectively link the farmers to the
   project activities. The emphasis of training would be on the project 1inked commodities and
   also on the potential existing in the areas of their operations. The officers trained under the
                                                  28
   project would act as trainers to field extension functionaries. Trainings will be conducted at
   Krishi Vigyan Kendras (KVKs), Poly Clinics and RAMETIs. The field extension functionaries
   linked with project activities would be selected to undergo this training which will be structured
   one to serve the purpose of effective knowledge transfer to the farmers linked with project
   activities of respective line departments. The training cost would involve expenditure on
   accommodation, food, training material, stationery, honorarium of trainers, field visits.
   b) Mobilization and Training of Farmers:
15. Mobilization and Training of farmers and Producer Organizations: The benefits of group
    working around a commodity or service are apparent. The farmers and farm women would need
    to be grouped based on their own interest into CIG / FIG / PG. These groups will be actual
    beneficiary of different components under ATMA model. The group functioning is always cost
    effective and profitable than individual operation. The farmers in the project area would be
    mobilized to form PG / CIG / FIG through Service Providers (NGOs). The skill up gradation
    and exposure of PG /CIG in the respective production and marketing fields is equally important.
    This would enable such groups to pursue the identified commercial activity in a cost effective
    and efficient manner. Both the activities of mobilization of farmers into PGs and their skill up-
    gradation would be carried out by experienced and technically competent SPs (NGOs) in all
    project districts. The selection of SP (NGO) for formation of CIGs / FIGs / PGs would be done
    centrally by respective PIU of line department.
16. The number of FIGs / PGs / CIGs estimated to be formed under the project in catchment area of
    Component B would be: Agriculture Department (including crops and horticulture): 6000 &
    Animal Husbandry: 700. In addition, the CIG /FIG would be formed in APMC Market or other
    selected marketing intervention locations and would be linked to Farmer Common Service
    Centers set up under Component B. These FIGs / PGs / CIGs belonging to Agriculture
    Department will subsequently undertake appropriate production, post-harvest management and
    marketing activities. The FIGs / PGs / CIGs promoted under Animal husbandry sector will be
    linked to Livestock markets and Small Ruminant Markets under Component B.
   c) Trainings directly related to market improvement activities proposed under
   Component B:
17. The farmers should be better able to attune their production to changes in demand and to take
    advantage of new and alterative marketing channels being provided under the project as well as
    the potential of new production technologies. A range of interventions are planned to strengthen
    the marketing infrastructure under Component B. Some interventions seek to create alternative
    marketing channel while others aim of strengthening the existing agri-marketing infrastructure.
    The farmers linked to these project based interventions in the catchment area of specific
    markets being upgraded/developed under the project would need to be trained in concepts and
    practices of market-led production, productivity, quality improvement and marketing
    techniques. This will help farmers link to respective marketing channels to realize better returns
    through improved productivity, quality and intelligent marketing of their agricultural produce.
18. The project envisages strengthening marketing infrastructure at APMCs, Rural Haats, Livestock
    and Small Ruminant Markets. The new marketing channels are sought to be created under the
    project in the form of Farmer Common Service Centers. The ATMAs of the districts would
    select representative farmers linked to each of these institutions in the catchment area of these
    markets for relevant trainings. After the identification of catchment areas of the respective
    markets has been completed, the selection of farmers from these areas would be made by the
    relevant line departments for these trainings. Each line department would develop the training
    module and curriculum of this training course. The training would be organized by the line
    departments at departmental training centers/institutions/ KVKs/Agri-polyclinics.
19. An indicative list of Component B activity linked farmers trainings is given in the following

                                                 29
   table. This list is not exhaustive and is subject to modification based on implementation
   experience:

                                            Total
                                                          No. of
                                            no. of
     Sr.                             Unit                 batches                 Place of
            Project activity                farmers                  Trainers
     No.                             No.                  (each 25                training
                                            to be
                                                          farmer)
                                            trained
     1      Modernization of                                         TAO /AO /    APMC
                                     100     25,000       1000
            APMC markets                                             AR           meeting hall
     2      Improvement of Rural                          500        TAO /AO /    PS meeting
                                     300     12,500
            Haats                                                    AR           hall
     3      Strengthening of                                         DAHO / LDO   APMC
                                     20      2,500        100
            livestock markets                                                     meeting hall
     4      Strengthening of Small                                   DAHO / LDO   APMC
                                     4       11,250       450
            Ruminant markets*                                                     meeting hall
     5      Goat demonstration                                       DAHO / LDO
                                     2       1,250        50
            cum production unit*
     6      Farmer Common                                            TAO / AO /   Agri. Poly
            Service Centers          200     25,000       1000       AR           clinic
            (Grain)
     7      Farmer Common                                            TAO / AO /   FIAC /Agri-
            Service Centers          200     25,000       1000       AR           poly- clinic
            (Horticulture)
            TOTAL                                         4100



   These trainings will inter alia cover production, quality, post-harvest management and
   marketing of specific commodities / products which are handled by these markets / marketing
   channels / procurement agencies.
   d) Other trainings:
20. The SREP and MSS would also bring out the general training needs of farmers in the district.
    An indicative list of such prospective project activity based trainings is as under.
i) Training of specialised Agric-Service Providers:
21. The group economic activity in post harvest management of agri-horti commodities is getting
    increased attention by rural youth including women entrepreneurs and PGs. The interested
    entrepreneurs / PGs and the rural youth need to be provided specialised training in this area of
    economic activity. This would help develop large number of agribusinesses in rural areas in the
    backdrop of availability of multiple marketing channels and outlets in urban areas. A large
    number of PGs are being organized through District Rural Development Agency (DRDA). The
    PGs and the rural youth need to be empowered and linked to the marketing activities envisaged
    in the project. These will require training in agri-horticulture commodity processing and
    marketing. The ultimate objective is to link them to FCSC for marketing of their produce.
22. The Agriculture Department would train around 10,000 rural youth including entrepreneurs and
    PGs in rural areas in agri-horticulture commodity processing and marketing as specialized
    Agric-service providers. The training to these entities would be provided in the field of
    agribusiness and agro processing which would provide value addition to the produce. Training
    would be provided in the area e.g. sericulture, nursery management, fruit and vegetable
    processing, bee keeping, horticulture including flowers arrangement, seed production,
    agricultural machinery repairs and maintenance, packing of agricultural produce, pulses
    processing, flour mill, vermicomposting, paddy processing, cashew nut processing, etc. The
    trainees would be selected from the catchment areas of various interventions proposed under

                                                     30
   Component ‘B’. These will be drawn mainly from the PGs / CIGs / FIGs for agricultural
   productivity improvement and for formation for FCSC formation of grains and horticulture. The
   duration of training, charges for the various trainings as well as the course content would be
   different for each activity. A Service Provider for this purpose would be selected. The SP would
   prepare the course content, duration of training, charges for the training, the identification of
   institution where such trainings would be provided. Training would be imparted to 10,000
   people for various activities in 500 batches of 20 each.
ii) Training of Village Lady Livestock Link Workers (VLLWs):
23. The extension work that is performed in the AHD is conducted by such personnel who are
    saddled with the responsibilities of disseminating information pertaining to various government
    schemes. Considering the magnitude of operation to be carried out under AHD in the project,
    the existing staff of the AHD would be inadequate. In order to establish a live and continuing
    livestock extension constituency in the villages with links to AHD, training of VLLWs would
    be conducted who would perform the extension work required under the project. The details of
    the same have been given in Chapter A.4. The cost includes cost of vaccination kits and other
    material to be supplied to VLLW. The cost estimates of these sub-components are given in cost
    tables of AHD.

B. Exposure Visits for Farmers
   a) Outside the state:
24. Some enterprising farmers would be given the exposure to success stories in agribusiness
    outside the state during the project period. The farmers would learn from successful agri-
    business projects outside the state and replicate the success stories in the state. The farmers
    linked to project activities under Component B would be selected for exposure visit outside the
    state. The exposure to successful agri-business project would help them to establish enhanced
    market linkages, leading to increased productivity and income. Each department will select the
    farmers in the catchment area of respective project activities under their control on the basis of
    predefined criteria. A total of 16 batches (a batch of 30 farmers) would be sent on exposure
    visits from second to sixth year of the project. Each exposure visit would be of 5-10 days
    duration with predefined destinations.
   b) Within the state:
25. The interested and enterprising farmers would also need to be given exposure of successful
    agri-business projects within the state. This would go a long way in ensuring replication of
    activities in large numbers leading to success of the project. The relevant line department will
    select representative farmers linked to project activity under Component B for exposure visits.
    The exposure visits will be arranged in batches, each batch comprising 30 farmers during
    second to sixth year period of the project.
C. On-Farm Demonstrations
   a) Crop demonstrations with field days:
26. The demonstrations serve as an effective instrument for rapid dissemination of technology. The
    effectiveness of demonstration would increase with organization of field day around each
    demonstration. The demonstrations to be organized under this project would be composite
    demonstrations, demonstrating complete technology package of production. The country and
    the state is facing severe crisis of availability of pulses and the pulses prices have shoot up
    beyond reach of the common man. There is a tremendous scope for improving pulses
    production in Maharashtra because of favorable soil and climatic conditions. Therefore besides
    other crops the pulses crop demonstration will be considered on large scale. Other
    demonstrations would cover the field, vegetable, fruit and flower crops. These demonstrations

                                                 31
   would be organised in the areas of activities being undertaken under Component B under this
   project. The crop wise number of demonstrations planned is: Field crops - 12000, Vegetable
   crops - 450, Fruit crops - 300, Flower crops - 300. These numbers are only indicative and are
   likely to change during to implementation.
27. These demonstration will be organized in the catchment area of Component B activities. The
    selection criteria for the farmer for undertaking the demonstration programme will be as under
   (i)     The farmer should have minimum area of land for demonstration under a particular
           crop.
   (ii)    The farmer should be willing to spend additional amount required from his own
           resources.
   (iii)   The selected farmer will be entitled for one demonstration only.
   (iv)    The land proposed for demonstration should be a road side plot.
   (v)     The farmer must adopt the modern technologies and practices in timely manner.
   (vi)    The land should be representative of the predominant land type in the area.
   (vii)   The land should be leveled and should have access to irrigation facilities. However this
           will not be applicable to demonstration on rainfed crops.
28. The demonstrations would be organized in a cluster of around 8 to 12 farmers. The provision of
    control plot for comparison should be made. BTT under the supervision and guidance of
    ATMA will finalize the list of farmers selected for Demonstration.
29. The farmers undertaking demonstration would be given off-farm inputs viz; seed, fertilizers,
    insecticide, micronutrients etc. by project. The inputs of the recommended varieties having high
    yielding qualities and the other inputs of high efficacy will be provided. These farmers are
    supposed to be trained under the training programme of the farmers in technology transfer. The
    farmers covered under demonstration are expected to use inputs exclusively for demonstration
    crop and keep the record of the same. The tillage practices and all recommended crop
    management practices by field functionaries should also be followed. The data regarding yield
    of the crop from demonstration crop and from the control plot should be kept by the farmers
    and all this information should made available to the field functionaries at the time of their visit
    to the demonstration plot. The field days visit of the farmers to the demonstration plot will be
    the integral part of the demonstration.
30. A number of demonstrations are undertaken under different GOI sponsored programs, like
    National Agriculture Development Plan (NADP), National Food Security Mission (NFSM), and
    National Horticulture Mission (NHM). The demonstrations planned under this component
    would not duplicate the efforts of these programs. The emphasis of crop demonstrations under
    the project would be to demonstrate the quality and productivity improvements to be brought
    about through Good Agricultural Practices (GAP). Each demonstration would demonstrate
    integrated crop management package to the farmers. These demonstrations would be
    undertaken in the catchments areas of different types of markets to be upgraded/set up under
    Component B. Efforts would be made to concentrate more number of demonstrations of the
    crop/group of crops which a particular market will handle.
31. The cost norm for demonstrations would cover the expenditure on provision of critical inputs
    i.e. seeds, fertilizers, insecticides, micronutrients to address the constraints in the adoption of
    improved technologies in the demonstration area. The field day cost would include the
    expenditure on tea, snacks, stationery for 50 persons. Each demonstration will have the
    complete package of Integrated Crop Management (ICM) practices and a small control with
    farmers practice. At each demonstration site a field day will be organized at a critical stage near
    crop maturity so that the impact of adoption of improved ICM practices vis-à-vis farmer
    practice are visible.



                                                  32
32. The number of crop demonstrations, size of demonstration plots and cost norms are shown in
    the following table. The size of demonstration plots and cost norms are only general norms for
    costing purposes and can be modified depending on nature of the crop, technologies to be
    demonstrated and other relevant ground realties. For example if the cost of inputs is high, the
    size of demonstration plot can be reduced and vice-versa. However, every demonstration will
    have a field day near the harvesting stage of the crop in which large number of farmers from the
    village and adjoining areas will participate.
   The District Superintending Agricultural officer will plan the demonstrations in the district.
   The Crop group wise area of demonstration, cost norm and the number of demonstrations
   would be as follows,

                            Area                    Cost of      Total
                                     Cost norm
                             of                    field day    Cost per   No. of      Total Cost
      No    Crop Group               per demo
                            demo                   per demo      demo      demo       (Rs in Lakh)
                                       (Rs)
                            (Ha)                      (Rs)       (Rs)
      1     Field crops
       a)   Cereals        0.40          4500/-        1500/-     6000/-    4000           240.00
       b)   Pulses         0.40          5500/-        1500/-     7000/-    5000           350.00
       c)   Oilseed        0.40          6500/-        1500/-     8000/-    3000           240.00
                                                                   Total   12000            830.00
      2     Fruit crops     0.20         5500/-        1500/-     7000/-    300              21.00
      3     Veg. Crops      0.20         5500/-        1500/-     7000/-    450              31.50
      4     Flower crops    0.10         5500/-        1500/-     7000/-    300              21.00
                                                                   Total   13050           903.50


33. These demonstration will be carried out in the catchment areas of the different markets covered
    under Component B. They will cover cereals, pulses, oilseeds, cotton, vegetable, fruit, flower
    and other important crops grown in these catchment areas of different types of markets
    improved under the project.
34. All the crop demonstrations would be organized by ATMA/line department in the district.
   b) Demonstrations on organic farming:
35. The biological approach to crop production is proving beneficial to the farmers not only in
    reducing the cost of production but also for realizing higher returns than the mainstream
    farming. The organic produce fetches premium price in the domestic as well as international
    market. This is amply proved by the contract farming experiment in organic cotton in Vidarbha.
    The organic production technology would be disseminated on larger scale through
    demonstrations under the project. The demonstrations on cotton, pulses, cereals, fruits and
    vegetables would be organized across the state in the catchment areas of activities planned
    under Component B, during second, third, fourth, fifth and sixth year of the project. Each
    demonstration would be of 0.4 ha area and would be organized at prominent places along the
    roads. Organization of field day around each demonstration would be an integral component of
    each demonstration. The cost norm for a demonstration along with a field day expenses are
    shown in the following table.
   The area, number and cost norms for demonstrations with field days are consistent with the
   norms for the GoI funded schemes.



                                                  33
                                                                         Total
                           Area of     Cost norm        Cost of field
      Sr.                                                               Cost per   No. of    Total Cost
            Crop Group      demo       per demo           day per
      No                                                                 demo      demo     (Rs in Lakh)
                            (Ha)         (Rs)            demo (Rs)
                                                                         (Rs)
      1     Field crops
        a) Cereals           0.40          4000/-             1500/-    5500/-       80             4.40
        b) Cotton            0.40          6500/-             1500/-    8000/-      110             8.80
        c) Pulses            0.40          4000/-             1500/-    5500/-       90             4.95
     Sub total                                                                      280            18.15
      2     Fruit crops      0.20          4000/-             1500/-    5500/-       50             2.75
      3     Veg. Crops       0.20          4000/-             1500/-    5500/-       50             2.75
     Total                                                                          380            23.65


36. The cost norms for demonstrations would include the expenditure on provision of critical inputs
    in the demonstration area. The field day cost would include the expenditure on tea, snacks,
    stationery for 50 persons. A total of 380 demonstrations would be organized during the project
    period involving investment of Rs 23.65 Lakh.
37. The demonstrations planned will be arranged in the catchment area of project activities
   envisaged under component B. The selection of sites and farmers would be made on the basis of
   predefined criteria given in the guidelines. The plan of demonstration will take into account the
   major commodity to be handled by a particular market/marketing channel, concentrating higher
   number of demonstration of that particular crop/crop group in the area of operation of the
   market.
   c) Demonstrations on post harvest management technology:
38. Realization of higher market prices is possible only after the farm produce is properly graded,
    packaged and labeled. This technology must reach common farmers. Keeping this objective in
    view, the demonstrations on post harvest technology would be organized. This kind of
    demonstration would be a method demonstration along with organization of field day. The cost
    norm for a demonstration would be Rs. 3500/- per demonstration for all crops. The cost norm
    would include the expenditure on cleaning, grading, packaging cost @ Rs 2000/- per
    demonstration and a field day cost @ Rs 1500/- which would include expenditure on tea,
    snacks and stationery for 50 farmers watching the method demonstration. The demonstrations
    would be linked to FCSCs focusing on commodities being handled by them. A total of 1000
    demonstrations would be organized with investment of Rs. 35.00 Lakh.
   Adoption rates of demonstrations will be recorded in the years following the year in which
   demonstrations are organised. In about 10% of the demonstrations, the adoption rates (number
   of farmers adopting demonstrated technologies, area on which the technologies are adopted and
   farm level yield gains achieved by the farmers) will be monitored in the following years.
   This is essential for evaluating the productivity / quality gains achieved by the farmers as a
   result of demonstrations and trainings.
   d) Animal welfare camps on improved veterinary and livestock management practices:
39. The simple veterinary techniques like de-worming, vaccination, dehorning and artificial
   insemination should reach animal farmers in large numbers so that the farmers themselves are
   in a position to take care of their herds. The demonstrations of this kind are method
   demonstrations and would involve less cost. The demonstrations would be organized with
   involvement of farmers in field days. The cost norm for demonstration would be Rs 3500/,
   which would include cost of medicine/drug @ Rs 2000/- and the cost of organizing a field day
   @ Rs 1500/- around each demonstration. The demonstrations would be organized in the
   catchment area of live stock & small ruminant markets planned to be strengthened under


                                                   34
   component B. A total of 1500 demonstrations would be organized with investment of Rs 52.50
   Lakh.
   e) Demonstration of fodder production:
40. The technology of fodder production and feeding would need to be demonstrated under the
    project. This would be planned in catchment area of livestock and small ruminant market under
    component B. The demonstrations on fodder varieties of cereals (maize and jowar), Lucerne,
    berseem, grass hybrids like Yeshwant / Jaywant would be organized. Each demonstration
    would be organized on 0.4 ha area with total cost of Rs 7000/. This would include Rs. 5500/-
    for critical inputs and Rs 1500/- for organizing a field day. A total of 2500 demonstrations on
    this theme would be organized with investment of Rs. 175.00 Lakh. This programme will be
    implemented by the AHD with the help of ATMA.
   The size of demonstration plots and cost norms are only general norms for costing purposes and
   can be modified depending on nature of the crop, technologies to be demonstrated and other
   relevant ground realties.
   f) Organised marketing of small ruminants through Small Ruminant (SR) Federations:
41. Modernization of four Small Ruminant (SR) Markets has been proposed in the project. The
    AHD with the assistance of a NGO would carry out the mobilization of SR farmers into CIGs,
    to federate further into SR federation. These SR markets identified are (i) Atpadi, Dist.Sangli,
    (ii) Karjat ,Dist.Ahmednagar, (iii) Dound, Dist.Pune and (iv) Dahivadi, Dist.Satara .The details
    of the mobilisation of SR farmers have been given in section III of Chapter A. 4. Cost of
    training for this activity is shown under ATMA.
   g) Demonstration cum Production Units for Goat as a High Value Enterprise:
42. AHD would employ a SP / NGO who would be given the task of promoting goat as a high
    value enterprise. The farmers in the two SR markets would be given demonstrations on this
    aspect. The details of the same have been given in of chapter A. 4. Exposure visits to these
    demonstrations are shown under ATMA.
   h) Buyer Seller Meets:
43. The agri-horticultural commodities and processed products produced by the FIGs / PGs / CIGs
    would need to be efficiently marketed through various marketing channels. As the technology
    and the market is becoming complex, with new product types and shifting consumer demands,
    foreign companies can become joint venture partners for providing technical and financial
    support in establishing a network. The Buyer-Seller Meet (BSM) is a unique concept of pre-
    fixed meetings, presentations and one-to-one sessions. The BSM is for providing a customized
    floor for organizations to meet, discuss, consult and transact business with the specific names in
    the industry and for country/corporate houses to make product-specific or country-specific
    presentations to a pre-fixed niche audience.
44. To avail the opportunities in the current scenario, it is proposed to organize Buyer-Seller Meet
    at the state as well as district levels from the second year of the implementation of the project in
    a phased manner. At the state level 1 Buyer-Seller Meet will be organized every year from
    second year (Total cost for 5 years is Rs. 5.00 Lakh) and at the district level 1 Buyer-Seller
    Meet will be organised per district per year from second year (33 x 1 x 5 = 165 @ Rs. 0.75
    Lakh per meet, the total cost is Rs. 123.75 Lakh). The estimated cost of organizing these 170
    Buyer-Seller meets is Rs. 128.75 Lakh. These buyer seller meets will be organised in the
    catchment areas of project interventions planned under Component B.
   i) Strengthening of growers associations / farmer organizations:
45. The Growers’ Associations/Farmers organizations have a vital role to play in the transfer of
    knowledge, quality production, input supply, marketing and promoting value added products.

                                                  35
   Over the years, some of the growers’ associations have performed exceedingly well in
   organizing growers for these purposes. The high level of technical knowledge amongst grape
   growers in Maharashtra is mainly attributed to the work done by Maharashtra Grape Growers’
   Association. The Grape Growers’ Association in Maharashtra has set an example as to how
   growers’ associations can empower the member farmers to get linked to national and
   international markets. The growers’ association of this kind can become an effective link
   between Government and farmers. Through this link, it is much easier and effective in reaching
   the advisories to the farmers.
46. It is necessary to promote and strengthen growers’ associations related to Vegetable Crops,
   Mango, Pomegranate, Banana, Flowers, Sweet Lime, Strawberry, Guava, Lemon, Aonla,
   Orange, Cashewnut, Custard apple and Fig. The growers’ associations would need assistance
   for training, workshops and meetings. This provision will be used on demand from respective
   growers’ associations/farmers’ organization to meet the expenses on technology transfer related
   activities. This provision would be kept at state level.
   j) Innovative pilots:
47. A number of innovations take place at the farm level from time to time. These relate to
    development of new varieties, farm equipment and management practices. Such innovative
    activities need to be supported in a small way so that the benefit of innovations reaches large
    number of farmers. Such innovative activities would need to be supported through ATMA from
    time to time. The decision to support would rest with the governing body of ATMA.. The
    ATMA concerned would be in a position to use this amount for innovative pilots with the
    concurrence of PIU.
   k) Operating costs and mobility of staff:
48. The implementation of MACP involves a number of components and subcomponents.
   Consequently the volume of office work and field activities would increase. The office
   expenses would include stationery, telephone charges, TA / DA of officers and staff. Also the
   mobility of officers at district and taluka levels would increase necessitating financial support
   for Petrol, Oil, Lubricants (POL) and hiring of vehicles. A lump sump provision @ Rs 10 Lakh
   per district per year has been made to cover operating costs, POL, vehicle hiring, TA/DA
   during the project period. The total cost of this activity is Rs. 1980.00 Lakh.

III. Estimated costs:
49. The total estimated cost under various activities under this subcomponent is Rs. 5122.05 Lakhs.

IV. Institutional and implementation arrangements:
50. The Department of Agriculture, GOM, will be responsible for group formation under ATMA
    for those farmer groups whose primary reason for coming together is production. The
    Department of Agriculture, GoM will also be responsible for overall coordination and
    implementation of project activities related to this sub-component. The implementation will
    follow a community-driven approach with active participation of the beneficiaries and other
    stakeholders (including line departments, NGOs and private sector) in the design,
    implementation and monitoring of the interventions. In order to enhance inter departmental
    coordination and effectively involve farmers in the planning and implementation of various
    activities, Sub Committee of IDWG with related members will be put in place in addition to the
    existing multi disciplinary IDWG for effective functioning of ATMAs.
51. Project Implementation Unit (PIU) Agriculture: For coordinating implementation of
   Component A, a Project Implementation Unit (PIU) has been established in the
   Commissionerate Agriculture. A Deputy Director of Agriculture has been designated as Nodal
   Officer, PIU (Agriculture). The PIU will liaise with the PCU and coordinate the implementation
                                                36
   of various activities by VANAMATI, ATMAs, field staff of Department of Agriculture and
   other relevant entities. It will be responsible for monitoring of implementation progress. The
   PIU will regularly compile and submit to the PCU/ Bank various technical, financial, M & E
   and other reports. The Nodal Officer will take pro-active action to bring any implementation
   bottlenecks to the alternation of Director of Extension and Training / Commissioner of
   Agriculture / Project Director MACP.
   The PIU (Agriculture) will consists of full-time Nodal Officer, Agriculture Officer and
   Community Extension Officer (from the grade of Agriculture Supervisior) from the Department
   of Agriculture. In addition, the project will fund Agricultural Marketing Specialist, Procurement
   Officer, Accountant with Computer knowledge, two Assistants with computer skill and two
   Messengers on contract basis. The project will meet the costs of mobility, TA/DA, hiring of
   vehicles, office and other required contingencies, need based civil works/ furniture, computers,
   IT and other equipment, workshops, M & E, Impact assessment and other studies. The hiring of
   contractual staff for Department of Agriculture will be done by the Commissioner of
   Agriculture. The Nodal Officer will be responsible for the day –to-day activities of the sub
   component. Director of Extension and Training will have the overall responsibility for regularly
   monitoring and oversight of the implementation of various activities undertaken by the
   Department of Agriculture/ ATMAs under the project.
52. The project activities to be undertaken for strengthening of ATMAs, strengthening of
   VANMATI, and preparation and implementation of MSS would be coordinated, guided and
   monitored by the PIU. Since the extension activities relating to all line departments are to be
   implemented through ATMA, regular meetings of the State Level officers of line departments
   will be conducted for smooth and successful implementation of the project. The functions of
   PIU will include coordination and effective implementation of project activities, monitoring,
   evaluation and impact assessment of various components relating to extension. It will also
   monitor the activities undertaken by the ATMAs. The innovative pilot proposals submitted by
   the respective ATMA would be approved by PIU.
53. ATMAs: At the district level preparation and implementation of MSS would be coordinated by
    respective ATMA, using the resources of all the participating line departments, KVKs,
    concerned State Agricultural Universities and participating NGOs and private sector entities.
    Contractual services of Agricultural Marketing Expert and Accountant cum Computer Operator
    would be made available at district level for each ATMA under the project. In each district, the
    ATMA team would take the responsibility for preparation of Marketing Strategy Supplement
    (MSS). The MSS will be the basis for execution of extension activities envisaged under the
    project. The training of ATMA team/core team will be arranged by VANAMATI with the
    assistance of resource persons trained by National Agricultural Extension Management
    Training Institute (MANAGE, Hyderabad). The resource persons at VANAMATI will help in
    overall coordination of preparation of MSS in close association with the ATMA teams. District
    and field level staff of line departments - Agriculture, Animal husbandry and Co-operation and
    Marketing would be responsible for implementation of project activities related to their areas.
54. Apart from overall coordination of extension activities at district level, the ATMA would act as
    facilitator between Producer Association (PA) and Service Provider (SP) under Component B.
    The ATMAs would appraise the commercialization/ business plan prepared under the guidance
    of SP, and submit it to Project Implementation Unit (PIU)/Project Coordination Unit (PCU) for
    approval. Besides these, the ATMA bodies will be responsible for providing technical guidance
    to members of PG / FCSC / PA in association with SP, reviewing activities of PA and
    submitting the report to PIU, working in close coordination with ABPF for selection of
    entrepreneurs, assisting PIU/PCU in monitoring project activities at district level, and preparing
    annual action plan based on findings of the MSS.


                                                 37
55. VANAMATI: VANAMATI, the state level apex training institute, will be responsible for
    organizing training to ATMA core team in preparation of Marketing Strategy Supplement to
    SREP. They will also organize training of line department staff. Training module and training
    material on market–led extension would be prepared by VANAMATI. To carry out all these
    functions VANAMATI would be supported by dedicated contractual staff of one Agricultural
    Marketing Specialist, one Agri-business Specialist and one M & E Specialist. Training of field
    extension functionaries would be organized by VANAMATI. The VANAMATI will also assist
    the PIU in overall planning, coordination and monitoring of the sub-component activities.
56. Procurement:
   i) Inputs: The procurement of inputs like seeds, fertilizers, insecticides, micronutrients and
      other relevant materials required will be done by following World Bank Procedure .The
      quality and efficacy of the material will be the primary requirements. Wherever the quantity
      to be procured is less then $50,000/- value, the World Bank procedure of Shopping will be
      followed. The seeds which are available exclusively with Government agencies like
      foundation seed/ new variety will be procured from the dealers of the concerned
      Government agency by following WB procedure.
   ii) Goods and equipments: Goods and equipments required for PIU Agriculture and
       Horticulture processing training institute Aurangabad will be procured by PIU Agriculture.
       Goods and equipments required for ATMA and VANAMATI will be procured by ATMA
       and VANAMATI respectively.
   iii) Consultancy services and personnel: SP for formation of FIGs / PGs / CIGs of the farmers
        for productivity and quality enhancement and service provider for designing training
        module of the training of specialized Agric-Service Providers will be procured by PIU
        Agriculture. The contractual staff required in PIU Agriculture and ATMA will be hired by
        Commissioner Agriculture whereas the contractual staff for VANAMATI will be hired by
        VANAMATI.
       All the procurement under this component and subcomponent will be carried out by
       following World Bank procedure.

V. Funds Flow:
57. The funds for two subcomponent under this component i.e. described under A.1.(i) and A.2(ii)
    will be provided in the budget of Agriculture Department of GOM and will be released as per
    BDS (electronic funds transfer) to PIU Agriculture. Funds for HPTI, Aurangabad which is
    Government Institute under Agriculture department will be released to Joint Director
    Agriculture, Aurangabad as per BDS, who will make payments of contractors /suppliers of
    HPTI as and when required. The funds required for various activities under this component for
    ATMA, and VANAMATI will be released by Commissioner Agriculture to ATMAs and
    VANAMATI through core banking. All ATMAs and VANAMATI will be the spending units.
    The funds given to ATMAs and VANAMATI will be in the form of advance and these
    institutions will have to submit Un-Audited Financial Report (UAFR) every month and
    utilization certificate every quarter to PIU Agriculture. PIU Agriculture will submit the report to
    PCU and PCU will claim further required funds from the GOM. The funds will be released in
    tranches after verifying the utilization of the earlier tranche released and on getting utilization
    certificate of the same.
58. ATMA will keep the amounts received by it from Commissioner Agriculture in a separate Bank
    Account for MACP and will spend from this account for various ATMA activities. The funds
    for the activities of other line departments relating to training, demonstrations will be provided
    by ATMA to the concerned District level/Taluka level Officers of the line departments on
    receiving the proposals from them and those are duly sectioned by governing council of
                                                  38
   ATMA. The concerned line departments will be responsible for submitting monthly financial
   report to ATMA.
59. The external audit of accounts of MACP till the point of release of funds through BDS will be
    conducted by Accountant General whereas the external audit of VANAMATI and ATMA
    accounts will be conducted by Charted Accountant appointed for the purpose on contract by
    PCU by following World Bank procedure. The internal audit of all accounts of MACP under
    this component will be conducted by firm of Charted Accountant contracted by PCU as per the
    World Bank procedure.
60. Concurrent Monitoring and Evaluation: The sub-component would require rigorous internal
    monitoring and concurrent evaluation for which the monitoring and evaluation specialist from
    VANAMATI will develop the impact evaluation formats. Under the overall guidance and
    supervision of M &E specialist from VANAMATI the sub divisional Agriculture Officer will
    carry out impact assessment of demonstrations on sample checking basis. Out of the total
    demonstrations 10% and 5% demonstartions randomly selected will be evaluated by Sub
    divisional Agriculture Officer and DSAO respectively. Out of these the M & E specialist from
    VANAMATI will sample check 1% of the demonstrations to verify the proper impact
    assessment by the field Officers. The impact assessment reports will include the adoption rate
    of technology by the farmers. This task has been included in the ToR of M&E specialist of
    VANAMATI. Expenditure for this work would be made available from operating funds at PIU
    level. The Monitoring and Evaluation Specialist of VANAMATI will provide reports of
    monitoring and evaluation to the PIU and PCU. The Monitoring and Evaluation will include the
    achievement of various activities proposed under the project and also the impact of
    demonstration, trainings, field visits on increasing the productivity and improvement in quality
    of the produce.

VI. Fiduciary and Safeguards arrangements:
61. Competent and experienced local NGO / Company/ any other legal entity will be appointed as
    SPs for carrying out various activities like mobilization of groups, training. Selection of SP for
    this purpose will be done as per WB guidelines and the track record of SP in the relevant field
    in particular and its functioning in general will be kept in mind while its selection. ATMA has
    very important role to play in implementing this component. The ATMA has representatives of
    farmers and NGOs, besides departmental officers on its governing body. Therefore the
    expenses of ATMA are subjected to public scrutiny and review. Regular internal and external
    audit will provide adequate Fiduciary and Safeguards arrangements.

VII. Governance Risks and Mitigation Measures:
62. The following table provides the details of likely risks and mitigation measures in the
   implementation of this subcomponent.

    Sr.   Risks                      Description                  Risk Mitigation Measures
    No.
    1     Technical / Design         Sound need assessment        Design of the training programs will be need
                                     is critical for the impact   based.
                                     of this component
    2     Implemen-tation capacity   (i) Present thrust of        (i) Officers of the line department are proposed to
          and sustainability         extension service is         be trained in market led extension and allied fields
                                     production oriented.         to change the orientation to include marketing
                                     (ii) Technical inputs        besides production. Training will foster backward
                                     required for providing       and forward linkages in agricultural production.
                                     training in market-led       (ii) Experts / Specialists from the field of Agri-
                                     extension to the             business, Agri-marketing and M&E will be taken

                                                       39
    Sr.   Risks                    Description                Risk Mitigation Measures
    No.
                                   stakeholders.              on contract basis to formulate the training input.
                                   (iii) Co-ordination        (iii) Sensitization Workshops
                                   among the line             (iv) Strengthening of IDWG for policy
                                   departments is critical.   harmonization and promoting convergence with
                                   (iv) Participation by      ongoing progress.
                                   farmers in training        (v) Mobilization of farmers into CIGs / FIGs and
                                   programmes,                their sensitization will ensure their participation.
                                   demonstrations, visits     (vi) Officers of the line department are proposed to
                                   is critical for the        be trained in market led extension and allied fields
                                   success of such            to change the orientation to include marketing
                                   programmes.                besides production. This will help farmers to get
                                   (v) Present thrust of      involved.
                                   extension service is       (vii) Experts / Specialists from the field of Agri-
                                   production oriented.       business, Agri-marketing and M&E will be taken
                                   (vi) Technical inputs      on contract basis at VANAMATI to formulate the
                                   required for providing     training inputs besides Agriculture Universities,
                                   training in market-lead    KVKs, and VANAMATI.
                                   extension to the           (iv) Trainers will be provided with appropriate
                                   stakeholders.              training inputs for further training the
                                   (vii) Capacity building    stakeholders.
                                   of trainers is required.
    3     Financial Management     Programme is to be         The funds will be released in tranches after
                                   completed in phases        verifying the utilization of the earlier tranche
                                   and therefore release of   released and on getting utilization certificate of the
                                   funds becomes critical.    same.
    4     Procurement              ---                        Procurement will be done as per WB norms as
                                                              described in the chapter.
    5     Social and environment   Small, marginal farmers    Preference will be given to the small, marginal
          safeguards               and backward class         farmers and backward class farmers. The
                                   farmers should be          representatives of farmers, CIGs / FIGs /PGs and
                                   included in the            SPs involved in implementation should be able to
                                   programme.                 meet this risk.

    6     Other ( for example      ---                        As all the institutions included in this
          project specific                                    component are registered under various
          corruption risk,                                    statutes and have their own framework of
          ownership of project /                              rules and regulations, these risks are well
          program, prevalence of                              mitigated.
          failure in similar
          projects)


VIII. Sustainability:
63. The investment under this subcomponent will become sustainable because of the following:
        (i) The inputs regarding extension and training provided under this component improves the
        productivity and quality of agricultural production.
        (ii) Better post harvest management practices will generate additional income to the farmers
        and reduce the post harvest losses.
        (iii) The CIGs / FIGs / PGs of the producers of food grains, horticulture crops and animal
        husbandry formed will develop organic integration with institutions like APMCs, Rural
        Haats and FCSCs resulting in effective forward and backward linkages.
                                                   ***



                                                   40
         A.2 AGRI BUSINESS PROMOTION FACILITY (ABPF)

I. Objectives
1. Agricultural production and its marketing are interrelated activities and MACP addresses these
    firstly by improving agricultural extension system (ATMA model), and secondly by providing
    upgraded marketing infrastructure which will be made accessible by traditional as well as
    alternative marketing channels. Besides these interventions, the competitiveness of the farmer
    will be improved by capacity building. The sustainability of agriculture will improve because of
    all these interventions. Considering the scope of further improving sustainability of agriculture,
    value addition to agriculture produce is most important critical factor. Development of various
    business activities either supporting agriculture or based on agriculture production will add to
    the income of the farmers. It is therefore proposed to include the Agri-business Promotion
    Facility (ABPF) as a subcomponent under this Project.
2. The manpower involved in operations and management of infrastructure created under
   Component B of this Project including non officials in management and executive cadre and
   other personnel will have to be provided with technical and management skills for operations &
   management of the facilities created. The ABPF will have the main role to train these
   personnel. Besides this number of studies would be undertaken by ABPF which will also
   include three studies relating to development of dairy marketing, development of fisheries
   marketing and agricultural insurance. The findings of these studies will be reviewed at the time
   of first Mid Term Review (MTR) and assessment will be done whether to include these
   activities under this project after for financial support. These studies will be contracted out. The
   staff of ABPF with the support of PCU will prepare ToRs for the work and take technical
   oversight role. The responsibility of contracting will be that of PCU.
3. Two additional activities will be supported under ABPF viz. i) A process for facilitating
   Maharashtra Agri. Business and Producers Organisation to access GoI grants and ii) a process
   for the review, discussions and development of improved designs for wholesale markets and
   Rural Haats. ABPF will have a major role in facilitating greater state utilisation of GoI
   marketing grants.
4. ABPF is proposed on contract basis. It will function till the project period is over. However, by
    the end of fourth year an independent cell will be established in MSAMB for similar functions
    as ABPF. This cell will get hand holding from fourth year as it will work in close guidance of
    ABPF consultancy under the project. At present MSAMB has got project and consultancy cell
    with some expertise. This will be strengthened by providing additional expertise so that this cell
    can function as ABPF after the project period. Besides Project cell in H.O.of MSAMB it is
    proposed to have Project Advisers/Project Facilitators in regional offices of MSAMB. At the
    district level there would be panel of Agri-business/Agri Marketing Advisers with ATMA or
    District Deputy Registrars of Co-operative Societies. The regional level and district level
    experts will be drawn from private sector and their panel will be maintained at the regional and
    district level respectively whose names and details will be published on the website so that the
    prospective users can contact them and avail their services. These experts will be trained by
    ABPF under the project during the 5th and 6th year of the project phase. The Project
    Advisers/Project Facilitators at regional level and Agri-business/Agri-Marketing Advisers at the
    district level will provide services to prospective entrepreneurs, i.e. agric-graduates, agric-
    diploma holders, diploma and degree holders in management and all other entrepreneurs in
    various fields of agri-business and agric-marketing and will provide services like preparing
    project reports, proposals for banks, proposals for accessing GoM/GoI grants. The ABPF under
    the project is thus aimed to develop and arrangement to make the similar services available to
    agric-entrepreneurs even after the project period.
                                                  41
5. ABPF will hold annual and zonal conferences of Agribusiness Advisers and a satisfaction
   survey will be carried out to know how the ABPF has benefited to their knowledge. Like wise
   satisfaction survey of the SP of APMCs, RH & FCSC will help to understand the benefits of
   ABPF to beneficiaries. The SPs of APMCs, RH and FCSCs will be invited for annual and zonal
   conferences organized by ABPF. This will function as a learning platform where results of any
   studies can be disseminated and market designers, architects, APMC personnel and SPs
   involved in supporting APMCs, RH and FCSCs would attend and share their experiences and
   learning’s. ABPF role is to provide services, and support to the project and its implementing
   agencies to improve performance. The regular satisfaction surveys will be carried out to know
   ABPF’s ability to deliver the information, training and advise needed by the project and its
   service providers. Users of APPF’s services need to be able to identify how the facility has
   impacted on the outcome of their work. These surveys will cover the relevant personal in PCU
   and MSAMB, the 33 Agribusiness Advisers in the ATMAs, service providers supporting
   FCSCs and market designs, attendees at dissemination conferences of ABPFs work and a
   sample of individuals who have downloaded ABPF generated information from the MACP
   website. The consultancy reports will be uploaded on the website by ABPF and the
   downloading of the same by registered users will be monitored.
II. Outcome and Output Monitoring Indicators
6. The following table enumerates the Outcome and Output monitoring indicators:

    Sr.   Outcome                                          Indicator
    No.
    1     Share of trade through alternative markets % increase in the share of trade
          under the Project.                               through alternative markets under the
                                                           Project.
    2.    Project clients of ABPF find that their services % satisfaction level by clients of
          has had a positive impact on outcomes of their ABPF and case studies of how ABPF’s
          work                                             inputs has had positive outcomes in the
                                                           field.

    Sr.   Output                                        Indicator
    No.
    1     Number of personnel trained related to        % of the total targeted no. of trainings
          project activities.                           conducted.
    2     Measurement of knowledge gained before        % of trainees satisfied with the training &
          and after the trainings                       seminars provided by ABPF.
    3     Number of Major Studies to be carried out     % of targeted studies satisfactory
          (e.g. Milk and Fish Sectors for potential     completed
          expansion of project, GI indicators,
          Insurance, Impact of SMS)
    4     Number of value chains and number of          % of targeted value chain studied and
          other studies completed and reports shared    shared with ATMA.
          with PCU and ATMA effectively (20).
    5     Number of new business models studied     % of the new business models studied and
          and shared with PCU and ATMA              shared with PCU & ATMA with a survey
          effectively.                              of examples of how these studies have
                                                    changed the behavior of ATMAs clients.
    6     Satisfaction Survey of ATMA Agri-         % of ATMA Agri-business Advisors and
          business Advisors and SPs of APMCs, RH    SPs of APMCs, RH and FCSCs satisfied
          and FCSCs and examples of impact of Agri- with ABPF training and examples of the
          business training.                        impact of ABPF on their work.

                                               42
    Sr.    Output                                        Indicator
    No.
    7      Increase in the amount of GoI grants % of State’s share in accessing grants of
           accessed by State                          GoI as compared with the budget
                                                      allocation.
    8      Number of wholesale markets and rural % satisfaction of attendees at annual
           haats designs reviewed, and discussed with Market Design seminars and examples of
           stakeholders and improved designs of the new improved designs adopted by
           same suggested.                            wholesale markets and rural haat as a
                                                      result of the seminars.
    9.     Number of various consultancy studies % of targeted consultancy studies
           completed.                                 completed and number of registered users
                                                      who have downloaded the reports.
    10.    Preparation of 75 commodity profiles       % of targeted number of commodity
                                                      profiles prepared.
    11.    Number of publications done.               % of targeted number of publications
                                                      done.
III. Policy and Regulatory Environment:
7. Enumerated below are the issues related to policy & regulatory environment:
 (i) ABPF activity is related to capacity building of personnel related with the improvement of
     infrastructure of the institutions selected in Component B of the Project and documentation
     activities like study of value chains, and preparation of project profiles. Such training and
     allied activities of study & documentation in ABPF shall be undertaken by a Consultant, to be
     appointed by competitive selection process. Enabling regulatory framework is already in
     place through amended APMC Act wherein alternative agri-business channels are allowed
     freely to operate.
 (ii) Various studies, documentation, surveys, and results that will be created and shared with
      ATMA in due course of implementation of ABPF will be intellectual property of the Project.
      The relevant clause regarding IPR will be appropriately included in the TOR and MOU under
      this component. Provision of Amended APMC Act would provide the necessary policy
      instruments for such studies.
IV. Selection Criteria
8. The selection criteria for those who would be trained by ABPF are included in respective
   components narrated in the Project Document.
9. Separate consultants will be selected by competitive bidding process for carrying out various
   studies under the project. The TOR for the same will be prepared by ABPF with the support of
   PCU. ABPF and PCU will take the technical and oversight role on this. Contracting of the
   consultancy will be done by PCU.
V. Activities to be financed
10. The overall role of the ABPF is to create a body of knowledge, a network of producer / market
    linkages and an ongoing flow of useful information which will accelerate the economic
    development of Maharashtra’s agricultural sector. The program will be overseen by the
    Agricultural Marketing Specialist within the PCU, while the roles of ABPF will be put out to
    contract.
11. There will be three major contracts: (a) for the overall co-ordination and implementation of the
    program; (b) consultancies around value chains, (c) to study business models, and (d) in
    addition there will be a number of one off studies and trainings. All these components have to
    be need based and linked to various sub-components of Component B. Training needs under
                                                43
      Component B would be worked out by respective SP and ABPF together and that would
      become the agenda for Capacity Building for the personnel viz. farmers, officials, PG members
      and other stakeholders, for ABPF.
12. The role of ABPF consultants will be as under:
A. Consultancies for the overall co-ordination and implementation of the program:
          i) Agribusiness and Marketing Consultancy at HQ Level
          ii) Agribusiness and Marketing Consultancy at Zonal Level
          iii) Preparation of proposals for GOI
          iv) Other misc. consultancy requirements and to facilitate Maharashtra agri-businesses
               and producer organizations to access GoI grants.
B. Consultancies around value chains, to study business models, major, minor and one off studies:
          i) Value Chain Analysis
          ii) Studies of, and Advisory services provided on new business models promoted by the
               project
          iii) Major studies :
                   a. Study of Dairy Marketing Development
                   b. Study of Fisheries Marketing Development
                   c. Study of Agric-insurance and piloting yield Risk Management Mechanism
                   d. Study of the Impact on Farmer Profitability through the use of SMS based
                       Agricultural Information systems
                   e. Study of and potential on-going support for the development of Geographic
                       Indicators in Maharashtra
                   f. Finance, Policy and e-trading.
          iv) Minor studies for agro-marketing and provide training :
                   a. Study to review, discuss and develop the modern design for wholesale
                       markets and rural haats.
                   b. Studies required for agri-business needs of ATMA.
                   c. Provide training to e-trading
          v) One off studies- Meat Study for Pune city.
          vi) Preparation of Commodity Profiles
C. Training:
           i) Seminars, Workshops and Clinics.
           ii) Training courses.
           iii) Training for ATMA and Agri-business Advisers.
D. Publications:
A. ABPF consultancy for over all coordination and implementation of program:
13. The envisaged operational structure of the ABPF will have two senior staff located at the
    Project HQ, one will oversight on the program around markets, products and agribusiness
    business models (Agric - Business & Marketing Specialist), the second to oversee the issues
    around policy and access to finance for agri-business (Finance & Policy Advisor). A junior
    agricultural economist will assist them.
14. There will be three regional offices, reflecting the three regions (Marathwada, Vidarbha and
    Westerns Maharashtra) 1 of the state. In each will be staffed an agribusiness advisor and a junior
    agro-economists. Their role will be to create network with the agribusiness and financial sector
    and act as a resource center for the agribusiness advisors in the ATMAs. These roles will be
    put out to contract for Consultancy Company.


1
    Also corresponding to the State’s major agro-climatic zones.

                                                           44
15. The role of the Agribusiness and Marketing Specialist is to:
   i)     Oversee the training program conducted by the zonal offices for the managerial personnel
          involved in the management of the infrastructure facilities proposed to be developed under
          Component B of this project.
   ii)    Oversee the conducting of value chain studies, dissemination of the findings and that the
          information is useful to the sector.
   iii)   To see the information from the value chain is widely disseminated via publications,
          trainings (especially to Agribusiness Advisors in the ATMA), seminars and via web based
          information
   iv)    Create a role as a point of contact and conduit for information and networking between
          the agribusiness and trading sector, their associations (i.e. CCI, Maratha CCI and FICCI),
          and the project, the Maharashtra State Agricultural Marketing Board , the GoM and the
          zonal offices;
   v)     Oversee the studying, understanding and analysis of a series of business case studies that
          will be carried out of the new marketing, models that will emerge as a result of the project
          i.e. FCSC, E-Mandis and local aggregators of product to access the new financial
          instruments like warehouse credit and contracts, and that the findings are disseminated to
          entrepreneurs, financial institutions and the agri-business and farming sectors;
   vi)    Ensure that the successes and failures of the new marketing models is rapidly understood
          and the key issues rapidly disseminated to the financial institutions entrepreneurs and
          ATMA business advisors;
   vii) Provide a commentary on markets, products and evergreen business models and on the
        different financial institutions and their products on the project web;
   viii) Identify new and potential important marketing / agribusiness models that are emerging in
         Maharashtra, and if considered significant enough (i.e. having potential for large scale
         replication), commissioning studies so that their effectiveness, impact and profitability is
         well understood by the broader agriculture and agribusiness and rural finance sectors;
   ix)    Feed information on new market and agri-business opportunities into the communication
          network in the project, so that field staff are well informed, and can advise their clients
          and capture from field feedback on successes and failures and modify messages and
          activities accordingly.
   x)     ABPF will hold annual and zonal conferences /workshops of Agribusiness Advisers and a
          satisfaction survey will be carried out to know how the ABPF has benefited to their
          knowledge. The SPs of APMCs, RH & FCSC will be invited to attend these conferences/
          workshops which will help them to understand the benefits of ABPF to beneficiaries.
   xi)    Surveys will be carried out of level of satisfaction of attendees and of examples of the
          impact of ABPF on their work.
   xii) to assist in the emergence of a process to enable APMC and agribusiness in accessing GoI
        marketing grants (.e.g. guidelines trainings, support services provided by MSAMB in
        applications etc)
16. The role of Financial and Policy Advisor is to:
   i)     act as an advisor to the project on issues around the policy impacts on agribusiness and
          farmers, and as an interface between the financial sector and the project;
   ii)    create a role as a point of contact and conduit for information and networking between the
          agribusiness and trading sector, their associations (i.e. CCI, MCCIA and FICCI, and the
          financial sector, the project, the Maharashtra State Agricultural Marketing Board and the
                                                 45
          zonal offices, so that policy and trading and farming needs can be better tuned with one
          another;
   iii)   commission studies on key policy issues and new financial instruments so that policy
          decisions can be fact based;
   iv)    create a role as an interlocutor between the Financial sector, the project and government;
   v)     understand the modus operandi of the financial institutions, the new financial products
          and loaning criteria that are emerging;
   vi)    encourage the financial sector to understand the financial needs of the agri-business and
          trading sector and seek to increase the access of finance;
   vii) facilitate trainings by the financial sector to the agribusiness and trading sector;
   viii) provide a commentary on policy and regulations, and on the different financial institutions
         and their products on the project web;
   ix)    sensitize the financial sector to new business models, investment opportunities and
          potential alternative and newer financial products that will benefit the farming and agri-
          business and trading sector;
   x)     ensure that an understating of financial products and institutions is well understood by
          project staff and particularly by ATMA agri-business advisors so that they can advise
          their clients accordingly.
   The junior agricultural economist will carry out research and information gathering for the
   Agribusiness and Market Advisor and the Policy and Financial advisor and act as alternates on
   their behalf.
17. The role of the Zonal Office will be to:
   i)     work closely with the 11, or so, ATMA agribusiness advisors working in their respective
          zone, providing trainings, information, advice, convening seminars and acting as a two
          way conduit for information between field staff and the ABPF HQ and PCU staff;
   ii)    conduct training programs for the manpower involved in management of various
          infrastructures proposed to be created under MACP’s component B. This training will be
          mainly business related and in management areas to suit the requirement of the operations
          and management of various infrastructures created under the project. The consultants at
          head office and zonal office will have to develop need based training module, draw
          training plan and conduct these training programs.
   iii)   act as a conduit for the exchange of information between the project, HQ and field staff,
          especially the Agri-business advisors, and the agribusiness community, and convene
          meetings/trainings between ATMA agri-business advisors so that best practices and field
          lessons are exchanged;
   iv)    assist ATMA agribusiness advisors in carrying out local area resources audit/ information
          gathering exercises and that this information is forwarded for inclusion onto the MSAMB
          web site;
   v)     to network with the local agri-business community, their trade and professional
          associations so that business opportunities and marketing linkages can be fed into the
          project network;
   vi)    to organize, in conjunction with the local agri-business community, their trade and
          professional associations a number of seminars, workshops and buyer: seller meets
          annually and ensure that the information and training provided is relevant and responds to
          the needs of the local agribusiness and trading community.

                                                  46
   vii) to approve the business plan prepared by PA for FCSC.
B. Studies:
(i) Consultancy for study of Value Chains:
18. The contract will be put out to bid for suitably qualified institution and consulting company, for
    study of some 20 value chains and the communication of the findings to the sector and to
    ATMA agri-business advisors. Major important crops including cereals, pulses, oilseeds, fruits
    and vegetables and flowers will be covered in value chain analysis. These will include sorghum,
    wheat, maize, rice, pulses, soybean, sunflower, mango, banana, grapes, pomegranate, orange,
    guava, cashew nuts, tomato, onion, okra, brinjal, cauliflower and exotic flowers. The value
    chains studies will be shared with ATMA. These studies would generate model project reports
    under each value chain to be adopted by prospective agri-business entrepreneurs.
(ii) Consultancy for Study of New Business Models:
19. The contract will be put out to bid for suitably qualified institutions and consulting company for
    the study of new business models promoted by the project, identifying key factors of success
    and failure and explaining the financial needs and returns of the studied new marketing venture.
    This is likely to include – FCSC, E-Trading and the role of local aggregators to consolidate
    smaller farmers’ produce so that they are able to take advantage of the new financial
    instruments that are emerging, the economics and business models of APMCs providing
    productive services, e.g. cold stores, pack houses, ripening rooms. Outcome of such studies will
    be seminars and outline business plans for use by SP, investors, APMCs, Financial institutions
    to reduce the risk and increase in knowledge for future similar investments. .
(iii) Major Studies:
a. Consultancy study of Dairy Marketing Development:
20. India with a total milk production of 110 million tonnes remained the largest milk producing
    country in 2008-09 with a share of close to 15 percent of world milk production. Maharashtra is
    one of the milk surplus states in India. Total production of milk in Maharashtra is around 7.00
    million tonnes. In Maharashtra there are dairies in the cooperative sector, the government sector
    and the private sector. The total milk production of cooperative and government sector is
    around 82.00 lakh liters per day (LLPD), with almost equal share of each. The unorganized
    sector has additional production of around 18.00 LLPD to 20.00 LLPD.
21. The National Dairy Development Board (NDDB), has proposed around $4 billion (Rs. 173
    billion) draft National Dairy Plan (NDP) to increase the country's milk production from the
    current level to meet the projected demand of 180 million tonnes by 2021-22. Commensurate
    with this goal, it may be reasonable to project that Maharashtra’s milk production should grow
    from 7.00 million tonnes to around 13 million tonnes by 2020.
22. The NDP focuses on: (i) productivity measures to enhance milk production as the average
    annual incremental production will have to increase from 2.5 million tonnes now to 5 million
    tonnes over the next 15 years, and, (ii) strengthening and expanding infrastructure to procure,
    process and market milk through existing and new institutional structures. The NDP plan
    proposes to increase the share of the organized sector in milk production to 65 percent from the
    current 30 percent to ensure supply of quality milk to consumers. NDP covers strengthening
    and expanding infrastructure to procure, process and market milk through existing and new
    institutional structures, of which Maharashtra state is likely to be a major beneficiary state.
23. In view of the above, there is a need to explore the potential of introducing proactive measures
    to increase the productivity and production of milk in Maharashtra, viz.:
   (i)     Undertaking campaign for production of clean milk (CMP programme).
   (ii)    Milk Price based on microbial quality by implementing CMP programme.

                                                 47
   (iii)    Milk Payment through smart cards.
   (iv)     Provision of bulk milk coolers (BMCs), automatic weighing and testing machines.
   (v)      Fully automatic and computerized milk processing facilities.
   (vi)     Establishment of cold chain from farmer to consumer.
   (vii)    Milk marketing through automatic vending machines (not only in Mumbai but even in
            smallest towns in the state).
   (viii)   Enforcement of stringent quality norms.
   (ix)     Organization of New Generation DCS as per Indian Companies Act applicable to
            Producers Companies.
24. Considering various interventions under NDP what is required to be done in the field of Dairy
    Marketing Development will be studied under MACP. A study is proposed for development of
    a roadmap for Maharashtra’s dairy industry from Production to Marketing. This study shall be
    completed during the early two years of the project. Based on the results of this study WB in
    consultation with GoM at the time of Mid Term Review of MACP will decide whether
    subcomponent of Dairy Marketing Development should be included in MACP and what
    activities need to be taken. Besides other objectives, this study will cover as to how the dairy
    development including processing of milk and its marketing development should be tackled;
    particularly in suicide prone districts of Vidharba region of Maharashtra, and what kind of
    investment is needed for the same.
25. The draft TOR for the study will be prepared by ABPF with the support of PCU, and ABPF and
    PCU will take the technical & over sight role on this. Consultant contracting will be the
    responsibility of the PCU. If need be PIP for Dairy Marketing Development in Maharashtra
    form the stage of production till marketing will be prepared by consultant.
b. Consultancy study of Fisheries Marketing Development:
26. Fish is important sources of cholesterol free protein to non-vegetarians. Maharashtra State has
    the coastline of around 720 km and the marine fish production of the state is 4.10 lakhs tonnes.
    Besides this the State has 1.30 lakhs tonnes of inland fish production. There is water spread of
    over 3.20 lakhs ha. under inland water bodies. Inland fisheries development has therefore
    tremendous potential. In addition to this the GoM has taken massive program of digging of
    farm tanks under the program of water and soil conservation and these tanks are increasingly
    being used for growing of fish by the farmers in the State.
27. There are some bottlenecks in the development of inland fisheries in the State. These are i) Non
    availability of quality seed of cultivable freshwater fish species acting as limiting factor for
    creating marketable surplus of fish production due to lack of intensification and coverage of
    available area under aquaculture ii) total requirement of fingerlings for the State is around 12
    crore, as against the availability of around 2 crore iii) lack of fish handling infrastructure iv)
    inadequate facilities for storage transport v) inadequate marketing infrastructure. To address
    these issues and other gaps and to enhance the production of fish GoI has launched National
    Fisheries Development Program (NFDP). Maharashtra is going to be one of the States getting
    benefit under the program. The outcome / results of NFDP would be known only after around 2
    years. In the light of NFDP, what needs to be done in Fisheries Marketing Development in the
    State under MACP, needs to studied. It is therefore proposed to undertake study of fisheries
    marketing investments which can be included under MACP. This study will be conducted by
    consultant under the overall supervision of ABPF. This study would be undertaken early during
    MACP implementation and reviewed at the point of Mid-Term-Review of the project and WB
    in consultation with GoM will decide the possible inclusion of activities for fisheries marketing
    development in MACP during the later years of implementation of project. ToR for consultant
    will be drawn by ABPF with the support of PCU. ABPF and PCU will take the technical
    oversight role over this study; contracting will be the responsibility of the PCU.


                                                 48
c. Agriculture Insurance and Product Development/ Piloting yield Risk Management Mechanism
28. Agriculture as an economic activity is severely affected by various factors which are beyond the
    control of the farmers. The scanty, untimely, inadequate or heavy rains, sudden changes in
    weather conditions, hailstorms, frosts and fogs, sudden epidemics of diseases and pests etc. make
    agriculture a very unsafe and unsure activity. The lack of infrastructure for post harvest handling
    and loopholes in Agriculture Marketing System adds to the uncertainties in Agricultural
    business. Thus risk in Agriculture is a very complicated and complex phenomena, manifested by
    uncertain productivity and inadequate price realized by the farmers for their agricultural produce.
    This problem needs to be addressed, to insulate the farming community to the extent possible.
    The National Agriculture Insurance Scheme, popularly known as Crop Insurance Scheme, does
    not cover horticultural crops. Maharashtra's strength in horticulture needs no emphasis.
    Therefore, there is an absolute necessity to develop insurance products for horticulture crops,
    acceptable to farmers, which are not available at present. Besides horticultural crops insurance
    products acceptable for non-perishable crops by the farmers need to be developed.
29. It is proposed to study the agriculture insurance with particular reference to the horticultural
    crops and few non perishable crops. Study of the present status of data about yield of crops
    identified and collection of more comprehensive data to fill up the gaps, develop new
    methodologies for data collection, organization and dissemination of the data that align with the
    needs of insurance companies to develop insurance products based on Crop Cutting Experiments
    (CCE) and assist the Department of Agriculture to maintain database for such CCE based crop
    insurance. Study of existing weather data, identify the gaps in the same and collect required
    weather data to fill up the gaps and develop linkages between weather parameters and yield of
    crops for weather data based crop insurance. This study and product development will be done
    during first 24 months of the project to develop a more perfect and matured CCE based
    insurance product and weather data based insurance product for the identified crops.
30. The study could include what the farmers want as an insurance product to cover their crops.
    Different products available in the market will be studied and the expectations of the farmers,
    officials who implement the scheme, Govt. who shares the responsibility of premium &
    compensation, and, the insurance company would be examined. The products which are
    acceptable to all the players can be identified and road map of product development can be
    drawn. These studies would include two sets of crops i.e. perishables (fruits and vegetables) and
    non-perishables i.e. cereals, pulses and oilseeds.
31. This study will be conducted during early 2 years of the project period through an independent
    consultant who will be recruited by competitive bidding. ToR for the consultant will be
    prepared by ABPF with the support of PCU and ABPF. They will take technical and oversight
    role on this. Contracting of the consultant will be done by PCU. On the basis of the results of
    the study the World Bank in consultation with GoM at the time of MTR will decide whether the
    testing of the products, its launching, the rolling out of the program can be considered under
    MACP, and, with what support during the remaining period of the project.
d. Ad-hoc Studies:
32. A number of ad hoc studies will be commissioned, mainly in response to need. These include
    those of Policy, e.g. the implementation of APMC Act, the issues on Agricultural and Agri-
    business finance, e-trading, cross state trade, and other new business models. This would lead to
    agri-business capacity creation at the grassroots level.




                                                 49
(iv) Minor studies for agro-marketing:
   a. Study to review, discuss and develop the modern design for wholesale markets and rural
   haats:
33. This study will be around the development of modern design for the wholesale markets and the
    rural haats taking into account the present infrastructure in the modern markets and the
    emerging modern systems in the most developed markets. Market designs have not improved
    for the last 50 years. The infrastructures are of traditional nature. ABPF will develop improved
    design of wholesale markets & RH. The study should able to visualize design of wholesale
    market in 2030. ABPF will commission the study and hold conference every year and make the
    design of wholesale market and RH available to the users.
   b. Studies required for agri-business needs of ATMA:
34. Agri-business needs of ATMA will be studied by the Agri-business Specialist and Marketing
    Specialist with the support of Finance and Policy Advisor in the zonal offices of ABPF. Each of
    the zonal office will conduct these studies for ATMA in its zone and the results will be shared
    in the form of report to ATMA, PIU, Agriculture and PCU.
   c. Study of potential for Geographic Indicators in Maharashtra,
   A study will be undertaken of the need and opportunities for Geographic Indicators in
   Maharashtra, and if proved promising the ABPF will provide support for Farmer Organizations
   wanting to register the Geographic Indicators for their products.
   d. Study of the Impact on Farmer Profitability through the use of SMS based Agricultural
       Information systems
An existing survey is being carried out in Maharashtra across 100 villages and 1,000 households of
the impact of RML, when either directly delivered to farmers, or routed by village field
functionaries. The ABPF will commission this study to continue for 2 further years in order to
validate the impact of these information services over time.
(v) One off studies- Meat Study for Pune city.
35. This study will cover meat trade in Pune city with an objective to start modern slaughter house
    for hygienic meat production to meet the growing demand of the same in Pune city. The write
    up on this is given under chapter A.4. This study will be conducted by ABPF with the support
    of AHD. An independent consultant will be contracted for this by PIU, AHD. The ToR for the
    same will be prepared by ABPF.
(vi) Preparation of Commodity Profiles
36. Marketing opportunities (profiles) of important 75 commodities are proposed to be included on the
    web site in English and Marathi languages. The commodities having maximum arrivals and
    prominently used in the State are selected from various categories for creating commodity profiles.
    This will help farmers to manage the pre & post-harvest operations in order to realize better price
    to their produce in the market. The Commodity Profiles will be prepared by an independent
    consultant who will be appointed by competitive bidding. The ToR for the consultant will be drawn
    by ABPF in consultation with PCU. The contracting of the consultant will be done by PCU and
    preparation of commodity profiles will be done by the consultant under the overall guidance of
    ABPF & PCU. Indicative list of points those will be considered while creating commodity profiles
    is given in the following para however, the concerned expert who will create these profiles can
    give additional necessary information.
37. Origin of the commodity, importance, its major producing states, countries, major commercial
    varieties, post harvest losses, harvesting care, post harvest equipments, grade specifications,
    grading at producers level, major storage diseases & pest and control measures, storage structure,

                                                 50
    storage facilities, pledge finance system, marketing practices and constraints like major assembling
    markets, arrivals, dispatches, inter-state movement, export import features like sanitary & phyto
    sanitary requirements, export procedures, standards and quality, grading, packaging, agri-export
    zones, marketing channels, marketing costs and margins, marketing information and extensions,
    alternative system of marketing, institutional facilities, processing and utilities etc. Commodities
    having maximum arrivals and prominently used in the State are selected from various categories
    for creating commodity profiles. The details are as follows.
    Category               Commodities
    Fiber (1)              Cotton
    Cereals (6)            Bulrush-Millet, Paddy-Unhusked, Wheat-Husked, Sorgum, Maize, Rice.
    Pulses (6)             Gram, Lentil, Green Gram, Pigeon Pea, Black Gram, Green Peas.
    Oilseeds (5)           Ground Nut Pods, Safflower, Soyabean, Sunflower, Sesamum.
    Jaggery (1)            Jaggery
    Fruits (18)            Mango, Pineapple, Fig, Sapota, Pomegranate, Grapes, Banana, Lemon, Sweet Lemon,
                           Papaya, Apple, Orange, Custard Apple, Strawberries, Guava, Melon, Water Melon, Amala.
    Vegetable (15)         Potato, Ladies Finger, Cauliflower Cucumber, Carrot, Onion, Cabbage, Garlic, Capsicum,
                           Drum Stick, Tomato, Ginger, Green Peas, Beans, Brinjal.
    Condiments (8)         Coriander, Turmeric, Cashew nut, Chilly, Almond, Raisin, Betel leaves, Muster
    Flowers (5)            Aster, Rose, Mari Gold, Jasmine, Tuberose.
    Animal Husbandry       Bullock, Cow, Hen, Eggs, Sheep, Buffalo, Goat, Pig, Horse, Fish.
    (10)

(C) Trainings, Seminars, Workshop , and technical investigations:
38. In addition a series of regular seminars, trainings and technical investigations will be carried
    out; each one of them would be to build up the capacity of project personnel under Component
    B. It is proposed to hold one workshop per zone and at HQ of ABPF every year during all the
    six years of the project period.
39. Management and business training activities to be conducted by ABPF in the catchment area of
    the subcomponents of Component B are given in the following table:
    Management and Business Training Activities to be conducted in the catchment area of
    subcomponents of Component ‘B’
                                                                 Training to the manpower
      Sr.                                                                                          Entrepreneurs
               Component / Sub Component under MACP           concerned with the management
      No.                                                                                        training by ABPF
                                                                      of infrastructure
     1.       APMC (100)                                        800 a (8 person per APMC)              2,000 *
     2.       LSM (24)                                          192 b (8 person per APMC)                480 *
     3.       Rural Haat (300)                                2400c (8 person per Rural Haat)           6,000*
              Developing Farmer Common Service Centre
       4.     FCSC (Grain) (200)                                    1000 d (5 person per FCSC)         4,000 *
              FCSC (Horticulture) (200)                             1000 e (5 person per FCSC)         4,000 *
       5.     E - Trading (294)                                     294 (1 person per APMC) f           5880*
       6.     MSAMB Officers Training for Business Dev.                          20g                       -
              Line Dept. Training to upgrade them in business -
       7.                                                                                                 30
              area 10 per department (Agri mkt., Agri, AHD)
              Training to ATMA officials in business areas 3      -
       8.                                                                                                 99
              departments for 33 Districts
Note- a, b, c, f , g : Training of the personnel involved in management of APMC s, Live Stock Markets, & Rural Haats
will be conducted by NIPHT, after the Study of Training Needs by SP.
d, e: Training of personnel of FCSC (Grain) and FCSC (Horticulture) will be provided by SP.
* Twenty participants per activity / subcomponent under component B.
(D) Publications:
40. Documentation of number of success stories from various interventions under the project viz.,
    FCSC (Grains), FCSC (Horticulture), e-trading, warehouse receipt credit, modern
    infrastructures like grain handling unit in APMC, vermicomposting, godown, cold storage,
    functioning of modern RH, functioning of ATMA, trainings, demonstrations etc. ABPF will

                                                        51
      take out 25 publications every year of the project at the cost of around Rs. One lakh per
      publication which will be shared with respective institutions (all) and ATMAs.
41. GANTT Chart: The time plan for various trainings, workshops, seminars & studies to be
    conducted by ABPF over the project period is shown on the following Gantt chart. It would
    facilitate understanding of various activities that will be conducted by ABPF and timings of the
    same.
                                         Year-I  Year-II Year-III Year-IV Year-V Year-VI
Sr.
                 Activities             Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q
No.
                                        1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4
         Preparation of proposals for
 1
        GOI.
         Consultancy to access GoI
 2
        grants
         Value Chain studies (20
 3
        Crops)
 4      Studies on business models
        Study of Dairy Marketing
 5
        Development
         Study of Fisheries
 6
        Marketing Development
        Study of Agric-insurance
 7      and piloting yield Risk
        Management Mechanism
        Study on Finance, Policy
 8
        and e-trading.
        Study of modern design for
 9      wholesale markets and rural
        haats.
         Studies for agri-business
 10
        needs of ATMA
 11     Training to e-trading
 12     Meat Study for Pune city
        Preparation of Commodity
 13
        Profiles
        Training for ATMA Agri-
 14
        business Advisers
 15      Publications
        Management and Business
 16
        Training to APMCs
        Management and Business
 17
        Training to RHs
        Management and Business
 18
        Training to FCSCs
 19     E-trading trainings
        MSAMB Officers Training
 20
        for Business Development
 21     Line Department Training
 22     Training to ATMA officials
        Annual Conference of Agri-
 23
        business Advisers & others
        Zonal Conference of Agri-
 24
        business Advisers & others

VI. Estimated costs
42. Total cost will be funded by the State Government.




                                                   52
VII. Institutional and implementation arrangements
43. Procurement of ABPF will be carried out by PCU by following World Bank procedure. ABPF
    will work in close coordination with PCU and line departments. The work of ABPF will be
    constantly monitored by PCU. ABPF will have to submit reports of the work accomplished to
    PCU regularly. PCU shall have rights to give directions to ABPF for taking corrective steps so
    that the role of ABPF is performed as per the contract / agreement between PCU & ABPF. The
    funds will be made available to ABPF Consultants and Service Providers by PCU every quarter
    as per the budget, based on the programs. ABPF will have to submit the proposals for release of
    funds to PCU with details of the budget provision, programs targeted and actual performance.
    PCU will release funds to ABPF consultants and Service Providers and they shall maintain the
    accounts of funds received and utilized. They will also be responsible to submit periodical
    returns to PCU of the project. The continuation of the services of consultants would depend
    upon the effective delivery of agreed items of consultancy.
VIII. Funds flow
44. The provision of funds will be made in the budget of the Dept. of Coop. & Mktg. and will be
    released as per BDS to the Director of Agri. Mktg. who will draw cheques from treasury and
    give to MSAMB-PCU. PCU will make payments to consultants under ABPF by crossed cheque
    as per the progress of the work. PCU will have one account for all the activities for which it is a
    spending unit. The cheque will be signed by the Chief Finance Controller and the Accounts
    officer after sanction of the bills by the Project Director. The maintenance of accounts of all the
    activities implemented directly at the level of PCU will be maintained by PCU.
IX. Fiduciary and Safeguards arrangements
45. Following will take care of Fiduciary and Safeguards risks:
    i) WB procedure of procurement & financial management will be strictly followed.
    ii) Release of funds in tranches as per progress of work to SPs will be made.
    iii) Regular internal & external audit, MIS and M&E would bring out the problems, if any, in
    the implementation.
X. Governance Risks and Mitigation Measures
46. Following are the risks and their mitigation measures:
 Sr.
       Risks                    Description                   Risk Mitigation Measures
No.
1      Technical / Design       Design of training is vital   All the activities will be conducted
                                for the desired impact of     through expert SP / consultants.
                                this component.
2      Implementation           Manpower training is          Training the manpower concerned
       capacity and             essential for the             with operations & management of
       sustainability           sustainability and            various subcomponents will build up
                                continuity of the inputs.     implementation capacity.
3      Financial                ---                           Release of funds in tranches as per
       Management                                             progress of work to SPs.
4      Procurement              ---                           Will be done as per WB norms &
                                                              procedures.
5      Social and               In the absence of agri-       ABPF consultancy will empower the
       environment              business training it is       youth and women to start their agri-
       safeguards               difficult to develop          business resulting in social and
                                entrepreneurship.             economic development.


                                                  53
 Sr.
       Risks                   Description                   Risk Mitigation Measures
No.
6      Other ( for example    ---                            Entire ABPF component would be
       project specific                                      need based and the agenda for the
       corruption risk,                                      consultants would be driven by
       ownership of project /                                various stakeholders and their
       program, prevalence                                   respective SPs. The effectiveness of
       of failure in similar                                 the Capacity building in agri-
       projects)                                             business activities would be strictly
                                                             monitored on the basis of outcome of
                                                             such capacity building measures.
XI. Sustainability
 47.   ABPF consultancy will empower the youth and women to start their agri-business resulting
       in social and economic development. The reports of the studies conducted by ABPF will be
       the property of the Project which will bring benefits to the Project. The overall impact in the
       State by ABPF by way of dissemination of knowledge through various consultancies will
       help the farmers to improve quality and productivity resulting in higher income because of
       emergence of new agri-business opportunities identified by ABPF.
 48. Long term sustainability of ABPF will be ensured by taking over the function of ABPF by
      MSAMB after project period is over. As such MSAMB has a mandate of developing
      agribusiness projects; agro processing projects in the State and providing training in these
      areas with the help of their sister organization National Institute of Post Harvest
      Technology. MSAMB has its own Project Consultancy Cell with expertise in the areas of
      agric business, agro processing and value addition to agric-produce. MSAMB with the help
      of NIPHT will look after the function of ABPF after the project period is over. The
      MSAMB will recover reasonable fees for the services it will render as ABPF after the
      project period, from the beneficiaries for training, project preparation and advisory service.
      The officers and staff is proposed to be trained by ABPF under the project for which cost is
      provided.


                                                 ***




                                                 54
                 A. 3 MARKET INFORMATION SERVICES

I. Objectives
1. There is a need for improvement in agricultural marketing system by adopting systematic
   approach and latest technology like Information Technology, for collection and dissemination
   of Market Information and Intelligence. One of the reasons for lack of returns in agriculture is
   traditional way of marketing through middlemen and absence of awareness about market
   information and intelligence. The other reasons are unscientific and inadequate crop planning,
   crop husbandry, post harvest management and inadequate alternative marketing channels. At
   present, APMCs are able to disseminate only price information to the farmers related to
   respective market area only. The scope and coverage of market information dissemination
   needs to be expanded. Some interventions for the same are proposed under this subcomponent.
   The main objectives of this subcomponent are: (i) dissemination of market information without
   the limit of geographical boundaries. Information from markets in India as well as from
   International markets will be made available, (ii) Apart from price data, information on Weather
   forecast, Crop advice, Use of fertilizers & pesticides, and Agricultural technology will be made
   available, (iii) The Market Information Services will provide analysis of information and trends
   in prices, demand on continual basis.
2. This subcomponent is proposed to achieve the following:
    i) Web based Project Management Information System (PMIS): for effective monitoring &
       evaluation of the Project.
   ii) Integrated Project Portal (IPP) (enhancement of MSAMB website): for providing
       information about Project activities, PCU, PIUs, Implementing Agencies, Project progress,
       Market Information and Intelligence, market opportunities (commodity profiles), stake
       holders and technical information from various line departments at single point access.
  iii) Web based Geographical Information System (GIS): for providing realistic spatial
       information like distance between two markets, their production area, major infrastructure
       available at APMCs, market arrivals and prices of agriculture commodities.
  iv) SMS Service: The dissemination of price information, weather forecast, market news and
      technical guidance through local language SMS to various field functionaries on mobile
      who will in turn share this information with the farmers. This information would help
      farmers to decide when, where and at what price the produce is to be sold, application of
      pesticides, fertilizers and post harvest management.
   v) Market Information Display: Effective dissemination of price and other necessary
      information using electronic media like LCD TV within the regulated markets.
  vi) E-Trading Platform: To improve agricultural marketing system by providing web based e-
      trading platform through Virtual Markets in the State.
II. Outcome and Output Monitoring Indicators
3. The outcome and output monitoring indicators are as follows:
     Sr.                  Outcome                                       Indicator
    No.
    1    Increase in number of the farmers using      % Increase in number of the farmers using
         market information services as a part of     market information services as a part of
         their decision making                        their decision making
    2    Satisfied users of quality of market         % level of satisfaction with the quality of
         information service provided                 market information service provided

                                                55
     Sr.                  Output                                         Indicator
    No.
    1    100% Management Information System            % of Management Information System
         (MIS) reports generated by each line          (MIS) reports generated by each line
         department                                    department
    2    Development of IPP covering all the line      IPP developed within the time frame
         departments
    3    Number of hits/downloads to MSAMB             % increase in the Number of hits/downloads
         website for accessing the information         to MSAMB website for accessing the
                                                       information over the previous year
    4     34000 field functionaries accessing SMS      Number of Govt. field functionaries
          service during the project period.           receiving SMS service
    5     SMS service provided to 60000                % institutional functionaries and lead farmers
          institutional functionaries and lead         covered by SMS on demo basis and % of the
          farners on demonstration basis.              same subscribing to SMS service in the
                                                       following year.
    6     150 Market Information Display (MID)         % of targeted Market Information Display
          system commissioned and in use               (MID) system commissioned and in use
    7     Increase in farmer prices through access     Survey of farmer’s price % of wholesale
          to price displays                            price comparing similar market with and
                                                       without display
    8     Effect of farmer profitability through       Continuation of existing research programme
          access the SMS services                      in 100 villages in Maharashtra
    9     Development of 75 commodity profiles         % of targeted number of development of
                                                       commodity profiles
    10    Development of GIS based database for        % of GIS based database for targeted markets
          294 markets in Maharashtra                   developed

III. Policy and Regulatory Environment:
4. Following are the details of policy and regulatory environment:
    i) Dissemination of market price and information related to marketing of agricultural produce
       through web site, SMS service and Market Information Display, as per the Section 39 J(vi)
       of APMC Act.
   ii) Information on IPP and Market Information Display is freely accessible.
  iii) Third party consultant/ SP will be appointed on contract for study, design, development and
       implementation MIS. The selection of SP will be done through competitive bidding and
       contracting of SP will be done by PCU.
  iv) Third party consultant/ SP will be appointed on contract for study, design, development and
      implementation IPP. The selection of SP will be done through competitive bidding and
      contracting of SP will be done by PIU, MSAMB. As IPP will emcompass all the activities
      of the project, though IPP will be implemented by PIU MSAMB as it has basic
      infrastructure, the approval of PD will be taken for implementing all the activities of IPP.
   v) Third party consultant/ SP will be appointed on contract for implementation of SMS
      service. The agreement will be signed between MSAMB and SP with regard to SMS
      service inter alia providing number of commodities to be covered, training to subscribers,
      user need and ingredients like prices, arrivals, trends, weather data, and agricultural
      technology details. Based on the minimum price at which data is disseminated through
      SMS, support would be provided to the subscriber for the service. Database created for

                                                56
         SMS service during project period will be owned by MSAMB. Necessary provision
         regarding this has been incorporated in ToR of SP. The selection of SP will be done
         through competitive bidding and contracting of SP will be done by PIU MSAMB.
  vi) The MSAMB has entered in to contract with the Reuter India Ltd. and NOKIA for
      provision of SMS service. MSAMB is the first in India to provide this service to the
      farmers. This service is being used at present by around 1,00,000 subscribers. It is proposed
      to scale up this service at the most reasonable cost in this project.
  vii) Third party consultant/ SP will be appointed on contract for implementation of Market
       Information Display system.
 viii) For Market Information Services, the IT security policy will be defined in consultation with
       the consultant for the usage of computer hardware (desktops & servers), system &
       application software, UPS, various tools, database, network equipments, antivirus, Internet
       leased line and contents for IPP, MIDs and SMS service. This policy will involve security
       of data (i.e. database), network security & rules, control on Internet usage.
  ix) The Project will have the copyrights of contents and data MIS and IPP. Access, usage and
      maintenance of the data center will be done as per the IT security policy.
   x) There will be provision for disaster management for the Data Center located at MSAMB.
IV. Selection Criteria
5. Selection criteria for selecting Field Functionaries and Lead farmers for free SMS service:
   To increase the awareness about SMS service among the farmers, it is proposed to provide free
   SMS service to various field functionaries and Lead farmers during the project period. The
   Govt. functionaries will be provided with SMS services for the duration of the project period in
   their area. This is proposed because the effectiveness of government extension functionary is
   substantially improved because of market and technology information. Moreover government
   field functionary will not be able to subscribe to this service at their own cost. The institutional
   functionaries and farmers leaders would be provided with SMS service for limited period for
   three months and six months respectively for demonstration purpose, as they may subscribe if
   they want to avail these services.
6. Field Functionaries: They will disseminate information received through SMS service to
   farmers. The field functionaries engaged in extension work of Agriculture, Agricultural
   Marketing, Animal Hisandry and Gram Panchyat working at village, circle & at Taluka level
   will be considered for this programme. Similarly, institutional official viz. Secretary of PACS
   & APMCs and godown keepers of MSWC are taken into consideration. The details of these
   functionaries working in the field given in the following table.

     Sr.    Particulars of Functionaries                   Number              Total in 33 Dist.
     No                                                   Available             (355 Talukas)
                                                          Per Taluka
     Govt. Field Functionaries
     1     Agriculture Dept.
           Agriculture Officer                                 3                     1065
           Agriculture Supervisor                              5                     1775
           Agriculture Assistant                              40                    14200
                                            Sub total         48                    17040
     2      Gram Panchyat (Total-27000)
            Gram Vikas Adhikari (2926)                         5                     1775
            Gram Sevak (16629)                                40                    14200
                                            Sub total         45                    15975



                                                  57
     Sr.     Particulars of Functionaries                          Number                       Total in 33 Dist.
     No                                                           Available                      (355 Talukas)
                                                                  Per Taluka
     3       Animal Husbandry Dept.
             Live stock development officer                             1                                355
             Live stock extension assistant                             2                                710
                                                   Sub total            3                                1065
                                                                              Total                     34080
     Institutional Field Functionaries
     1      Secretary of Primary Agri. Credit Coop.                     30                              10650
            Society (11078)
     2      Secretary of APMC                                                                           294
     3      Godown keeper of MSWC godown                                                                500

                                                                              Total                     11444
7. From the above table Govt. field functionaries will be selected in phased manner from
   concerned districts of the three phases. First phase will have 10 districts, second phase 11
   districts and third phase 12 districts. Govt. field functionaries selected in each phase will be
   provided with the SMS service till the end of the project period i.e. up to 6th year of the project.
   The phase wise government field functionaries to be provided with SMS service during the
   project period is as follows.
      Phase              Functionaries                                        Year Subscriptions

                                                    1st         2nd     3rd         4th           5th           6th         Sum
    Phase1      Agri. Officer                             300     300         300         300           300           300
                Agri. Supervisor                          500     500         500         500           500           500
                Agri. Assistant                       4000       4000        4000      4000         4000          4000
                Gram Vikas Adhikari                       500     500         500         500           500           500
                Gram Sevak                            4000       4000        4000      4000         4000          4000
                Live stock dev. officer                100        100         100       100          100           100
                Live stock extension assistant            200     200         200         200           200           200
                                   Phase-1 Total      9600       9600        9600      9600         9600          9600      57600
    Phase2      Agri. Officer                                     330         330         330           330           330
                Agri. Supervisor                                  550         550         550           550           550
                Agri. Assistant                                  4400        4400      4400         4400          4400
                Gram Vikas Adhikari                               550         550       550          550           550
                Gram Sevak                                       4400        4400      4400         4400          4400
                Live stock dev. officer                           110         110       110          110           110
                Live stock extension assistant                    220         220         220           220           220
                                   Phase-2 Total                10560    10560        10560        10560         10560      52800
    Phase3      Agri. Officer                                                 360         360           360           360
                Agri. Supervisor                                              600         600           600           600
                Agri. Assistant                                              4800      4800         4800          4800
                Gram Vikas Adhikari                                           600       600          600           600
                Gram Sevak                                                   4800      4800         4800          4800
                Live stock dev. officer                                       120       120          120           120
                Live stock extension assistant                                240       240          240           240

                                   Phase-3 Total                         11520        11520        11520         11520      46080
                                    Grand Total       9600      20160    31680        31680        31680         31680      156480

                                                          58
Thus total of 156480 subscriptions for Govt. field functionaries will be covered during project
period.
8. Demonstration of SMS services: Three months free SMS service (trial) will be provided to
   institutional officials. After the project, period these officials may subscribe to the service. The
   phase wise selection of functionaries during the project period is as follows.
     Institutional Officials (3 months free trial)
                Particulars of             Year wise Subscriptions (Approx. 10 Talukas are
     Phase      Functionaries                           considered in a district )
                                          1st      2nd      3rd       4th          5th  6th      Sum
     Phase 1 PACS Secretary              3000         -       -         -           -    -
                APMC Secretary             98         -       -         -           -    -
                Godown Keeper             166         -       -         -           -    -
                Phase-1      Total       3264         -       -         -           -    -       3264
     Phase 2 PACS Secretary                 -      3300       -         -           -    -
                APMC Secretary              -        98       -         -           -    -
                Godown Keeper               -       166       -         -           -    -
                Phase-2      Total          -      3564       -         -           -    -       3564
     Phase 3 PACS Secretary                 -         -    3600         -           -    -
                APMC Secretary              -         -      98         -           -    -
                Godown Keeper               -         -     166         -           -    -
                Phase-3      Total          -         -    3864         -           -    -       3864
                         Grand Total 3264          3564    3864                                  10692

   Thus, 10692 officials (functionaries) will be selected for free SMS service for the period of three
   months on demonstration basis.
9. From 355 Talukas in the State, average 30 field functionaries are to be selected from each Taluka
   to provide free SMS service. The details about numbers of Govt. field functionaries and
   institutional officials for providing free SMS service are given in above tables. These functionaries
   are associated with ATMA for extension activities. Hence, ATMA will provide detail list of
   functionaries every year, at the rate of average 30 functionaries per Taluka. The detail list will have
   information about name, designation, address, cell number of each field functionary and primary
   crop enterprises that are important in the area. The selection criteria for selecting the field
   functionaries would be;
     i) The field functionary should belong to any one of categories of field functionaries of line
          departments under the project.
     ii) He should have his own mobile hand set compatible for Marathi language with sim card.
     iii) He should be less than 57 years age so that he will not retire during the next one year.
     iv) He should undertake to provide information received through SMS service to the farmers
          from the area in which he is functioning.
     v) Based on above selection criteria BTT under overall supervision of ATMA will shortlist 30
          senior most field functionaries every year from each Taluka & forward the list to PIU
          MSAMB.
10. Lead Farmers: It is proposed to provide free SMS service to lead farmers for the period of six
    months, every year from the second year, till end of the project period. It is proposed to form
    groups of farmers to support various activities of line departments under the project. It is envisaged
    to form number of groups of the farmers by Department of Agriculture, AHD and Agricultural
    Marketing, under MACP. The Chairperson and Secretary of the newly formed PGs and the existing
    PGs will be the lead farmers for this programme. Besides, the farmers who have been awarded for
                                                  59
   excellency in agriculture by the Agriculture Dept. will be considered as the lead farmers. Based on
   the time line of formation of these groups, the no. of lead farmers that will be identified for each
   year are given in the following table.
    Sr.      Particulars                  1st   2nd Yr        3rd Yr   4th Yr   5th Yr   6th Yr   Total
    No                                    Yr
    1        Agriculture PGs                    2000          2000     2000     -        -        6000
    2        FCSC (Grain) PGs                   1000          1000     1000     1000     -        4000
    3        FCSC        (Horticulture)         1000          1000     1000     1000     -        4000
             PGs
             Total PGs(1+2+3+4)                 4000          4000     4000     2000     -        14000
    4        Existing PGs required to           950           950      950      2950     4950     10750
             be selected
             Total no. of PGs                   4950          4950     4950     4950     4950     24750
    A        No. of Lead Farmers                9900          9900     9900     9900     9900     49500
             from PGs
    B        Farmers      who have              100           100      100      100      100      500
             received agric. awards
             (Krishi Pandits, Krishi
             Mitra, Udyan Pandit,
             etc.) from the Govt.

             Total Lead       Farmers           10000         10000    10000    10000    10000    50000
             (A+B)

11. The groups formed in first year of the project period will be functional in second year and groups
    formed in second year will become functional in third year and so on. Thus the groups formed
    during first year of the project will be considered for selection of lead farmers during the second
    year of the project & those formed in second year during the third year and so on. It is proposed to
    select Chairperson and Secretary of the groups as lead farmers for SMS service delivery for the
    period of six months. Therefore, as much as twice the number of groups formed will be the
    available number of lead farmers. In addition to this to make the number of groups to 5000 to make
    the number of lead farmers, as 10,000 the short fall of the groups will be met from existing groups.
    The number of such groups required to be selected is shown in above table. These groups will be
    selected by ATMA. Every year 100 lead farmers who have received Krishi awards from the Govt.
    will be covered to provide free SMS service. List of such lead farmers will be provided by ATMA.
12. There are a large number of existing groups of farmers formed in the State under different
   programs of Government viz. RKVY, MWSIP, ATMA program, MAVIM. Out of these, the
   groups fulfilling following criteria will be selected by ATMA.
   i)     The groups should be within the catchment area of activities proposed under Component B.
   ii)    Group should be functional
   iii)   It should have at least 10 members
   iv)    It should have bank account
   v)     Regular meeting of the group should be held
13. The groups to be formed under MACP by line departments should also fulfill above criteria. From
    the groups selected as above the lead farmers for SMS program will be selected as under.
   i) All the chairpersons & secretaries of the groups selected will be included.
   ii) Chairperson and Secretary should possess handset compatible for Marathi language with sim
        card.
   iii) Chairperson and Secretary should have their own land, they should be at least 7th standard
        passed and their age should not be more 70 years.
   iv) Chairperson and Secretary should not be a trader.

                                                         60
    v) As per above criteria selection of lead farmers from various groups will be made by ATMA
       with the help of the district level officer of each line department.
14. Thus, from the selected PGs, every year from the second year of the project, 10,000 lead farmers
    will be covered by SMS service. The farmers once selected will get free SMS service for six
    months and thereafter, they will have to subscribe if they are interested to receive the information.
    Farmers will not be repeated.
15. Selection criteria for APMCs for installation of Market Information Display: APMCs having
    income of more than Rs.15.00 Lakh are considered for installation of Market Information Displays.
    From 294 APMCs, 232 APMCs have income more than Rs.15.00 Lakh. MSAMB has installed
    Market Information Displays at 69 APMCs. Out of 232 APMCs, 163 APMCs do not have the
    systems installed. Therefore, from the list of 163 APMCs first 150 APMCs, based on average
    annual arrivals for last 5-years will be selected for installation of Market Information Displays.
V. Activities to be financed
16. The following main activities are proposed to be financed under this subcomponent:
    (a)   Market Information Dissemination through Mobile.
    (b)   Market Information Display.
    (c)   Management Information System (MIS).
    (d)   Integrated Project Portal (IPP)
    (e)   Training, Operation and Maintenance Support.

(a) Market Information Dissemination through mobile (SMS Service):
17. MSAMB is the first Agricultural Marketing Board in the country to enter into agreement with
    Reuters India Ltd and subsequently with another agency i.e. NOKIA for dissemination of market
    information & intelligence through SMS service. Reuters has formed Reuters Market Light
    (R.M.L.) a separate group for analysis of production, marketing data and dissemination of analyzed
    information. R.M.L. has started SMS service for farmers and other concerned for dissemination of
    information about arrivals & prices of agricultural commodities, weather forecast, market
    guidelines / news, crop advice, agrotechnology guidance for application of pesticides & fertilizers.
    The information received through SMS, helps farmers in taking decisions, like when to sell the
    produce, when to apply manures and fertilizers to crops, when to harvest the produce etc.
18. Presently, the subscriber is paying Rs.175/- for 3 months to avail SMS service for two commodities
    and 3 markets for each commodity. Subscriber can register for more commodities with additional
    charges as mentioned above. Each subscriber gets commodity prices of 3 markets of his choice
    from the list of markets. More than 100000 farmers have been enrolled under this scheme so far.
    Preliminary independent survey carried in September 2008 revealed that repeat subscriptions are
    rising rapidly and framers satisfaction levels are high, particularity with the market price and
    weather information2. However it is observed in this study that the benefits are taken largely by
    bigger and young educated farmers. Therefore, if the extension staff of the line departments,
    village level workers and lead farmers are targeted by SMS service, information would reach to
    much larger number of small & marginal farmers. These functionaries will disseminate marketing
    information amongst farmers and will also help in encouraging them to use SMS service.
19. The project will outsource, to a private operator, the provision of a local language, Agricultural
    Short Messaging Service3 (SMS) which will deliver targeted technical, market and climatic
    information to these public sector field functionaries. Early evidence suggest that this will
    empower them technically and enhance their status as information providers within their

2
  Study was conducted for impact assessment of Reuters SMS service by Mr. Bart Mintern of IFPRI, Delhi and
Dr. Marcel Fachamps of Oxford University at the instance of World Bank, by field visits in Maharashtra.
3
  Text messages delivered to cell phones.

                                                      61
   communities. They will be specifically trained and tasked with the onward dissemination of this
   information to small and more disadvantaged producers. Over the course of the project the
   equivalent of 156,480 annual subscriptions will be purchased at an annual cost of Rs 500 each (i.e.
   $ 12/p.a. as compared with a salary of $ 5,000 p.a.). Additionally the system will be used to send
   targeted messages to the project field operatives. The program will be rolled out in three phases.
   Surveys will be used to gauge its value and to fine tune content and frequency to ensure cost
   effectiveness. The service will also be provided on a demonstration basis to key decision
   influencers such as, lead farmers, Sectaries of Agricultural Co-operatives and FSCs etc.
20. Selection process of field functionaries, preparation of database of their details, selection process of
    service provider and training of SMS service to MACP staff (PCU & all PIUs) and field
    functionaries will be completed in the first half of the first year as per the selection criteria
    mentioned earlier. The distribution of free SMS service to the field functionaries will be started
    from second half of the first year till the end of the project period. These functionaries will be
    selected from the districts of phase1, phase2 & phase3 in first years, second year and third year
    respectively. As mentioned earlier in selection criteria, first year 9600, second year 20160 and from
    third year to sixth year 31680 Govt. filed functionaries will be covered. The functionaries selected
    in each phase will be repeated till end of the project period. Thus, 34080 Govt. field functionaries
    will be covered in six years to provide free SMS service, covering annual subscription up to
    156480. Institutional officials will be selected in three phases in first, second and third year
    respectively. As mentioned earlier in selection criteria, first year 3264, second year 3564 and third
    year 3864 institutional officials will be selected. Thus, 10692 field functionaries will be covered for
    free SMS service for the demonstration purpose. These functionaries will not be repeated and free
    trial of three months will be provided to functionaries of each phase in respective year. Details
    about selection of lead farmers are given in selection criteria. Free SMS service for the period of
    six months will be provided to 10000 lead farmers every year from second year of the project, till
    end of the project period (i.e. for five years). Thus, 50000 lead farmers will be covered to provide
    free SMS service. The free SMS service will be provided to total around 94772 recipients during
    the project period (34080 Govt. field functionaries, 10692 institutional officials and 50000 lead
    farmers). Each field functionary and lead farmer may disseminate information received through
    SMS service to at least five farmers. So that 473860 farmers could be covered during the project
    period. MSAMB will create a database of selected field functionaries and lead farmers. The
    ownership of this database will be with MSAMB and it will be shared with service provider as and
    when required. The ToR will have condition about sharing of database between MSAMB and SP
    and ownership of the same with MSAMB. This will help in the review of the service.
21. SMS service will be customized as per the requirement of the subscriber (e.g. geographical area
    (pin code), commodities grown, potential markets, etc.) With the help of pin code provided by the
    subscriber, area based information can be provided through SMS. Similarly, information about
    crop advisory, market news, use of pesticides & fertilizers can be sent as per the commodities and
    markets selected by the subscribers. The subscriber will have choice to change commodities,
    markets. The Service Provider will provide training to subscribers about (i) how to enable Marathi
    language (ii) operations of SMS service on the Cell phone, (ii) how to interpret the information
    received through SMS, (iv) frequency of SMS for particular information, (v) how to interact with
    customer support team in case any problem related to the service. Training part of the service can
    be achieved through the ATMA and / or at the VANAMATI. This will be part of the extension
    program for field officers. Presently, few agricultural commodities are covered under SMS service.
    But, this service will be further extended to cover wider range of products (e.g. various agricultural
    crops, horticulture crops, livestock, poultry products, etc). This SMS service will have facility to
    send messages to field staff of the project and Govt. officials.
22. In view of the rapid changes in technology, the MSAMB may opt to directly send out its own SMS
    messages from third year of the project on subscription basis. MSAMB will do this activity on no
    profit no loss basis. MSMAB may start providing 4 SMS (Market rates, weather forecast, price

                                                  62
   trend and agriculture technology) per day to subscribers on reasonable charges. Those who are
   interested can subscribe to this service. During 3 years of project period MSAMB will keep on
   improving the service based on the experience of the service provider and after the project period
   MSAMB will have enough experience to operate it on Individual basis. It is a mandate of MSAMB
   to provide such service. This will help to control the prices of such services being provided by
   various service providers. MSAMB will explore the possibility of mobilizing USO funds while
   starting it’s own SMS service.

23. It is proposed to go for competitive bidding for selection of service provider, so that SMS service
    can be provided at reasonable charges.

The no. of public field functionaries, institutional field functionaried and the lead farmers to be
   covered under SMS service year wise is given in the following table:

      No.           Functionaries                         Year Subscriptions                Total
                                            1st  2nd      3rd    4th       5th     6th
     1      Public field functionaries      9600 20160    31680 31680      31680   31680   156480

     2      Institutional field officials   3264 3564     3864      -        -       -     10692

     3      Lead farmers                      -   10000   10000 10000     10000    10000   50000



(b) Market Information Display:
24. MSAMB has it’s own web site for dissemination of information about various projects, schemes
    and activities carried out in the filed of Agricultural Marketing. This website also provides
    information about daily arrivals and prices of agricultural commodities. This is the unique web site
    for on-line spot and future prices of agricultural commodities. Information available on the web
    site can further be disseminated through PACS, FCSCs, ATMAs, APMCs. Web based information
    can be accessed/disseminated through Internet only. Therefore, not depending on one media for
    information dissemination, MSAMB has initiated scheme of installation of Market Information
    Displays (MIDs) at Market Yard of APMCs. Market Yards have been identified for installation of
    MIDs, because it is a place where farmers and market functionaries are visiting regularly.
    Presently, MIDs have been installed at 69 APMCs in the State. Electronic media used for this
    system is 54”/44” projection TVs. This technology was available when the project was started.
    Projection TV System comprises one computer with internet connectivity, UPS, 54”/44” projection
    TVs and customized software in regional language for display of information. Though, the
    experience of this system is quite encouraging, it could not achieve the expected success due to
    following reasons.
         i) Limitation in clear visibility of Projection TV in the sunlight. Requires shed / room / hall
              for proper visibility.
         ii) Inadequate facilities for proper visibility by APMC.
         iii) Insufficient publicity of the scheme by APMCs.
         iv) Needs more training to the staff of APMCs for handling the system and effective utilization
              of the same.
         v) One TV in the entire market yard.
25. Considering above reasons, latest LCD TV Systems are proposed for installation at 150 APMCs in
    the State. These TV systems will work as Market Information Displays (MIDs) for dissemination
    of agricultural information. This system comprises of three LCD TV of 40” size, computer with
    Internet connectivity, UPS, Dot Matrix / Laser printer and customized software in Marathi

                                                    63
   language for information display. Consolidated information about arrivals and prices available on
   MSAMB web site will be displayed on this system through customized software. This software
   will be web based installed at MSAMB web server and could be accessed by MIDs through broad
   band Internet. As this software will be installed on web server, any update in the arrival & price
   data will get reflected to all MIDs in regional language. This system will be useful for farmers to
   get market prices for selling his produce and to get information about agricultural technologies.
   This will help the farmers to improve the cultivation practices, production, schedule pre & post
   harvest measures, need for grading/packing. One Printer is proposed in this system to provide
   hardcopy of required information by the farmers on nominal charges.
26. Experience of 69 APMCs where Projection TV Systems have already installed, will be taken into
    consideration while implementation of MIDs in first year at 30 APMCs. Operations of MIDs will
    be reviewed and the lessons learned in first year be applied to the second year of 40 APMCs and so
    on. Installation of MIDs at 150 APMCs will be completed in four year so that lesson learned in
    each year can be used to improve the system in next year.
27. Considering the past experience, it is proposed to install more than one TV in one yard of
   comparatively small size (40”), instead big size TV. This will help for displaying information at
   more than one location in market yard. The LCD TV proposed for this scheme will be used for
   public display. Hence LCD TV considered is of high contrast ratio, minimum resolution of
   1920x1080 pix minimum 10 bit colour reproduction. These specifications are as per available
   technology. Since the specifications of TVs are for public display purpose, the cost of TVs may be
   more as compared to the cost of TVs used for home segment. Details of items of expenditure under
   this component are:
               Sr. No                                ITEM
               1         3 LCD TVs of 40”
               2         Latest Computer with internet
               3         UPS one hour backup
               4         50 mtrs cables to connect Computer to 3 LCD TVs
               5         Windows operating System
               6         Regional Language support software
               7         Application Software
               8         Dot Matrix Printer/ Laser
               9         Installation and basic training



28. It is proposed that the entire Operations & Maintenance (O&M) of such a dissemination system
    could be outsourced to a private player at certain terms and conditions, so that upkeep and
    maintenance of such an info-structure is ensured. During the warranty period of all equipment, the
    service provider will maintain the system. The warranty period will be mentioned in terms and
    conditions of the purchase. After the warranty period, concern APMC will be responsible for the
    maintenance and upkeep this system.
29. Training to APMC staff for effective use of Market Information Display: Considering past
   experience in implementation of MID at various APMCs in the State, regular training and
   workshops are required to be conducted for APMC staff for effective use of MIDs. Monthly
   training of four days shall be conducted at NIPHT, Talegaon Dabhade, Dist. Pune, as this institute
   is having required facilities like computer lab, training hall, audio visual equipments for
   presentation and lodging-boarding. Four days training shall cover topics like basics of computer
   fundamental, Microsoft Office, Internet, email, websites, basic hardware maintenance, maintenance
   of operating software, handling of LCD TVs & software for information display and effective

                                                64
   utilization of MIS. Similarly, one day workshop once in a quarter shall be conducted at APMCs,
   where MIDs are installed. During this workshop hands on training will be given on effective
   utilization of the system for information dissemination and other activities. Some farmers can be
   included in this workshop.
30. Estimated Cost of Training & Workshops:
     Particulars                                                                          Rs. Lakh
     Yearly 10 batches of four days training at NIPHT*, Pune are proposed. Each                15.00
     batch should have 25 participants. Estimated charges for one batch of 25 will
     be Rs.1.5/- Lakh at the rate of Rs.1500/- per person per day. For 10 batches
     the estimated cost is Rs.15/- Lakh per year.
     One day workshop at APMC once in two months for 50 participants @                          0.70
     Rs.11500/- for one day. i.e. Rs.69000/- per year
    One year charges @ Rs. 15.70 Lakh therefore for Five years charges                         78.50
   *NIPHT, Pune is the institute under the control of MSAMB having state-of-art facilities and good
   campus for conducting such training programs.
(c) Management Information System (MIS)
31. There are three line departments involved in this project, viz. the Department of Agriculture, the
    Department of Animal Husbandry, and the Department of Agricultural Marketing. Each of these
    departments would be required to implement and manage various activities proposed under various
    components under this project. For day to day management of the Project, the Project Coordination
    Unit (PCU) has been set up at Pune, which is functioning under the control of the Principal
    Secretary (Co-operation & Marketing), GoM. Similarly Project Implementation Units (PIUs) have
    been set up for each of the line departments to monitor and supervise the implementation of the
    activities pertaining to the concerned departments. The issues relating to Environmental and Social
    Management, Procurement, Financial Management, Monitoring and Evaluation, and Governance
    and Accountability Arrangements are handled by the PCU.
32. The various items of importance relating to the implementation of different components and sub
    components of the project will be included in the MIS reporting system. The parameters and the
    activities to be included in MIS will have to be decided by SP depending on the basis of the
    existing reporting system in various line departments and their requirements. SP will have to
    undertake detail study to do this in consultation with PCU, PIUs and implementing agencies
    involved in the project.

33. An elaborate, state of art, web based, interactive MIS shall be implemented by the Project
    Coordination Unit (PCU), for monitoring the various project activities, that would be under
    taken at various field locations by a all number of implementing agencies. The PCU will
    appoint SP for study, design, development and implementation of MIS.
34. The actual process of hiring a Service Provider (SP) and setting up of full-fledged web based
    interactive MIS will take time, and, as all the critical project activities need to be monitored
    from the day-one of project implementation, it has been decided to develop Simple MIS which
    will be developed by PCU in consultation with the PIUs . Such simple MIS reporting system
    shall be implemented within 3-4 months and will be in vogue until the full-fledged web based
    interactive MIS is in place and running satisfactorily.
35. The simple MIS reporting system will comprise of a number of formats to be compiled from
    all the implementing entities in the field for regular periodical reporting on various issues those
    need to be critically monitored for effective implementation of the project. The contents of the
    formats shall be as required by the scope of monitoring of the critical activities in
    implementing the components of MACP, including input parameters, output parameters and



                                                  65
    activity parameters. The simple MIS reporting will be in the spreadsheet formats and shall be
    compiled and collated by PCU.
36. Initially the simple MIS reporting system mentioned above will be implemented in the Phase I
    districts of the Project viz.: Amaravati, Akola, Washim, Yavatmal, Buldhana, Jalna,
    Aurangabad, Parbhani, Hingoli, Ahmednagar. As the project would be implemented in all the
    districts of the State in phased manner, the said system as mentioned above, will be
    implemented in second phase Districts of the Project as the MACP implementation program
    will roll out in phase II District till the WEB based MIS is in place.
37. SP for MIS: Besides starting the simple MIS by PCU, immediate steps to bring the competent
    SP on board for desiging, developing and implementation of the web based MIS will be taken.
    The recruitment of the consultant for the development of Web based MIS, study of the existing
    systems in practice, study of the requirement of the project, designing & development and
    implementation of web based MIS will take around 15-18 months. Till then the simple MIS
    reporting system developed by PCU will be in place. The SP for MIS besides all
    responsibilities shall be responsible for successful migration of the existing databases to the
    web based MIS .

38. The MIS will enhance the efficiency and effectiveness in the functioning of the PCU and the
    PIUs, as well as all the Implementing Agencies (IAs), as follows. The MIS will provide
    accurate and timely information regarding regular, routine operations for controlling,
    organizing and planning of implementation activities in MACP.
    Administrative Functions relating to PCU & PIUs:
       o PCU and PIUs will be able to monitor all the inputs, outputs and activities as per the
           procurement plan.
       o IAs will be able to coordinate with PIUs and the PCU for achievements of their
           prescribed annual targets – both physical and financial.
       o PCU and PIUs will be able to coordinate the logistics for optimum performance of all
           the field units.
       o MIS will help IAs to define problem, gather related data about its scope, and identify
           the constraints, if any.
       o PCU will be able to automate repeatable processes.
     MIS will integrate information from multiple sources for undertaking functions, such as:
       Budgeting, Expenditure reporting, Auditing, and Funds management, relating to financial
       issues in the project.
     MIS will integrate information from field offices for undertaking functions, such as:
       Procurement Planning, Contract Management and Quality Control, relating to procurement
       issues in the project.
     MIS will provide tools to allow collation of inputs from various implementing agencies,
       produce standard reports, allow specialized queries to track all aspects of project progress
       (including physical and financial progress and project impacts), relating to monitoring &
       evaluation issues in the project.
     MIS will bring together and ensure better and faster communication among PCU, PIUs and
       implementing agencies involved in the MACP and will be useful tool for grievance
       redressal.
39. The SP will undertake the following MIS specific activities of Project:
     Study, prepare and submit Functional Requirement Study document for design,
       development and implementation of web based interactive MIS. The study will include
       process of existing MIS at PCU, PIUs and the concerned Departments up to the field level
       implementation authorities.
     The SP shall submit plan / story board and design the MIS in continuous interaction with
       the project team, taking in to consideration :

                                                66
           o Web standards, uniform guidelines, content management strategies
           o Model templates for all the required reports of participating line departments,
               including Scheduled reports, On-demand reports, Key performance indicator report,
               and Exception reports.
           o MIS evaluation mechanism, for the Project Management, based on the objective
               parameters and the user feed back, for smooth operations and effective utilization of
               the MIS.
           o Consultations with the M&E consultant.
       Develop and implement the web based interactive MIS to PCU and PIUs under MACP.
       Migration of data compiled with the Simple MIS reporting system developed initially by the
        PCU to the web based interactive MIS system.
       Assess the training requirements, training need, and provide training to all the users for
        handling & managing MIS.
       Provide support to web based MIS for smooth operations and effective utilization.
40. The MIS will provide suitable, flexible, interactive, user-friendly tools to allow collation of
    inputs from various implementing agencies, produce standard reports, allow specialized queries
    to track all aspects of project progress (including physical and financial progress) at any time.
    The MIS will help the PCU, PIUs and field implementing agencies (IAs) to monitor all key
    inputs, activities and outputs under the project including the Procurement and Financial
    management aspects.
41. For effective planning and monitoring of MACP’s diverse activities several MIS initiatives
    have been planned under the project to address the needs of the three line departments and
    many implementing agencies/ entities who would be implementing these initiatives. The MIS
    will reduce significantly the time and efforts required for record maintenance, reporting and
    facilitate effective monitoring at all levels. The MIS will strengthen the information flow from
    top to bottom, and vice versa, and also enhance the utility of the information and knowledge
    towards achieving the Project goals.
42. The MIS will capture transactions in the field to track all aspects of project progress. It will help
    in addressing issues of duplication of data entry and preparation of reports as per the Project
    requirement. The software should be capable of automatically collating and generating reports
    required at various levels.
43. The work plan encompasses a variety of activities to bring in the uniformity in all the online
    databases, access and standardization of MIS suitable for MACP initiatives.
44. The MIS system would include systems for (i) Procurement Management, (ii) Financial
   Management, (iii) Implementation Progress Monitoring, (iv) Monitoring & Evaluation (v)
   Knowledge Management, and (vi) Grievance Monitoring. There will be a comprehensive
   Monitoring & Evaluation (M&E) System developed separately and the MIS will be designed
   and developed taking in to consideration the information input requirements of the M&E
   system.
45. The MACP project plans to develop a user-friendly, interactive, web-based Integrated Project
    Portal (IPP) for the MACP Project activities and dissemination of information. IPP will enable
    single point access to the information about various activities of the Project (PCU, PIUs &
    Implementing Agencies, market functionaries) and various web based applications (MIS,
    M&E, Web GIS, etc.), Market Information and Intelligence, and technical information from
    various line departments.
   d) Integrated Project Portal (IPP):
46. It will be a portal for the MACP Project. An appropriate web strategy would be developed that
    allows for information to all stakeholders, ensures transparency in terms of availability,

                                                   67
   distribution and utilization of resources, enables access to data and information to target
   beneficiaries/users through a web-based systems. MSAMB’s present web site will be part of
   IPP. This web site is already exhaustive in terms of contents and technology in view of present
   demand. To achieve the objectives of IPP, MSAMB web site will further be enhanced in order
   to support additional requirements e.g. database of market functionaries, trend analysis of
   arrivals & prices of agricutural commodities, price discovery mechanism, Web GIS envisaged
   in various Components and Sub-components of MACP. The Integrated Project Portal will be a
   comprehensive knowledge bank in terms of management of project as well as the technical and
   logistics support required by all the line departments. It is proposed to develop web sites for
   line departments and link the same to IPP.
47. The information of IPP will be useful to keep track on various activities carried out by PCU,
    PIUs and all implementing agencies. It will facilitate to take various inputs, including inputs
    related to web-GIS, from various levels of the project, process it, and generate necessary
    reports through respective softwares for the use of Bank, PCU, PIUs, and the IAs. In order to
    facilitate smooth exchange of information master database such market functionaries database
    is proposed to be developed. Also, for seamless integration of information of all the web sites
    of PCU, line departments and IAs, it is necessary to upgrade the existing software, hardware,
    network items and peripherals in MSAMB data center.
48. Commodity profiles proposed to be developed by ABPF will be made available through this
    web site. The Integrated Project Portal will be a comprehensive knowledge bank in terms of
    management of project as well as the technical and logistics support required by all the line
    departments. It is proposed to develop Web based Geographical Information System on pilot
    basis to provide realistic spatial information about road network, market infrastructures for
    logistic arrangements and price trend analysis for the use of market functionaries and proposed
    eTrading system.
49. The proposed Integrated Project Portal on MSAMB web server shall have the following
    components:
  Integrated Project Portal (IPP)
  Enhancement of MSAMB web site:
  Technology Upgradation: MSAMB has well established data center for catering the requirements of
  web site, mailing facility, applications, database, network security, antivirus system. This data center is
  in functioning since five years. Considering the requirements of main and sub components of MACP
  project, present data center of MSAMB needs to be expanded. This involves procurement of high end
  servers, latest system/ application/ database softwares, necessary software tools, network items,
  security items, UPS, desktops, antivirus, high speed internet connectivity (leased line & broad band) to
  support the IPP, MIS, MII, Web GIS and activities of other component, sub components and new
  challenges of virtual market.




                                                     68
   Market Functionaries Database: MSAMB website is providing information about daily arrivals &
   prices at APMCs and write-up of various schemes, projects and activities carried out by MSAMB.
   Besides this information, additional information of various market functionaries viz. traders, agents,
   processors, exporters, importers, input suppliers, transporters, would be needed for operation of virtual
   market. This information will be collected from APMCs, ATMAs and concerned departments. More
   than six lakhs records are expected to be entered in database of the web site, for displaying this
   information in Marathi and English language. A tentative list of stakeholders is as follows.

                S.N           Particular of Market Functionaries                 Nos.
                1     Traders                                                    123634
                2     Processors                                                   7794
                3     Commission agents                                           32102
                4     Input suppliers                                            100000
                5     Exporter                                                     2300
                6     Importer                                                     3000
                7     Transporter                                                 50000
                                                                       Total     318830

       WEB GIS: Considering the aspects of WEB GIS, it is proposed to make use of it for bringing
       some geographical information like district wise map of the State, road network, main, sub markets
       & major infrastructure, arrivals and prices of Agri. commodities, on pilot basis. This will help in
       providing realistic geographical information on these items on web site. This can be useful for
       decision making about transport / logistic arrangement for shipment of Agri. commodities, as the
       system will provide information about realistic distance of expected location as well as prevailing
       prices. Similarly, this information will provide information about various facilities available at
       main & sub yard e.g. godown, cold storage their capacities etc. This system can further be extended
       to put remote sensing data (satellite images) of important Agricultural commodities on WEB GIS
       to provide information about area under cultivation, yield assessment. This can be analyzed with
       some required data for crop planning/ management. Broad elements of WEB GIS are as follows.
            GIS Server
            GIS Softwares
            GIS Database
            Development of web based GIS:
                o Procurement of digitized district wise map of the State.
                o Procurement of digitized road network: To provide information about distance between
                   two markets, to make necessary arrangement for logistics or to select nearest market to
                   reduce the transportation cost and get more price realization.
                o Digitization of spatial references of main & sub markets. This includes various
                   infrastructure facilities (e.g. godown, cold storage, etc.) available at APMCs or in the
                   vicinity of APMCs.
                o Digitization of data about production, arrivals & prices of important agricultural
                   commodities, to provide trend analysis. This can assist in crop planning and
                   subsequent marketing.
                o Tie-up with the transporters for easy mode of transport of the agri-produce once e-bid
                   is finalized.
       Web Site/ Content development for Line departments: It is proposed to develop web sites for
       line departments to display their activities. The contents for these web sites will be static
       (text/image) as well as dynamic (database related) and would focus on the marketing opportunities
       with reference to specific sectors like agriculture, horticulture, and animal husbandry. For this
       purpose, concerned officials of line departments are to be consulted for finalization of static,
       dynamic contents and formats for information collection. Concerned line departments will provide
       information as per the agreed formats.
50. The objectives of IPP are as follows:


                                                     69
        IPP will be designed for MACP support processes, activities and personnel to improve the
         access, processing and sharing of structured and unstructured information within and across
         the enterprise.
        IPP will mainly incorporate users’ roles, processes, workflow, collaboration, content
         management, data warehousing, customized applications for MACP and project intelligence.
        IPP will be used to manage major process such as Procurement Management, Finance
         Management, Quality Control, HRM, etc. It will be a front-end underlying software
         applications (MIS, M&E, Web GIS, etc) and provide alternate interface.
51. The SP for designing, development, implementation & training of IPP : Third Party Service
    Provider will be appointed to carry out functional requirement study, design, develop IPP and
    implementation of the same including training. The SP will undertake the following specific
    activities of Project:
     Functional Requirement Study document for upgradation of MSAMB data center, and
     design & development and implementation of IPP including Web GIS. Detail requirement of
     hardware and software for the MSAMB data center, including servers, latest system software;
     application software; database software, necessary software tools, network items, security
     items, UPS, desktops, antivirus, high speed internet connectivity (leased line & broad band) for
     upgradation of MSAMB data center.
        Design IPP taking into consideration ;
          o Web-standards, uniform guidelines, content management strategies and development of
            model template for websites of participating line departments.
          o An appropriate web strategy, which will allow access to information to all stakeholders,
            ensures transparency in terms of availability, distribution and utilization of resources,
            enable access to data and information to target beneficiaries / users, and, facilitates
            reporting through IPP.
          o Provide a common search feature to retrieve information.
          o Provide IPP evaluation mechanism, for the Project Management, based on the objective
            parameters and the user feed back, for smooth operations and effective utilization of the
            IPP.
     52. Implementation of IPP will comprise of ;
          o Developing websites for PCU and all line departments.
          o Create market functionaries database compatible to MSAMB website and data entry of
            around six lakh records in Marathi & English, in the same database. This data will be
            available on MSAMB web site for the use of farmers.
          o Design, development and hosting of the system based on web based Geographical
            Information System (GIS) on MSAMB server with link to MSAMB web site. This
            system will provide realistic spatial information to the agriculture market stakeholders,
            like road-distance between any two markets, their catchment areas, major
            infrastructures available at these markets, arrivals and prices of agriculture commodities
            in these markets.
         Training: Assess the training requirements, training need, and provide training to all the
          users for handling & managing IPP. Capacity building of personnel from PCU & PIUs.
         Support to web based IPP for smooth operations and effective utilization.




                                                    70
53. The computer hardware, internet connectivity & tally software for the field offices of all the
    line departments: The field offices of all the line departments will be provided with computer
    hardware, internet connectivity and tally software for accounting. These computers will be
    utilized for monitoring the activities, reporting, BDS and account keeping. The hardware will
    include computer, ups, and printer.
(e) Training, Operations and Maintenance Support:
54. Training for IT personnel: MII, MIS & IPP are crucial activities for the effective
   implementation of MACP. MIS and IPP involves implementation, administration and
   maintenance of latest servers, system/application softwares, database, network items, data/
   network security management. Training about implementation of these items is essential.
   Similarly, regular administration, maintenance and management of these items is a must to up
   keep the entired system and to get desired performance. Hence, training regarding these aspects
   is necessary for IT personnel. This training should be divided as hardware (i.e. server, network
   items, etc.) and software (i.e. operating system, database (MS SQL), dot net, etc.). It is
   proposed that, the training should be arranged by concerned hardware and software vendor. For
   effective utilization of MIS, IPP and M&E systems, training is essential for all staff under
   MACP project and concerned implementing agencies. This training will be given by the
   concerned Service Provider.
55. Operation and Maintenance Support: It is proposed to expand present data center with high end
    servers, latest system/application/database software, necessary software tools, network items,
    security items, UPS, desktops, antivirus, high speed internet connectivity (leased line & broad
    band) to support the MIS, IPP, MII, Web GIS and activities of other components and sub
    components. All computer hardware, softwares, network items may have one year warranty.
56. The project will integrate these services together over a period of two years.
                              MII Project Roll Out Plan

   Year 1                   Year 2           Year 3      Year 4     Year 5        Year 6

                                                    MSAMB Integrated Web Site
          MSAMB Web Site                             Market prices - Mandis & e – trading
              Market IQ                                     Market IQ – ABDF VC
             Market Info                            Database of Stakeholders – MSAMB
         Portal to Line Depts.                       Technical Information – Line Depts.
         Project Information                            Government Polices – ABDF
                                                          Project Information – PCU
                                                  Mandi Market Info.Display – E-trade + APMC
                                                    SMS with key messages to Field Staff
         SMS Messages – Extension                      SMS as a platform for e – trade
          & Master Farmer Trainers                 The program will roll out and Evaluation
                                                      will be carried out in the 6th Year.


                 Selection of SP by Competitive
                         Bidding Process



VI. Estimated costs
57. The items of investment included in this component are listed below:
            Sr. No.                           Particulars
            1       Market Information Dissemination through mobile (SMS Service)
            2          Market Information Display including Training



                                                       71
           Sr. No.                              Particulars
           3       Consultancy, design, development & implementation of
                   Management Information System (MIS) & training
           4       Consultancy, design, development & implementation of Integrated
                   Project Portal (IPP) & training
           5       Data Center and training
           6       Hardware and Tally software for spending units
           7       Connectivity for data center
           8       Operation and Maintenance Support
The Project will provide 100% funding to meet the cost of this subcomponent.
VII. Institutional and implementation arrangements
58. The MIS sub component will be implemented by PCU, whereas the other sub components
    under Market Information Services will be implemented by PIU, MSAMB.
59. MSAMB has well established Information Technology (IT) department with data centre.
   MSAMB has its own web server with dedicated leased line for functioning of the website
   (www.msamb.com). IT department has computer experts for maintenance of the website.
   Therefore IPP will be implemented by PIU-MSAMB. However, the approval of PD for
   implementing all the activities under IPP will be taken as PCU and all PIUs will use IPP.
VIII. Funds flow
60. The funds for all these activities will be provided in budget by the Dept. of Coop. & Mktg.,
    GOM and will be released as per BDS (electronic fund transfer system) to the Director of Agri.
    Mktg., who in turn shall release the funds by treasury cheque to MSAMB. MSAMB will
    maintain separate MACP account and the payments will be made to the contractors / suppliers
    by crossed cheques signed by the Managing Director, MSAMB and the Nodal Officer, PIU-
    MSAMB, except for the funds for MIS, which will be paid by PCU to the SP. The periodical
    requirement of funds for various activities under this subcomponent based on timeline is given
    in costs table attached in Appendix B.1.
IX. Fiduciary and Safeguards arrangements
61. Following are the fiduciary and safeguards arrangements:
   i) Procurement process and selection of consultant will be carried out as per the guidelines
        given by World Bank and by open tender system through public notice in the news papers.
   ii) The SPs will be appointed by following WB procedure.
   iii) Internal and external audit will be conducted to keep track on fund flow.
   iv) All information about the project and it’s implementation will be available on IPP.
   v) MIS will help constant monitoring and evaluation of the project implementation.
   vi) For each activity there will be proper complaint grievance system in existence.
X. Governance Risks and Mitigation Measures
62. The risks and mitigation measures are as follows:
Sr.No    Risks                      Description                Risk Mitigation Measures
1        Technical / Design         Technical aspects /        Institutions like National Informatics
                                    designing should be        Center (NIC) having technical
                                    keeping in view the        expertise and vast experience will be
                                    objectives of the          considered for this purpose.
                                    subcomponent




                                                72
Sr.No     Risks                          Description                    Risk Mitigation Measures
2         Implementation capacity        Training and capacity          Adequate provision for training and
          and sustainability             building of the existing       capacity building has been made
                                         staff as well as the           under the subcomponent
                                         various users of these
                                         services is critical for the
                                         success
3         Financial Management           The hardware and the           The payments will be made to the
                                         software are high cost         contractors / suppliers by crossed
                                         items, which call for          cheques signed by the Managing
                                         timely implementation as       Director, MSAMB and the Nodal
                                         per schedule for its           Officer, PIU-MSAMB. MIS and
                                         impact on the Project          continuous M&E will be sufficient
                                                                        safeguard
4         Procurement                    ---                            Procurement process and selection of
                                                                        consultant will be carried out as per
                                                                        the guidelines given by World Bank
                                                                        and by open tender system through
                                                                        public notice in the news papers.
5         Social and environment         ---                            No risk is involved. As a matter of
          safeguards                                                    fact there will be positive social and
                                                                        environmental impact

6         Other ( for example project    ---                            No risk is involved. There will be
          specific corruption risk,                                     increase in transparency due to
          ownership of project /                                        information dissemination, MIS, IPP.
          program, prevalence of
          failure in similar projects)

XI. Sustainability
63. The issues of sustainability are discussed below:
       i) Information provided through SMS service, Market Information Display will help in getting
          better prices to farmers and increase market cess of APMCs. There will be increased demand
          for the service for obvious increase in the income of the farmer as well as APMCs.
      ii) After a period of two years MSAMB will start SMS delivery service of it’s own on no profit
          no loss basis. After project period MSAMB will make this full-fledged service as a
          commercial activity.
    iii) Certain analyzed data compiled through website can be made available on commercial basis
          which can generate income to MSAMB.
     iv) The activities, relating to system operation and management, back up and maintenance, end
          user support, are outsourced to qualified technical agencies. MACP would need to develop a
          core team of professionals who are trained in specific aspects of IT/IS to manage these teams
          and be self sustaining.
                                                      ***




                                                       73
                  A. 4 LIVESTOCK SUPPORT SERVICES

I. Objectives
1. Twenty Live Stock Markets (LSMs) and 4 Small Ruminants (SR) Markets would be
   strengthened under the Project. Such markets need marketable surplus and market development.
   This would be achieved as follows–
   (i) Marketable surplus through sustainable and rapid growth and development of livestock
       sector can be ensured if due attention is paid to providing extension support to live stock
       farmers. At present extension manpower with Animal Husbandry Department is inadequate.
       The Shortcoming could be addressed by functioning of lady link workers in this sphere.
   (ii) Similarly Small Ruminant Farmers are spread across and are not able to improve their
        financial status in isolation. However if such farmers are brought together in a group and
        trained for the healthcare of the animals their problems would be better addressed, creating
        healthy marketable surplus.
   (iii) Consumption of Meat in Metropolitan cities has increased tremendously. However the
        trade of such meat does not take place in good hygienic conditions. Considering the huge
        demand for consumption of meat, a study of meat trade in Pune will deal with issues of
        setting of modern slaughter house, ensuring future demand for livestock and value added
        products.
   (iv) Unlike for agricultural crops, database for livestock is not available. Considering the huge
       production and trading of livestock there is an imperative need to collect and compile such
       data for its dissemination. Dissemination of market information through a specialized cell is
       therefore proposed under this component.

II. Outcome and Output Monitoring Indicators:
2. The outcomes and output monitoring indicators are as follows:
     Sr. Outcome                                   Indicator
     No.
     1    Sustainable and rapid growth and % increase in number of livestock arrivals in the
          development of livestock marketing.      market.


    Sr. Output                                       Indicactor
    No.
    i   Village level lady link worker
         Increase number of SR population in        % population increase in a cluster on and
           a cluster.                                above background growth.
         Increase in extension services             % increase AHD extension services
         Establishment of strong                    Communication link established via SMS and
           communication link                        weekly meetings.
         Increase in market awareness.              Market awareness increased (from record of
                                                     VLLW kept)

            Sustainability of VLLWs                 VLLWs earns minimum Rs. 300 per week for
                                                     service rendered.
            Post operational status                 60% VLLWs remain operating for 3 years
                                                     after their training.


                                                74
    Sr. Output                                    Indicactor
    No.
    ii  Strengthening of SR
          Increase in market arrival             % increase in market arrival.
          Formation of 600 CIGs                  100% CIGs of SR farmers formed.
          Performance of breeding buck           % increase measured on kidding basis.
          Increase in selling on weight basis    % increase in weight basis selling
    iii Goat as a high value enterprise demonstration
          Formation of 500 units and visits of 100% units formed and no. of farmers visited
           farmers                                each unit.
          Adaptability of demonstration          At least 500 additional demonstration units
                                                  formed
    iv  Meat trade study
          Study of meat trade                    Meat study in Pune conducted.
    v   Market Intelligence and development cell in AHD
          Database for livestock in market       Database for livestock and information is put
           intelligence and development cell      in the Website of Project.
           and information shared with project.

3. The issues related to implementation are as follows:
   i) The Commissioner (AHD) will be the main implementing authority for this sub-component,
      assisted by the Nodal Officer of PIU-AHD is established in the office of Commissioner
      AHD.
   ii) Federations of farmers owning Small Ruminants will be a registered and an elected board of
       representatives would look after the business. SP for formation of PGs / CIGs of SR farmers
       will form these federations during initial period of one to one & half years. These
       federations will be the bodies implementing SR Component from second year of the project
       period.
   iii) The consultancy will be employed on contract by PIU-AHD in consultation with ABPF
        (according to WB procurement procedures) to conduct the meat trade study in Pune. Study
        will be conducted by consultant under the overall technical oversight of ABPF. Component
        would be implemented through AHD.
III. Selection Criteria:
4. Livestock health coverage would be through Village Lady Link Worker (VLLW). The selection
   of VLLW will be done on the basis that they should be permanent residents of the village, they
   should be literate and in the age group of 18 - 40.
5. The Sangli, Ahemadnagar, Pune and Satara districts have been selected for formation of
   Federation of Farmers owning Small Ruminants considering the high propensity of small
   ruminants found in these four districts.
6. Pune City (Dist. Pune, Maharashtra) has been identified for conducting a study of meat trade as
   a pilot because of a large variety of sample of meat traders and consumers are available in this
   city.
7. The design of AHD information cell and database shall be need based and in accordance with
   the recommendations of the SP.




                                                75
IV. Activities to be financed:
a) Livestock Extension Constituency in Villages – Livestock Lady Link Workers (LLW):
8. It is proposed to strengthen the extension network of the Animal Husbandry Department. Under
   the present set-up, most of the extension work is performed by a Livestock Development
   Officer (Extension) and 2 to 3 Livestock Supervisors in each taluka. They are supposed to
   perform a number of duties like dissemination of information regarding various government
   schemes, selection of beneficiaries under ongoing schemes of the government, motivating and
   encouraging rural farmers to adopt better management practices. Looking at the wide canvas of
   operations to be performed, it can be seen that the present setup is not capable of performing the
   expected duties in an effective manner. Many a time the department’s livestock extension
   officer can not reach the village to provide emergency treatment to the livestock, because of his
   large geographical area of functioning. In effect, extension support to livestock farmers to
   optimize their investment in livestock does not exist in the present day set up. The solution
   would be to build up capacity, skills and self help facilities in villages to establish a live and
   continuing livestock extension constituency in the villages with organic links to the Department
   of Animal husbandry and not to add another salary earning extension cadre to the Department’s
   Establishment.
9. Under the project AHD will train and equipped one lady link worker each in 2500 selected
   village clusters in the state at the rate of 500 per year of the project, from the operational areas
   of 20 live stock and 4 SR markets proposed to be modernised under MACP, with priority for
   backward areas like Marathwada and Vidarbha. Each cluster will cover 5 villages. The Lady
   Link Worker will be a village house wife identified in each cluster by the extension officers
   (AHEOs, LDOs, LEOs and Livestock Assistants) of the AHD in association with the
   Gramsabha under the guidance and control of the ATMA. Training of the LLW will be by
   ATMA Designated KVKs, training duration of 7 days (class room 40 per cent and hands-on 60
   per cent) and will include husbandry practices for different species of animals, basic sanitation
   and hygiene, information on animal and poultry diseases, and practical training in skills like
   vaccination and de-worming of indigenous fowl in backyard units, vaccination of small
   ruminants and livestock, appropriate no cost / low cost technologies like termite control for
   feeding back yard poultry, azola culture for feeding poultry and small ruminants and candling
   of eggs for improving hatching rate of indigenous fowl eggs in back yard units. They will on a
   continuing basis receive short modules of trainings on various skills from the AHD from time
   to time. These Lady Link Workers will assist the AHD in the implementation of all Extension
   Support activities listed under Component B in their respective areas of operation. Even though
   Poultry marketing development is not the part of MACP, the livestock & SR farmers do
   maintain some poultry birds at their back yard which fetch them additional income. This is
   supplementary activity to agriculture being undertaken by many farmers for improving their
   financial condition. Therefore LLWs will also attend to the activities like vaccination,
   deworming and termite control of backyard poultry.
10. These lady link workers will be self employed livestock extension agents in villages and will be
    linked to the AHD through the Livestock Assistants and AH Extension Officers. They will earn
    modest incomes as service fee for services they provide like poultry / small ruminant
    vaccination and technology transfer. These extension agents will constitute a live and
    continuing livestock extension constituency in villages and should be constantly nurtured by the
    AHD through active communication links both ways and supply of poultry / livestock / SR
    Vaccines. Each of them will be provided a vaccination kit. The training and the kit will be a one
    time grant to the Lady Link Workers. They will regularly vaccinate indigenous fowl in back
    yard poultry units in villages as well as small ruminants in the village. They will also be an
    intelligence constituency for disease reporting: all livestock diseases / mortality in villages /
    human diseases running concurrently with animal epidemics; and will be of immense use in

                                                  76
   mass vaccinations in case of emergencies like out break of avian influenza / RD. Vaccination
   kits will be procured by PIU-AHD. Communication link to VLLW will be established via. SMS
   and weekly meeting at respective veterinary dispensary in a cluster and VLLW will also keep
   record of the work she had done and will submit weekly to the veterinary dispensary.
11. Sustainability of live stock lady link worker will be attained by performing i) low cost
    technology transfer ii) assistance to AHD extension. iii) Performing husbandry practices, by
    this VLLW will earn atleast Rs.300 per week for the above services rendered which will take
    care of sustainability of VLLW. The LLW will evolve as a live and dynamic livestock
    extension constituency in the villages, private, self employed and outside of the government.
    This activity will result in improved health of livestock and will therefore increase productivity
    of livestock. The activity of Livestock Extension Constituency in Villages -Lady Livestock
    Link Workers (LLW) will be implemented by the District Animal Husbandry Officer of the
    AHD under the guidance and control of the ATMA.
b) Support to Small Ruminant (SR) Farmers: Organized Marketing of Small Ruminants:
12. The AHD with the help of an accomplished NGO/Company/any other legal entity as SP will
    carry out intensive social mobilization programs creating Common Interest Groups (CIGs) /
    PGs of SR breeders in four districts of Sangli, Ahmednagar, Pune and Satara promoting the
    formation of CIGs. These CIGs will form new SR Federation/ SR farmers’ P.A linking them to
    the small ruminant market yards in Karjat (Ahmednagar Dist.), Atpadi (Sangli Dist.), Dound
    (Pune Dist.) and Dahiwadi (Satara Dist.) respectively.
13. Each CIG will have some 15 SR farmers as members and a total of 600 CIGs together in the
    four districts will be formed at the rate of 150 per year over the 4 project years. The SP will also
    help improve the breeding and husbandry practices in SR Flocks through skill / technology
    training / capacity building. The SP will also be responsible for linking the CIGs to the Market
    yards and will help streamline bulk marketing of small ruminants through promotions, melas,
    internet networking and electronic media. Thus total of 9000 SR farmers will be covered under
    this program.
14. Activity of Support to Small Ruminant (SR) Farmers - Organized Marketing of Small
   Ruminants: and formation of new SR Federations/ PAs of SR farmers will be implemented by
   District Animal Husbandry Officer of the AHD through an accomplished NGO/Company/any
   other legal entity as Service Provider, under the guidance and control of the ATMA.
   PIU (AHD) will procure SP, issue the contract and payment will be made by Deputy
   Commissioner AHD. The costs of training under this activity is embedded in the ATMA budget
   of Sangli, Ahmednagar, Pune and Satara Districts. The SR Farmers for support will be
   identified by the SP / Livestock Development Officer (LDO) / Livestock Extension Officer
   (LEO) of the AHD in consultation with the Gram Sabha. Identified SR farmers will be trained
   in batches of 25 by the SP in the KVK arranged by the ATMA / AHD for a period of 7 days on
   good husbandry practices, selection and management of bucks and breeding does, first aid,
   health care / disease prevention, cultivation of high yielding fodder crops and organised
   marketing of live animals for breeding / meat purposes. On an average one farmer has 10
   sheeps as he is a small/ marginal farmer & his main source of livelihood is sheep herd. Around
   15 farmers in one village will form one CIG/PG and there will be total of 600 CIGs in 600
   villages. These farmers will be provided with three bucks per CIG (per village). In each village
   there will be only 3 buck to be provided and one farmer will get one buck. The farmer getting
   the buck will recover service charges from the other members of the group availing services of
   the buck. The bucks will be procured by CIGs on Community Procurement basis with the
   technical support of SP and AHD. Performance of breeding buck will be measured on kidding
   basis. The training will be provided by AHD, however the funds will be given to them through
   ATMA.

                                                  77
c) Demonstration cum Production Units: Goat as a High Value Enterprise (Yeotmal District
    in Vidarbha and Beed District in Marathwada)
15. The AHD will promote the concept of Goat as a high value enterprise in the demonstration
    mode using the well endowed farmers in the two districts of Yeotmal and Beed and under the
    guidance and control of the ATMAs as pilots. The activity will be implemented with the help of
    Service Provider. For both the activities i.e. support to SR farmers and demonstration cum
    production unit, the same NGO/Company/any other legal entity will be handling the activity.
16. One ha of irrigated land can raise 100 Osmanabadi / or other large breeds of goats on high
    quality and high yielding cultivated fodder. The ideal fodder combination will be Hybrid Napier
    variety CO 3 and Desmanthes Virgates (Hedge Lucerne) yielding 100 M.T. of grass / legume
    mix per ha per year. Meat production will be based on the cultivated fodder and will have
    outputs of 2.5 MT of chevon (goat meat) per ha with net return of over Rs.2,00,000/- per ha
    annually.
17. The SP with the technical support of AHD will identify 250 farmers from each district under
    the program. Selection criteria for selection of these farmers (demonstration units) will be -
   i) Farmers should have 0.50 to 2.00 acres of irrigated land.
   ii) He should have 20 Does for breeding. These does should be stall fed.
   iii) The farmer should be willing to share 50% cost of buck and rotatory chaff cutter.
18. AHD with the help of the SP will promote goat for meat as one of the highest value enterprise
    for diversification for the well endowed farmers in these two districts. This would be a
    demonstration programme using farmers with 0.50 to 2.00 Acres of irrigated land. Total
    number of 500 units (250 units per district) at the rate of 125 units per year over the 4 project
    years would be covered in 2 selected districts. Each unit owner should have a minimum of 20
    Does for breeding and would get ready for the market one-year-old 20 goats born in the unit,
    both male & female, per year. The Demonstration Units will raise their small ruminant flocks
    exclusively as stall fed animals, primarily on cut/ chopped home produced grass/ legume mix (a
    combination of Hybrid Napier CO3 variety and Desmanthes virgates: Hedge Lucerne).
19. This sub-component will be implemented by District Animal Husbandry Officer of the AHD
    under the guidance and control of ATMA. SP for this program will provide social mobilization
    and extension support. Participating Farmers will be identified by the DAHO / SP with the help
    of the ATMA and the Gramsabha of the area. Identified SR farmers will be trained in batches of
    25, by the SP in the KVK arranged by the ATMA / AHD for a period of 7 days on good
    husbandry practices, selection and management of bucks and breeding does, first aid, health
    care / disease prevention, cultivation of high yielding fodder crops and organised marketing of
    live animals for breeding / meat purposes.
20. One breeding buck will be supported at 50% project share basis. The bucks will be procured by
    the identified farmers with the technical support of SP and district level officer of AHD.
21. The selected farmers will be supplied with fodder seed (10 to 12 kg per acre) and fertiliser
    (having 2 bags of urea) on one time basis with the cost of Rs. 1,000/- per unit. Procurement of
    seeds and fertilisers will be done by ATMA by following World Bank procedure.
22. Once these demonstration units start functioning AHD and ATMA with the support of SP will
    organise field trips for the farmers from adjoining districts and for the farmers from same
    district. Total number of farmers to be covered under filed trips will be 750 from the two
    districts where demos are organised. These trips will be organised in batches of 30 each. Cost of
    the trips will be Rs. 1500 per farmer. The SP will arrange slide show and provide all the
    technical information of demonstration to the farmers so that more number of farmers will take
    up this enterprise. Special emphasis will be given on adoptability of demonstration by the
    farmers who paid visit to the demonstration units.

                                                 78
d) Study on Meat Trade in Pune:
23. The state has in all some 338 registered slaughter houses, most of them for large animals. The
    small ruminant meat trade in Maharashtra including meat and live animal export (excluding
    poultry meat) aggregates annually to some 1,50,000 M.T and it is worth Rs.22.50 billion. Pune
    has a flourishing meat trade with 400 meat retail outlets. Over 3000 small ruminants are
    slaughtered everyday and trade volumes are close to 36 M.T of chevon / mutton / lamb.
    Unfortunately the city does not have a slaughter house for small ruminants while it has some 4
    large animal slaughter houses. Slaughter of small ruminants takes place in the 400 meat retail
    shops. Meat trade, throughout the state is devoid of basic cleanliness and hygiene; meat in
    general is not handled as a human food item. There is an urgent need to streamline meat trade in
    all major urban centres of Maharashtra.
24. If we look at the entire value chain right from the sale of meat stock to wholesalers, to retailers
    and to the final delivery to consumers, it can be seen that there are huge synergies which can be
    exploited. For most of the other food products a number of favourable changes have been
    introduced in the trade during last few years. With the coming up of large food chains and retail
    stores, we are witnessing changes which have the potential of revolutionizing the manner in
    which these food products are going to be traded and consumed. This is the most appropriate
    time for undertaking a study which will evaluate the potential for this trade and to make some
    positive recommendations. It is a win-win situation whereby consumers get the right quality at
    the right price, while the farmers and the traders also get their due share in a fair and transparent
    manner.
25. Under this component it is proposed that a comprehensive meat study for Pune City be
    undertaken. The basic aim of the study would be to have a closer look at the entire meat value
    chain in a city like Pune starting from the livestock owner to the slaughter house and finally to
    the urban meat retail shop and consumer. It will identify the issues involved in meat transport
    and retail and it will also consider the possibility of setting up a modern slaughter house for
    small ruminants. The social, legal and environmental implications of streamlining the meat
    trade chain will be evaluated. The proposed study would be undertaken by a professional
    consultant who has the required experience in this area and the consultant will be expected to
    complete the study in six months on the basis of which a comprehensive proposal for
    modernization and streamlining of meat trade in Pune can be submitted for consideration by the
    GOM / World Bank. This study shall be conducted by consultant contracted by PIU-AHD in
    consultation with ABPF and under the overall technical oversight of ABPF.
26. ABPF with the help of PIU – AHD will draw ToR for selection of consultant for this study.
    Contracting of Consultant will be done by PIU-AHD.
27. The study will be carried out by an accomplished consultant and the output of the study will
    comprise:
   i) Situation Analysis of the meat market in the Pune City: Volume, Infrastructure, supply
        chain, and retail trade
   ii) Situation Analysis of the existing slaughter facilities / practices, meat transport and
        handling, meat trade / meat retailing, hygiene and quality control
   iii) Need for modernization of slaughter facilities including the establishment of a new
        slaughter facility for small ruminants,
   iv) Regulatory frame work for assuring quality, quality control, hygiene and public health
        safeguards.
   v) Modernization of meat handling, transport, meat retailing and retail outlets
   vi) Design and plan for SR Slaughter House with Equipment List, Specifications, Source of
        Supply, and
   vii) Investment Dimensions and Techno-economic Analysis.

                                                   79
e) Market Intelligence and Development Cell in AHD:
28. Gathering information and intelligence on livestock products is extremely essential for
    enhancing livestock productivity and for facilitating greater volumes of trade in the sector.
    Agricultural market information is vital, because such data is not only a key input for informed
    planning and decision-making by agricultural market participants, but also for effective
    government policy making and administrative decision-making. Although considerable
    resources have been directed towards collecting and disseminating information on basic crops
    (cereals, groundnuts, and so on), less attention has been given to collecting, disseminating, and
    analyzing livestock and livestock product data. Timely information on prices, volumes
    produced, quantities traded, locational availability, and stocks is largely unavailable. A
    booming national economy and an ever increasing demand for livestock products in general and
    meat in particular has attracted enormous market pull on small ruminant populations.
29. The organizational setup of the AHD shows that it has confined itself to the role of a service
    provider. There is an urgent need to expand this role so that the functions indicated above can
    be performed in an effective manner. The needs of farmers have to be understood and they have
    to be encouraged by removing hurdles like credit availability, lack of marketing network and
    access to quality information. AHD has no expertise in the field of marketing of livestock. The
    idea is to develop Market Intelligence & Development Cell in AHD. The information will be
    put on Website & disseminated through block level dispensaries and field level machinery of
    the AHD.
30. It is proposed to have a Market Intelligence & Development Cell within the AHD in the o/o
    Commissioner, AHD, Pune. A consultant would be appointed to structure and establish this cell
    in AHD. This SP will undertake study and design the cell within a period of one year. The
    activity of the cell will include collection of daily / weekly prices of livestock and livestock
    products, and adequate emphasis would be given for dissemination of this information to
    farmers all over the state. The cell would also aim for building capacities of the departmental
    staff. Special training sessions would be organized along with exposure visits. The Cell will
    function in close association with ATMAs.
31. This cell would have subject experts like an Agri-Economist, IT expert, a Marketing Expert and
    a Training Organizer. They would be drawn from fields like Agri-Economics, Rural Marketing
    and Human Resource Management. They will be on contract for a period of 5 years beginning
    from II year of the project period. These experts will be contracted by PIU AHD. This cell will
    be established during the second year of the project period. SP in consultation with AHD will
    draw the ToRs for the recruitment of these experts. The main functions of the Market
    Development Cell would be as follows:
   i) Gather marketing information and facilitate proper dissemination of this information.
   ii) Ensure proper health care of animals in livestock markets.
   iii) Develop thorough understanding of the economics of livestock sector. No real efforts have
        been made to measure the impact of this sector in economic terms. This is very important
        for understanding the factors which can contribute towards the growth of this sector and in
        designing suitable policies for improving overall performance of the sector.
   iv) Identify bottlenecks like credit availability, availability of cold storages, grading facilities.
   v) Act as an information database.
   vi) Identify key problems being faced by entrepreneurs engaged in sectors like poultry, meat
       industry and liaise with ABPF (Agri Business Promotion Facility).
   vii) Training of staff so that they also become aware of the importance of market development.


                                                   80
32. It is expected that over a period of time the cell would develop the required expertise to offer
    specialized advice to new entrepreneurs who are exploring business opportunities in the
    livestock sector. This facility would be made available on payment of certain charges. A major
    focus of its work would be to provide export facilitation services and also to provide market
    related information. With the coming of large retail chains there will be a huge demand for such
    information and it will ensure a steady stream of revenue for the cell. In due course of time, the
    departmental officers would acquire the competence to be able to contribute to the working of
    the cell and a few of them could be sent on deputation to the cell. After the project period,
    departmental officers will man the cell and continue to give the services against the charges to
    be recovered. Thus the cell will be self supporting and sustainable even after the project period.
33. Organizational Structure of the Cell: This cell will be established in the II year of the Project
    period after the completion of study by SP during the six months of first year.
         1.    Commissioner of Animal Husbandry                 Chairman
         2.    Agri. Economist                                  Member
         3.    IT Expert                                        Member
         4.    Training Organizer (H R Management)              Member
         5.    Marketing Expert                                 Member
         6.    Dept. Officer (1)                                Convener / Secretary
34. The cost estimates of this cell are as under:
     Sr.No.   Component                                                 Cost (Rs. in lakhs)
        1     Salary                                                          150.00
        2     Office expenses                                                 100.00
        3     T.A/D.A etc.                                                    100.00
        4     Training, Seminars, Workshops                                   100.00
        5     Consultancies and studies                                       050.00
     Total                                                                    500.00
35. Some of the activities proposed in this subcomponent would primarily be dealt under ATMA
    i.e. training, demonstration; visit would be organized to the farmers. However these activities
    would be undertaken with a coordinated effort of PIU AHD and ATMA. The Dist officer from
    the AHD will work closely with the concerned ATMA to ensure that the capacity building
    measures are provided to such farmers which are covered in the project.
f. Animal health check up camps:
36. Twenty LSM and 4 SR markets are being modernized under MACP. In order to promote trade
    of healthy livestock and small ruminants in markets, routine health check up programme is
    being carried out by state Animal Husbandry department as an ongoing activity throughout the
    state. But it is not possible to cover each & every village in the state under this activity. It is
    proposed to organise two camp per LSM & SR every year of the project. These will be
    organised at the village selected by taluka LDO with the help of District Animal Husbandry
    Officer (DAHO). Thus total of 48 camps per year & 288 camps in project period will be
    conducted. Break up of the unit cost is given in following table. The following Unit Cost norms
    are approved under kamdhenu yojana of GoM.
     Sr.No.   Item                                                                Cost per
                                                                                 camp (Rs.)
     1        Dewormming of Animal                                                     17,500
     2        Supply of Mineral Mixture and Vitamins                                1,00,000
     3        Iradication of Ectoparasits                                              15,000
     4        Infertility Treatments                                                   15,000
     5        Publicity and mass propaganda                                             7,500
     Total                                                                          1,55,000

                                                     81
37. Average 150 large animals and 300 SR will be checked in one camp. Thus total of 36,000 (150
    X 40 X 6 ) large animals and 14400 (300 X 8 X 6) SR will be checked in these camps. This
    will ensure that more and more disease free livestock is fetched in the market which will be
    beneficial to the sellers and the buyers. More and more livestock owner will take the benefit of
    market and market allied activity through awareness prgrammes. It will be a strong backward
    linkage for 20 LSM + 4 SRM development components. This will ultimately help in achieving
    enhanced public awareness towards marketing of good and healthy livestock and development
    of market ethics too and also emphasis will be given on the increase of 5 to 10 % of milk
    production in a targeted area.
38. Criteria for selection of village for carrying out Animal Health Checkup camps:
   1. Village should be within catchment zone of LSM and SRM being strengthened under
      MACP.
   2. It should have minimum of 500 large animal and 500 small ruminant’s population.
   3. There should be demand from the Village for organizing camp and the villagers should be
      willing to participate in the project. There should be a gramsabha resolution to this effect.
39. With the help of AHD staff, this programme will be implemented through Dist. Dy.
   Commissioner of Animal Husbandry; Dist. Animal Husbandry Officer of State Animal
   Husbandry Department will work as implementing authority for this scheme under the project.
   Cost of this activity works out to Rs. 446.40 lakhs shown in Appendix A.4.
g. Strengthening of the State Level Training Centre, Pune.
40. Department of Animal Husbandry is a having State level Training Centre at Gokhale Nagar
    Pune. In service Livestock Development Officers and Livestock Supervisors are being trained
    in various technical and livestock management courses at this institute. Besides refresher
    courses for capacity building are also organised.
41. Total 500 Livestock Development Officers and Livestock Supervisors from the catchment of
    zone of selected 20 LSM and 4 SRM in MACP will be trained in this Institute for marketing
    management, Disease Management etc. wherein five days course will be conducted. It will be
    beneficial to motivate and train cattle owners within catchment zone. It will reflect in the
    increased number of cattle owners taking benefit of Developed LSM and SRM under MACP.
    This will be strong backward linkage for the development of LSM and SRM component. Cost
    of strengthening of this centre is estimated at Rs. 27.00 lakhs shown in Appendix A.4.
VI. Estimated costs:
42. The details of items of expenditure under this sub-component are as follows:
a) Livestock Extension Constituency in Villages - Lady Livestock Link Workers (LLW) –
   items of investment:
 Sr. No.          Items
        1          Village Based Training (VBT) and Induction of 2500 Village Lady link workers for
                   2500 village Clusters: (AHD) in catchment areas of 20 livestock and 4 SR markets
                   taken up for modernisation under the project.

        2          Teaching Materials, Practice Kits, Communication facilities and network



b) Support to Small Ruminant (SR) Farmers, Organized Marketing of Small Ruminants in
   Sangli, Ahmednagar, Pune and Satara districts:

c) Demonstration cum Production Units, Goat as a High Value enterprise in Yeotmal District
    in Vidarbha and Beed District in Marathwada items of investment:
                                                  82
          Sr. No.       Items
              1         Breeding Buck ( including insurance + concentrate)
              2         Rotary chaff cutter
              3         Seed and Fertilizer
              4         Exposure visit to Demos
              5         NGO support for SR farmers and Demonstration

d) Market Intelligence and Development Cell in AHD: Total cost of this subcomponent is Rs.
   20.00 Lakh for Consultant and Rs. 500 lakhs for the Cell.
e) Animal health check up camps : Rs. 446.40 lakhs.
43. Major cost under this component is going to be funded by the Project.
VII. Institutional and implementation arrangements:
44. Institutional and implementation arrangement of this subcomponent will be mainly with AHD
    with the help of their field officers and ATMA. The SPs are proposed for various activities
    proposed under the subcomponent.
VIII. Funds Flow:
45. The funds flow under this component will be as per BDS (electronic transfer of funds). The
    budget provision will be made by the Govt. under AHD (ADF). The funds will be made
    available to the District level Dy. Commissioner (AH) as per BDS. The payment to the SP will
    be made by Dy. Commissioner (AH) in 3-4 tranches as per the progress of work. These
    accounts will be operated by the Dy. Commissioner (AH) of the concerned district for making
    payments to the respective contractors.
IX. Fiduciary and Safeguards arrangements:
46. All the activities under the subcomponent are directly to be executed by AHD. The procurement
    procedures of WB will be strictly followed. Regular internal and external audit, MIS and M&E
    will be sufficient safeguard arrangements.
X. Governance Risks and Mitigation Measures:
47. The risks and their mitigation is stated below:
Sr.No     Risks                  Description                         Risk Mitigation Measures
1         Technical              Capacity building of all the        (i) Adequate arrangements of training &
                                 beneficiaries by AHD &              capacity building have been made. (ii)
                                 ATMA is important for the           Expert service providers will be engaged
                                 success of this subcomponent.       for technical supervision aspects.
2         Implementation         The field machinery of AHD          Information & Intelligence Cell is
          capacity       and     need to be strengthened in the      proposed in the O/of Commissioner,
          sustainability         field of agricultural marketing.    AHD.
3         Financial              Timely payment to SPs is            Proper scheduling has been done and
          Management             essential for implementation        payment will be made in tranches.
                                 as per schedule.
4         Procurement            ---                                 WB guidelines and procedures will be
                                                                     followed to minimize the risk.
5         Social and             Inclusion of small & marginal       (i) Small & marginal farmers in SR
          environment            farmers in the activities of        production will be included in the
          safeguards             federation will enhance the         programme on priority, (ii) The rural
                                 impact of the component.            women will have additional means of
                                                                     livelihood as LLWs who will provide
                                                                     extension service at door step at low cost.

                                                       83
XI. Sustainability:
48.       The investment under this sub-component will become sustainable considering the
      following:
      (i)     LLWs will have source of earnings and will make this activity sustainable.
      (ii)    Livestock extension service to the farmers at the doorstep at low cost will result in
              saving on cost of animal health care, and will result in increasing the life and
              productivity of live stock.
      (iii)   SR federations will be formed by formation of CIGs which will help to increase income
              of the farmers, because of training & capacity building activities.
      (iv)    Market information & intelligence cell in AHD will become self sustaining after the
              project period as it will give consultancy services on commercial basis to various
              enterprises related to livestock sector.
                                                  ***




                                                   84
                        COMPONENT – B
             IMPROVING FARMER ACCESS TO MARKETS
               B1 PROMOTING ALTERNATIVE MARKETS

Overview
1. The Agricultural Produce Market Committees are the regulated markets in the State for the
   trade of agricultural produce. The farmer in the State has been selling the agricultural produce
   in these markets. However, to enable the farmer to fetch better price for the agricultural
   produce, it is necessary to improve the farmers’ access to the markets. This could be achieved
   by: i) formation of farmers groups which will perform the activity of aggregation of their
   produce, ii) value addition to the produce, iii) warehouse receipts development, iv) selling of
   produce at the rural haats, and, v) providing e- marketing platforms for trade of agricultural
   produce.
2. It is proposed to establish the Farmers Common Services Centers (FCSCs) by bringing farmers
   together in the form of voluntary group of about 12 to 19 active farmers and federating 15 to 20
   groups into Producers Association (PA). There are more than 2,00,000 groups of farmers /
   women in the State in the form of Commodity Interest Groups (CIGs), Farmers Interest Groups
   (FIGs), Producers Groups (PGs). The existing groups from the above that are functioning, as
   well as the new farmers groups formed under the project, will be performing the activity of
   aggregation of the their produce under an entity of Farmers Common Service Centre (FCSC)
   and they will also undertake marketing of Agri. inputs to the farmers. These FCSCs will be
   functioning on behalf of the member farmers and will strive to undertake activities of providing
   input marketing for the production of agricultural produce which will result in an added value
   to the farmers produce. The limitations of individual farmer with regard to the marketing of the
   agri. produce will be also taken care by these FCSCs.
3. The FCSCs to be formed in the project will be primarily of two types, i) FCSCs for the
   foodgrains and ii) FCSCs for horticultural crops. FCSC (Food grains) will necessarily have
   foodgrain producing farmers. Similarly, FCSC (Horti.) will have farmers producing
   horticultural crop.
4. The FCSC will be located at the village level and will have a legal status, owned and managed
   by PA registered as a society under Societies Registration Act of 1860. The representatives of
   the member farmers will manage FCSC. The FCSCs will be eligible for financial grant under
   the project to provide some basic facilities to the farmers within the vicinity of the FCSC.
5. Generally, the farmers sell the agricultural produce immediately after harvest for want of
   storage facilities and to meet their financial needs. Due to the glut of the produce in the market
   after the harvest, the farmer has to perform distress sale. With regard to the foodgrain producing
   farmer, the compulsion of the farmer to sell the produce at distress could be reduced to some
   extent with the warehouse receipt facility.
6. The Maharashtra State Warehousing Corporation (MSWC) has more than 800 no. of godowns
   with around 12 lakh tonnes storage capacity in the State. Out of these, 40 godowns with 72,000
   MT storage capacity have been identified by MSWC under the project which will have a tie up
   with the Banks and the commodity exchange. The foodgrain producing farmer will store the
   produce in these godowns, avail credit from the banks through the warehouse receipts and will
   have the option to sell the foodgrain through the commodity exchange at a future date.
7. Within the vicinity of these selected MSWC godown, some of the APMCs (40 nos.) will be
   identified which will also undertake warehouse receipt programme..


                                                 85
8. Assistance to the MSWC and APMCs will be given in the project to undertake investments in
   their godowns. The successful implementation of this activity will result in i) usage of large no
   of godowns for storage purpose, ii) increase finance under warehouse receipt and iii) increase in
   trade on commodity exchange.
9. Rural Haats (RHs) are the village level agricultural markets where there is a direct interface
   between the farmers and the consumers. Usually, Rural Haats are held once or twice a week.
   There are 3500 such rural haats in the state today, where the farmers sell their produce directly
   to the consumers.
10. Around 90% of the produce traded in these markets is agricultural produce and the rest is non
    agricultural produce. These Haats are held on the land owned by local Panchayat / Municipality
    and APMC Act are not applicable to these markets.
11 The conditions of the rural haats in Maharashtra are substandard in-terms of infrastructural
   development. Trading generally takes place in a dusty place and there is no drainage, toilets,
   drinking water source and shelter against sun, rain and wind. The market place is generally
   unhygienic, lacks sanitation and this is a source of diseases to human beings and also results in
   spoilage of produce.
12. Considering the growing population of villages and increased needs of the consumers for fruits
    and vegetable in the village, it is necessary to develop basic minimum infrastructure like
    elevated platforms with sheds, pavements, internal roads, toilets, drinking water, drainage, and
    electricity, in rural haats Both farmers and consumers stand to gain because of short supply
    chain and improved infrastructure which will help the producers to realize better prices and
    create a better trading place.
13. In light of the above, the project would improve the infrastructure of selected rural haats in the
    state. The successful implementation of the programme under project will have demonstration
    effect for the development of remaining haats in the state with active participation from the
    Panchayat.
14. Besides, the program of formation of FCSCs, warehouse receipt finance and modernising rural
    haats as an alternative marketing channel, virtual mandi concept i.e. e-trading is proposed to be
    augmented under the project. An additional option of e-trading has been included in the project.
    The trade of agricultural produce on exchange requires observance of certain requirements viz.
    volume of produce, grading / standardization of the the produce. This will be open up huge
    market to be the producer with an added advantage of not being required to bring farmers
    produce to the APMC yard and will also be able to realise better price.
15. It has been proposed to setup e-trading in 294 locations in the State which will be operated by
    an e-trader by obtaining e-trading license from Director of Agriculture Marketing. These e-
    trading platforms will perform the trade by providing the facility / information to the buyers and
    the sellers registered with them.
16. All these interventions of creating additional marketing channels have been dealt in detail under
    Component B of this project.


                                                 ***




                                                 86
       B1.1 PRODUCT AGGREGATION AND SALE THROUGH
                  PRODUCERS ASSOCIATION

I. Objectives
1. Maharashtra is a leading producer of fruits, vegetables and flowers. The production of fruits in
   Maharashtra stood at 100.54 Lakh MT and that of vegetables at 77.29 Lakh MT in the year
   2008-09. The state has strength in production of grapes, mangoes, banana, pomegranate,
   oranges, tomato, and onion. Though the production of these fruits and vegetables has increased
   many folds, poor post harvest practices are followed leading to substantial loss in value of these
   commodities.
2. Similarly, Maharashtra is also a major cereals and pulses producer. The total production of
   cereals, pulses and oilseeds was 161.18 Lakh MT in the year 2008-09. Inadequate availability
   of post harvest facilities at the village level also leads to loss to cereals and pulses producers.
   Graded product will bring additional return to producers due to value addition.
3. These constraints affect the income of the farmer, mainly due to inadequate post harvest
   handling facilities at village level. In order to address these issues and to provide village level
   basic infrastructure for post harvest handling like cleaning and grading of food grains and
   cleaning, grading, packing of fruits and vegetables in more hygienic conditions, it is proposed
   to establish the Farmers’ Common Service Centers (FCSCs) by the Producers’ Associations
   (PAs) formed by the Producer Groups (PGs) of the farmers or by producers.
4. Group Activity is more effective for the benefit of the members of the group than the individual
    efforts. Informally formed small groups called as self help groups have exhibited their strengths
    in various fields including agriculture, in improving financial conditions of the members.
5. FCSCs are conceived as small scale commercially viable entities owned by PAs. The FCSCs
   will support 250-300 members, through Producer Groups (similar to SHGs) of around 12-19
   active members in each Producer Groups (PGs). The FCSC will mainly deliver some basic
   value added activities, in grain and horticulture and carry out input marketing and output
   marketing. This would involve supply of inputs like seeds, fertilizers, manures, pesticides, cattle
   feed to the members & farmers and also aggregation of produce, its cleaning, grading and
   marketing.
6. Around 15-20 PGs will be formed in a village or a group of villages within the radius of 3-5
    Kms. These PGs will be federated in to a PA which will be registered under the Society
    Registration Act, 1860 with the Charity Commissioner to have the legal status / othert suitable
    Acts. While forming PAs, the existing groups eligible for inclusion in PA will be considered
    besides the new groups to be formed. The inclusion of existing PGs in formation of FCSC
    should have at least 12-19 active members, the working of the group should have been
    stabilized and it is functioning regularly and it should be willing to join FCSC and share the
    responsibility of contribution for the FCSC infrastructure.
7. The MACP proposes to establish FCSCs with the main objective of aggregation of agricultural
   produce and for providing basic minimum value addition facilities like cleaning, grading,
   packing and input marketing. The number of FCSCs proposed to be formed would be as
   follows: (i) FCSC (Food grain) - 200 FCSCs (Food grain) for cereals / food grains for providing
   cleaning, grading, and packing facilities. These FCSCs will be linked to the MSWC godowns
   identified for providing Warehouse Receipt Financing and Electronic Trading Services. These
   FCSCs will also have the options to avail the warehouse receipt from the selected identified and
   accredited APMC godowns within the vicinity of the MSWC godowns. (ii) FCSC (Fruits and
   Vegetable) - 200 FCSCs for fruits and vegetable for providing cleaning, grading, and packing

                                                 87
   services to fruits and vegetable farmers. Preference would be given to districts having higher
   density of production of fruits and vegetable, i.e. over 1,000 MT per sq. km. FCSCs will bring
   advantages like saving in commission agents charges, market fees, other marketing expenses
   like hamali, and still be able to link with the value chain reducing substantially the transactional
   cost.
8. The FCSCs, the Producer Groups and PAs will be mobilized by Service Providers, i.e. Non-
   Governmental Organizations NGOs/ companies / other legel entities. It is envisaged that an
   elected committee of members of Producers Groups will form a management committee and
   oversee the performance of an incentivized manager. The manager will be trained in technical
   issues of post harvest management, marketing and in operating a transparent accounting system
   by SP. The Service Provider will support the operation of the Producer Association, and to
   accelerate the cross learning of best practices.
9. The FCSCs will be studied by an ABPF managed consultancy contract so that the lessons
   learnt, both from successes and causes of failure, on management, processes, marketing,
   partnership arrangements and the financial and businesses mode; can be rapidly understood and
   used to improve the design of new FCSC and to enable banks to be able to better assess the
   potential for investing in such facilities.
10. Successful FCSCs will be encouraged to undertake further investment, including productive
    investment, limited to Rs. 20.00 Lakh with additional support from the Project to develop from
    a basic FCSC into an Agri Mart. It is expected that nearly 20% of the FCSCs will graduate to a
    higher level of activity after successfully implementing the basic infrastructure. These FCSCs
    which will graduate to a level of Agri Mart will function at village / taluka level depending on
    the success of FCSCs. The criteria for accessing funds for FCSC Stage I Funding and Stage II
    Funding are described under formation details of FCSC.
II. Outcome and Output Monitoring Indicators
11. The management of piloting FCSC as stated above will be carried out by a suitably qualified SP
    selected by competitive bidding process. The agreement between the PIU (MSAMB) and SP
    will indicate how the FCSC operations will be successful. The SP would be allowed to operate
    with high degree of independence so that they can use innovation, dynamism and flexibility to
    develop viable FCSC. The SP would exit FCSC in 36 months period. During the first 12
    months, the performance of SP would be measured on the basis of prescribed milestones and
    graduation in each of the 4 interlinked stages, viz., i) Social mobilization and formation of PGs,
    ii) Nurturing and capacity building of PGs, iii) Formation of PAs and establishment of FCSCs;
    and iv) Diminishing Oversight and support of PAs.
12. The measures of success of SP by the end of 36 months period will be as under:
   (i)   PA operating without financial support by the end of 36 months.
   (ii)  The PA with reserve fund to cover short term cash flow deficit and for reinvestment in the
         FCSC facilities.
   (iii) The PA has an effective governing structure.
   (iv) The PA has the transparent accounting system.
   (v) The PA can function as a working example for other farmer organizations to observe and
         learn from.



                      Outcome                                           Indicators
    Increase in income of farmers                     % increase in income of farmers
    Reduction in post harvest handling losses         % Reduction in post harvest handling losses
    (food grain and fruits & vegetables)

                                                 88
                      Outcome                                       Indicators
    100% PA members utilizing facilities of           % PA members utilizing facilities of FCSC
    FCSC
    No. of farmers outside PA utilizing facilities    % Increase in the no. of farmers outside PA
    of FCSC                                           utilizing facilities of FCSC

                       Output                                          Indicators
    Registration of 400 PAs                           No of PAs registered
    Successful commencement of 400 FCSCs              No. of FCSCs commenced successfully
    100% Capacity utilization by FCSC                 No. of FCSCs handling produce at 100%
                                                      Capacity
    80 FCSCs becoming eligible for Stage II           No. of FCSCs becoming eligible for Stage II
    Funding                                           Funding
    200 FCSCs (Foodgrain) linked to MSWC              No. of FCSCs (Foodgrain) linked to MSWC
    network                                           network
   The baseline values to be developed by M&E consultant for various indicators above will be
   considered while evaluating the performance.
III. Policy and Regulatory Environment:
13. The policy of the formation of groups i.e. Producer Groups (PGs), Common Interest Groups
    (CIGs), Farmers Interest Group (FIGs) is already in vogue. FSCSs will be the Producers’
    Associations formed by Producer Groups (PGs) and may be registered under the Societies
    Registration Act, 1860 with the Charity Commissioner. FCSC will function within the overall
    policy and regulatory framework as per the Societies Registration Act and byelaws of
    Association. Policy environment in which FCSC would be working is given in Societies
    Registration Act, under the provisions applicable to social organisations. The management of
    PA will vest with the elected board from amongst the members. The provision about
    constitution of managing committee will be made in the byelaws. Since the management of
    FCSC will be done by PA, which will be producers’ organisation, the producer members will
    form the board of directors. Therefore the representatives of the farmers will actually oversee
    and manage the affairs of FCSC.
14. The proper documentation of the title of the land on which FCSC would be established will be
    ensured. The land will be either purchased by making contribution by the members or it will be
    gifted by some member or organization or it may be taken on lease or it may be allotted by the
    Government. The documentation like sale deed, gift deed, and lease deed respectively will be
    got registered and kept on record.
15. The restrictive rules regarding minimum criteria required to be fulfilled for setting up the
    private markets will not be applicable to FCSC as per the exemption order issued by GoM.




                                                 89
IV. Selection Criteria
16. The selection criteria for location of FCSCs shall be as follows:
 Sr.      Selection                 FCSC Grain                              FCSC F&V
No.      Parameter
1      Availability      Minimum 0.25 acre land required.       Minimum 0.25 acre land required.
       of land
2      Locational        Preferably in the catchment areas      In areas with expanding production,
       Focus             of the 40 MSWC godowns and 40          increasing sales volumes outside the
                         APMC godowns identified for            district and especially expanding
                         warehouse credit.                      marketable surpluses.
3      Production        Minimum 500 MT per annum food          Minimum 2000 MT per annum
       related           grain production of potential          fruits & vegetables production of
                         members of FCSC. At least 50%          potential members. At least 50%
                         members will commit their              members will commit their produce
                         produce for handling by FCSC.          for handling by FCSC.
4      Market            Locations where locally produced       Locations where locally produced
       related           material is sold to distant markets.   material is sold to distant markets.
5      Cultural          Areas where there is a tradition of    Areas where there is a tradition of
       related           community or co-operative              community or co-operative activity.
                         activity.
6      Infrastructure    Road connectivity of the selected      Road connectivity of the selected
       related           FCSC location, logistically            FCSC location, logistically
                         important locations (existing          important locations (existing
                         marketing centers, near important      marketing centers, near important
                         cross roads, easy access to urban      cross roads, easy access to urban
                         markets), proposed land less than      markets), proposed land less than
                         100 meters away from the road,         100 meters away from the road,
                         availability of electricity and        availability of electricity and
                         telephone connectivity (Landline       telephone connectivity (Landline
                         and Mobile), availability of           and Mobile), availability of banking
                         banking and drinking water             and drinking water facility.
                         facility.
7      ATMA              Presence of effective ATMA.            Presence of effective ATMA.
       Activities

17. The selection criteria for membership of FCSC: The Selection criteria for membership of
    various farmers’ organizations like PGs / CIGs / FIGs / PAs will be as under:
    i)    A member will express his willingness to become member of PG / CIG / FIG.
    ii)   A member will actively participate in all functions and activities of PG / CIG/ FIG and PA.
    iii)  A member will contribute his equity to the Producer Associations (PA)
    iv)   A member will bring his produce to the FCSC for sale.
    v)    A member will purchase his farm inputs through the FCSC.
    vi)   A member will produce and prepare his produce for marketing as per directions of FCSC.
    vii)  A member will contribute his share to the Producer Association as upfront payment for
          business development plan of FCSC as needed.
    viii) A member will contribute his share to the Producer Association towards the reserves of
          FCSC as needed.




                                                  90
V. Activities to be financed
18. Activity Schedule and Implementation Cycle: Total of 400 FCSCs are planned under the
    project. Main thrust will be on horticulture crops including onion and field crops. On an average
    50% FCSCs will be of foodgrains, oilseeds & pulses and 50% that of horticulture crops. If
    FCSC model works well during project implementation stage, the number of FCSCs will be
    scaled up. The following table gives the proposed phasing in the formation of PGs, PAs, and
    establishment of FCSCs.

     a) Phasing For FCSC (Food grain)
         Activity / PY       PY1           PY2          PY3         PY4          PY5        PY6
    PGs                      1000          1000         1000        1000          --         --
    PAs and FCSCs             --            50           50          50           50         --
   b) For FCSC (F & V)
        Activity / PY           PY1        PY2          PY3         PY4          PY5        PY6
    PGs                         1000       1000         1000        1000          --         --
    PAs and FCSCs                --         50           50          50           50         --

19. Illustrative particulars of First Level and Higher Level (Graduation Level) activities are as
    follows:

a) For FCSC (Food grain)
(i) Illustrative list of investment for FCSCs (Food Grain) (Stage I)
     Sr. No.                             Infrastructure Investment Items
        1        Improvement of temporary storage and drying.
        2        1.0 MT per hr grain cleaning, grading, and packing machinery with shed
        3        Additional need based Agricultural Equipments

(ii) Illustrative list of investment for FCSCs (Food Grain) (Stage II) (Agrimart)
     Sr. No                              Infrastructure Investment Items
        1       Computer with internet connectivity for MII
        2       Display Board with Accessories
        3       Auction Hall – 500 sq.ft. @ Rs.300/sq.ft.
        4       Godown - 150 Tonnes Capacity
        5       Drying Yard
        6       Input Suppliers Shops -10, each of 150 sq.ft. @ Rs.500/sq.ft.
        7       Toilets
        8       Drinking water & Electricity




                                                  91
b) For FCSC (F & V)
(i) Illustrative list of investment for FCSCs (Fruits and Vegetables) (Stage I)
     Sr. No.                    Infrastructure Investment Items
                Small common pack house for fruits and vegetables, of 300
     1          sq.ft. with asbestos cement sheet roof, flooring, ventilation,
                toilet.
                Plastic crates (20 kg capacity) 1000 crates @ Rs. 200/- per
     2
                crate
     3          Grading and packing tables for fruits and vegetables
     4          Need based Agricultural Equipments
(ii) Illustrative list of investment for FCSCs (Fruits and Vegetables) (StageII) (Agrimart)

     Sr. No                              Name of work
     1          Computer with internet connectivity for MII
     2          Display Board with Accessories
     3          Auction Hall of 500 sq.ft. @ Rs. 500/- per sq.ft.
                Pack house for washing, grading, packing of fruits and
     4
                vegetables (500 sq.ft) with packing table
     5          Fax machine with furniture
     6          5 M.T. Cold Storage
     7          Drinking water & Electricity
     8          Toilets
Note: Though the illustrative infrastructure proposed is shown in the above tables, the actual
   infrastructure to be developed will be need based and on participative consultation process. This
   will be done by SP, who will be selected by competitive bidding process. The project will not
   fund purchasing of land, construction of guest house, traders’ shops and structures otherwise
   prohited by law.
20. Eligibility for First Level and Higher Level (Graduation Level) funding to FCSC:
(a) Eligibility for First Level FCSC:
         i)      The number of PGs/ farmers required to form PA have been mobilized and formed.
                 Those are in place and have started functioning.
        ii)      The members of PGs/ farmers have made the required contribution towards the PA.
        iii)     PA has been registered under Societies Registration Act.
        iv)      PA has acquired land as per the prescribed selection criteria and it is in possession of
                 PA with proper title and documentation.
        v)       Land should have been acquired from the contribution by the members which are
                 not the part of the cost of the Project.
(b) Eligibility for Higher Level FCSC:
        i)       The infrastructure for Stage I funding should have been completed.
        ii)      Stabilization of operations.
        iii)     Adequate own funds to meet own contribution or members’ willingness to
                 contribute for additional investment of Stage II of infrastructure.
        iv)      Audit completed, and no irregularities found.
        v)       Surplus, Growth rate (utilization of capacity) arranged in descending order. First 40
                 FCSCs for FCSC (Grains) and FCSC (Horti) each will be selected.
VI. Estimated costs
   21. Total cost of this component is Rs. 6558.80 Lakhs.

                                                   92
22. This subcomponent will be implemented by PIU-MSAMB with the help of District Deputy
    Registrars of Co-operative Societies, Taluka Assistant Registrars of Co-operative Societies and
    a Service Provider. Procurement of material, goods and contractors for FCSC will be done by
    the community. Detailed guidelines about community procurement have been given in
    Procurement Manual and also in Community Operations Manual. Necessary training regarding
    community procurement will be given to the Managers and members of PA by the SP.
    Procurement of NGO as SP will be done by PIU -MSAMB by following competitive bidding
    process.
VII. Institutional and implementation arrangements
23. Ownership and Management: As discussed above, the FCSCs will be owned and managed by
    Producer Associations (PAs), which in turn will be federations of Producer Groups (PGs) /
    (Producers). Each producer group will consist around 12-19 members, and PA will consist of
    15-20 PGs / 250 to 300 farmers. The PG would be moulded on Self Help Group (SHG) model,
    based on principles of self-help and willingness to work together as a group, given the
    difference in the nature of the primary activity to be undertaken by the group (microfinance vs.
    marketing). The PGs will have simple records and reporting systems, which will be maintained
    by one of the PG members.
24. The PAs will be structured similarly to an SHG federation. It will have a governance structure,
    separate, but linked to that of the governance of the PGs. The PAs will also have a staffing
    structure consisting of Community Para-professional, who will maintain the accounting and
    reporting systems, and will be responsible for maintaining the FCSCs records.
25. Wherever feasible and desirable, the FCSCs can be established on Government Land, in the
    premises of an existing member-based organization such as a Primary Agricultural Cooperative
    Society or an Agricultural Marketing Society, and possibly in the premises of Rural Haats.
    Private land can be used when provided by members or on a lease agreement. PAs may
    purchase minimum of 10,000 sq.ft. (10R) of land from their own resources by making
    contribution from the members. PAs will enter into MOU with these organizations clearly
    specifying the obligations of both entities and fee payment or revenue sharing modalities.
26. Key process steps for development of FCSC
   a. Service Provider will initially start community mobilisation and formation of PGs and PA.
      Once PA are formed and proper governance structure is put in place, training to office
      bearers of PA will be provided.
   b. PA with Service Provider, will prepare a Business Plan (both for capacity building and
      special assistance with fund allocation) and submit to the Zonal Office of ABPF for
      approval. After approval of indicative plan by Zonal Office of ABPF, PA will start the work
      of development of FCSC and on spending of beneficiary contribution, PA will submit
      proposal for advance to DDR office. DDR will release the advance within 7 working days
      of receipt of proposal. On spending of 50% amount of first advance, PA will submit
      proposal for second advance and DDR will release the second advance. Similar process for
      third advance will be followed.
   c. PA with Service Provider and Technical Assistance from outside, as and when needed, will
      implement the plan. Service Provider will verify completion of the plan.
   d. On completion of plan, PA will submit the status of the Business Plan to the office of the
      DDR along with completion reports and photographs of work completed. DDR will check
      the completion report and certify completion of the plan and submit the completion report to
      PIU.


                                                93
   e. On completion of plan, procurement and financial management and asset created by PA
      will be verified (upto 30% of total FCSCs covered in the project) by an independent
      external consultant.
27. Procurement: The procurement of civil works, goods and equipment will be carried out by
    following community procurement process of World Bank. The plans, estimates and Bid
    document for civil works as per the approved business plan, will be prepared by PA with the
    help of Market Field Engineer of PIU. Thereafter SP will call for tender for civil work and
    equipment separately, which will be evaluated and finalised by procurement committee of
    FCSC. The work order will be issued by concerned PA. At FCSC level procurement committee
    will be constituted which will comprise of a) Chairperson / President of FCSC – Chairperson b)
    Three members of elected management committee of the FCSC – Member c) ARCS of the
    taluka – Member d) Manager of the FCSC – Member Secretary. The procurement of civil
    works can also be done by force account method. i.e the work will be carried out by the PA as a
    agency, by purchasing the material required for the construction and getting the work done
    through skilled and unskilled labour. The FCSC level procurement committee will undertake
    procurement of civil works up to US$ 50000 and of goods up to US$ 20000 only.
28. Release of fund :
   a) The community procurement is proposed for FCSC program. PA will open an account in
       Nationalised Bank and deposit their contribution in that account. PA may do civil work by
       force account or by the contract by shopping procedure.
   b) After the amount of beneficiary contribution is spent, the PA will prepare and submit first
      advance to the DDRCS to the tune of 25% of investment cost. The proposal should contain
      invoices, photocopies of passbook , photograph of work done and utilisation certificate duly
      signed by chairperson and Manager of PA. On receipt of proposal, DDR will release first
      advance of 25% by drawing amount by cheque or by core banking. On spending 50%
      amount of first advance, PA will submit proposal for second advance with similar document
      to DDR office. DDR office will release second advance and similar procedure will be
      adopted for third advance. DDR will release advance within 7 working days for each
      advance.
   c) On completion of the work, completion certificate duly signed by Chairperson and SP with
      the invoices, photocopies of passbook of account, photographs of work competed and
      utilisation certificate for third advance signed by Chairperson and Manager of PA will be
      submitted to the office of DDR
a) FCSC (Food grain)
29. Selection of Service Provider: (FCSC Grain) The mobilization of Producer Groups, the
    formation of the Producer Associations, the training and support for its management and
    operation will be contracted out to a suitable service provider. PIU-MSAMB will select and hire
    the SP for participative consultation and investment design of FCSC.
30. Service providers will be selected on the basis of their local knowledge in the districts chosen
    for implementation and their expertise i.e. in crops and marketing.
    The Phased Activities of the SP for FCSC Development are summarized below:
    Stage 1: Social mobilization and PG formation:                                     3 months
    Stage 2: Group nurturing and capacity building:                                    9 months
    Stage 3: Formation of PAs and establishment of FCSCs:                               1 year
    Stage 4: Oversight and Diminishing Operational & Management support of              1 year
    PAs:
31. Stage 1: Eligibility criteria for PGs formation for establishment of the FCSCs will include the
    following:

                                                94
       i)      Production of Cereals and Pulses of members of PA should be at least 500 MT per
               annum.
       ii)     Small and marginal farmers (Marginal Farmer- Land holding up to 1.00 ha and
               Small Farmer- Land holding above 1.00 ha up to 2.00 ha) may be given preference.
       iii)    Possession or long-term lease agreement of land required for setting up of FCSC, or
               long-term lease agreement for use of the existing buildings.
       iv)     Evidence of mobilization of 25% cost of investments, as a combination of own and
               bank funds in the PA’s bank account.
32. Stage 2: The Stage 2 will build the Producer Groups’ capacity, understanding of the project and
    start saving for the planned investment in the FCSC and finalize the site location. The Stage 3
    involves the formation of a Management Committee to provide oversight of the PA. The
    committee would, in conjunction with the SP, select the manager of the PA (ideally from local
    communities). The manager will be provided with capacity training, particularly in post harvest
    activities (i.e. grading, cleaning, quality assessments), in marketing and trading. This will
    include training relating to procurement, electronic spot trading, warehouse credit and futures
    options. This training will be provided by the SP. The SP will introduce an accounting system
    which enables all the members to understand the financial flows and the transparency of the
    accounting system. The financial management system will include the building up of a balance
    for re-investments and to cover operational costs. The PA management committee will be
    provided with a small management grant (i.e. Rs 24,000/-) to underwrite the managers’ income
    only once. The business model will include payment for the manager which is linked to sales /
    throughput so that he / she is incentivized to build volumes. The procurement of FCSC would
    be undertaken under Community Procurement procedures as laid down by the World Bank. The
    assets created by the FCSCs will verified by the Physical Asset Verfication Consultant.
33. Operational Activities: The following illustrative options could be available to the members of
    the PAs after using the services provided by the FCSCs.
       a. Take their produce to MSWC warehouse or to APMC warehouse or sell in APMC.
       b. Obtain finance against their produce through the Warehouse Receipt Financing from
          banks for the produce store in MSWC or other accrediated warehouses.
       c. They can sell the produce on spot or future market depending on price situation through
          the MSWC warehouses
       d. The produce can be sold to direct marketing license holder who may be a trader,
          exporter, processor or retail chain operator.
       e. Input marketing, supply of inputs.
34. It is found that using the scientific storage and financial instruments that are available with
    MSWC are most profitable which can be seen from the following discussions.
35. Producers, individually or via Producers Groups (PGs) and Producers’ Associations (PAs) will
    deliver to the MSWC godowns (and later 40 APMCs) single quality commodity. This will
    involve the Grain FCSC grading and cleaning, some field level quality assessment (e.g.
    moisture content), bagging, weighing and the delivery of produce within a narrow weight range.
    The manager of the PA will also need to make up lots not only of a single quality but also
    where the individual producers, or their PG, have similar marketing strategies e.g. immediate
    sale, warehouse credit for 1, 2 or 3 months. The minimum lot size may be around one bag of
    produce considering the production of the small and marginal producers.
36. The product is assayed at the godown to verify quality (at Rs 500/- per lot) and provided with a
    lot number. The FCSC manager will communicate with the manager of the MSWC godown
    which lots are to be sold on the spot market on the same day as delivery, or to store the lot for
    the specific period of time and whether to negotiate a futures contract.



                                                 95
37. Three days after the sale is made, the buyer electronically transfers the payment to NCDEX
    Spot Exchange account. Deductions are made to MSWC, for storing the produce (at Rs
    20/tonne/month) and assaying the product (at Rs 500/- per lot) and handling (at Rs 1.50 per 50
    kg bag), for NCDEX Spot Exchange (at 0.1% of the value of the sale), to MSAMB / APMC (at
    1% of value of sale, plus another 0.05% for supervision cost), and, if applicable, interest on the
    warehouse credit (at about 1% per month of the loan). Selling grain through traditional Mandis
    will incur costs of between 5 and 6%. After deductions the money is transferred electronically
    into MSWC account, who will transfer the funds to the designated account of the FCSC the
    next day. The manager of the FCSC will make deductions for costs (grading, sacks, transport,
    managers fees), building a reserve fund and transfer the funds (or provide cash) to the PG, or to
    the individual farmers. In this particular example if the PA chose to store the grain for 3 months
    and take 75% Wholesale credit, the interest charges would amount to Rs.2250/- i.e. 3% on
    Rs.75,000/- loan.
38. The table below provides an estimate of the potential additional returns that farmers can obtain
    by using the FCSC for their producer association to grade, clean and pack grain and to facilitate
    marketing through the Mandi, the Spot Market at MSWCs facilities, or to store at MSWC for
    three month. These are contrasted with the returns for a farmer selling un-graded produce
    through the Mandi shortly after harvest. In this table standard grading rates for grain found in
    Mandi of Rs 11 per Quintal has been used. It has been assumed that the manager is paid 1% of
    sales.
Illustrative Estimated Farmer Returns:
                                         Mandi Sale     Mandi sale      Same day       Sale after 3
                Particulars
                                                         graded         spot sale        months
    Sales of 10 tonnes                   Rs.100,000     Rs.107,500      Rs 107,500      Rs 117,500
    Less
    Total     Mandi    /commission        Rs 5,500         Rs 5,913
    charges
    FCSC Grading Charges                                       1100            1100            1100
    FCSC management charges @                                  1075            1075            1175
    1%
    Assay                                                                       500             500
    Loading & unloading                    (included      (included             600             600
                                              above)         above)
    Storage Charges                                                                            600
    Warehouse credit interest                                                                2,250
    NCDEX charges                                                              107             118
    MSAMB/APMC                                                               1075             1175
    GoM supervision                                                             50               0
    TOTAL COSTS                               5,500          8,088           4507            7,577
    NET RETURN                            Rs 94,500      Rs 99,412      Rs 102,993      Rs 109,923
    BENEFIT                                       -       Rs 4,912        Rs 8,493       Rs 15,423
    % BENEFIT                                                5.2%            9.0%           16.3%

b) FCSC (F & V)
39. Selection of Service Provider (FCSC F & V): The mobilization of Producer Groups, the
    formation of the Producer Associations, the training and support for its management and
    operation will be contracted out to a suitable service provider. PIU-MSAMB will select and hire
    the SP for participative consultation and investment design of FCSC. This may be local NGO /



                                                 96
   company / any other legal entity. It is envisaged that both the Grain and the Horticultural
   FCSCs can be carried out by a single SP by grouping.
40. The phased activities of the SP are summarized below:

     Stage 1: Social mobilization and PG formation:                                         3 months
     Stage 2: Group nurturing and capacity building:                                        9 months
     Stage 3: Formation of PAs and establishment of FCSCs:                                     1 year
     Stage4: Oversight and Diminishing Operational & Management support of                     1 year
     PAs:
Key elements of the SP program are to develop interest (Stage 1) and create membership of the PA.
41. Eligibility criteria for PG formation:
    i) Production of the members of horticultural PA should be at least 2000 MT per annum.
    ii) Small and marginal farmers (Marginal Farmer- Land holding up to 1.00 ha and Small
         Farmer- Land holding above 1.00 ha up to 2.00 ha) will be given preference.
    iii) Possession or long-term lease agreement of land required for setting up of FCSC, or long-
         term lease agreement for use of existing buildings.
    iv) Evidence of mobilization of 25% cost of investments, as a combination of own and bank
         funds in the PA bank account.
42. The Stage 2 will build the Producer Groups’ capacity, understanding of the project and start
    saving for the planned investment in the FCSC and finalize the site location. Stage 3 involves
    the formation of a Management Committee to provide oversight of the PA. The committee
    would, in conjunction with the SP, select the manager of the PA (ideally from local
    communities). He / She will be provided with capacity training, particularly in post harvest
    activities (i.e. sales, grading, cleaning, quality assessments), in marketing and trading. This will
    include training by ATMA and interaction with large scale buyers. The SP will introduce an
    accounting system which enables all the members to understand the financial flows and which
    is transparent. The financial management system will include the building up of a balance for
    re-investments and to cover operational costs. The PA management committee will be
    provided with a small management grant (i.e. Rs 24,000/-) to underwrite the managers’ income
    only once. The business model will include payment for the manager which is linked to sales /
    throughput so that manager is incentivized to build volumes.
43. Operational Activities: The following options will be available to PAs producers after using
    the service provided by the FCSCs.
       Provision of field crates to reduce crop damage.
       Grading and packing of produce.
       Logistic support, i.e. collection and delivery.
       Seeking out alternative sales outlets (i.e. direct marketing licence holder who may be
          processors, retailers, specialized and larger scale buyers)
44. Producers, individually or via Producers Groups (PG) and Producers Associations (PAs), will
    deliver their produce to the FCSC. The manager of the PA will supervise the collection, provide
    plastic field boxes, grade the produce and repacking and sales of it, direct, or via mandis, and
    delivery to terminal markets, processors and other buyers.
45. Illustrative Estimated Farmer Returns:
                                     Mandi Sale        Mandi sale        Auction        Delivery to
   Particulars                                            graded           sales    Terminal Market

   Sales of 5 tonnes                     50000           75000            80000               90000
   Rate (according to grade or      @ Rs. 10/kg     @ Rs. 15/kg      @ Rs. 16/kg         @ Rs. 18/kg
   purchaser)
                                                  97
                                    Mandi Sale         Mandi sale        Auction        Delivery to
   Particulars                                            graded           sales    Terminal Market

   Less
   Total Mandi /commission                4000              6000            6400
   charges (8%)
   FCSC Grading Charges                                      500             500               500
   FCSC management charges                                   750             800               900
   @ 1%
   Loading & unloading                      300              300             300               300
   Storage Charges                            0                0               0                 0
   Hiring of field crates (200              200              200             200               200
   Creats)
   Govt. of Maharashtra                      25            37.50              40                45
   Supervision Charges @
   0.05%
   TOTAL COSTS                            6025           7787.50          8240.00          1945.00
   NET RETURN                            45475          67212.50        71760.00          88055.00
   BENEFIT                                              21737.50        26285.00          42560.00
   % BENEFIT                                            47.80 %          57.80 %          93.58 %


VIII. Funds Flow
46. The procurement of civil works, goods and equipments under this subcomponent will be done
    as per norms of Community Procurement. However the funds flow will be through BDS. The
    FCSC (Food grain) and the FCSC (F&V) will be implemented by PIU-MSAMB.
47. The funds for this sub component will be provided in the budget of the Dept. of Cooperation &
    Marketing, GOM and will be sent to the Director of Agri. Mktg. as per BDS (electronic funds
    transfer system). The Director of Agri. Mktg. in turn will release the funds to the DDR by
    B.D.S.
48. The DDR will release funds in three tranches/ installments to PA. First advance of 25% of
    investment cost will be released after the amount of beneficiary contribution is spent. Second
    and third advance of 25% of investment cost will be released after 50% of each advance is
    spent. Details of release of fund are given in para 28 .


49. The PAs could be registered under the Societies Registration Act.
50. The FCSC (Food Grain) and FCSC (F&V) may carry out their activities with the association of
    the Primary Agricultural Credit Cooperative Societies (PAC) or Cooperative Marketing
    Societies. In the event of such business associations with certain cooperative societies suitable
    contractual deed shall be drawn and signed by the concerned parties.
51. The SP will prepare the need based business plan for FCSC and it will be discussed and
    revalidated in the general body of PA. The business plan of FCSC will be checked and
    approved by agribusiness and marketing specialist of ABPF in Regional office.

IX. Governance Risks and Mitigation Measures
52. The following table provides the details of likely risks and mitigation measures in the
   implementation of FCSCs (for Food grain and F&V).


                                                  98
       Sr.      Risks                Description                          Risk Mitigation Measures
       No.
       1        Technical / Design   Timely formation of PGs and          Farmer PG models have been tested
                                     their subsequent activity            and found successful. Besides SP is
                                     stabilization.                       proposed for various activities from
                                                                          group formation to overseeing the
                                                                          execution.
       2        Implementation       Inadequate technical knowledge       Training to beneficiaries by SP is
                capacity and         amongst beneficiaries regarding      proposed in the Project.
                sustainability       activities proposed to be taken up
                                     by any particular PG / CIG.


       3        Financial            Delay in release of payment to       MOU for defining the roles and
                Management           contractors due to non receipt of    responsibilities of the beneficiaries,
                                     utilization certificates from the    department and the SP. Release of
                                     beneficiary.                         funds through crossed cheques
                                                                          putting a/c no. and name of banks.
                                                                          Dist. level Accountant for
                                                                          reconciliation and reporting.
       4        Procurement          ---                                  (i) Community Procurement is
                                                                          proposed in FCSC which will be
                                                                          carried out as per WB guidelines
                                                                          (ii) Grievance Redressal System,
                                                                          would be in place.
       5        Social and           ---                                  The main beneficiaries will be the
                environment                                               agriculturists and horticulturists. No
                safeguards                                                hazardous chemicals / products are
                                                                          used.
       6        Other ( for eg.      ---                                  As the agriculturists / horticulturists
                project specific                                          are the owners of the facility
                corruption risk,                                          (individual producer / member of
                ownership of                                              PAs / PGs of producers /
                project / program,                                        cooperative societies) such risks are
                prevalence of                                             not involved.
                failure in similar
                projects)

X. Sustainability:
53.       A pilot survey of the few districts in Maharashtra has been carried out by MSAMB with the
      help of DDRCS to pilot test readiness and capacity of the farmers to contribute to FCSC. The
      following observations are made on the basis of the survey:
           i. Acceptance or Readiness to FCSC Concept-                                                 100 %
           ii. Possibility of formation of group and willingness to participate in FCSC                100 %
           iii. Willingness to use the FCSC for grading of the produce-                                100 %
           iv. Willingness to invest Rs. 2000-2500/- individually in such FCSC centers                 100 %
                (approx 25% contribution of the FCSC)
54.The estimated returns to the farmers utilizing the facilities of FCSCs (Illustrative Financial
   Models) is shown in the respective paras on operationalization of FCSCs, which makes it clear
   that the investment under this sub-component is sustainable.



                                                      99
55.The investments in FCSC (Grains) will be sustainable considering even 75% capacity utilization
   of 1.0 MT / hr grain cleaning and grading machinery. Total quantity of food grains handled per
   day would be around 6 MT (6 hours working) and 1800 MT per year for the working of 300
   days. Total revenue generation is expected to be around Rs. 3.60 Lakh @ Rs. 200/- per MT as
   cleaning and grading charges. Leaving the allowance of 50% revenue as cost of O&M, the net
   income per year would be Rs. 1.80 Lakh. The capacity utilization of the machinery after initial
   2-3 years will be more than 125% - 150% as the unit can be operated in 2 shifts and adequate
   quantity of grain is available. It is presumed that produce of the members as well as non
   members will be handled.
56. The FCSC (F&V) will bring the revenue around Rs. 200/- per MT for use of its facilities of
    crates and pack house. Presuming that 5.0 MT of produce is handled per day, it will earn Rs.
    3.00 Lakh per annum (300 effective working days). The net revenue of about Rs. 1.50 Lakh,
    after making provision of Rs. 1.50 Lakh for O&M, makes the investment sustainable. It is
    presumed that produce of the members as well as non members will be handled.
57. The investment in the Higher Level FCSC will also be sustainable. To illustrate the example of
    FCSC (F&V) having cold storage of 5.0 MT capacity is given below. The graduation to the
    higher level will be sustainable as it would be earning extra income through the rentals / service
    charges from the users. For example, the economics of a cold storage of 5.0 MT capacity
    operating for 300 effective days is as shown:
    Facility                Utilization & Charges       Operating Expenses      Net Income
    Cold storage of 5.0     300 effective days’ use     Annual    Expenses      Net Income
    MT          capacity    per annum with 100%         around Rs. 1.00         Rs. 2.00 Lakh
    (Investment cost Rs.    capacity utilization and    Lakh                    – Enough to
    6.25 Lakh)              on an average @ Rs. 200                             service     the
                            / MT / Day Total                                    investment.
                            Charges Rs. 3.00 Lakh                               Pay       back
                                                                                period 4 years.

58. Post Implementation Operation & Maintenance Arrangements: The productive infrastructure
    will be a source of additional income to the PA. Such additional income shall be used for the
    post implementation operation & maintenance of the facilities established under the Project.

                                                 ***




                                                 100
               B1.2 WAREHOUSE RECEIPTS DEVELOPMENT

I. Objectives
1. The farmers normally sell the produce immediately after harvest because there is no
   arrangement for storage and farmer has immediate need of money for his livelihood. They often
   need to settle loans taken from money lenders and banks for cultivation or consumption needs
   during lean period and to make payments for inputs taken on credit. However, the prices usually
   tend to be low during harvest season and increase later. Because of this, there is a glut of the
   produce in the market after harvest and the farmers have to sell under distress. The realization
   of the produce is very low as compared to the prices which could be realized after 4-5 months
   from the harvest, i.e. during the lean season. The problem can be addressed by providing
   scientific storage and interim financial credit to the farmer against the stored agricultural
   produce.
2. Since 1990, Maharashtra State Agricultural Marketing Board (MSAMB) has successfully
   supported a Pledge Loan Scheme operated by selected APMCs. Under this scheme, farmers
   obtain loans to the extent of 50-75% of the value of the commodity they store in APMC
   godowns. These loans are provided by APMC using funds provided by MSAMB. The APMCs
   participating in this program have a 100% repayment rate on loans made under this program4.
   However, limited funds available with MSAMB for this activity have limited the number of
   farmers who are able to benefit from this service provided by APMC. Hence, the project
   proposes to enhance access to this service by facilitating the expansion of the warehouse receipt
   financing for farmers through selected godowns of Maharashtra State Warehousing Corporation
   (MSWC). The scope would increase further with the Warehousing Act of 2007 which allows
   private godowns getting accredited for warehouse receipt through financial institutions.
3. This sub-component aims to improve access to price risk management services for farmers.
   Availability of finance against stored produce and improved knowledge on price risk
   management allows farmers and farmers’ organizations to obtain better price realization for
   their produce.
4. In addition, trading through Electronic Commodity Exchange provides an alternative marketing
   channel, which increases potential for better price realization. With the amendment of the
   APMC Act in Maharashtra, establishment of Electronic Spot Markets that allow online trading
   trough electronic commodity exchanges (outside APMCs and across state boundaries) have
   become possible. The National Commodity and Derivative Exchange Limited (NCDEX), the
   Multi Commodity Exchange Limited (MCX), and National Spot Exchange Limited (NSEL),
   three national commodities exchanges, are in process of setting up systems that make this
   feasible in Maharashtra. Hence, the project proposes:
      i.   To build capacity of farmers on price risk management for Cereals and Pulses PAs, and
           the associated PGs,
    ii.    To support a pilot activity that will provide access to trading through Commodity
           Exchanges for farmers, and,
    iii.   In parallel, work in partnership with the MSWC to support the emergence of this new
           trading conduit through capacity building, upgrading of Godowns and facilitating access
           to trading screens.
5. MSWC has more than 800 warehouses with around 12 lakh tonnes of storage capacity. In
   agricultural producing areas utilisation of storage capacity of godowns is more than 75%.
4
  During the period from 2002-03 and 2008-09, the number of APMCs involved in this program has ranged between 23
to 54; the number of beneficiaries have ranged from 800 to 3833 ; the total loan amounts have ranged between Rs.36
million to Rs.188 million.

                                                       101
   Overall utilisation of MSWC’s warehouse capacity is 89%. Finance against warehouse receipts
   of MSWC provided by banks was Rs. 184.59 crore. The negotiable receipt credit against
   warehouse receipts of MSWC is increasing every year. Initially 40 godowns of MSWC have
   been identified for warehouse receipt scheme programme. MSWC has already entered in to
   agreement with NCDEX Spot , and, tie up between NCDEX Spot and the Banks for Warehouse
   Receipts Scheme through MSWC has been done.
II. Outcome and Output Monitoring Indicators
6. The details of Outcomes & Output Monitoring Indicators have been given in the table below:
    Outcomes Expected                      Performance indicators
    No glut situation in the market.       % increase in the sales during lean season.
    Better price realization.              % increase in price realization.


    Outputs Expected                       Performance indicators
    Access to warehouse-receipt            i) % of Total Targeted Farmers accessing warehouse
    financing by 40,000 farmers, of        receipt financing services.
    which 20,000 small and marginal        ii) % of Total Targeted Small and Marginal Farmers
    farmers.                               accessing warehouse receipt financing services
    Use of online trading through          i) % of Total Targeted Farmers using online trading
    commodity exchanges by 20,000          through commodity exchanges
    farmers, of which 10,000 small and     ii) % of Total Targeted Small and Marginal Farmers
    marginal farmers.                      using online trading through commodity exchanges
    Warehouse receipt financing of Rs.     % of Total Targeted Volume of warehouse receipt
    80 Crores                              financing accessed by farmers
    Number of warehouse receipt            % increase in number of warehouse receipt
    transactions.                          transactions.
    Volume of produce pledged for          % increase in volume of produce pledged for
    warehouse receipt transactions.        warehouse receipt transactions.
    Online trading of FCSC (Graduated      % of Total Targeted Volume of online trading
    Level) worth Rs. 180 Crores, both      through commodity exchanges by farmers
    spot & futures
    Upgradation of 40 MSWC                 % of Total Targeted number of MSWC Godowns
    Godowns, establishing laboratory       where repair are completed, laboratory and
    and connectivity.                      connectivity is established.
    Accreditation of 40 MSWC               % of Total Targeted number of MSWC Godowns
    Godowns.                               accredited.
The baseline values will be fixed by the M&E Consultant for comparing the results.
7. These figures are based on the following assumptions:
    i) 200 FCSC / PA, each with around 20 PG (each PG with 10 active members) would be
         feeding product to FCSC, so there will be 40,000 active farmers in total.
    ii) Each farmer will produce 2.5 tonnes of grain per annum, so 40,000 farmers will produce a
         total of 1,00,000 tonnes of grain per annum.
    iii) Initially farmer will commit 2 tonnes for cleaning / grading the grain through the FCSC
         (Food grain) / PA, with half for immediate sale in local market / APMC and half for
         warehouse credit.
    iv) Over a period of time the producers will increase their volumes marketed through the FCSC
         to some 70% of output (i.e. 1,12,000 tonnes in total) and of this amount 70% (i.e. 78,000
         tonnes in total) will take advantage of warehouse credit.


                                               102
   v) The average value of product stored, at the time of storage will be Rs 1500 per quintal, of
      which 75% of the value is provided in warehouse credit. The average sale price of stored
      product is Rs 1700 per quintal.
III. Policy and Regulatory Environment:
8. The policy and regulatory environment is as follows:
    i) The regulation regarding accreditation of warehouses to spot exchanges and credit against
         warehouse receipt is already in place,
    ii) The agreement between MSWC and NCDEX spot has already been signed. This agreement
         provides for quality standards of acceptable produce, price determination mechanism,
         payment mechanism, delivery responsibility, and dispute settlement arrangements,
    iii) Tie up between MSWC and Union Bank of India has been done. Manual of instructions in
         respect of operationalization of Warehouse Receipt Instrument will be prepared in Marathi
         by MSWC and circulated amongst the farmers and other stakeholders, covering such issues
         so that the component is well received by the farmers.
    iv) Warehouse Act provides for getting credit against warehouse receipt from the banks.
         Besides this MSWC has entered into MoU with Union Bank of India for providing credit to
         the farmers against the produce of the farmers kept in warehouse. Union Bank of India has
         branches at 29 locations where MSWC godowns are located. At remaining 11 places Union
         Bank of India does not have their own branches. To facilitate availability of credit against
         warehouse receipt to the farmer, the Union Bank of India has made the arrangements with
         the local branch of other bank.
IV. Selection Criteria
9. Forty warehouses of MSWC have been selected on the following basis:
    i) The godown is located on the main road and is easily accessible by all weather roads.
    ii) It has suitable arrangements for electricity, telephone, and connectivity.
    iii) The godown is in the area where there is concentration of production of food grains, oil
         seeds and pulses.
    iv) MSWC staff is available for godown / warehouse management.
10. Selection Criteria for APMCs for godown program: The APMCs for godown program have been
    shortlisted on the basis of the following criteria.
    i) APMC has the godown of at least 200 Mt capacity.
    ii) APMC yard where godown is selected is in the catchment area of the MSWC godown.
         APMCs selected for modernization under MACP have been given preference.
    iii) APMC godown is accessible by all weather road.
    iv) APMC has the experience of pledge financing has been given preference.
A total of 40 APMCs have been shortlisted on the basis of above criteria. However, the list of
APMCs identified is tentative and the final selection of APMCs will depend on (i) Willingness of
APMC to participate in the programme, (ii) APMC is generating surplus, (iii) APMC should obtain
license under the Maharashtra Warehousing Corporation Act for carrying out the activity of
warehousing, (iv) APMC should have tie up with Spot Exchange.




                                                103
V. Activities to be financed
A. MSWC godowns :-
11. The project will provide support to upgrade facilities in 40 MSWC warehouses. Investments
    financed will include repair of godowns, setting up of commodity testing laboratories, purchase
    of computers, commodity exchange ticker displays, and electronic weighing machines. In
    addition to the investments made in the warehouses, the project will also finance costs involved
    in networking the 40 warehouses that will be upgraded and in setting up an electronic
    warehouse receipt system for these 40 warehouses. The following table gives an illustrative list
    of investments per MSWC godown that will be financed in the Project .
Illustrative list of investments per MSWC godown
           Sr. No.    Infrastructure Investment Items
           1           Upgrading of existing godown infrastructure
           2           Setting up computers for on line trading
           3           Electronic weighing scales
           4           Price information ticker
           5.          Setting up quality assessment laboratory

12. The total investment in about 12.00 Lakh MT of the existing storage capacity MSWC godowns
    is estimated at around Rs 700 Crore. If this is annualized at 2.5%, over the six years of the
    project, MSWC’s investment amounts to some Rs 100 Crore.
13. Capacity Building Activities: Capacity building on price risk management will be provided at
    two levels: representatives and functionaries (book-keeper) of the PGs and PAs.
14. Activity Schedule: The activity schedule for upgradation of facilities at MSWC godowns is
    given in the following table.
                    Activity / PY                 PY1       PY2       PY3    PY4       PY5       PY6
    MSWC Warehouses up-gradation and
    warehouse receipt financing and e-trade           10      20       10          -         -     -
    service provision
    Warehouse receipt financing and e-trade
                                                        -      5       15      20            -     -
    service provision
    Price Risk Management Training for PG
    representatives and functionaries                   -   1000      1000   1000      1000        -
    (individuals trained)
    Price Risk Management Training for PA
                                                        -         -    120    120       120      120
    representatives (individuals trained)
B. APMC godowns :-
15. The National Spot Exchange Ltd. (NSEL) has already agreed to have a tie up with the APMCs.
    The NSEL has further agreed to tie up with the Banks to provide credit facilities to the produce
    stored at these APMC godowns.
16. To have such a tie up arrangement, investments will be required to be made in these APMC
    godowns. The investments will be for setting up computers, weighing machines, price
    information ticker, setting up Commodity Testing Lab. The following table gives the
    illustrative list of investments per godown.
Illustrative list of investments per APMC godown
             Sr.     Infrastructure Investment Items

                                                104
                  No.
                  1       Setting up computers for on line trading
                  2       Electronic weighing scales
                  3       Price information ticker
                  4       Setting up quality assessment laboratory
                  5       Renovation of Godown

17. The total investment in 40 APMC godowns will be Rs. 360.00 lakhs (40 godowns X Rs. 9.00
    lakhs).
18. APMCs selected under warehouse program will be linked for NSEL and the warehouse receipt
    of these APMC godowns, which are accredited, will be eligible to get warehouse receipt credit.
    These godowns will be linked with the local banks, preferably with the branch of nationalised
    bank.
19. Activity schedule: The activity schedule for upgradation and functioning of APMC godown is
    given in the following table.
       Activity / PY                           PY1              PY2       PY3    PY4     PY5       PY6
       APMC up-gradation and warehouse receipt --                                                  --
                                                                      5     10     15         10
       financing and e-trade service provision

VI. Estimated costs and project sharing:
20. Summary of investment items and share of project funding:
                                                                                   Project
       No.                                 Activities                             Financing
                                                                                    Share
       1      Improvement of MSWC warehouses                                        100%
       2      Contractual Staff (40 lab technicians and 1 Deputy Manager)            0%

       3      Capacity Building on Price Risk Management                               100%
       4      Consultancies and studies                                                100%
       5      Improvement of APMC godowns                                              100%
       6      Awareness generation, training and capacity building                     100%

       7      Operating costs ( rental, staff, support etc)                            100%


VII. Institutional and implementation arrangements
21. Outline of Operation of Scheme: The PIU MSAMB will be the implementing agency for
    MSWC programs with the help of MSWC. MSWC will give one officer of the rank of
    Deputy/Assistant Manager to work on PIU MSAMB. MSWC being State Govt Corporation it
    will implement its program. PIU MSAMB will only oversee the same. Whereas program of
    APMCs will be implemented by PIU MSAMB, the procurements relating to MSWC will be the
    responsibility of PIU MSAMB. The MSWC is a profitable5 Government Corporation with 800
    godowns in Maharashtra and a track record of innovation, dynamism and partnerships with the
    private sector. Its storage capacity in the state is around 1.2 million tonnes, of which up to 40%
    is available to farmers to store their grains at a lower charge than for the trade. A partnership
    has been created so that under the MACP the State’s grain farmers can benefit from the package
    of financial instruments and scientific storage that MSWC and the APMC is developing with
5
    Rs. 35 Crore profit in 2009

                                                     105
   the Banks and the Commodity Exchanges. Currently farmers have the APMCs as the sole
   marketing route for their marketable surplus of grains. This has high costs, limits the
   producers’ ability to time the sales to benefit from seasonal changes in price as trading
   behaviour is often opaque. Additionally, farmers are often forced to sell at the least
   advantageous time, because of the need to pay back loans.
22. The planned intervention provides farmer with the choice of other marketing channels, which
    are lower in cost, transparent in processes, prices and quality assessment, provide assured
    payment and which enable farmers to store produce and take advantage of warehouse credit,
    futures markets and electronic spot exchanges.
23. Producers, individually or via Producers Groups (PG) and Associations will need to be able to
    deliver to the 40 MSWC and 40 APMC godowns a single quality commodity. For spot
    exchange lot size is around 1 bag. This will involve grading and cleaning, some field level
    quality assessment (e.g. moisture content), bagging, weighing and the delivery of produce
    within a narrow weight range. The product is assayed at the godown to verify quality (at Rs
    500 per lot) and provided with a lot number. A choice can then be made as whether to sell the
    produce on the spot market on the same day, or to store the produce. In this case the decision
    needs to be made on whether to take advantage of warehouse credit scheme available and
    whether to lock the sales lot into a futures contract at an assured price. Lot size whether
    decided.
24. Three days after the sale is made, the buyer electronically transfers the payment to confirm the
    sequence of nos. in received chapter structure NCDEX Spot account. Here deductions are
    made:
    i) To MSWC, for storing the produce (at Rs 20 / MT / month) and assaying the product (at Rs
         500 per lot) and handling (at Rs 1.50 per 50 kg bag) ,
    ii) For NCDEX Spot (at 0.1% of the value of the sale),
    iii) To MSAMB / APMC (at 1% of value of sale, plus another 0.05% for supervision), and, if
         applicable, interest on the warehouse credit (at about 1% per month of the loan).
25. The information given in table in the chapter on FCSC, under the para ‘Estimated Farmer
    Returns’, shows that the farmer will get extra return of 5.2%, 9.0% and 16.30% if the produce is
    sold in APMC as graded; same day spot sale and sale after 3 months after taking advantage of
    Warehouse Receipt Credit Scheme, respectively.
26. The information in the table mentioned above provides an estimate of the potential additional
    returns that farmers can obtain by using the FCSC for their producer association to grade, clean
    and pack grain and to facilitate marketing through the APMCs, the Spot Market at MSWCs
    facilities, or to store at MSWC for three month. These are contrasted with the returns for a
    farmer selling un-graded product through the APMCs shortly after harvest.
27. Price risk management business model: Warehouse receipt financing: Selected MSWC
    warehouses will shift to an electronic warehouse receipts system from a manual one and will be
    networked to enable an efficient warehouse receipt financing system. Warehouses in selected
    APMCs will also provide this service. Electronic receipts will be transmitted immediately to the
    banks with which MSWC and APMC have an agreement and loans to be issued against it
    automatically based on the value of the receipt. The benefit is that farmers or CIGs are able to
    deposit their commodities at a MSWC / accredited APMC warehouse and get immediate access
    to credit from the participating banks against the value of the commodity. The MSWC has
    expertise in scientific storage, is committed to having up to 40% of its godown space available
    to farmers and offers storage at a nominal rate to farmers. This package of instruments (i.e. high
    quality storage, independent quality assessment and warehouse credit) will enable producers not
    to make distress sales, but instead to be able to take advantage of the price increases that take
    place after the main harvest season. As per the provisions of the MSWC Act, the Warehouse

                                                 106
    Receipt of the MSWC is negotiable. Even then, the NCDEX spot has entered with agreement
    with Union Bank of India to develop these arrangements.
28. This service will be available at 40 MSWC and 40 APMC warehouses. The APMCs that
    participate in this activity will be located in the vicinity of MSWC warehouses selected and be
    subsets of the APMCs there are being modernized under MACP. The capacity of relevant
    MSWC and APMC personnel will be upgraded through targeted capacity building activities
    based on an assessment of capacity building needs.
29. Electronic Spot Trading: MSWC has entered into agreement with NCDEX Spot and Union
    Bank Of India on 3 rd May 2010 and 4th May 2010 respectively. MSWC has identified 40
    warehouses for the programme. These ware houses will be accredited as delivery centers for the
    exchange. MSWC will outsource the trading function to existing trading members of the
    commodity exchange, who will then act as an agent for farmers, PGs, and PAs to enable them
    to sell their commodities through the exchanges at the designated warehouses of MSWC. The
    expected benefits are that farmers will have lower marketing costs6, obtain better prices and
    assured price realization. The farmers will be provided credit against warehouse receipts by the
    Union Bank Of India. The following figure gives an integrated process map for the warehouse
    receipt financing and e-trading service that will be provided by the MSWC.
    Figure 2.1: Incorporating Warehouse Receipts in the Financing Cycle




    Source: Bryde and Martin (1999)
30. Capacity building on Price Risk Management: Representatives of the Cereals and Pulses PAs,
    and the representatives of the associated PGs will be trained on price risk management. This
    training will encompass price analysis; systems and procedures to aggregate produce, access
    financing, and trade as a group; and, benefits and risks in warehouse receipt financing and e-
    trading.
31. Implementation Arrangements: PIU MSAMB is responsible to implement this component
    with the support of MSWC. MSWC will appoint an officer of the rank of Deputy Manager /

6
  An important feature of this intervention will be the lower cost of trading through a commodity exchange (at some
2.5%) rather than through a APMC (at some 5% of sales value). Additionally assured price realization by the trading
partners will reduce the level of price discounting that is believed to occur in the APMC system because of the risks of
non-payment.

                                                          107
      Assistant Manager supported by an assistant, to coordinate the warehousing activity in PIU-
      MSAMB and field level machinery, and to prepare annual work plans. S.P. for FCSC (Grains)
      with the support from NCDEX Spot deliver price risk management trainings, as well as
      training in grading, quality control, and to introduce a transparent accounting system.
      Procurement of goods and contractors for MSWC will be carried out by PIU MSAMB. Tenders
      will be called by PIU MSAMB & will be finalised by PIU MSAMB where representative of
      MSWC will be present. Work orders will be given by MSWC & MSWC will implement the
      program.
32. The PIU MSAMB will oversee the integrated implementation of the FCSC and MSWC and
    APMC package of financial instruments and scientific services. The MSAMB will call for the
    tenders of need based equipments required for APMC godowns where the representatives of
    APMC would be present.
33. The mobilization of FCSC through PA and PGs will follow the program of Godown
   development agreed between MSWC and NCDEX, which is primarily driven by the
   commercial imperative to start with those facilities believed to have the highest potential and
   therefore the best chances of early success. Of the MSWC facilities 17 are located within the 1 st
   phase program of MACP, 13 are in phase 2 and 10 in phase 3. However by the second year of
   the project, when the first FCSC will be sufficiently mobilized to deliver graded product,
   investments will have been made in 17 godowns. In each MSWC godown catchment 5 FCSC
   will be developed. The service provider will have to mobilize PGs and PAs to support the
   emergence of viable Grain FCSC.
34. In order to facilitate the emergence of viable business models for dissemination and learning by
    other potential grain FCSC, the ABPF will, identify key features of success and failure and
    develop a financial model in partnerships to encourage further investments in new FCSCs.
VIII. Funds flow
35. The budget provision will be made, under the budget of Dept. of Coop. & Mktg. (DOCM) for
    this sub-component. The DDO from the DOCM will drw the funds from treasury and disburse
    the same to MSWC for MSWC related activities. For APMC program funds will be accessed by
    DDRCS of the concerned district as per BDS and payments will be made to contractors by
    drawing the bills from treasury.
IX. Fiduciary and Safeguards arrangements
36. Following are the fiduciary issues:
    i) The contract between the MSWC and the banks and the validity of the warehouse receipt
         shall be subject to the terms and conditions of the contract.
    ii) Accreditation procedures and norms for APMC godowns selected in this sub-component will
         be supervised by the competent authority for according accreditation. This will ensure the
         operations of the warehouse as per the norms.
    iii) Procedures of Warehouse Receipt Scheme of MSWC shall be given wide publicity in local
         language to involve maximum number of farmers. This will ensure capacity utilization of
         the facility.
    iv) The provisions for M&E, Internal Audit, External Audit, Procurement Management,
         Financial Management, GAAP will also strengthen the monitoring in this respect.


X. Governance Risks and Mitigation Measures
37. Following are the risks & mitigation measures:
Sr.       Risks                Description              Risk Mitigation Measures
No.

                                                108
Sr.          Risks                 Description                Risk Mitigation Measures
No.
1            Technical / Design    Networking for e-          Training and capacity building for
                                   trading is a new           establishment and maintenance of e-
                                   concept that will be       trading network.
                                   implemented in the
                                   Project.
2            Implementation        Operations of              (i) MSWC has adequate technical know
             capacity and          warehouse receipt          how about repairs of godowns, (ii)
             sustainability        system and e-trading       Training and capacity building for
                                   through MSWC               operations of warehouse receipt system
                                   warehouses will have       and e-trading through MSWC
                                   to be accepted by the      warehouses, (iii) MSWC will make public
                                   farmer community.          the procedural details in local language
                                                              through Warehouse Receipt and e-trading
                                                              Manual / detail guidelines.
3            Financial             ---                        Full time Finance Controller and well set
             Management                                       accounting system and Govt. Audit.
4            Procurement           Lack of response to        (i) Procurement as per WB guidelines
                                   bids, possibility of       including E-tendering, (ii) Grievance
                                   cartel, over estimation.   Redressal System, (iii) Procurement based
                                                              on approved latest DSR.
5            Social and            ---                        (i) As it is a new activity no existing
             environment                                      community participation shall be
             safeguards                                       hampered by implementation of this
                                                              component, (ii) Agricultural Produce
                                                              being non-hazardous they pose no
                                                              environment risk.
6            Other ( for           ---                        Selected godowns are owned by MSWC
             example project                                  and program will be managed by MSWC
             specific corruption                              in collaboration with NCDEX. MSWC
             risk, ownership of                               being a business organization would not
             project / program,                               invest unless being sure of the returns.
             prevalence of
             failure in similar
             projects)

XI. Sustainability
38. Following points bring out the sustainability:

      i)       The scientific storage and interim finance against warehouse receipt will reduce post
               harvest losses and at the same time meet the immediate financial needs of the farmers.
               This will make investment under this subcomponent sustainable.
      ii)      Modernized warehouses with Warehouse Receipt Arrangement will attract more farmers
               to keep the produce in MSWC warehouses and APMC godowns resulting in increased
               income of MSWC and APMC.
      iii)     The advanced facilities of spot exchanges and e-trading will open up the larger / virtual
               market benefits to the farmers resulting in higher income.
      iv)      It will be a demand driven system because the benefits of sale at the time when market
               prices are better will be available to the farmers.


                                                     109
v)     In order to increase the turnover, wide publicity will be given to the Warehouse Receipt
       Scheme and E-trading facility. Success stories shall be studied through ABPF and the
       best financial practices shall be replicated. Stocks will be adequately insured.
vi)    Post Implementation Operation & Maintenance Arrangements: The godown / warehouse
       infrastructure and the laboratories, connectivity with suitable marketing network
       developed under the project will be a source of additional income to the MSWC and the
       APMC (owner of the godown). Such additional income shall be used for the post
       implementation operation & maintenance of the facilities established under this Project.
vii)   MSWC being a statutory corporation making profit, the operations and management of
       the warehouses after project period will also be done by MSWC itself. One warehouse
       of 2000 MT capacity will generate an income of about Rs. 12.00 Lakh in a period of 3
       months (Rs. 600/- per MT storage charges payable to MSWC). There will be 2 seasons
       of produce and therefore the estimated income for a period of 6 months can be taken for
       evaluating the sustainability of the activity. Presuming that 50% of the income will be
       spent on O&M, the balance 50% makes the investment sustainable. The additional
       income generated from this activity will make the infrastructure sustainable.

                                           ***




                                           110
                            B1.3 RURAL HAAT MARKETS

I. Objectives
1. The Rural Haats (RH) managed by Village Panchayats are the best examples of direct interface
   between farmers and consumers. There are 3500 Rural Haats in Maharashtra. These are held
   once or twice in a week. The management of these haats rests with local authority viz., Village
   Panchayat or Municipality.
2. However, these haats are held in dusty places and conditions are most unhygienic. The haats
   have no basic infrastructure facilities like sheds for sellers and pathways for buyers. Therefore,
   it is proposed to modernize around 8 to 14 rural haats managed by Village Panchayats in every
   district so that total 300 RHs are modernized in the state by providing basic infrastructure.
II. Outcome and Output Monitoring Indicators
3. As a result of the project interventions in selected RH the expected outputs and outcomes are as
    follows:
   Sr. No.      Outcome                               Monitoring Indicators
   1            Growth in volume of RH                % increase in volume of produce sold in
                transactions.                         targeted markets.
   2            Farmers and buyers satisfied with     % of farmers and buyers satisfied in targeted
                modernized infrastructure.            markets per RH.

   Sr. No.      Output                                Monitoring Indicators
   1            RH with improved infrastructure.      % of targeted RH with improved
                                                      infrastructure.
   2            Capacity utilization of improved      % Capacity utilization of improved
                infrastructure in modernized RH       infrastructure per RH.
                by farmers and traders.
   3            Reduction in waste in targeted        % Reduction in waste in targeted RH.
                markets
   4            Panchayat members in targeted         % of Panchayat members in targeted RH
                RH trained in improved RH             trained in improved RH management practices
                management practices.                 (record keeping, accounting, use of display
                                                      boards).
   5            RH where improved management          % of RH where improved management
                practices have been implemented       practices have been implemented (record
                                                      keeping, accounting)
The baseline values to be developed by M&E consultant for various RH will be considered while
evaluating the performance.

III. Policy and Regulatory Environment:
4. The Maharashtra Panchayat Act provides for running of RH by the Panchayat. The Act also
    provides for the formation of sub-committees for various activities of the Panchayat. The RH
    Management Committee can therefore be formed under the provisions of the provisions of the
    Act. Wherever such sub-committees exist, the representatives of the farmers, consumers &
    traders will be co-opted as members of the RH Management Committee. Where such sub-
    committees do not exist and RH are being managed by the whole Panchayat, the RH
    Management Committee having representatives of the farmers, consumers & traders would be
    formed.


                                                    111
5. The provisions of APMC Act are not applicable to village RH and therefore none of the
   provisions under the APMC Act will come in the way of modernization of RH.
6. Need for reforms in the functioning of RHs: The following reforms would be mandatory for the
    RHs to access project funding.
  S.       Basic Reforms                                                       Project       funding
  No.                                                                          available for
  1        Willingness to form RH Management Committee consisting of
           representatives of Panchayat, farmers, consumers and traders
  2        Willingness to create RH Infrastructure Maintenance Fund @ 1
           % of total infrastructure investment cost at the time of issue of   Basic infrastructure
           work order. This fund will be kept in separate account and used      like internal road,
           only for the purpose of repairs and maintenance of the                 toilets, fencing,
           infrastructure with prior permission of regulatory authority.              parking.
  3        Public display of Haat income & expenditure, tender documents.
  4        Implementation of waste management system.

  Sr.        Additional Reforms                                     Project funding available for
  No.
  1          Willingness to undertake investment in PPP mode        Productive assets like cold
                                                                    storage, pack-house, in PPP
IV. Selection Criteria
7. The selection of Rural Haat location for modernization has to pass through selection criteria as
    described below.
      i)    Population: Villages having population of around 7,500 and more from all districts would
            be selected, excluding the district headquarters and places having Municipal Councils.
      ii) Land availability: The Village Panchayat should have its own land with clear title for the
            rural haat on which Rural Haat is presently held.
      iii) Own Contribution: Capacity to contribute 10% of the cost of development for the basic
            infrastructure.
      iv) The village Panchayat should have elected management.
      v) The account of the village Panchayat should be audited up to date with no serious audit
            observation.
      vi) Willingness of the Village Panchayat to setup Rural Haat Management
            Committee (HMC) for the management and operations of the haats.
      vii) Willingness of the Village Panchayat to allocate 1% of the proposed investment cost as
            Haat Maintenance Fund from the end of first year after commissioning of the modern
            infrastructure in RH, to be kept in a separate bank account for the use of future
            maintenance of infrastructure created.
      viii) The place should be connected by all season motorable roads.
      ix) Those villages covered under scheme for setting up of Haats under Swarnajayanti Gram
            Swarojgar Yojana (SGSY) of GoI will get the benefit of convergence and would be
            preferred in this programme. Objectives of the two interventions are Complimentary -
            Project would up grade the existing RH while SGSY scheme would construct market
            place for PGs on rotation basis for marketing of their Produce.
8. Competitive Selection Process: Two stage competitive selection processes PCN and FPP would
    be followed for selecting eligible RHs.




                                                  112
   i) PCN- the RHs desirous of participating in the project will submit PCN in the prescribed
      format to the PIU-MSAMB. The PIU MSAMB will perform the scrutiny of the PCN to see
      that the RH meets the selection criteria mentioned above.
   ii) The PIU –MSAMB will further perform the Scrutiny of RH based on population, annual
       turnover of the Village Panchayat, own funds of the Village Panchayat and annual turn over
       of the RH. For each of these issues, 0.25 marks are awarded to the RH providing the highest
       values, whereas the other RHs are awarded marks for each issue proportionately with regard
       to the higher ranked RH.
   iii) The evaluation report of the PIU-MSAMB is submitted to the Approval Committee (same
        as in case of APMC). Upon the approval of such committee, the RH is eligible to prepare a
        Full Project Proposal (FPP) with the assistance of SP.
   iv) Total of 300 RH will be selected from all the districts of the State; however not more than
       14 RH from any district would be selected. Ranking of RH on the basis of PCN will be
       done district wise.
9. Eligibility for Investment in Productive Infrastructure to get selected for Productive
   Infrastructure:
   i) RHs having capacity to invest 25% of the cost,
   ii) RHs completing the basic infrastructure as per time plan,
   iii) RHs generating the highest growth rate measured in terms of percentage,
To ensure equitable spread, 10% RHs from each Phase districts will be selected. If adequate
   number of RHs are not found eligible for productive infrastructure, additional RHs eligible for
   basic infrastructure will be considered.
V. Activities to be financed:
Illustrative list of investments to be made and Rural Haat Modernization phasing:
10. The ceiling of investment for each haat will be Rs. 20 Lakh for Stage I infrastructure and
    Rs. 30 Lakhs for Stage II infrastructure. Initial investment for Stage I infrastructure will be
    Rs. 20 Lakh, subsequently 10% of RHs (30 numbers) will become eligible for higher level of
    investment for Stage II infrastructure, i.e. Rs. 30 Lakh per RH. However, the actual investment
    in each haat will be demand driven based on the needs of Haat users. It will be mandatory for
    each Haat to make sure that basic infrastructure like covered sheds, platforms, toilets, drinking
    water facility, electricity is taken up for being eligible to take up Stage II infrastructure. Stage I
    & Stage II infrastructure would be a combination of basic and productive infrastructure. The
    details of Illustrative list of infrastructure are as follows:
A: Basic Infrastructure
                                                  Approx. Total
   Sr.                                                                                   Total Rs. in
          Particulars                                Area /            Unit Rate
   No.                                                                                      Lakh
                                                    Capacity
   1      Platforms with sheds for Producers       3000 Sq. ft.     Rs. 350 / sq. ft.       10.50
   2      Pathways (LS)                                                   LS                3.00
          Drinking Water, Bore well pumping
   3                                                                      LS                 1.00
          set with taps (LS)
   4      Electricity (LS)                                                LS                 1.50
   5      Toilet Block                              200 sq. ft      Rs. 500 / sq. ft.        1.00
   6      Compound / fencing (LS)                                         LS                 2.00
   7      Garbage/ Solid waste Pit (LS)                                   LS                 0.50
   8      Watchman Cabin                            100 sq ft          500/sq.ft             0.50
          Total Cost of Basic Infrastructure                                                20.00

                                                  113
B: Productive Infrastructure
 Sr.                                           Approx. Total                           Total Rs. in
         Particulars                                                  Unit Rate
 No.                                           Area / Capacity                            Lakh
 1       Godown                                   500 MT           Rs.2,000 / MT          10.00
                                                                   Rs.1.25 Lakh /
 2       Small Cold Storage                              5 MT                             6.25
                                                                          MT
         Grading & packing unit (pack house)
 3                                                  1000 Sq ft     Rs. 400 / Sq ft        4.00
         for fruits & vegetables
 4       Grading, packing tables                      3 No.       Rs. 25,000 / table      0.75
 5       Grain Pulses Unit with Shed               1.5 MT / hr.          LS               9.00
         Total Cost of Productive Infrastructure                                          30.00
Capacity Building and Training:
11. To achieve the objectives of the institutional strengthening the Panchayat would require
   enhancing the capacity of the members and Rural haat management staff of Panchayat,
   DDRCS, Taluka ARCS and field staff of MSAMB. The arrangements of capacity building and
   training under this subcomponent will be the same as it is under Upgrading & Modernization of
   APMCs. The said training will be imparted by the NIPHT.

VI. Estimated costs
12. The total estimate on this sub-component is Rs. 74.85 Crores for upgrading 300 RHs.

VII. Institutional and implementation arrangements
a) Institutional Arrangements
13. PIU-MSAMB along with DDRCS and Taluka ARCS would be responsible for implementing
    the RH modernization program along with the respective Village Panchayat. The role of PIU-
    MSAMB would be to liaise with the contractors and the SPs, approve variations and time
    extension, sample checking and resolution of any disputes within the terms of the contract/s.
    Though Panchayats are under Rural Development Department (RDD) of GOM, a large number
    of development programmes like National Rural Employment Guarantee Scheme (NREGS),
    Sarva Shiksha Abhiyaan (SSA), Shaleya Poshan Ahaar Yojana (SPAY) are implemented by
    Village Panchayat without any direct involvement of RDD. Similarly RHMIP will be
    implemented by Cooperation & Marketing Department with the help of respective village
    Panchayat. The necessary liaison will be kept by DDRCS and ARCS with concerned BDOs for
    which orders have been issued by the Government.
14. PIU-MSAMB will be responsible for hiring of SP for participative consultation and market
    design of RHs. The specific tasks to be carried out by MSAMB, Village Panchayat and SP in
    the various stages of the project is given in the following table




                                                   114
Sr.   Process step / Activity                           Roles and Responsibilities
No                                                  (Primary responsibility underlined)
                                            PIU (MSAMB)        Panchayat        Community /
                                                                                Market users
1     Hiring of service provider for
      participative consultation and        PIU-MSAMB
      market design - ToR prepared,
      EoI / RFP released, Bid received,
      evaluated and contract finalized.
2     Training of MSAMB personnel,          SP + PIU-
      and Officers of the Directorate of    MSAMB
      Agril. Marketing , Taluka ARCS,
      MSAMB Engineer for RHMIP
3     Ongoing       monitoring        and   PIU-MSAMB           Sarpanch,
      management of SP ensuring             DDRCS               Panchayat +
      compliance with the conditions                            VDO*
      set forth in RFP
4     Awareness generation of the           SP, PIU-MSAMB       Sarpanch,      Community/ mkt.
      project in the selected location      DDRCS               Panchayat +    users to provide
                                                                VDO*           inputs to RHMIP
                                                                               preparation
5     Setting of Haat Management DDRCS + ARCS                   Sarpanch,      Community to
       Committee      (HMC)     for                             Panchayat +    participate in
       overseeing the management of                             VDO*           setting up this
       Haat                                                                    committee
                                                                               through PRA
6     Signing of MoU between Haat           SP + DDRCS +        Sarpanch,
       Management Committee, Village        Taluka ARCS         Panchayat +
       Panchayat and PIU                                        VDO*
7     Preparation of Rural Haat             SP + DDRCS +        Sarpanch,      Community /
       modernization and improvement        Taluka ARCS         Panchayat +    market users to
       plan (RHMIP)                                             VDO*           provide inputs to
                                                                               RHMIP
                                                                               preparation
                                                                               through PRA
8     Endorsement of RHMIP by the           SP + DDRCS +        Sarpanch,      Community /
      market users – HMC and                Taluka ARCS         Panchayat +    market users to
      Panchayat to call for market                              VDO*           sign off in the
      users meeting, sign off by HMC                                           RHMIP
      and Panchayat members
9     Mobilization     of    10%    of      ARCS                Sarpanch,
      Panchayat contribution towards                            Panchayat +
      RHMIP                                                     VDO*
10    Approval of bid documents for         PIU-MSAMB + SP      Sarpanch,
      the construction as per RHMIP                             Panchayat +
                                                                VDO*
11    Call for tender, Tender evaluation SP                     Procurement
      and finalization                                          Committee of
                                                                RH
12    Release of work order                                     VDO,
                                                                Panchayat
13    Ongoing      monitoring     and PIU MSAMB                 VDO,
      management       of consultants                           Panchayat
      ensuring compliance with the
      conditions set forth in RFP


                                               115
    Sr.   Process step / Activity                       Roles and Responsibilities
    No                                              (Primary responsibility underlined)
                                          PIU (MSAMB)          Panchayat        Community /
                                                                                Market users
    14    Certification about the work MFE + Contractor        VDO,
           measurement / completion       + SP                 Panchayat
    15    Recommendation for payment                           Panchayat
                                                               Sarpanch,
                                                               VDO
    16    Payments     to    contractor – DDRCS + Drwg.        Panchayat
           intermediate and final payment Dsbg. Officer in the Sarpanch,
                                          o/o DDRCS            VDO

    17    Post evaluation - user survey /   M & E Consultant                    Community /
           community score card                                                 Market Users to
                                                                                provide all
                                                                                information
*Village Development Officer (VDO) is the Chief Executive Officer of Village Panchayat and
   therefore he has to play effective role in implementation of RHMIP.
b) Implementation Arrangements
i) Description of activities for preparation of RH Modernization and Improvement Plan
    (RHMIP)
15. Awareness generation about the project: The process of RH Modernization and Improvement
    Programme (RHMIP) starts with awareness generation about the project in the RH command
    area. During the meeting all the market users and other stakeholders would be invited and will
    be informed about the project, its objectives, approach and process, possible intervention and
    expected benefits. Besides meetings, awareness generation process would include wall writings,
    audio-visual shows giving the details of the RHMIP.
16. Panchayat Assessment: The haats are managed by the Village Panchayats, the assessment of
    Panchayat to commit itself for the haat improvement and modernization would be carried out.
    This assessment would cover the willingness and capacity of Panchayat to undertake the
    necessary changes in the haat management, and operations and financial ability to provide its
    contribution towards investments. The list of changes, if any, would be shared with Panchayat
    and an endorsement received.
17. Signing of Memorandum of Understanding (MoU) between the Panchayat and Project: Once
    the awareness generation process and the assessment of Panchayat is completed, formal signing
    of MoU with the Panchayat and project would be done. This will delineate the commitments
    and mandates of the two parties towards each other.
18. Participative Consultation: Participative consultation would be carried out through PRA
   (Participative Rural Appraisal) technique. This will ensure that the investments in the haat meet
   the user needs. During the consultation process the problems faced by the producers, traders
   and other market users would be identified, possible ways of overcoming the problems would
   be discussed and finalized. The investment needs would be prioritized with the market users
   based on the budget available under the project.
19. Preparation of design and work estimate: After identification of the investment interventions,
    the design and cost estimates for the civil work and other related activities will be prepared by
    the third party service provider along with the Rural Haat Management Committee (RHMC).
    SP will be selected by competitive bidding by PIU MSAMB. Each of the Village Panchayat
    desirous of modernizing RH and fulfilling other selection criteria will have to submit

                                                116
        information in the Project Concept Note (PCN) Format for Selection of RHs. On scrutiny of the
        PCN, a list of selected Panchayats for rural Haat modernization would be prepared.
20. Financing pattern: The Panchayat would bring finance to the extent of 10% from their own
    funds and will get the Project assistance of 90% for Stage I infrastructure. For Stage II
    infrastructure the Project assistance will be 75% and balance 25% will have to be raised by the
    Panchayats.
21. Preparation of Rural Haat Modernization and Improvement Plan (RHMIP): RHMIP will
   include the PERT chart, design, cost estimates of the investments, financing pattern and address
   the issue of changes to be done in the haat operations and management. It would also have a
   detailed project feasibility study, list of monitoring and evaluation indicators and detailed cost
   tables as indicated below –
        a.    Survey data of the Rural Haat,
        b.    Need assessment and investment prioritization matrix
        c.    Existing layout plan
        d.    Final design, architectural drawings, structural designs and drawings
        e.    Detailed feasibility report
        f.    Bill of quantity and Bid document as per project guidelines
22. Endorsement of the RHMIP by Panchayat: After the design, cost estimates and the
   implementation plan for all interventions have been prepared, it will be compiled into RHMIP
   document (FPP). RHMIP will be presented to the Gramsabha for their ratification. The third
   party service provider in charge of the RHMIP preparation will discuss and clarify all queries
   related to the RHMIP implementation plan, designs and cost estimates. Based on the
   discussions, any required change would be carried out. Once the RHMIP has been agreed upon
   and finalized, a general body meeting of Panchayat will be held to pass a resolution approving
   and adopting RHMIP. The Panchayat would submit the RHMIP to MSAMB for final approval.
ii) Implementation of RHMIP
23. Rural Haat Modernisation Account: The grampnachayat will open seperate account with the
    nearest branch of the Nationalised Bank. This account would be jointly operated by the
    Chiarperson of Grampanchayat and VDO. The own contribution of the RH will be deposited in
    this account before the modernization works are started.
24. Tendering process: The procurement of civil works and goods and for RH development will be
    carried out by following the community procurement process of WB (shopping and forced
    account). Once the plans estimates and bid documents are prepared by the SP, those will be
    approved by RHMC. Thereafter SP will call for tenders which will be evaluated and finalized
    by SP and procurement committee of RH. The work order would be issued by the concerned
    Village Panchayat. At RH level the procurement committee will be constituted which will
    comprise of the (a) Chairman Panchayat, (b) DDR or his representative, (c) Two members from
    Haat Management Committee (d) Representative of concerned Service Provider (design
    supervision consultant) for Rural Haats (e) Village Development Officer [VDO] Panchayat will
    be the Member Secretary. The Haat level procurement committee will undertake procurement
    of civil works upto US $ 50,0007- and of goods upto US $ 20,000 only. Above this limit and
    upto US$ 1,00,000 for works Local Bidding Procedure will be followed.
25. Ongoing Monitoring of works: The progress of the work, quality and quantity of work done
    will be closely monitored by the SP, RHMC, Market Field Engineer (MFE) of MSAMB and
    VDO. The measurement for various works will be done jointly by the SP, Contractor, MFE and
    VDO, Panchayat. The SP will also be required to regularly inspect the works to ensure full
    compliance to the technical designs, technical specifications and also to regularly monitor the

7
    The threshold to be revised based on performance during the Mid Term Review

                                                                                  117
      progress of works of the approved construction. SP will also carry out testing of construction
      material to ensure its quality. MFE of MSAMB would carry out regular inspections of work to
      ensure full compliance of technical design, specifications, and also to regularly monitor the
      progress of works of approved construction.
26. Arrangements for quality control: In order to ensure control on the quality and quantity of the
    works, PIU-MSAMB would appoint Market Field Engineer (MFE) on contract. On an average
    one MFE will be appointed on contract for every district. Main role of MFE as detailed below,
    is to ensure compliance to engineering design, technical specification and contract conditions
    by the contractor –
      a. Ensure effective supervision to attain high quality construction.
      b. Ensure full compliance to engineering design, technical specification and contract
         conditions.
      c. Minimize time overrun and cost overrun as well as to avoid contractual disputes.
      d. Build the capacity of the Engineers of MSAMB and Village Panchayat (if available) in
         construction supervision, contract administration and project management.
      e. to undertake quality control checks.
27. Release of Payments:
      a. The community procurement is proposed for RH program. Grampanchayat will open
         separate account in Nationalised Bank and deposit their contribution in that account.
         Grampanchayat may do the work on force account or give contract by shopping procedure.
         After the amount of the beneficiary contribution is spent, Grampanchayat will submit the
         proposal for 1 st advance to DDRCS equivalent to 30% of the investment cost. The proposal
         should contain the invoices, photpcopy of passbook of the beneficiary account, photograph
         of the work done and utilisation certificate duly signed by Chairperson and SP on receipt of
         the proposal DDRCS will release first advance of 30% by drawing the amount from the
         treasury by cheque or may deposit the amount in beneficiary account by core banking.
      b. On spending 50% of the first advance Grampanchayat will submit proposal for II advance
         of 30% with the similar documents to DDRCS. DDRCS will release II advance. Similar
         procedure will be adopted for III advance. DDRCS will release payments of advance within
         7 days from the receipt of proposal from Grampanchayat for each advance.
      c. On completion of the work, completion certificate duly signed by SP, Chairperson of
         Grampanchayat, MFE & VDO with the invoices, photocopy of passbook of beneficiary
         account, utilisation certificate for third advance duly signed by Chairperson of
         Grampanchayat and SP and the photograph of completed works will be submitted to
         DDRCS.
28.    Transparency and accountability: The lists of works to be taken up will be given wide
       publicity by means of display in the office of Village Panchayat or other public institutions
       within the area. Whenever a work is taken up, the estimated cost of the work, item of work
       proposed to be executed; details of the executing agency will be exhibited on a display board
       at the place of work, so that all market users are aware of the details of the work being
       executed.
29.    Phasing of rural haat modernization: The haat modernization programme would be taken on a
       phased manner as given in the following table –




                                                 118
      Sr. No.      Particulars          Yr-1      Yr-2    Yr-3    Yr-4    Yr-5    Yr-6    Total
      1            Rural Haats             -       75      75      75      75       -      300
                   Total                   -       75      75      75      75       -      300
VIII. Funds flow
30. An independent budget head will be opened in Cooperation & Marketing Department, GOM in
    which provision under the Project for this component will be made. The funds would be
    released by Cooperation & Marketing Department, GOM to Director of Agricultural Marketing
    as per Budget Distribution System(BDS). Director of Agricultural Marketing in turn will
    release the funds to the DDR through BDS. DDRCS will release funds in tranches to
    Grampanchayat. First tranche of 30% of the investment cost will be released after the amount of
    beneficiary contribution is spent. Second & third advance of 30% of the investment cost will be
    released after 50% of each advance is spent. Details are given under para 27 i.e. under “Release
    of payments”.
IX. Fiduciary and Safeguards arrangements
Maintenance of records and book keeping:
31. The Panchayat will maintain the accounts and registers for the work relating to RH of the
    concerned Panchayat.
32. The Panchayat will also maintain the following records, other than those specified under the
    various act and rules as applicable: a) An up-to-date copy of the Act / Rules / directions and
    orders from MSAMB / government, b) Maps showing (i) the boundaries of the haat, (ii) Taluka
    and District map showing village / towns and roads, c) Registers – (i)Asset register, (ii) Minutes
    register – general body, managing committee and sub committee meetings, (iii) Account Books
    related to RHMIP fund received & spent, (iv) Register of payment of bills from RHMIP fund.
33. DDRCS will maintain accounts relating to amounts received from Panchayats as their
   contribution, amount received from the Project / the State Govt., payments made, bill register,
   and cheque register. Though MACP beneficiary contribution account will be only one account
   in nationalized bank at district level, separate ledger accounts for each beneficiary APMC, RH
   and FCSC will be maintained by the office of DDRCS.
34. Regular Internal Audit & External Audit for validating the transactions by a third party expert,
    will reduce eventuality of omission and commission. Periodical Reporting i.e. MIS for
    monitoring progress in respect of the short term and long term Project Goals will be introduced
    to bring in fiduciary safeguards.
Operations and Management of Rural Haats:
35. Rural Haat will be managed by the Rural Haat Management Committee (RHMC) (*) which
    would be constituted. This committee shall consist of the following members,
           a.   Sarpanch / President of Village Panchayat           -    Chairman
           b.   5 Members of Panchayat                              -    Members
           c.   2 representative of farmers to be co-opted          -    Members
           d.   2 representative of traders to be co-opted          -    Members
           e.   1 representative of consumers to be co-opted        -    Member
           f.   VDO of Village Panchayat                    -       Member Secretary
(*) Note: Wherever such sub-committees exist, the representatives of the farmers, consumers &
    traders will be co-opted as members of the RH Management Committee. Where such sub-
    committees do not exist and RH are being managed by the whole Panchayat, the RH
    Management Committee having representatives of the Panchayat, farmers, consumers &
    traders would be formed. This committee will be headed by Sarpanch of Panchayat.

                                                 119
36. The RHMC will look after the operations and management of RH as per the provisions of
    relevant Acts, under the general guidelines framed by the Village Panchayat for operations and
    management of RH. Panchayat will have to make the provision of 1% of investment cost on RH
    at the time of issue of work order and should be used only for the maintenance of infrastructure
    created. This amount will be deposited in Rural Haat Modernisation Account of the
    grampanchayat. The operations and management will be outsourced to the private players who
    will be selected every year by competitive bidding.
X. Governance Risks and Mitigation Measures
37. Following are the risks & their mitigation measures:
  Sr.   Risks               Description                         Risk Mitigation Measures
  No
  1     Technical /         Willingness of the Panchayat        SP, which will be selected through
        Design              as well as the capability of the    competitive bidding, will do PRA
                            institution to enforce the          for identifying the needs, defining
                            reforms are important for a         the resources, prioritizing the needs,
                            need based design                   and ratification of the FPP in the
                                                                Gramsabha
  2     Implementation      Capacity building of the            Extensive training to the personnel
        capacity and        personnel      of      Panchayat    of the Panchayat and the concerned
        sustainability      required     for      performing    line      departments         regarding
                            implementation activities as        implementation & sustainability
                            per WB norms. Infrastructure        point of view has been proposed
                            should be maintainable by the       under     the     project.     Separate
                            beneficiary institution.            infrastructure maintenance fund
                                                                shall be created by the beneficiary
                                                                Panchayat.
  3     Financial           Funds should be made                Funds shall be released in tranches.
        Management          available     in    time     for    Next tranch shall be released only
                            maintaining continuity and          when satisfactory utilization is
                            creating the desired impact.        verified at the district level and PIU,
                                                                PCU level.
  4     Procurement         ---                                 Will be done as per community
                                                                procurement process for which there
                                                                will be Community Procurement
                                                                Committee at RH level.
  5     Social and          Higher arrivals and increase in     Haat Management Committee will
        environment         sales transactions will result in   keep regular upkeep and cleaning
        safeguards          increase in Haat waste.             RH.
  6     Other ( for         ---                                 Observance of reforms by Panchayat
        example project                                         and monitoring of the same by the
        specific                                                PIU-MSAMB shall create conducive
        corruption risk,                                        atmosphere for higher levels of
        ownership of                                            transparency and efficiency in
        project /                                               implementation.
        program,
        prevalence of
        failure in
        similar projects)
38. Governance in Haat Management: The governance in RH management would involve
   mitigation measures like: (a) Participatory consultation with market users in selection of market

                                                 120
   investments, (b) Selection process of rural haats based on predefined selection criteria, (c) MFE
   of PIU MSAMB for each district will keep close watch over the quality of work and monitor
   the progress. MFE will jointly with the SP, contractor and VDO of Panchayat, will take
   measurements of works completed, (d) Project support for capacity building of Haat on
   planning, budgeting and market management, (e) Establishment of Haat Management
   Committee to oversee management of the Haat. The agencies responsible for these measures
   would be RHs, PIU-MSAMB and the SP. The detail governance mechanism in RH
   management is described in separate chapter on Governance and Accountability Action Plan
   (GAAP).

XI. Sustainability
39. The investment under this component would be sustainable because of the increase in arrivals
    and increase in the income of Panchayat. Waste Disposal Unit will generate additional income.
    Presuming that at least 300-500 farmers will come to sell their produce in RH, @ Rs. 20/- per
    farmer as service charge (this will be about 2% on average sale of 100 Kg. F&V by each
    farmer), per Haat-day collection will be Rs. 6000/- and for 52 week-days it will be Rs.
    3,12,000/-. In addition at least 25 MT of compost per annum would be available from Waste
    Disposal Unit, which will fetch Rs. 75,000/- per annum, thus making the total income of Rs.
    3.87 Lakh per annum. This will increase as number of farmers coming in the Haat will increase.
    This will make the investment sustainable.
                                                 ***




                                               121
            B1.4 INTRODUCING E-MARKETING PLATFORMS

I. Objectives
1. Today the farmers have only one option of selling their produce in APMC. Various alternative
   marketing channels like produce aggregation through FCSCs, Warehouse Receipts Scheme to
   facilitate marketing with linkage to Spot exchanges and banks are proposed. This will create
   alternative marketing channels for the farmer who will have choice to sell his produce where
   better terms would be available. So as to expand the alternative marketing e-Marketing
   Platforms (E-Trading) / Virtual Marketing is proposed under the Project.
2. The planned development of Virtual Market is innovative and experimental. Virtual Markets for
    agricultural products are very much in their infancy but with new technological development,
    field results are undergoing significant revision and refinement. There will be a three-phase
    program which will (i) explore options, (ii) pilot systems and finally (iii) deliver an integrated
    e-platform within the MSAMB web site with the capacity to disseminate offers, buying
    enquiries and prices via local language SMS.
II. Outcome and Output Monitoring Indicators
3. Such an e-business model offers the potential of very significant benefits -
     Sr. Outcome                                                Outcome Indicator
     No.
     1   Establishment of e-trading facility at 294             % of targeted number of e-trading
         locations in the State and its employment as           facilities established and e-trading
         alternative marketing channel.                         is accepted as an alternative
                                                                marketing channel.


     Sr. Output                                                  Output Indicator
     No.
     1   Increase in the volume of agricultural produce         % increase in the volume of
         traded via e-trading facility at targeted locations.   agricultural produce traded via e-
                                                                trading facility at targeted locations.
     2     Increase in the income of farmers who are making % increase in the income of farmers
           use of the e-trading facility at targeted locations. who are making use of the e-trading
                                                                facility at targeted locations.
   Note: The baseline values will be fixed by the M&E Consultant for comparing the results.
III. Policy and Regulatory Environment:
4. Under the Forward Markets Commission (FMC) various futures commodity exchanges have
   come into existence. There are exchanges in to spot marketing and future marketing of various
   commodities, including agriculture produce. The policy of the GOI towards spot and future
   marketing of agricultural produce is based on the need to expand marketing platforms to the
   producers so that they get higher price to the produce. At the same time certain commodities in
   short supply or having exorbitant consumer prices are regulated in future markets through e-
   trading. The legal framework for this activity provides safety measures regarding quality, price,
   delivery and payment mechanisms.
5. GOM has amended the APMC Act on the lines of the Model Act and the Rules under the Act
    provides for e-trading. The State Govt. has already granted licenses to MCX and NCDEX in
    Maharashtra for carrying out e-trading activity.


                                                 122
IV. Selection Criteria
6. All the APMC market areas will be considered for this program. The norms of selection of e-
   trading license holder will be provided by SP for feasibility study of virtual marketing. Around 8
   to 9 locations will be selected from each district preferably one in each APMC market area with
   a restriction of maximum five in any one market area.
V. Activities to be financed
7. The initial phase will be to examine the options, policy implications, alternative technological
   solutions and the emergence of international best practices so that the MSAMB can make
   informed decisions as to roll-out the program. This feasibility study would be conducted in the
   first year of the Project.
8. The Phase 2 will involve design, development and pilot testing of two alternative virtual market
   platforms. During pilot testing feedback of Project team, MSAMB officials and users will be
   collected and accordingly changes will be made in the software to start full fledge operations of
   virtual market. Virtual market platform should have facility of broadcasting SMS. The details of
   items of expenditure in this component are as follows.
     Sr. No.      Items (Illustrative for costing purpose only)
          1       Server
          2       UPS
          3       Network Items
          4       O.S., database & softwares, A.V.
          5       Leased line
          6       E-trading Software development and Training to users
       Per year expenditure
     Sr. No.     Items (Illustrative for costing purpose only)
          1      Hardware maintenance (10%)
          2      Software support (Rs.12 Lakh per year @ Rs. 1 Lakh p.m.
          3      Leased line
   * Feasibility study will be conducted in first year. Pilot testing will be in second year of the
   project. From third year onward support for hardware, system & application software is
   required till end of the project period. Therefore, per year maintenance cost is worked out for
   four years of the project period.
9. The Phase 3 will involve the large-scale implementation of the preferred technical solution and
   its integration into the MSAMB web site so that it can deliver both services – e-trading and
   information dissemination, both via internet and cell phones. The essential features for e-
   Commerce mechanism are web site, merchant account, e-commerce software, internet server,
   shopping carts, security protocols and digital signatures.
10. The selected technology would then be commercialized with the Marketing Board and its
    software as the platform for trade, while the management of the individual e-trading would be
    by the private sector. It is envisaged that the system would enable producers, user organizations,
    electronic traders and existing traders to be able to offer product to the market and that a system
    would be in place that would enable buyers and sellers to broadcast buying needs and product
    requirements to one another. Under an electronic trading platform, there are possibilities for
    secured buying processes to be put in place and it is envisaged that traders would subscribe to
    the service and the cess income would cover the private management costs as well as provide
    an income stream for the State Government. The business case for the operation of e-trade
    facility will be monitored by the ABPF, lessons learnt and best practices will form the core of a
    training course for future e-traders.


                                                 123
11. It is envisaged that 294 locations in Maharashtra will be identified for Virtual Market piloting.
    These locations may be within the APMC yard or out side APMC yard. The private player will
    be selected. PIU MSAMB will give an advertisement in the newspaper for selection of private
    player. The private player should obtain license of e-trading from Director of Marketing as per
    The Maharashtra Agricultural Produce Marketing (Development and Regulation) Rules, 1967.
    Training about virtual market will be given to the license holders of e-trading by the SP. The
    estimated cost for providing computers and peripherals would be Rs.294.00 Lakhs @ Rs.1 Lakh
    per location. APMC / MSAMB will lease out this facility to the e-trading license holder who
    will register buyers, sellers and undertake e-trading of agricultural commodities. Charges for
    registration can be taken from buyers and farmers / sellers. As per the provisions of the
    Agriculture Produce Marketing (Development & Regulation) Rules, 1967, the e-trading licence
    holder will collect 1% cess, which will be shared as 75% by APMC and 25% by e-trading
    license holder. In addition 0.05% will be collected from buyers by e-trading license holder and
    will be paid to the State Govt. as supervision charges.
12. Virtual market can be operated with one computer, broad band Internet facility, UPS and
    software which will be provided under the project. DDRCS will procure these equipments for
    the locations in the districts and will be provided to e trading license holder selected on the
    terms and conditions which will be decided on the basis of recommendations of SP. The
    maintenance will be the responsibility of the e-trading license holder. After 5 years period the
    license holder will have to have his/her own equipment, if he/she wants to continue his
    business. As the MSAMB is providing e-trading platform services to e-trading license holders,
    MSAMB will charge nominal membership to be paid every year. The norms of the membership
    charges will be worked out by the SP. The license holders, who do not require equipment under
    the project, can avail membership of MSAMB platform on payment of their charges.
VI. Estimated expenditure items:
13. The various expenditure items under this sub-component are as follows.
 Sr. No.                                    Item
    1       Feasibility study
    2       Design, development, pilot testing & training
    3       Necessary hardware, softwares, network items, leased line
    4       Providing HW & SW to APMCs
VII. Institutional and implementation arrangements
14. The PIU MSAMB shall be the implementing agency for carrying out the assessment study and
    feasibility of this sub-component. An SP will be selected for carrying out the pre-defined tasks
    viz. Feasibility study and Pilot testing of the model developed. The roll out of the program in
    294 selected locations will also involve providing the required HW & SW to these locations.
    The concerned DDRCS shall be the field level officer involved in the implementation.
15. The service provider for feasibility study and pilot testing will be selected by PIU MSAMB by
    following WB procedure.
16. The procurement as per the WB norms of HW & SW for 294 locations shall be done by District
    Deputy Registrar of Cooperative Societies for the locations in the concerned district. The
    procurement training will be given by the Procurement Training Consultant to all the
    concerned.
VIII. Funds flow
17. The budget shall be sanctioned by the Planning and Finance Department, GOM and the budget
    provision will be made to the Dept. of Cooperation and Marketing through BDS (electronic
    funds transfer system). Director of Marketing will release funds to PIU MSAMB for pilot

                                                124
    testing and hardware and software to be procured at MSAMB. The funds for hardware and
    software of 294 locations will be released to DDRCS by BDS who will draw the funds from
    respective treasuries and make the payment to the suppliers.
IX. Governance Risks and Mitigation Measures
18. The risks and their mitigation are given below -
Sr. No.   Risks                 Description                      Risk Mitigation Measures
1         Technical/ Design     Networking for e-trading is a    Feasibility study by an expert SP
                                new concept that will be         to develop suitable model, and
                                implemented in the Project.      testing of the same.
2         Implementation        Farmers, traders and Staff       Training and capacity building of
          capacity and          involved in Management are       all concerned.
          sustainability        new to the technology and
                                concept.
3         Financial             Scope for improving              Full time account staff at the
          Management            Accounting systems, Delay in     beneficiary level and also at
                                Audit, Irregular follow up for   district, PIU and PCU. Regular
                                improvement.                     internal and external audit, MIS
                                                                 and M&E.
4         Procurement           ---                              (i) Procurement as per WB
                                                                 guidelines including E-tendering,
                                                                 (ii) Grievance Redressal System.
5         Social and            Small & marginal farmers may     (i) FCSCs will serve as
          environment           not get access to the system     aggregating centers of small and
          safeguards            because of their small volume.   marginal farmers’ produce.
6         Other ( for           ---                              (i) Computer Terminals are leased
          example project                                        to licensed operators for e-trading
          specific corruption                                    and will be regulated by the
          risk, ownership of                                     conditions of license by DoM.
          project / program,
          prevalence of
          failure in similar
          projects)


XI. Sustainability
19. The following measures will ensure sustainability of this program.
 i)    An expert SP shall be appointed following the WB procedures for assessment of the
       feasibility of the implementation of the Project.
 ii) The program envisages in depth feasibility study and pilot testing of the developed two
       alternative models and then rolling out the program at 294 locations.
 iii) The operations and maintenance of the infrastructure created under this subcomponent will
       be done from the income generated through E-trading .
 iv) Capacity building of the farmers, e-trading license holders, and APMC personnel will be
       ensured by SP.

                                                  ***




                                                125
                    B2     MODERNIZING EXISTING MARKETS
                          UPGRADING MARKET INFRASTRUCTURE
Overview
1. The APMCs are established as local authorities under the Maharashtra Agricultural Produce
   Marketing (Development & Regulation) Act 1963 (APMC Act) and the Rules made there under
   in the year 1967. The main objective of the Act is to regulate agricultural marketing of notified
   commodities and provide adequate protection to the producers from the exploitation of the
   buyers.
2. Approximately 40 to 50 % of the total agricultural production of the state is sold through
   regulated markets or the Agriculture Produce Market Committees (APMCs) in the State. The
   State has 294 main market yards and 612 sub market yards, and of these market yards, as many
   as 196 market yards trade in cattle and other livestock.
3. There is a provision in APMC Act that agricultural produce should be sold by open auction.
   However, there are rare instances of “Hatta System” of auction (auction taking place under
   cover of cloth on hand and making some signs by fingers under the cloth) found in some
   APMCs. There is a scope for bringing more transparency in auction systems. Many APMCs do
   not have modern infrastructure. This also needs to be developed.
4. The trade of livestock, especially cattle, sheep and goat, is done mainly in an unorganized way
   without any regulation and sale of animals does not take place on the basis of milk yield or
   body weight. There is a need to improve transparency in the transaction between the buyer and
   the seller for trade of livestock
5. Many of the APMCs market yards do not have basic market infrastructural facilities such as
   internal roads, drainage, electricity, water, weigh bridges, auction hall, trader shops, and
   unloading ramps. These markets are underdeveloped and are characterized by: (a) produce is
   not cleaned before it is brought to market, (b) different qualities of produce are not sold
   separately, (c) produce is not graded before being sold, (d) produce is not sold by standard
   packages, (e) produce is sold with a lack of price information creating an atmosphere of
   uncertainty, (f) storage facilities are not used or not available and immediate sales have to be
   made.
6. This results in poor service in many of the markets to the stake holders including the farmers.
   Therefore, it is becoming imperative to improve the functioning of these market yards by
   providing infrastructure and training the manpower connected with management of these
   APMCs as per requirement. Therefore it is proposed to modernise 100 APMCs and 24 livestock
   markets under MACP.

                                                ***




                                                126
                   B2.1 MODERNIZING WHOLESALE MARKETS

   I. Objective:
1. APMCs form the hub of agricultural trading which are democratically run local bodies. The
   major stakeholders are farmers, traders and consumers. Recently the amendment of the APMC
   Act has enabled licensed direct marketing agencies and private markets to participate actively in
   the agricultural marketing. It is imperative for the APMCs to provide to the stakeholders
   facilities for agricultural marketing in the form of basic and productive infrastructure for the
   purpose of: (i) Proper Handling of Agricultural Produce, (ii) Dissemination of Marketing
   Information, and (iii) Efficient Waste Management.
2. The level of investment in utility infrastructures in APMCs is low, mainly because:
   i) Public utility infrastructures in APMCs like land development, compound wall, drainage,
        electricity, pavements, auction halls and auction sheds, toilets, and canteen are non
        productive assets. The share of these investments in the development of APMCs is large and
        needs longer gestation period.
   ii) The infrastructure like godown, cold storage, cleaning, grading, and packing units can come
        up with public private partnership (PPP), but in order to attract private investors, support
        would be required in the form of advisory services and establishment of mechanisms for
        risk sharing.
   iii) Moreover APMCs do not get the loan easily from the commercial banks for such
        development. Many a times, personal guarantee of the Directors of the Committee is
        demanded by the Banks for the loans of APMCs which is not agreed to by the Directors.
3. The result of this complex situation is either slow development or no development of APMC
   yards. The problem is addressed by providing assistance under MACP that would be linked to
   reforms in the functioning, management and operations of the market yard. The strategic
   objectives of modernization of APMCs are briefly stated below.
   i) Transparency: To improve transparency in all the APMCs to be modernized, the
        transparency will be ensured by:
   a) Computerized recording of arrivals of vehicles entering the market carrying agricultural
        produce, computerized recording of sale transaction and accounting.
   b) The sale of fruits and vegetables is conducted by open auction; however there is scope to
        improve transparency in these transactions. The electronic auction is proposed on pilot
        basis in the biggest APMCs in the State i.e., New Mumbai & Nagpur to bring in
        transparency in the sale of fruits & vegetables.
   ii) Open Auction: Open auction of the agricultural produce is mandatory in the Model Byelaws
        with the provision for stringent action against the defaulting APMCs for not complying with
        open auction. The computerized auction system will be implemented in around 10% of the
        APMCs proposed to be modernized to bring in complete transparency. Wide publicity by
        displaying the message that produce must be sold by open auction and sale by hatta system
        or without open auction is illegal will result in awareness generation among producers. The
        aggrieved will be invited to lodge complaint with APMC and Director of Marketing or his
        taluka/district level officer, which will be enquired and dealt with seriously. This will ensure
        implementation of this reform. These measures will result in increase in income of farmers;
        avoid evasion of cess, resulting in increased income of APMC which will boost
        sustainability of the Project.
   iii) Value Addition: Cleaned and graded produce will fetch better price in all the APMCs:
   a) The fruits and vegetables are required to be graded and packed properly to have value
        addition. In two APMCs Electronic Auction Halls are proposed, whereas in other APMCs


                                                 127
      to be modernized under the Project wherever necessary washing, cleaning, grading and
      packing units for fruits and vegetables with pack houses are proposed.
   b) For auction of produce in Electronic Auction Hall in New Mumbai & Nagpur APMC, it
      would be a precondition to get the produce properly washed, cleaned, graded, and packed.
   c) Food grains, oilseeds and pulses are brought by the farmers to the APMC from the field,
      without cleaning and grading which reduces the price received by the farmers. The price
      realized by the producer is at least Rs. 50/- to Rs. 100/- per quintal less for food grains,
      oilseeds and pulses as compared to the price realized by the farmer for the produce duly
      cleaned and graded. Infrastructure would therefore be created to make the produce more
      acceptable to the traders and to the consumers, which is cleaned, graded and packed.

II. Outcome and Output Monitoring Indicators:
4. As a result of the project interventions in selected APMCs the expected outputs and outcomes
   are as follows:
    Sr. Outcome                                  Monitoring Indicators
    No.
    1   Growth in volume of market               % increase in volume of produce sold in
        transactions.                            targeted markets.
    2   Farmers, traders and buyers satisfied    % of farmers, traders and buyers satisfied in
        with modernized infrastructure.          targeted markets per category of Market
                                                 Yards.

    Sr. Output                                    Monitoring Indicators
    No.
    1   Agriculture market yards with             % of targeted agriculture market yards
        improved infrastructure.                  improved.
    2   Capacity utilization of improved          % Capacity utilization of improved
        infrastructure in modernized markets      infrastructure.
        by farmers and traders.
    3   Reduction in waste in targeted            % Reduction in waste in targeted markets.
        markets.
    4   APMC members in targeted markets          % of APMC members in targeted markets
        trained     in    improved    market      trained in improved market management
        management practices.                     practices (record keeping, accounting, use of
                                                  display boards).
    5     APMC markets where improved             % of markets where improved management
          management practices have been          practices     have     been     implemented
          implemented.                            (computerization, record keeping open
                                                  auction system, payment within 24 hours,
                                                  standard accounting practices, use of display
                                                  boards).
    6     Share of farmers in the consumer’s      % increase in the share of farmers in the
          rupee.                                  consumer’s rupee.
    7     APMC Markets where computerised         % of APMC computerised auction system is
          Auction     System     has   been       implemented.
          implemented

The baseline values to be developed by M&E consultant for various APMCs will be considered
   while evaluating the performance.


                                                128
III. Policy and Regulatory Environment:
5. The APMC functions as per the provisions of the Maharashtra Agriculture Produce Marketing
   (Development & Regulation) Act, 1963, the Rules under that Act and the byelaws of the
   APMCs. The GOM has already amended the APMC Act on the lines of Model APMC Act
   circulated by the GOI and various reforms like establishment of private markets, farmer
   consumer markets; direct marketing, contract farming, single licensing, and e-trading licensing
   have been provided.
6. The model byelaws have been circulated to APMCs for adoption and as on 31 st May 2010, 8
   APMCs have already adopted model bye laws, and, other APMCs are in process of adopting the
   same. Basic provisions relating with many of these changes proposed in the byelaws are already
   there in APMC Act. The purpose of making these provisions in the byelaws of APMCs is to
   make those more explicit and understandable by all stakeholders including farmers. The
   amendments in APMC byelaws proposed will be implemented in all the APMCs proposed for
   modernization as a precondition. The model byelaws have been prepared by the Directorate of
   Marketing in consultation with representatives of APMCs and the same have been circulated to
   the APMCs. The APMCs desiring to participate in the project will put forth these byelaws
   before elected committee for its approval for adoption. Subsequently all the APMCs in the
   State will adopt these byelaws. The reforms introduced in the byelaws of APMCs are given in
   the following table.
  S.               Basic Reforms ( To avail Project Funding for Basic Infrastructure)
  No.
   1     Adopt model byelaws as prescribed by MSAMB

   2     Computerized and standard accounting procedure, preparation of annual reports as per
         standard accounting norms

   3     Public display of market income & expenditure, tender documents

   4     Provision for direct sale to consumers and bulk consumers

   5     Open auction practices

   6     Computerized mechanism of licensing of functionaries and the monitoring of the same

   7     Electronic Weighing

   8     Daily Payment within 24 hours of the produce sold.

   9     Willingness to create Market Infrastructure Maintenance Fund @ 1% of total
         infrastructure investment cost per annum from the year of commissioning the facilities.
         This fund will be kept in separate account and used only for the purpose of repairs and
         maintenance of the infrastructure with prior permission of regulatory authority.

   10    Prominent display of price information in the market through multiple price display
         boards

   11    Implementation of waste management system.

   12    For APMC Mumbai & APMC Nagpur: Feasibility study of electronic auction system
         only as pilots.


                                               129
S.            Additional Reforms ( To avail Project Funding for Productive Infrastructure)
No.
 1    Willingness to undertake investment in PPP mode
 2    Willingness to start Pledge loan scheme / Warehouse receipt and connectivity to commodity
      exchanges / E-trading
 3    Computerized Auction System
 4    Computerized recording of the entry of all vehicles carrying agriculture produce (including
      bullock carts) entering in to the Market Yard

7. The Model Byelaws incorporating aforementioned reforms have been sent to all the APMCs for
   its adoption. These will be discussed in APMC meetings. The committees have the
   representatives of farmers, traders, commission agents and workers (Hamal). These bylaws will
   then be adopted by APMCs and will be approved by Taluka Assistant Registrar/ District
   Deputy Registrar of Co-op. Socys., to whom powers of Director of Marketing, M.S. are
   conferred. To ensure the compliance, the MOU between APMC and the Project will also
   include willingness to comply with all above reforms besides other terms and conditions. To
   ensure the compliance, wide regular display of bylaws providing for reforms will be made on
   display boards in APMC yards. The producers and all other stakeholders will become aware
   about the provisions, and can work for redressal of grievance, if aggrieved.
8. Subsequent to reforms and introduction of computerized system of recording of the important
   events, beginning from arrival of agricultural produce at the entrance of Market Yard and up to
   actual sale of the agricultural produce and subsequent payment to the producer, is as mentioned
   below:
       a. Recording of Arrival: Each vehicle arriving at the Market Yard is recorded at the entry-
           gate (Details captured: Date & Time of the arrival, Description of Vehicle, Name of the
           Producer, Description of Agricultural Produce, Name of the Agent)
       b. Recording of Sale Transaction: The agricultural produce is presented to agent for sale
           (Details captured: Date & Time of the Sale, Name of the Producer, Description of
           Agricultural Produce, Name of the Agent, Weight of the Produce, Gross Sale Price,
           Total Cess)
   The above reforms will ensure transparency in the working of all APMCs proposed to be
   modernized.
9. Besides the periodical checks by regulatory authorities and stringent action for not
   implementing reforms and the provisions of bylaws, constant publicity of reforms and
   provisions in byelaws like open auction of produce, weighment of produce on electronic weigh
   bridge, payment within 24 hours and all such provisions will be displayed on display boards by
   APMCs at conspicuous places, so that producers and all stakeholders would know the same &
   if aggrieved, they can make complaint to the concerned authority which will be dealt seriously.
   This will ensure implementation of reforms.


IV. Selection Criteria:
Markets to be modernized
10. The primary analysis of the market related data and infrastructure related data has been carried
   out as mentioned below.
       a) Production related data: The production data of major commodities viz., fruits,
       vegetables, pulses, oilseeds, grains have been analyzed with respect to the area under
       cultivation, production for the past five years in the market area of APMC. The average
       growth rate in area and production in the market area is considered. Also the population of

                                                130
       the market area and the commodity wise marketable surplus is estimated. The locations
       having higher growth rate and higher marketable surplus are given higher ranking.
       b) Market related data: The existing agriculture markets in the district have been studied in
       respect of arrivals, sales, turnover, and collection of cess during the past five years. The
       average growth rate in turnover, arrivals, sales and cess is calculated. Higher rating is
       accorded to the APMCs having higher growth rate of annual arrivals.
       c) Infrastructure related data: Road connectivity of the selected market yard location is an
       important criterion.
11. The final selection of APMC market to be included in modernization programme            would be
    done as per the process described below.
12. Based on the competitive process of selection, existing markets yards of 100 APMCs would be
    modernized. Out of these 98 APMCs (District level APMCs- Minimum 18, maximum 24 and
    taluka level APMCs-minimum74, maximum 80) would be selected on a competitive basis.
    However for the purpose of costing 24 district level APMCs ( B type) and 74 taluka level
    APMCs( C type) have been considered in the cost tables. Two APMCs would be modernized
    with electronic auction hall with connectivity to commodity exchanges, on a pilot basis
    considering the quantum of arrivals, two largest APMCs in the State, viz. Mumbai and Nagpur
    have been selected under the project.
13. Competitive Process: This competitive process would ensure that only those entities that are
    interested in the modernization programme and are willing to undertake the reforms that are
    proposed under the MACP are selected. The competitive process will be followed as detailed
    below:
        i. Awareness creation, information sharing and mobilization: PIU, MSAMB in close
           collaboration with DDRCS will share information about assistance under MACP with
           potential participants like APMCs and RHs, describing the objective, scope and the
           rules for competing for the assistance. An awareness campaign will be undertaken to
           inform the potential beneficiaries about the project and the eligibility criteria to access
           the grant.
       ii. Call for proposals and Screening stages: Based on the mobilizations, PIU, MSAMB will
           make formal calls for proposal based on the district wise project phasing as given in the
           chapter of project design. PIU, MSAMB will also decide on the number of calls to be
           made depending on the demand from the districts. A two-stage screening process will be
           used: Project Concept Note (PCN) and Full Project Proposal (FPP) screening. PIU,
           MSAMB has conducted the exercise of calling PCN from 105 APMCs from Phase-I
           districts included under MACP. Out of these, 99 APMCs submitted PCN. The
           competitive process described under this para has been adopted. The institutional
           criteria (Criteria-I described herein after) were fulfilled by 81 APMCs. Whereas, 30
           APMCs fulfilled economic criteria (Criteria II). These 30 APMCs were ranked on the
           basis of VGF demanded by them. Out of these 30 APMCs FPP of 8 APMCs have been
           prepared in-house by the Project Preparation Team.
      iii. Project Concept Note (PCN): The purpose of a PCN is two fold:
            To allow applicants to submit a proposal in summary form for preliminary
               assessment of the concept without the need to prepare a full-fledged proposal that
               requires much efforts, thus reduce transaction costs by eliminating from the start any
               proposal that fails to meet the eligibility criteria, and
            To allow PIU, MSAMB to manage evaluation of process so as to identify a short list
               of the concept notes that are worth pursuing to the level of Full Project Proposals.
      iv. The PCN will be presented following a standard format which will be simple and
           focused on describing the investment requirement.


                                                131
      v. PCN Evaluation: Each PCN will be evaluated by PIU, MSAMB. Evaluation will focus
         on the strength of the proposal based on the Project objectives. For the purpose of short
         listing of the APMCs from the PCN received, the following Criteria will be applied.
         (a) Criteria I : Following institutional criteria will be considered
            Availability of land: The APMC should have land with clear title under its
             possession (either owned or minimum of 30 years long term lease). This will be the
             pre-condition for applying further selection criteria for selection of APMC in the
             modernization programme under the Project.
            APMC should have an Elected Management,
            APMC should have full time CEO / Secretary,
            APMC should have generated Cash Surplus for last 3 years,
            APMC should not have defaulted any loan,
            The accounts of the APMC should be audited for the past 3 years and there should
             be no serious audit observations in audit reports,
            APMC should be willing to invest in productive infrastructure in PPP mode only
             after Basic Infrastructure is completed,
            APMC should be willing to undertake reforms mentioned above.
         The APMCs fulfilling above mentioned selection criteria will be considered for
         Further selection scrutiny as per Criteria II
       (b) Criteria II: following financial criteria will be considered-
          Average annual cess ( above Rs.20.00 Lakh) – 0.33 marks/point
          Average annual agri produce arrivals (above 30,000 MT) 0.33 marks/point
          Average positive growth in annual arrivals -0.34 marks/point
         The APMCs showing highest figures for cess, actual arrivals and positive growth for
            annual arrivals will be given 0.33, 0.33, and 0.34 prints respectively, and the other
            respectively. and the other APMCs will be given proportionate points for all the
            three issues and accordingly APMCs in each district will be ranked.
       (c) Criteria III: Based on the scrutiny as per criteria II, the VGF sought by the APMC
         seeking least VGF will be ranked first while the other APMCs will be ranked according
         to their VGF requirements. The scrutiny of APMC from the PCN as per Criteria II and
         III will be performed by PIU- MSAMB.
vi.      The outcome of the evaluation of PCN would be presented by PIU, MSAMB to the
         Approval Committee for approval. The approval committee will comprise of Project
         Director, Chief financial controller, Marketing co-ordinater, Managing Director-
         MSAMB (PIU). Nodal Officer PIU will be the member secretary of the committee. This
         Committee would select not more than 5 APMCs per district for Preparation of MMIP
         or FPP.
vii. Market Modernization & Improvement Plan (MMIP): The APMCs that would be
     selected for modernization under the Project from the PCN stage would follow MMIP
     which includes the process of feasibility study by SP, Preparation of Full Project
     Proposal (FPP) and implementation of the improvement programme which is given in
     detail in implementation arrangements
viii. Full Project Proposal (FPP): The full application will be a more thorough exercise for
      which the selected applicant will be supported through technical assistance through third
      party Service Provider (SP) for APMC, who would be competitively selected by the
      Project. The technical assistance would be provided by the third party SP and funded by


                                                132
           the Project and would follow the procedures laid out in the MMIP process. The SP will
           prepare FPP for APMCs selected in the first stage selection Process.
     ix.   FPP review and approval: After the completion of the pre-investment (feasibility) study
           by SP, the detailed proposal (FPP) will be submitted to PIU, MSAMB by the applicant.
           PIU, MSAMB will once again evaluate the proposal. The findings of the PIU, MSAMB
           and additional information like VGF requested will be submitted to the Approval
           Committee for discussion and approval.
     x. The implementation cycle of the MMIP is shown below:


                                                    Implementation Cycle of MMIP

                      Awardee starts                  MSAMB, DDR,                                                            Call for
                     implementation                   TA(SP) monitors the                      Completion                    proposal
                                                      implementation



                                                                                                                          Project Concept
                                                                    Contract Supervision                                  Note submission
                       MSAMB release                                   Consultancy
                          grant


                                                                                                                          Pre-screening
          FPP
       Evaluation                                                                                                         Evaluation of       PCN
                        Approval Committee                                                                                concept note
          and            reviews & decides                                                                                                  Technical
        approval                                                                                                                            Evaluation
       Committee                                                                                                                            Committee
                     Accept                                                                                                        Accept


                                                                              Submit Full                                  Prepare full
                    Recommendation of MSAMB                                 Project Proposal                                proposal
                     after review of Full Project
                               Proposal

                                                                                                    Technical Assistance support
                                                                                                               by SP



14. PCN Technical Evaluation Committee: The MMIP is a competitive grant programme and the
    eligible applicant’s proposal, PCN, would be evaluated by the Technical Evaluation Committee
    of PIU-MSAMB, which will include (a) Nodal Officer - PIU, (b) Sr. Accounts Officer- PIU
    (MSAMB), (c) Civil Engineering Specialist, (d) Market Field Engineer, (e) Officer Incharge
    APMC -Member Secretary. Nodal officer, PIU, MSAMB will inform the APMCs about their
    selection of their PCN.
15. FPP Evaluation and Approval Committee: The FPP of the APMC will be approved by the FPP
    Evaluation and Approval Committee. The PCN Technical Evaluation Committee will also act
    as FPP Evaluation and Approval Committee. On the basis of packaging of APMCs selected (i.e.
    No of APMCs to be clubbed together), the tender for these APMCs will be given by the PIU
    MSAMB. The infrastructure development programmes under the project would be carried out
    on the basis of predefined selection criteria by the SP to be selected by competitive bidding
    process for development of the respective infrastructure. Procurement will be done as per the
    threshold and procedure given in the Procurement Manual. The approved FPPs costing more
    than Rs. 50.00 lakhs would be sent to PCU.




                                                                    133
V. Activities to be financed:
Illustrative list of investments to be made and phasing:
16. Illustrative investments for APMC Agriculture Market Yards: An illustrative list of investments
    along with the cost to be made in these regulated markets is given below:
a. Illustrative list of Basic Infrastructure for Category A, B and C Markets.
       Sr.
                                               Menu of Items
       No.
              Modern Auction Platform with shed (with elevated platform, flooring, electrical
        1
              fixtures.) (300 Sq. Mtr.)
              Platform with shed for direct marketing of farmers produce to consumers (52 Sq.
        2
              Mtr. x 4 Nos.
              Platform with shed for direct supply of bulk consumer & organized retailers (263 Sq.
        3
              Mtr.)
        4     Drinking Water facility
        5     Toilet Block (30 Sq. Mtr.)
              Compound - 450m long barbed wire fencing with 0.45m thick U.C.R. masonry 2 feet
        6     high (840 Running mt.) (Land required is 10 acres, hence cost of compound wall is
              considered for 10 acres area, excluding the land cost.)
        7     Roads with watchman cabin
        8     Street light & electricity
b. Illustrative list of Productive Infrastructure for:
i) Category A Markets (Mumbai & Nagpur APMCs):
        Sr.
            Menu of Items
        No.
         1 Electronic Auction Hall & Pack House For Fruit & Vegetable
         2    Food grain & Pulses Cleaning Unit (40 MT per hour capacity)
         3    Solid Waste Management Unit / Vermi composting Unit (40 MT / day)

ii) Category B Markets(District Level APMCs):
        Sr.
              Menu of Items
        No.
         1    Pack House For Fruit & Vegetable
         2    Food grain & Pulses Cleaning Unit (40 MT per hour capacity)
         3    Solid Waste Management Unit / Vermi composting Unit ( 10 MT / day)
         4    Cold Storage (500 MT)
         5    Godown (500 MT)
         6    Electronic Weighbridge ( 40 MT capacity)

iii) Category C Markets (Taluka Level APMCs):
       Sr. No.   Name of the work
          1      Pack House For Fruit & Vegetable
          2      Food grain & Pulses Cleaning Unit (10 MT per hour capacity)
          3      Solid Waste Management Unit / Vermi composting Unit ( 5 MT / day)
          4      Cold Storage (100 MT)
          5      Godown (250 MT)
          6      Electronic Weighbridge (40 MT capacity)




                                                   134
17.    In addition to the basic and productive infrastructure proposed in 98 APMCs additional
       investments would be made in Category A markets (Mumbai and Nagpur) in Electronic
       Auction Halls and Electronic Trading of Perishables with linkage to Spot Exchanges.
c. Computerized Auction System
18. There is a scope for bringing more transparency in auction systems being held at APMCs in the
    State. As a part of modernization of markets GoM has decided to introduce computerized
    auction system at some markets on pilot basis. The PPT team has visited Karnataka State during
    16/03/2010 to 20/03/2010 to study the computerized auction system implemented at Mysore
    and Tumkur markets. Based on the study of computerized auction system in Karnataka by PPT,
    MACP the computerized auction system is proposed in 20% of the APMCs taken up for
    modernization. Main objective of introducing computerized Auction system is to bring in
    complete transparency in the process of auctioning which will enable the farmers to get the
    maximum price of his produce.
19. Computerized auction system is an innovative idea and first experiment in the State.
   Computerized auction system is dependant on the quantum of arrival of produce which is traded
   through the system. One or few of the non perishable commodities among soyabean, tur, wheat,
   jawar, bajara, and maize will only be selected for computerized auction system in the
   beginning. Similarly, selection of IT infrastructure will be done based on the quantity of arrivals
   and geographical area of the market. This will help streamline the process of computerization of
   auction system at the APMC. The computerized auction system is proposed to be divided into
   five stages as: i) Gate entry, ii) Quote entry, iii) Price declaration, iv) Cess assessment and v)
   Farmer receipt, for proper executions of all processes of the auction system.
20. Process of the Proposed Computerized Auction System:
      (a) Gate Entry: The details about date, name & place of the farmer, commodity, and quantity
          of the produce, name of commission agent will be entered in the computer installed at gate.
          To avoid the crowd and congestion of vehicles, four computers are to be installed at the
          gate. The lot number will be auto generated by the software and two slips will be printed
          with lot number. Farmer will keep one slip and another slip will be kept at the lot for the
          display. Gate entry should start as soon as the produce arrives and can be continued till end
          of the arrivals of identified commodity. The lots should be allotted for next day in case the
          produce arrives after the cut off time of price quote by traders.
      (b) Quote Entry: Five Kiosks with two computers and one printer at each kiosks will be
          installed at auction platforms. The lots should be displayed at auction platform with printed
          slip given at the gate entry. Trader should observe the lots, and, quote his price in the
          computer with the help of software. He can take a print of his price quote. A time slot
          should be decided for the traders to quote their prices. This time slot can be based on the
          quantum of produce arrives at peak season and office timing of the APMC. After the cut off
          time, the trader should not able to quote his price.
      (c) Price declaration: Two computers should be installed at the office with auction software.
          The software should have facility to generate a report for maximum price quoted by the
          traders. Prince declaration should be done by the secretary or authorized APMC official
          with the help of software. The report should be printed in two copies, one copy for the
          commission agent and another copy for the APMC. The APMC official should declare the
          price with the help of printed report. This announcement should be done through loud
          speaker, for which sound system arrangement should be made accordingly. Similarly,
          declared price can be displayed on the LCD TV proposed to be installed under Market
          Information Service. The computerized auction software should have option for displaying
          live prices through display system (LCD TVs).


                                                  135
   (d) Cess Assessment: After price declaration concerned commission agent will enter actual
       weight of commodity in the software through independent login facility. Software will
       generate report for the commission agent for the cess amount to be paid by him. The facility
       has been provided to APMC officials through independent login to monitor cess collection
       (i.e. cess to be paid by commission agent, actually paid and balance).
   (e) Farmer Receipt: After the cess assessment the farmer receipt will be generated through the
       software for payment to be made to the farmer.
23. To start with, computerized auction system is proposed for one market with one commodity.
    Once this system is established, the same can be replicated to other 9 identified markets, after
    the period of six months. After one year, computerized auction system can be established in
    another 10 identified markets. The proposed model for computerized auction system may have
    two servers, 4 computers at gate and five Kiosk with 2 computers each and 2 computers at
    APMCs office. The software for the auction process should have five features (i) gate entry, (ii)
    quote entry, (iii) price declaration, (iv) cess assessment, (v) farmer receipt.
22. The Servers and computers mentioned above model should be linked to form local area network
    with the help of Wi-Fi technology.
24. The items of expenditure for the proposed computerized auction system are given below.

             Sr.                                   Item
             No.
             1        Server with Operating system
             2        Computer at gate
             3        Computer for Kiosks
             4        Computer at office
             5        Network Items
                       Router
                       Firewall
                       Switches
                       Wi-Fi system
             6        Dot Matrix Printer 132 Col
             7        Dot Matrix Printer 80 Col
             8        Laser Printer
             9        Application software for 20 APMCs. y
             10       Sound system- 2 Mikes, 1 Amplifier, 5 speakers & cables
             11       Portable Generators
             12       Civil work & furniture




                                                136
Schematic Diagram of Computerized Auction


                            Date, name & place of the
                              farmer, commodity,
                               quantity, name of
                               Commission Agent




           Farmer Slip                                    Lot Slip
                                  Gate Entry



                            Price Quote by Trader                    Trader
                                                                     Quote
                                                                      Print



                                Price Declaration           Max. Price
                                                             Report




                                   Maximum
                                Price declaration
                                 for Farmer to
                                sell his Produce
Process
d. Standardised Accounting System for APMCs
25. There are 294 APMCs in the State and function as per the Maharashtra Agriculture Produce
    Marketing (Development and Regulation) Act 1963 and Maharashtra Agriculture Produce
    Marketing (Development and Regulation) Rule 1967. The Act have guidelines for APMCs
    to maintain few accounts viz. cash book, salary register, license register, Govt. Loan
    Register etc. Accounting system adopted by APMCs is on the basis of mercantile. It is
    maintained manually with the help of various registers. Though, there are guidelines in the
    Act, account keeping varies from APMC to APMC. Various account heads maintained by
    APMCs are as per the heads of APMC budget. Average 180 common heads are available
    under the budget approved by the Marketing Board. Same head are used by APMCs for
    account keeping. Following are the problems in existing accounting systems at APMCs.
    i) The accounting heads vary from APMC to APMC.
    ii) Income and Expenditure heads are not properly grouped.
    iii) It is time consuming to prepare comparative statements of expenses incurred.
    iv) It is tedious to sort out budgetary provision from the current year expenses.
    v) Manual records are difficult to maintain safely and subject to human errors.
    vi) The existing manual system can be easily manipulated.
    vii) The existing manual system requires more human efforts.
    viii) It is difficult to know exact financial position at any point of time.
26. In view of above problems and reform agenda, it is necessary to have standard accounting
    system for APMCs. This could be achieved by using standard accounting software which is
    commonly used. If standard accounting software is provided to all APMCs, they can
                                                    137
   maintain their accounts as per the standard groups and sub groups available in the software.
   This standard accounting system will include the provision of accounting of the cess
   collected within the market yard and out side the market yard. This will help in uniform
   account keeping and reports generation at all APMCS. Hence, common accounting platform
   like Tally or equivalent accounting software is proposed to be installed at APMCs for day-
   to-day account keeping and reporting.
27. The MSAMB will provide all the necessary information about accounting system prevalent
    in the APMCs and the standard formats for income expenditure statement, balance sheet
    and other accounts. The supplier of software in consultation with MSAMB will customize
    the software to meet the requirements of MSAMB to bring in standardised accounting
    system in APMC.
28. It is proposed to provide latest single user software for 294 APMCs. The multi user version
    of software will be useful for accessing the software on more than one computer for
    multiple purpose. Multi user latest software will be purchased from authorized supplier. The
    supplier will customize, install the software at APMCs and provide training to concerned
    staff for usage of the software.
Market Development Programme Studies:
29. Under the project, comprehensive studies would be undertaken to have a closer look at the
    various issues that affect the development of marketing chain and feasibility studies for
    implementing various innovative pilots proposed under the project. An illustrative list of
    studies that would be undertaken is:
   i) Feasibility Study and Setting up of Electronic Auction Hall at two APMCs, preferably places
       like Mumbai & Nagpur. A study for the same is proposed to come up with the modalities
       for setting up the electronic auction hall.
   ii) Feasibility Study of Electronic Trading of Perishables and Non-perishables with linkage with
        Spot Exchanges is proposed on pilot basis in two APMC markets.
Capacity building and training
30. To achieve the objectives of institutional strengthening, enhancing the capacity of all direct
    stakeholders of the project from APMC members up to the state level staff of the Project
    Coordination Unit is essential.
31. National Institute of Post Harvest Technology (NIPHT), Talegaon Dabhade, Dist. Pune would
    impart training and capacity building programme. The institute has the requisite infrastructure
    and manpower to provide training programmes. But to be effective and efficient, all training
    programs must start with a Training Needs Assessment (TNA).
32. TNA is used for identifying the gaps and to provide information for a decision on whether the
    gaps could be addressed through training. Also the results of the TNA allow the project to set
    the training objectives in a clear and defined way.
33. Once the TNA is completed and training objectives are clearly defined, designing of the
    programme content and training the trainers from NIPHT, would be taken up. The activities
    pertaining to TNA, designing the programme content and training of the instructors would be
    outsourced to an external consultancy like IIM, IRMA on a competitive basis, following the
    procurement guidelines of the project.
34. The above arrangement of capacity building and training under this subcomponent will also be
    applicable to the subcomponent of modernization of LSM and upgrading village RH.




                                               138
35. The SP for TNA, designing programme content and training the trainers of NIPHT will be the
    same for the subcomponents of upgrading & modernization of APMCs, modernization of LSM
    and upgrading and modernization of RH.

VI. Estimated Costs:
36. The total cost for the modernization of 100 APMC markets (Category A Markets, Mumbai and
    Nagpur -02, Category B Markets, District level markets -24 and Category C Markets, Taluka
    level markets –74) is Rs.262.74 Crore. The cost on computerized auction system and
    standardized accounting system is proposed to be given as project grant by GoM.

VII. Institutional and Implementation Arrangements:
a) Institutional arrangement:
37. PIU.-MSAMB and Department of Cooperation & Marketing are responsible for implementing
    the APMC modernization program. The role of PIU- MSAMB would be to liaise with the
    contractors and the SPs, approve variations and time extension, sample check and jointly verify
    of the measurement books, process bills / claims of the contractors and consultants and resolve
    disputes within the terms of the contract/s.
38. PIU-MSAMB will be responsible for hiring of third party SP for participative consultation and
    market design for APMCs selected under the project. The specific tasks to be carried out by
    PCU, PIU-MSAMB / Dept. of Co-operation & Marketing, the selected APMC and the
    appointed SP in the various stages of the project is given in the following table:

    Sr.   Process step / activity                      Roles and Responsibilities
    No                                            (Primary responsibility underlined)
                                         PCU    PIU (MSAMB)/        APMC          Community /
                                                Dept. of Co-op.                   Market users
    1      Hiring of SP for                     PIU - MSAMB/
           participative consultation                  PCU
           and market design - ToR
           prepared, EoI / RFP
           released, Bid received,
           evaluated and contract
           finalized.
    2      Training of MSAMB                         SP +PIU
           personnel, Officers of                    MSAMB
           Directorate of Agril.
           Marketing, DDRCS,
           ARCS of concerned
           Taluka, APMC Engineers
           & Architects for MMIP.
    3      Ongoing monitoring and                PIU -MSAMB          APMC
           management of SP                        + DDRCS         Engineer, if
           ensuring compliance with                  +MFE           available
           the conditions set forth in
           RFP
    4      Awareness generation of                   SP + PIU        APMC          Community /
           the project in the selected               MSAMB +                      market users to
           location                                  DDRCS +                      provide inputs
                                                      ARCS                           to MMIP
                                                                                    preparation

                                               139
Sr.   Process step / activity                    Roles and Responsibilities
No                                           (Primary responsibility underlined)
                                    PCU   PIU (MSAMB)/        APMC          Community /
                                          Dept. of Co-op.                   Market users
                                                                            through PRA
5     APMC assessment to                   SP + DDRCS +
      carry out the MMIP                         AR
6     Signing of MoU between        PCU     PIU-MSAMB         APMC
      APMC and PCU                          DDRCS + AR
                                                 + SP

7     Preparation of MMIP                   SP + PIU-         APMC         Community /
                                            MSAMB +            Engine     market users to
                                           MFE + DDRCS          ers       provide inputs
                                                                             to MMIP
                                                                            preparation
                                                                           through PRA
8     Endorsement of MMIP by                                  APMC
      the market users of                 DDRCS + AR +
                                                                           Community /
      APMC – APMC to call                     SP
                                                                          market users to
      for market users meeting,
                                                                           signoff in the
      sign off by APMC
                                                                              MMIP
      committee members and
      market users
9     Mobilization of APMC                                    APMC
      contribution towards
      MMIP
10    Notification, Receipt,              PIU (MSAMB)         APMC
      Evaluation and approval                  + SP
      of bid documents for the
      construction as per
      MMIP, Call for tender,
      Tender evaluation and
      finalization,
11    Release of work order                                   APMC
12    Ongoing monitoring and               PIU - MSAMB        APMC
      management of                        + DDR + MFE       Engineer/
      consultants (SP + TSC)                                 Architect
      ensuring compliance with
      the conditions set forth in
      RFP
13    Certification about the               Contractor +      APMC
      Work Measurement /                   ARCS + SP+        Secretary
      Completion                           Field Engineer    + APMC
                                                             Engineer/
                                                             Architect
14    Recommendation for                                     Chairman+
      payment                                                 Secretary
                                                               APMC
15    Payments to contractor –              DDRCS +
      intermediate and final                Drawing &
      payment                               Disbursing
                                          140
     Sr.    Process step / activity                            Roles and Responsibilities
     No                                                   (Primary responsibility underlined)
                                               PCU      PIU (MSAMB)/        APMC          Community /
                                                        Dept. of Co-op.                   Market users
                                                        Officer from the
                                                          o/o DDRCS
     16      Post evaluation - user                                                       Community /
             survey, community score                                                      Market Users
             card                                                                        under guidance
                                                                                            of M&E
                                                                                           Consultant

b) Implementation Arrangements
(i) Description of activities for preparation of Market (APMC) Modernization and
    Improvement Plan (MMIP) of existing APMC markets
39. Awareness generation about the project: The process of MMIP starts with awareness generation
    about the project in the APMC command area. During the meeting all the market users8 and
    other stakeholders would be invited and will be informed about the project, its objectives,
    approach and process, possible intervention and expected benefits. Besides meeting, awareness
    generation process would include wall writings, audio-visual shows giving the details of the
    MMIP.
40. APMC Assessment: Assessment of APMC to commit itself for the MMIP would be carried out.
    This assessment would cover the willingness and capacity of APMC to undertake the necessary
    changes in the APMC management and operations and financial ability to provide its
    contribution towards investments. List of changes, as indicated in the previous section in the
    APMC operations and management would be shared with APMC and an endorsement received.
41. Signing of Memorandum of Understanding (MoU) between the APMC and Project: Once the
    awareness generation process and the assessment of APMC are completed, formal signing of
    MoU with the APMC and the Project would be done. This will delineate the commitments and
    mandates of the two parties towards each other.
42. Demand analysis and estimating market turnover: Once the MoU is signed, analysis of existing
    production, consumption and trade volume in the APMC using past 5 year data would be
    undertaken. This will help in understanding how the APMC relates to the other marketing
    channels. This would essentially answer questions pertaining to a) is the trade volume
    increasing, b) what is the change in the trade pattern. This would be combined with the estimate
    of future production of the agriculture produce in the APMC catchments area, per capita
    consumption in the district, and trade throughput in the APMC. This demand analysis and
    estimation would be done through a combination of secondary data and primary survey and
    would be outsourced to the third party SP.
43. Participative Consultation: Participative consultation would be carried out through PRA
    (Participative Rural Appraisal) technique. This will ensure that the investments in the market
    meet the user needs. During the consultation process the marketing problem faced by the
    producers, traders and other market users would be identified, possible ways of overcoming the
    problem would be discussed and finalized. The problems faced by the APMC needs to be
    classified into two broad categories, viz.:


8
 Market users are defined as producers / farmers, traders, APMC members, other market functionaries and local
authority like municipality

                                                        141
      i. APMC management issues like unfair trade practices, inadequate resources for operations
         and maintenance (O&M) for the APMC, lack of trained staff in modern management,
         issues related to license, governance,
     ii. Physical constraints like inadequate parking space, congestion in APMC, poor physical
         infrastructure, lack of modern post harvest equipments / machineries.
44. Prioritization of Needs: The investment needs would be prioritized with the market users based
    on the budget available under the project.
45. Preparation of design and work estimate: After identification of the investment interventions,
    the design and cost estimates for the civil work and other related activities will be prepared by
    the SP along with the Work Sub Committee of the APMC.
46. Financing pattern: The APMC would bring contribution to the extent of 50% from their own
    funds or by raising loan, Viability Gap Funding from Govt. of Maharashtra would be up to the
    maximum of 25% and State Govt. contribution will be 25% for basic infrastructure. For
    productive infrastructure 25% would be given by the State Govt. and 75% will have to be
    mobilized by the APMC. For computerised auction system and standardised accounting, 100%
    cost will be funded by GoM.
47. Preparation of MMIP: MMIP will include the PERT Chart, design, cost estimates of the
    investments, financing pattern and address the issues relating to changes to be done in the
    APMC operations and management. It would also have a detailed project feasibility study, list
    of monitoring and evaluation indicators and detailed cost tables as indicated below –
       a. Survey data of the APMC,
       b. Need assessment and investment prioritization matrix
       c. Existing layout plan
       d. Final design, architectural drawings, structural designs and drawings
       e. Detailed feasibility report and viability gap.
       f. Bill of quantity and Bid document as per project guidelines
48. Endorsement of the MMIP in the general body of APMC: After the design, cost estimates and
    the implementation plan for all interventions have been prepared, it will be compiled into
    MMIP document. MMIP will be presented to the APMC General Body. The SP in charge of
    the MMIP preparation will discuss and clarify all queries related to the MMIP implementation
    plan, designs and cost estimates. Based on the discussions, any required change would be
    carried out. Once the MMIP has been agreed upon and finalized, a General Body Meeting of
    APMC will be held to pass a resolution approving and adopting MMIP. The APMC committee
    would submit the MMIP to MSAMB for final approval.
ii) Implementation of MMIP:
49. Works Account: MACP Beneficiary Contribution Account will be opened at each district in the
    State Bank of India. This account would be jointly operated by the DDRCS and the Drawing &
    Disbursing Officer from the o/o DDRCS. The beneficiary contribution will be deposited in this
    account upfront (1/3rd cash and 2/3 rd in the form of loan sanction order) before issue of work
    order The maintenance of records of this account regarding amount received from the
    beneficiary contribution deposited in the account & payments made from this account for
    MACP works shall be maintained by the o/o DDRCS for which an independent accountant with
    computer knowledge is proposed in each DDRCS office. With regard to the funds from the
    project the same will be made available to the DDR by the Director Marketing through Budget
    Distribution System (BDS). The DDR will draw the funds through the treasury and make the
    payments to the contractor.
50. Tendering process: Once the plans & estimates are prepared by the SP, those will be submitted
    to PIU (MSAMB). The FPP Evaluation and Approval Committee, comprising of Nodal Officer

                                                142
   - PIU, Sr. Accounts Officer- PIU (MSAMB), Civil Engineering Specialist, Market Field
   Engineer and Officer Incharge APMC - Member Secretary, will evaluate and approve the plans
   and estimates. On such sanction, PIU (MSAMB) will call tenders as per the procurement norms
   prescribed under the project. The tenders costing up to Rs. 50.00 Lakhs will be decided at the
   level of PIU (MSAMB), and, above that limit tender finalization would be done by PCU and
   the procedure laid down in procurement manual will be followed. The respective APMC will be
   invited to participate in tender finalization process by PCU / PIU (MSAMB) as the case may be.
   The work order would be issued by the concerned APMC.
51. Ongoing Monitoring of works: The progress of the work, quality and quantity of work done
    will be closely monitored by the Work Sub Committee of the APMC facilitated by the SP and
    Market Field Engineer (MFE) of MSAMB. MFE will be appointed for technical quality
    supervision of the civil works by MSAMB, preferably one MFE per district. The measurement
    for various works will be done jointly by the SP, the Contractor, and the Secretary of the
    concerned APMC, APMC engineer, and ARCS of the concerned Taluka.
52. The SP will also be required to regularly inspect the works to ensure full compliance to the
    technical designs, technical specifications and also to regularly monitor the progress of works
    of the approved construction. For this purpose SP shall provide adequate engineers independent
    for recording measurements and for checking the measurements and bills. The details of the
    same are given in TOR for appointment of the SP.
53. Independent third party quality control: In order to ensure a third party control on the quality
    and quantity of the works, PIU-MSAMB would appoint Market Field Engineer (MFE),
    preferably for each district, with the following objectives. MFE will look after the quality
    aspect of work of APMC, LSM, RH, and FCSC.
       a. Ensure compliance of engineering design, technical specification and contract
          conditions by the contractor,
       b. Ensure effective supervision to attain high quality construction,
       c. Ensure full compliance of engineering design, technical specification and contract
          conditions,
       d. Minimize time overrun and cost overrun as well as to avoid contractual disputes,
       e. Build the capacity of the Engineers of APMC in construction supervision, contract
          administration and project management


54. Mode of Preparation of bill & Release of Payment:
       a. Intermediate and final payments to the contractor would be based on quantity of works
          completed and certified, less amount already paid. Measurements of works will be
          carried out by Contractor, SP and APMC Secretary jointly. Market Field Engineer
          (MFE) of PIU, MSAMB will carry out 10% checking of quantities appearing in each
          bill and certified to be in order. The measurement will be recorded in PIU, MSAMB
          measurement book (MB) and the contractor will sign the same indicating acceptance.
          The bill will be sent to DDRCS for payment with the recommendation of Chairperson &
          Secretary of APMC.
       b. Cheques for the payment of bills would be signed jointly by DDRCS and the Drawing
          & Disbursing Officer in the o/o DDRCS only after the receipt of recommendations as
          stated above.
55. Transparency and accountability: The lists of works to be taken up will be given wide publicity
    by means of display in the office of APMC or other public institutions within the area.
    Whenever a work is taken up, the estimated cost of the work, item of work proposed to be
    executed, details of the executing agency will be exhibited on a display board at the place of
    work so that all market users are aware of the details of the work being executed.
                                                143
56. The year wise phasing of this subcomponent is as follows:
    Category         Yr I      Yr II         Yr III         Yr IV         Yr V          Yr VI         Total
    APMC A           0          0             1              1             0             0              2
    APMC B           0          4             5              5             5             5             24
    APMC C           0         14            15             15            15            15             74
    Total            0         18            21             21            20            20            100

VIII. Funds Flow:
57. An independent budget head will be opened in Cooperation & Marketing Department, GoM in
    which provision under the Project for this component will be made. The funds would be
    released by Cooperation & Marketing Department, GOM to Director of Agricultural Marketing
    as per Budget Distribution System (BDS). Director of Agricultural Marketing in turn will
    release the funds to the DDR through BDS. In addition there will be MACP Beneficiary
    Contribution Accounts in a Nationalised Bank at the district level to be operated jointly by the
    DDRCS and the Drawing & Disbursing Officer in the o/o DDRCS. This bank account will have
    the contribution of the beneficiary institution deposited in it. Funds for NIPHT for Training of
    APMC personnel will be released by Director of Marketing to PIU-MSAMB who intern will
    pass on the funds to NIPHT by cheque.

IX. Fiduciary and Safeguards Arrangements
Maintenance of records and book keeping:
58. The DDRCS shall maintain detail subcomponent wise accounts in his office in the form of
    ledgers, cash book, and check register for the funds received and payments made for every
    APMC. The APMC will maintain the accounts and registers for the works relating to that
    APMC in appropriate books.
59. The APMC will also maintain the following records, other than those specified under the
    APMC Act and Rules: a) An up-to-date copy of the Act / Rules / directions and orders from
    MSAMB / Government, b) Maps showing the boundaries of the market yard and sub yard, c)
    Registers – Asset register, Minutes register – General Body, Managing Committee and sub
    committee meetings.
60. Safeguards Arrangements - As the Project implementation involves large number of activities
    and equally large number of transactions there is a need of strong safeguard measures to
    mitigate the risks. (i) Internal Checks & Systems and Reconciliation of Accounts: for covering
    mechanism of crosschecking, (ii) Project Audit – Internal Audit & External Audit: for
    validating the transactions by a third party expert, (iii) Computerized Accounting System: for
    Standardized practices and procedures, thus reducing eventuality of omission and commission,
    (iv) Periodical Reporting – MIS: for monitoring progress in respect of the short term and long
    term Project Goals.

X. Governance Risks and Mitigation Measures:
61. The following are the risks and their mitigation measures:
  Sr.     Risks                Description                  Risk Mitigation Measures
  No.
  1       Technical / Design   Willingness of the           SP, which will be selected through competitive
                               APMC as well as the          bidding, will do PRA for identifying the needs,
                               capability of the            defining the resources, prioritizing the needs, and
                               institution to enforce       reiterating the FPP in the GB of APMC
                               the reforms are
                               important for a need
                               based design

                                                      144
  Sr.      Risks                    Description                Risk Mitigation Measures
  No.
  2        Implementation           Capacity building of the   Extensive training to the personnel of the APMCs
           capacity and             personnel of APMC          and the concerned line departments regarding
           sustainability           required for performing    implementation & sustainability point of view has
                                    implementation             been proposed under the project. Productive
                                    activities as per WB       infrastructure is self liquidating, therefore
                                    norms. Infrastructure      sustainable. Separate infrastructure maintenance
                                    should be net income       fund equal to 1% of the cost of investment in
                                    generating.                modernisation (every year) shall be created by the
                                                               beneficiary APMC.
  3        Financial                Funds should be made       Funds shall be released in tranches. Next tranch
           Management               available in time for      shall be released only when satisfactory utilization
                                    maintaining continuity     is verified at the district level and PIU, PCU level.
                                    and creating the desired
                                    impact.
  4        Procurement              ---                        Will be done as per WM procurement norms.
  5        Social and               Electronic weighment       Increase in sale transactions call for higher
           environment              system may decrease        opportunities for daily work. MOU shall include
           safeguards               work in hand for           clause that in such situation the workers shall be
                                    ‘Tolaidaar’ daily          given preference.
                                    workers.
  6        Other ( for example      ---                        Observance of reforms by APMCs and monitoring
           project specific                                    of the same by the Dept. of Agricultural Marketing
           corruption risk,                                    shall create conducive atmosphere for higher
           ownership of project /                              levels of transparency and efficiency in
           program, prevalence                                 implementation.
           of failure in similar
           projects)

62. The governance in APMC management would involve mitigation measures like as follows: (a)
    Participatory consultation with market users in selection of market investments, (b) Selection
    process of regulated markets based on predefined selection criteria, (c) Project support for
    capacity building of APMCs on planning, budgeting and market management. The agencies
    responsible for these measures would be APMCs, PIU-MSAMB and the SP. The detail
    governance mechanism in APMC management is described in separate chapter on Governance
    and Accountability Action Plan (GAAP).

XI. Sustainability:
63. The modern infrastructure will attract more arrivals because of reduction in losses, increased
    revenue from modern infrastructure like godowns, grain cleaning-grading machine which will
    make the investment sustainable. The infrastructure can also be outsourced for better
    management and can generate income.
64. The illustrative estimated revenue models for godowns, vermi compost and grain handling unit
    are given in the following table. The estimated surplus generated from the infrastructure
    proposed to be developed will make this investment sustainable.

      Sr. Facility                        Revenue                      Expenditure         Surplus
      No.
      1   Godown (500 MT                  For 6 Months = Rs.           Management          Rs. 5.00 Lakh
          Capacity, Rent @ Rs.            6.00 Lakh (50%               Cost = Rs.          available for
          20/- per Qtl. per month         Capacity utilization         1.00 Lakh.          repayment of
          for storage, Cost of            in the beginning)                                installment of
          Investment Rs. 26.00                                                             principal and interest.
          Lakh)                                                                            Payback period
                                                                                           around 6 to 7 years.

                                                        145
   Sr. Facility                    Revenue                Expenditure    Surplus
   No.
   2   Food Grain Unit (Cap.       Daily 8 Hrs.           Management     Rs. 16.00 Lakh
       10 MT per Hr., Cost of      operation only for     Cost 50%       available for
       Investment Rs. 73.00        200 days in a year =   i.e., around   repayment of
       Lakhs ) Cleaning            16,000 MT x Rs.        Rs. 16.00      installment of
       Grading charges @ Rs.       200 per MT = Rs.       Lakh.          principal and interest.
       20/- per Qtl.               32.00 Lakh                            Payback period less
                                                                         than 5 years.
   3     Vermi Compost (Cap. 5     With 50% Capacity      Operational    Rs. 7.50 Lakh
         MT per Day, Total         Utilization for 250    Cost 50%       available for
         Investment Rs. 20.00      effective market       i.e., around   repayment of
         Lakh)                     days, 10 days cycle,   Rs. 7.50       installment of
                                   production of          Lakh.          principal and interest.
                                   compost will be                       Payback period less
                                   around 500 MT and                     than 3 years.
                                   @ Rs. 3000/- per
                                   MT, total revenue
                                   will be Rs.15.00
                                   Lakh.

65. Post Implementation Operation & Maintenance Arrangements:
       a. The productive infrastructure will be a source of additional income to the APMC. Such
          additional income shall be used for the post implementation operation & maintenance of
          the facilities established under the Project.
       b. Like wise, the possibilities of out sourcing the operationlization of the facility to a
          private party shall be explored. The facility shall be out sourced wherever possible on
          mutually agreeable terms and conditions. This arrangement shall fetch APMC an
          income at a fixed rate as well as help maintaining the facility in good condition.

                                              ***




                                              146
                        B2.2 UPGRADING LIVESTOCK YARDS


I. Objectives:
1. The farmers for their income heavily depend upon draft animals for agricultural operations as
   well as they depend on the milch animals for allied agricultural activity. Thus live stock market
   yards and small ruminant markets are important for acquisition and maintaining an income
   generating herd. It is therefore pertinent to provide in the live stock markets adequate facilities
   for farmers.
2. Majority of the Live Stock Markets (LSM) suffer from infrastructural constraints like
   unavailability of auction sheds for animals, weighing machines, milking machines, drinking
   water facility for human and animals, waste disposal arrangements. Most of the infrastructure
   required in LSM is basic in nature and non-productive. The income of these APMCs is only by
   way of cess. Therefore, APMCs do not get the loan easily from the commercial banks for such
   development. Many a times, personal guarantee of the directors of the committee is demanded
   by the banks for the loans of APMCs which is not agreed to by the directors.
3. The APMCs will not normally invest for developing auction shed for animals, tree grove or
   providing milking machines. Therefore, support from the Project for such activities would
   encourage the APMCs having cattle market to undertake such activities and will act as push
   factor.
4. The demand of meat animals for metro-cities like Mumbai and the external trade would need
   organized market outlets performing sale by weight. Organized trade in live meat animals
   though not popular yet in Maharashtra, has a great potential to lead to bulk trade / export trade
   and therefore could result into far better returns to the farmers. With these objectives in view, it
   is proposed to modernize 20 LSM and 4 Small Ruminant Market yards (SR Markets) out of 196
   LSM in the State.
II. Outcome and Output Monitoring Indicators:
5. As a result of the project interventions in selected LSM the expected outputs and outcomes are as
    follows:
     Sr.              Outcome                                Monitoring Indicators
     No.
     1   Growth in volume of market            % increase in number of animals sold in
         transactions                          targeted markets
     2   Farmers, traders and buyers           % of farmers, traders and buyers satisfied in
         satisfied    with    modernized       targeted markets per LSM
         infrastructure

     Sr.               Output                                Monitoring Indicators
     No.
     1   LSM            with     improved      % of targeted LSM
         infrastructure
     2   Capacity utilization of improved      %      Capacity     utilization   of    improved
         infrastructure in modernized          infrastructure per LSM
         LSM by farmers and traders
     3   Management of waste in                % increase in income from waste in targeted
         targeted markets                      LSM
     4   APMC members in targeted              % of APMC members in targeted LSM trained
         LSM trained in improved LSM           in improved LSM management practices (record
         management practices                  keeping, accounting, use of display boards.)
                                                 147
    Sr.             Output                           Monitoring Indicators
    No.
    5   APMC LSM where improved The % of LSM where improved management
        management practices have been practices      have       been      implemented
        implemented                     (computerization, record keeping, centralized
                                        payment system, payment within 24 hours,
                                        accounting, use of display boards)
    6   Increase in income because of % increase in income
        sale on the basis of weight and
        milk yield
The baseline values to be developed by M&E consultant for various LSM will be considered while
   evaluating the performance.
III. Policy and Regulatory Environment:
6. The policy & regulatory environment described under the subcomponent of Upgrading &
   Modernization of APMCs is applicable to this subcomponent also. An additional reform, viz.
   "Willingness to accept open auction practice and sale of animals on the basis of weight and
   milk yield" is proposed in these APMCs by way of amendment in the byelaws besides the other
   Basic and Additional Reforms, proposed by way of amendment in the byelaws under the
   subcomponent of Upgrading & Modernization of APMCs.
IV. Selection Criteria:
7. Selection of 20 LSM and 4 SR Markets has been done on the basis of following selection
    criteria:
   i)      Availability of land: The APMC should have land with clear title under its possession
           (either owned or minimum of 30 years’ long term lease). This will be the pre-condition
           for applying further selection criteria for selection of APMC in the modernization
           programme under the Project.
   ii)     APMC should have an Elected Management,
   iii)    APMC should have full time CEO / Secretary,
   iv)     APMC should have generated Cash Surplus for last 3 years,
   v)      APMC should not have any loan defaulted,
   vi)     The accounts of the APMC should be audited for the past 3 years and there should be no
           serious audit observations in audit reports,
   vii)    APMC should be willing to invest in infrastructure in PPP mode,
   viii)   APMC should be willing to undertake reforms mentioned above.
8. APMCs fulfilling these selection criteria were short listed and from amongst those 20 LSM and 4
    SR Markets having the maximum average arrival of the animals during last 5 years were
    identified for implementation of modernization plan under the project.
9. Markets to be modernized and established: The Primary analysis of the market related data and
   infrastructure related data has been carried out as mentioned below:
   (i)     Market related data: The existing cattle markets have been studied in respect of arrivals,
           sales, turnover, and collection of cess during the past five years. The average growth
           rate in turnover, arrivals, sales and cess has been calculated. Higher rating is accorded to
           the APMCs having higher growth rate of market turnover and cess collection.



                                                 148
(ii)    Infrastructure related data: Road connectivity of the selected market yard location is an
        important criterion. The availability of electricity and telephone connectivity (Landline
        and Mobile) are also important factors.
(iii)   The livestock markets having the maximum average annual arrivals of animals during
        the last five years in each district have been identified. However, districts, where the
        highest average arrival of the last five years is less than 30,000 animals per year, have
        been excluded. So as to make the list of 20 LSMs, the LSM with next highest average
        annual arrivals of animals has been included, restricting two LSMs from any one
        district. This strategy is followed to have equitable spread of LSM development in the
        State and at the same time to have reasonably large LSMs for development. The list of
        APMC Cattle Markets and SR Markets that would take part in modernization
        programme, based on the qualitative ranking and fulfilling the selection criteria is given
        below:
         List of Livestock APMC (Cattle Markets)
         Sr. No.                District                         Name of APMC
            1           Nagpur                             Savner
            2           Bhandara                           Lakhani
            3           Gondiya                            Amgaon
            4           Amarawati                          Chandur Bajar
            5           Washim                             Karanja
            6           Yewatmal                           Pusad
            7           Buldhana                           Mehekar
            8           Beed                               Kada
            9           Nasik                              Pimpalgaon Basmat
           10           Ahmadnagar                         Newasa
           11           Jalgaon                            Pachora
           12           Jalgaon                            Amalner
           13           Dhule                              Shirpur
           14           Thane                              Vasai
           15           Pune                               Khed
           16           Satara                             Lonand
           17           Solapur                            Sangola
           18           Solapur                            Akluj
           19           Sangli                             Sangli
           20           Kolhapur                           Vadgaon Peth
(iv)    Small Ruminant Market Yard: Four identified SR Markets would be developed and
        locations selected are according to small ruminant population i.e. producing area or hub
        of small ruminant breeding. The selected locations are given below. These markets have
        also been identified on the basis of the analysis of data of SR Markets and the selection
        criteria as mentioned above.
List of Live Small Ruminants Markets (S.R.Markets)
         Sr. No.              Name of APMC                              District
           1           Atpadi                                      Sangli
           2           Karjat                                      Ahmednagar
           3           Dound                                       Pune
           4           Dahiwadi                                    Satara




                                             149
V. Activities to be financed:
Illustrative list of investments to be made and its phasing:
10. Illustrative list of investments, to be made in these regulated markets is given below:
(a) Livestock Market yard - Investment Details
             Sr. No.    Livestock Market yard - Investment Details (illustrative for
                        costing purpose only)
                 1      Development of a Tree Grove in 1 Ha of Land (Plantation and
                        Maintenance Costs for 3 yrs)
                 2      Bore Well, Overhead Water Tank and Pipe Lines
                 3      All Weather WBM Road to Ramp
                 4      Loading and Unloading Ramps and Foot Baths (2 numbers)
                 5      Drinking Water troughs (four numbers)
                 6      Weigh Bridge (with Platform & Border Railings): 1.5 MT Capacity
                        along with a shed
                 7      Milking Machines with accessories with Shed (with AC Sheet
                        Roof) (2 numbers of 10 sq mt)
                 8      Auction Yard (Shed with AC Sheet Roof) of 10 sq mt
                 9      Open Shed with AC Roof and Dwarf walls and Resting Room for
                        Farmers (1800 sq ft) along with toilet and showers
                10      Land development and Storm / Rain Water Surface Drainage
                11      Concrete Platforms for waste deposit along with soak pit
                12      Boundary Fence (Barbed Wire: 5 rows and Mild Steel Angles for
                        posts, with gate)
(b) Small Ruminant Market Yard - Investment Details
              Sr. No.   Small Ruminant Market Yard - Investment Details (illustrative for
                        costing purpose only)
                 1      Open Shed with AC Roof & Dwarf walls (1800 Sq ft ) and Toilets
                        for farmers resting area
                 2      Weigh Bridge (with platform and Border Railings) 1 MT Capacity
                 3      Development of Tree Grove in 1 Ha of Land (Plantation &
                        Maintenance for 3 Yrs)
                 4      Bore well with water tank and Pipe Lines
                 5      Drinking water Troughs for Animals – 2 numbers
                 6      Loading / Unloading Ramp with approach Road – 2 numbers
                 7      Land Development with Surface Drainage: storm / Rain Water
                        Drainage – 2 numbers
                 8      Waste Management: Concrete Platform with Soak Pit and
                        Approach Road - 2 platforms
                 9      Boundary Fence (Barbed Wire: 5 rows and Mild Steel Angles for
                        posts, with gate)
                10      Desk Top Computer, Peripherals and Accessories with Information
                        Network Facilities.

(c) Capacity building and training:
11. The arrangements of capacity building and training under this subcomponent will be the same
    as it is under Upgrading & Modernization of APMCs.
VI. Estimated costs:
12. Costs will be met from project funding.
VII. Institutional and implementation arrangements:

                                                 150
a) Institutional Arrangements:
13. MSAMB and Department of Cooperation is responsible for implementing the APMC
   modernization program for the Livestock markets. Technical help of PIU of Animal Husbandry
   Department would be taken by MSAMB. The role of PIU-MSAMB would be to liaise with the
   contractors and the service providers, approve variations and time extension, sample checking
   and joint verifications of the measurement books, process bills of the contractors and
   consultants and resolution of any disputes within the contract/s.
14. MSAMB will be responsible for appointing Market Field Engineers on contract for quality
    control of the civil works. The specific tasks to be carried out by PIU (MSAMB), Dept of
    Cooperation, APMC and the service provider in the various stages of the project will be similar
    to those described under the para relating to Institutional Arrangements for the subcomponent
    of Upgrading & Modernization of APMCs.

15. Implementation Arrangements of this subcomponent would also be similar to the subcomponent
    of Upgrading & Modernization of APMCs. The implementation of this subcomponent would
    need SP who will be appointed.
16. Phasing of market modernization: The Livestock APMC modernization programme would be
    taken on a phased manner as under:


    Sr.No     APMC Markets                  Yr-1     Yr-2    Yr-3   Yr-4   Yr-5    Yr-6      Total
    APMC – Livestock Market Yard
    1     Cattle Market                       0          5    5       5       5       0        20
    2     Small Ruminant Market               0          1    1       1       1       0         4
          Total                               0          6    6       6       6       0        24

VIII. Funds flow:
17. The funds flow for this subcomponent will be similar to the subcomponent of Upgrading &
    Modernization of APMCs. As the subcomponent is fully funded by the project funds will flow
    through BDS upto DDRCS of the district who will make the payments to the contractors by
    treasury cheques as per bills certified by S.P and authorities and as recommended by the
    beneficiary APMC.

IX. Fiduciary and Safeguards arrangements:
18. Maintenance of records and book keeping: The APMC will maintain the following accounts
    and registers for the funds received and payment made for every Live stock market. Each
    record will bear the name, address and the seal of APMC and will be machine numbered: a)
    Cash Book, b) Bill register, c) Receipt book, d) Cheque register, e) Payment register, f) Register
    of stock of material, goods, machinery received, used and the balance.
19. The APMC will also maintain the following records, other than those specified under the
    APMC Act and Rules: a) An up-to-date copy of the Act / Rules / directions and orders from
    MSAMB / Government, b) Maps showing the boundaries of the market yard and sub yard, c)
    Registers – Asset register, Minutes register – General Body, Managing Committee and sub
    committee meetings, Accounts books relating to MMIP fund received and spent, Register of
    payment of bills from MMIP fund.
20. Safeguards Arrangements: As the Project implementation involves large number of activities
    and equally large number of transactions there is a need of strong safeguard measures to
    mitigate the risks. (i) Internal Checks & Systems and Reconciliation of Accounts: for covering

                                                   151
   mechanism of crosschecking, (ii) Project Audit – Internal Audit & External Audit for validating
   the transactions by a third party expert, (iii) Computerized Accounting System: for
   Standardized practices and procedures, thus reducing eventuality of omission and commission,
   (iv) Periodical Reporting – MIS: for monitoring progress in respect of the short term and long
   term Project Goals.
X. Governance Risks and Mitigation Measures:
21. Following are the risks and the risk mitigation measures:
    Sr.   Risks                  Description               Risk Mitigation Measures
    No
    1     Technical / Design     Willingness of the        SP, which will be selected through
                                 APMC as well as the       competitive bidding, will do PRA for
                                 capability of the         identifying the needs, defining the
                                 institution to enforce    resources, prioritizing the needs, and
                                 the reforms are           reiterating the FPP in the GB of APMC
                                 important for a need
                                 based design
    2     Implementation         Capacity building of      Extensive training to the personnel of
          capacity and           the personnel of          the APMCs and the concerned line
          sustainability         APMC required for         departments regarding implementation
                                 performing                & sustainability point of view is
                                 implementation            proposed. Separate infrastructure
                                 activities as per WB      maintenance fund equal to 1% of cost of
                                 norms. Infrastructure     investment on modernisation (every
                                 should be                 year) shall be created by the beneficiary
                                 maintainable by the       APMC.
                                 beneficiaries.
    3     Financial              Funds should be           Funds shall be released in tranches.
          Management             made available in         Next tranch shall be released only when
                                 time for maintaining      satisfactory utilization is verified at the
                                 continuity and            district level and PIU, PCU level.
                                 creating the desired
                                 impact.
    4     Procurement            ---                       Will be done as per WM procurement
                                                           norms.
    5     Social and             Increase in arrivals of   Introduction of waste management
          environment            animals will increase     system will take care of increase in
          safeguards             the work load on the      animal droppings.
                                 conservancy staff.

    6     Other ( for example    ---                       Observance of reforms by APMCs and
          project specific                                 monitoring of the same by the Dept. of
          corruption risk,                                 Agricultural Marketing shall create
          ownership of                                     conducive atmosphere for higher levels
          project / program,                               of transparency and efficiency in
          prevalence of                                    implementation.
          failure in similar
          projects)
22. Governance in APMC Management: The governance in APMC management would involve
    mitigation measures like: (a) Participatory consultation with market users in selection of
    market investments, (b) Selection process of regulated markets based on predefined selection

                                                 152
   criteria, (c) Project support for capacity building of APMCs on planning, budgeting and market
   management. The agencies responsible for these measures would be APMCs, PIU-MSAMB
   and the SP. The detail governance mechanism in APMC management is described in separate
   chapter on Governance and Accountability Action Plan (GAAP).
XI. Sustainability:
23. The modern infrastructure will attract more arrivals resulting in increased income to farmer and
    to APMC. Additional income will also be available from modern Waste Handling and Disposal
    System. The maintenance of the proposed infrastructure is within the means of the APMC,
    considering 10% rise in the annual cess income due to higher turnover of animals in these
    markets as a result of improved infrastructure and facilities.
24. As these markets are established under the APMC land, the overall governance of these markets
    would come under the APMC. The concerned APMC would allocate 1% of the proposed
    investment cost as Market Maintenance Fund, to be kept in a separate bank account for the use
    of future maintenance of infrastructure so created.


                                                   ***




                                                153
                                     COMPONENT - C

                             PROJECT MANAGEMENT

                   C.1. PROJECT COORDINATION UNIT (PCU) &
                    PROJECT IMPLEMENTATION UNITs (PIUs)

1. The MACP involves the participation of three line departments, viz. Agriculture, Animal
   Husbandry and Agricultural Marketing. Similarly, at the State level there are three departments
   headed by three Principal Secretaries, viz. (i) Agriculture, (ii) ADF, (iii) Agricultural Marketing.
   The Principal Secretary (Coop. & Mktg.) is the Nodal Officer for the Project. Each of these
   departments is required to implement and manage various activities proposed under various
   components under this project. The process of implementation of all these activities will differ
   from each activity.
2. For the purpose of management of MACP, a High Power Committee and a Steering Committee
   (SC) has been constituted. Similarly Project Co-ordination Unit (PCU) of MACP and Project
   Implementation Units (PIU) for all the three line departments have been established.
3. The components / interventions of the project are implemented by the concerned line
   departments at various levels. Some of the components function at the village level. There are
   some interventions/activities that take place at taluka and district places. In order to co-ordinate
   the interventions at various stages, setting up of PCU facilitates the co-ordination between the
   line departments. The PCU guides and directs the line departments in the implementation of the
   project. It acts as an interface between the Steering Committee and the PIU of the line
   departments.
4. The PIU acts as a link between the PCU and the final beneficiaries. The PIU also gets the
   assistance of ATMA and the concerned district officer of their department in order to ensure
   smooth implementation. The officers besides the Nodal Officer in PIU are identified by the head
   of the department and these officers work in PIU. The PIU periodically reviews the progress in
   each intervention and provides corrective actions as and when necessary for the effective project
   implementation. The management of the Project would mean periodical monitoring of the actual
   level of achievement corresponding to the proposed targets.
5. High Power Committee (HPC) headed by Hon. Chief Minister of Maharashtra has been
   constituted as an advisory body for implementation of the project. The Minister (Agriculture),
   Minister (ADF), Minister (Agricultural Marketing) and the Chief Secretary are the members of
   this committee and the Principal Secretary (Coop. & Mktg.) is the Member Secretary of this
   committee. The HPC will meet once in a year to review the implementation of the project and
   give overall advice and policy directives for its smooth implementation.
6. The Steering Committee (SC) at the State level has been set up under the chairmanship of the
   Chief Secretary of Maharashtra. Principal Secretaries of Planning, Finance, Agriculture, ADF
   are the members of the Steering Committee. The Principal Secretary (Coop. & Mktg.) is the
   Member Secretary. The role of this committee is to monitor and coordinate the implementation
   of the project and also to take policy decisions within the framework of the decisions of HPC.
   The Cabinet of the State has already authorized the Steering Committee to approve minor
   changes in the design, budget, and administrative issues involved in implementation of this
   project. This committee will meet atleast once in 6 months.



                                                 154
7. For the purpose of management of the Project, a PCU for MACP and PIUs for the respective
   line departments have been set up. The PCU is headed by a Project Director, who is a senior
   serving officer of the Government. The Nodal Officers of the PIU is an officer from the
   respective line departments who will constantly liaise between PIU and PCU.
8. The officers and the support staff in the PCU and the PIUs are selected either taking the officers
   from the department or selecting the officers and staff from the market and appointing them on
   contract.
9. The institutional arrangements for project implementation have been prescribed as follows.
Project Coordination Unit (PCU):
10. The PCU shall be overall responsible for the implementation and co-ordination of MACP. For
    the sake of administrative convenience and flexibility in functioning PCU has been created as a
    part of MSAMB. However, it shall function independent of MSAMB and it has been placed
    under the direct control of the Principal Secretary (Coop. & Mktg.). The PCU oversees the
    implementation of the project which is headed by the Project Director, who reports to the
    Principal Secretary (Coop. & Mktg.), GoM. The head quarter of PCU is kept at Pune as the
    heads of all the three line departments are located at Pune. PCU, PIU (MSAMB), PIU
    (Agriculture) and PIU (Animal Husbandry) will work under direct supervision and control of the
    Project Director of MACP. The PD, MACP will have all powers to visit, inspect and call for any
    information, reports regarding the project work from all the PIUs and the field officers of the
    concerned line departments implementing the project.
11. The PCU is headed by the Project Director, who is assisted by a number of experts in various
    fields, viz. Chief Finance Controller, Finance Specialist, Procurement Specialist, M&E
    Specialist, MIS Specialist, Social Development Specialist, Environment Specialist, Agri-
    business Specialist, Marketing Coordinator, Agriculture Coordinator, and Livestock Coordinator
    and number of support staff. PCU, PIU (MSAMB), PIU (Agriculture) and PIU (Animal
    Husbandry) will work under direct supervision and control of the Project Director of MACP.
    The PD, MACP will have all powers to visit, inspect and call for any information, reports
    regarding the project work from all the PIUs and the field officers of the concerned line
    departments implementing the project.
Project Implementation Unit (PIU)
12. The PIU of the line department functions under the over all guidance and control of the
    respective head of the department. It will comprise of Nodal Officer of the rank of Class I
    officer drawn from the departmental cadre with the support staff. The head of the department
    will constantly monitor that the activities pertaining to the department are being implemented in
    accordance with the strict observance of World Bank guidelines and as per schedule of the
    project. The Nodal officer in each line department keeps constant liaison with the PCU.
      The PIU MSAMB will function under the over all guidance and control of MD MSAMB. It
       has the Nodal Officer, Officer in charge (OIC) (APMC), OIC RH, OIC FCSC, Social/
       Environmental Officer, Sr. Accounts Officer, Procurement Officer, Civil Engg. Specialist
       (for Contract Management), IT Expert, Administrative Officer and other support staff.
       Majority of this staff is taken from MSAMB and some specialist and support staff is either
       taken on deputation or on contract.
      The PIU Agriculture comprises of Nodal officer, Agriculture officer and Agriculture
       Supervisor from the Department of Agriculture. Agricultural supervisior will also be
       designated as Community Extension Officer responsible for community mobilization, as
       well as, addressing social and environmental concerns of the subprojects. Besides, PIU
       Agriculture will take Agricultural Marketing Expert, Procurement Officer, one accountant,
       one assistant having computer knowledge and two messengers drawn from the department or

                                                155
       on contract. The functions relating to accounts of PIU (Agri.) will be looked after by the
       Accounts Officer from the department. The work of PIU (Agri) will be closely monitored
       and supervised by Director, Agriculture, (Extension and Training) under the overall control
       of Commissioner, Agriculture.
      The PIU AHD has one Nodal Officer, one accountant having computer knowledge and one
       messenger. Nodal Officer will have the additional responsibility of Community Extension
       Officer to look after community mobilization, as well as, social and environmental concerns
       at subproject level for a period of initial one year. If need be, an independent Community
       Extension Officer will be recruited on contract in PIU (AHD). The Accountant having
       computer knowledge and one messenger may be taken on contract. The procurement
       function and the accounting function of PIU AHD will be looked after by the officers from
       the department who will be designated as Procurement Officer and Accounts Officer for PIU
       AHD.
      The exact requirement of staff for various PIUs is shown in organizational chart of PIUs and
       in cost tables.


Implementation Arrangements:
13. The implementation arrangements in each Department are as follows:
   a) Agriculture:
       i) Implemention of activities pertaining to market led technology transfer: Agriculture
          Department with the help of the field staff located up to taluka level will implement the
          actvities. The active support and help of all the line departments will be taken. Each
          ATMA has a Project Director and the District Collector is the Chairman of ATMA
          which coordinates with all the departments. The Nodal officer from PIU (Agri) liaise
          with PCU and coordinates the implementation of various activities by VANAMATI,
          ATMAs, field staff of Department of Agriculture and other relevant entities.
       ii) Implemention of activities pertaining to Preparation and Implementation of Marketing
           Strategies: The Department of Agriculture, GOM, is responsible for group formation
           under ATMA for such farmer groups whose primary reason for coming together is
           production. The implementation will follow a community-driven approach with active
           participation of the beneficiaries and other stakeholders (including line departments,
           NGOs and private sector) in the design, implementation and monitoring of the
           interventions.
       iii) The project activities undertaken for strengthening of ATMAs, strengthening of
            VANMATI, and preparation and implementation of MSS are coordinated, guided and
            monitored by the PIU (Agri). Regular meetings of the State Level officers of line
            departments are conducted for smooth and successful implementation of the project.
       iv) ATMAs: At the district level preparation and implementation of MSS is coordinated by
           respective ATMA, using the resources of all the participating line departments, KVKs,
           concerned State Agricultural Universities and participating NGOs and private sector
           entities. Contractual services of Agricultural Marketing Expert, Accountant and
           Computer operator are available at district level for each ATMA for preparation of
           MSS.
       v) The resource persons at VANAMATI will help in overall coordination of preparation of
          MSS in close association with the ATMA teams. District and field level staff of line
          departments - Agriculture, Animal husbandry and Co-operation and Marketing would be
          responsible for implementation of project activities related to their areas.

                                               156
       vi) ATMA acts as a facilitator between Producer Association (PA) and SP. The ATMA
           appraises the commercialization/ business plan prepared under the guidance of SP, and
           submits it to PIU (Agri)/ PCU for approval.
       vii) VANAMATI, the state level apex training institute, is responsible for organizing
           training to ATMA core team in preparation of MSS to SREP.
       viii) Procurement of staff for PIU (Agri.) and ATMAs will be carried out by
            Commissioner Agriculture and for VANAMATI by VANAMATI.
   b) Animal Husbandry:
       i) The implementation arrangements for activities pertaining to AHD are handled by the
          PIU (AHD) with the help of the field officers from the AHD and ATMA. The selection
          of SP is done by PIU (AHD).
   c) Agriculture Marketing:
       i) The MSAMB is the main implementing agency for this subcomponent with the support
          and active involvement of the field machinery of the Department of Coop. and
          Marketing. MSAMB will appoint SPs for SMS service, MID, IPP and MIS for
          implementation of this programme.
       ii) PIU, MSAMB implements activities pertaining to SMS service, market information
           display, IPP, MIS through a SP appointed by it.
       iii) The selection of SP for mobilization of farmers into PGs / PAs is done by PIU
            MSAMB. The SP prepares business plan for each FCSC which is submitted to PIU,
            MSAMB for approval. On approval, each FCSC performs community procurement and
            implements the business plan. The market field engineers and the SP supervise the
            works undertaken by each FCSC.
       iv) The program of warehouse receipt development by MSWC warehouses is implemented
           by MSWC whereas PIU, MSAMB will only oversee the same. However, with regard to
           APMC the activity is implemented by PIU, MSAMB. The procurement relating to
           MSWC and APMC is undertaken by PIU, MSAMB.
       v) The activities pertaining to Rural Haat are implemented by PIU-MSAMB. A SP is
          appointed by PIU-MSAMB who plans, designs and implements the proposal of the
          Grampanchayat concerned. The monitoring of the works is handled by Market Field
          Engineers of PIU-MSAMB with the support of SP and VDO Grampanchayat.
       vi) The activities pertaining to APMCs, LSM and SR markets are implemented by PIU-
           MSAMB. A SP is appointed by PIU-MSAMB who plans, designs and implements the
           proposal of the APMC/LSM/SR markets concerned. The monitoring of the works is
           handled by Market Field Engineers of PIU-MSAMB with the support of SP and
           Secretary APMC.
14. The funds required to be spent on activities pertaining to the PCU, PIU (MSAMB) and MSWC
    will be drawn by the DDO in DOCM from treasury and disbursed to the PCU, PIU (MSAMB)
    and MSWC.
15. The funds flows from the Finance Department of the State to the Cooperation & Marketing,
    Agriculture and ADF departments and further to the PIU (Agri) & PIU (AHD) through BDS
    (electronic transfer of funds). The details of the funds flow arrangement has been spelt out in
    the chapter on Financial Management.
16. The monitoring of the project by PCU and PIU enables the smooth implementation of the
     project.
       a) Role of the PCU – The role of PCU is as under:
                                               157
           i.   The Project Director of PCU is responsible for the implementation and co-ordination
                of MACP on behalf of the GoM with the help of PCU, PIUs and all the organizations
                concerned.
           ii. The Project Director signs all the contracts, MoUs between MACP and various
                organizations.
           iii. PCU co-ordinates and facilitates the implementation of the project.
           iv. It monitors the progress and directs the line departments to attain the proposed
                physical and fiscal targets thereby ensuring a continuous and steady progress in the
                project.
           v. It addressess the difficulties faced during the implementation of the project in the
                concerned line departments and seeks the guidance from the Steering Committee for
                more complex issues.
           vi. It periodically appraises the progress of the project to the Steering Committee.
           vii. The personnel in the PCU assists and guides the line departments in the matters like
                procurement, market design, environment, and social development.
           viii. It gets the records / accounts of the project and line departments audited every year.
           ix. Any other matter related to implementation of MACP.
      b) Role of PIUs – The role of PIUs is as under:
           i.   PIU functions under the general supervision, guidance and control of the respective
                Head of the Department.
           ii. Nodal Officer of the concerned line department supervises and monitors the
                development of the project.
           iii. Every nodal officer appraises the program prepared and implemented in the project to
                the Head of the Department and the PCU.
           iv. It prepares annual procurement plans for every subcomponent in the project period.
           v. The annual procurement plans are supplemented by the timelines of the activities to
                be undertaken in each sub-component.
           vi. Supervise and monitor the activities that would be phased out into each Quarter of
                the respective year.
           vii. Call for the tenders; finalize the tender with the participation of the implementing
                agencies as per the World Bank guidelines and which will be issued from time to
                time in this behalf by the World Bank.
         viii. Make payments to the contractor for the civil works undertaken wherever
                responsibility is with PIU. The payments will be made only after the verification of
                the works so executed.
           ix. Identify the PGs / PAs / APMCs to be included during the corresponding quarter
                with the help of Third Party Service Provider.
           x. Monitoring of training programmes to be imparted by ATMA/ ABPF is done by the
                concerned PIU of the line department and it co-ordinates with ATMA/ABPF and the
                beneficiary whenever necessary.
           xi. It ensures that the physical as well as the fiscal targets for all the interventions are
                achieved during every quarter.
           xii. The Nodal Officer of the PIU, may with the approval of Head of Department put
                forth the issues before the PCU for its redressal.
         xiii. PIU updates the progress made in their concerned line department to the PCU
                periodically.
         xiv. PIU plays the role of the coordinator between the various organizations involved in
                MACP, ATMA, ABPF and the district officers of the concerned line department.
         xv. Any other matter connected to implementation of components and sub components
                falling under the concerned Department.
17.   The activities which require funding in the Project for PCU broadly fall as under:

                                                158
           a) Investment Costs: The setting up of PCU requires refurbishment and setting up of
              furniture & fixtures and equipment. In addition to these activities consultants are
              selected to: (i) Conduct M&E and MIS activity, (ii) Provide training on procurement
              and finance, (iii) Conduct internal and external audit, and (iv) Conduct Agri Business
              Promotion Facility.
           b) Recurrent Costs: These basically include the salary of the personnel, travel expenses,
              rent-rates-taxes and O&M.
18.   Similarly the PIU investment cost includes refurbishment of the office, furniture and fixtures.
      In addition, cost is incurred by the PIU for appointing Service Provider/ NGOs, providing
      training, conducting demonstrations, exposure visits, workshops etc. The recurrent costs
      include the salary on personnel, travel expenses, rent-rates-taxes and O&M.
19.   Internal audit of the entire MACP accounts is conducted by a firm of Chartered Accountants
      (CA) appointed by competitive bidding by PCU. The external audit of accounts that are
      reflected through the BDS system and that of MSWC are audited by the Accountant General
      (AG). Further, the external audit of beneficiary accounts maintained at the district level by the
      DDR are audited by the Chartered Accountant. The details pertaining to audit have been spelt
      out in the chapter of Financial Management.
20.   Procurement Training: Line department staff concerned with procurement activities is being
      given procurement training.
21.   Financial training: Finance team from PCU and PIU will be trained in procurement areas by
      Procurement Training Consultant and the finance team of PCU and PIU will provide training
      relating to financial matters, funds flow, accounting, financial reporting to the accountants
      and the concerned field officers of the line departments.
22.   The estimated recurrent costs on PCU would be Rs. 1347.00 Lakh and for PIUs it would be
      Rs. 2413.80 Lakh. The total estimated cost of PCU is Rs. 3121.88 Lakh and PIUs is Rs.
      2562.60 Lakh. These are the estimates for the purpose of calculation of the cost and may
      undergo some change during the period of implementation.


                                                       ***




                                                 159
       C. 2 ENVIRONMENTAL AND SOCIAL MANAGEMENT

1. As part of project preparation, an Integrated Environmental and Social Assessment Study
   (IESA) was undertaken with an aim to provide inputs into the design of MACP in accordance
   with the World Bank Operational Guidelines through identification of key environmental and
   social issues arising out of the proposed Project activities and mainstream the social and
   environmental management measures in all stages of the project cycle. The study developed a
   Environmental and Social Management Framework (ESMF) to ensure that:
     i) Environmental and social considerations are fully mainstreamed in project planning,
         implementation and monitoring; and
     ii) The potential adverse impacts are adequately mitigated and potential benefits of the
         project are further enhanced to improve the effectiveness and sustainability of the project.

Environmental and Social Perspectives of the Project
2. The overall assessment of the MACP intervention proposals in terms of environmental and
   social considerations is positive. The assessment shows that while there is very low risk of
   negative environmental and social impacts, there are high positive social impacts and
   opportunities to enhance the environmental performance through the project. Summary of the
   findings are as follows:
   a) Environmental:
   i. Majority of the interventions proposed are not new, efforts are to improve the existing
      practices and consequently spatially and temporally limited impacts may occur. Mitigation
      measures are proposed in the report to contain / minimize / reverse any adverse impacts.
   ii. Sites proposed for infrastructure are in close proximity to the centre of production and
       accessible through all weather roads.
   iii. Land required for the project does not come under forestland or protected area and any
        upgrading of existing marketing facilities will not result in any major land use change or
        disturb any natural habitat outside the protected areas.
   iv. Improved markets could witness increased farm produce being traded and management of
       solid / organic waste could be an issue. Measures have been proposed in the report to
       address management of solid / organic wastes.
   v. Better access to markets could drive on farm practices that increase yields resulting in
      increased use of fertilizers and pesticides. An Integrated Nutrient / Pest Management
      (INPM) strategy has been developed for the project and included as part of ESMF.
   vi. Opportunities exist to enhance the positive environmental impacts by using alternative and
       environmentally friendly materials and approaches for conservation of natural resources.
   b) Social:
   i. Project interventions do not create issues related to physical displacement and consequently
      involuntary resettlement. For the first year sub-project sites covered under IESA, the
      required land is mostly public land (held with line departments / local government or
      community bodies) and acquisition of private land is not envisaged for the proposed project
      interventions. However, for any unanticipated adverse impacts measures have been defined
      in the report for dealing with the Resettlement and Rehabilitation (R&R) issues.
   ii. The project interventions do not result in any adverse impact on the local communities.
       However, the proposed environmental and social management framework includes


                                                160
       measures to help the local population (particularly the vulnerable among them) to access
       project benefits.
   iii. Positive indirect effect on health and education status among primary stakeholders has been
        brought out in the study.
   iv. The project interventions will have positive impacts in terms of the increased accessibility
       to the market infrastructure and marketing facilities.

Environmental and Social Management Framework (ESMF)
3. The ESMF is developed to incorporate environmental and social safeguards into the main
   project planning, execution and operation. It will be applied to all the sub-projects in different
   stages of the project cycle. The framework has been suggested considering three broad stages of
   project cycle viz. project preparation, project implementation and project operation. The ESMF
   also incorporates key issues pertaining to gender equity, tribal development, capability building
   and institutional arrangement. The framework also includes screening process of sub projects
   and monitoring measures.
   i. Preparation – At this stage, the activities relate to planning and designing of subprojects
        are:
         Surveys and Database
         Consultation with Stakeholders
         Preparation of Sub Project Plan
         Submission of Sub Plan to Environment and Social Cell
   ii. Implementation – This stage activities refer to actual implementation of the subproject plan
        and these are:
         Award of contracts
         Work Execution and Supervision
         Quality Control
   iii. Operation – This stage refers to actual operation of all subproject components and the key
        activities are:
         Strengthening Producer company and inclusion of disadvantaged sections
         Solid Waste disposal and maintaining hygiene of the area:
         Monitoring and Evaluation

       The details of all the ESMF activities and expected outcome in the different stages of sub-
       project are presented below:

     Stage                              ESMF Activities                                     Outcome
       s
             Surveys and Database: Initial surveys to focus on:                    1.   Identification of sub
               Site selection and assessing clear title of the land                    projects with
               Presence and creating database on functioning of farmers                detailed baseline
                collective                                                              database on social
               Baseline data collection.                                               and environmental
               Identification of various stakeholders including women, SC/ST,          indicators
                small and marginal farmers
                                                                                   2.   Identification and
     Pre-      Developing construction design blueprints using eco-friendly
                                                                                        agreement from the
     para-      materials and incorporation of waste disposals and rain water           stakeholders on their
      tion      harvesting measures                                                     support and
               Assessment of logistics involved in construction –
                                                                                        participation in the
                materials/contractors/labours etc
                                                                                        project
             Consultation with Stakeholders: The focus will be on:
                                                                                   3.   Finalized sub-project
               Workshop with local farmers collective to assess group strength
                                                                                        and detailed
                and identify gaps for skill up-gradation and capability building
                                                                                        implementation plan
               Sharing of project component and building consensus on the
                project component through a pre-designed workshop


                                                       161
Stage                              ESMF Activities                                       Outcome
  s
          Ensure participation of women, SC/ST and small and
           marginalized farmers beside supply chain participants like
           traders, transporters etc. Incorporate the suggestions
        Preparation of Sub Project Plan: The plan should include details on
        the following components:
          Selected site and overview of project benefits and activities. This
           should include copy of title of the land
          Detailed plan for inclusion of women, small and marginal
           farmers and SC/STs of the area in the various stages of the
           project activities.
          Capability building plan for skill up-gradation and capacities of
           the farmers collective (PG)
        Award of contracts:                                                      1. Implementation and
           Procurement documents, procedures followed, contracts                   monitoring of social
             awarded & equipment procured                                           and environmental
        Work Execution and Supervision:                                             management plans
          Periodic monitoring to ascertain adherence of ESMF especially in
                                                                                 2. Enhanced relationship
           conservation of flora and fauna, appropriate measures for waste
                                                                                     among the officials of
           disposals and construction debris
                                                                                     line departments and
          Ensure employment of local people for construction related
                                                                                     producer company
           activities
                                                                                     members resulting in
          Ensure measures/linkages for spread of communicable disease.
                                                                                     active participation in
Imp-
           Establish linkages with local NGO having expertise in HIV
                                                                                     the sub-project
lem-       prevention and control
                                                                                     implementation
enta-   Quality Control:
                                                                                 3. Report of the results of
 tion    Ensure monitoring of day to day work through involving members
                                                                                     social and
          of producer company/farmers collective and regular visit to the
                                                                                     environmental
          site by members of line departments
                                                                                     mitigation measures.
         Progress report and discussion on the site specific issues on a            This should include
          monthly basis                                                              record of information
                                                                                     like compensation
                                                                                     paid, trees fell/planted
                                                                                     during
                                                                                     implementation,
                                                                                     employment provided
                                                                                     to SC/ST, women etc
        Strengthening Producer company and inclusion of disadvantaged             Report on the
        sections:                                                                      assessment of the
         Ensure representation of all section of societies in the executive           farmers collective
          committee                                                                    (PG) / producer
         Execution of capability building plan to upgrade the skills of               companies
          various stakeholders                                                    Report on the skill
         Ensure operationalization of menu of services including graded               building programs
          service charges for disadvantaged sections, women, small and            Practices on waste
          marginal farmers                                                             disposal in place
         Undertake periodic group strength assessment to assess the                   resulting in clean and
Ope-      functioning and capability building needs of the group                       hygienic
rati-   Solid Waste disposal and maintaining hygiene of the area:                      environment at the
 on      Build linkages with organizations/companies that can reuse the               site
          wastes generated out of operations                                      Completion of sub
         Assess the efficiency of the waste disposal system and ensure                project activities in
          separation of degradable and non degradable waste                            conformity with
         Ensure proper maintenance and utilization of water harvested                 ESMF
          through rain water harvesting systems
        Monitoring and Evaluation:
         Monitor key social and environmental indicators during the course
          of operation.
         Document key learning’s and incorporate the same for future sub-
          projects



                                                   162
      iv. The various components of ESMF are:
           Resettlement and rehabilitation (R&R) policy framework
           Gender development strategy
           Tribal development strategy
           Integrated Soil / Nutrient / Pest Management
           Training and capacity building
           Conflict resolution
           Institutional arrangement

4. R&R framework: The following guiding principles will be adopted by the project to address
   any R&R issue arising under the project
   a) The project does not envisage acquisition of any private land, however, if any exigencies
      arise, compensation will be at replacement value.
   b) Encroachers not affected by the project will not be disturbed and those adversely affected
      will get support under the project to mitigate the losses.
   c) All efforts will be made to encourage encroachers to voluntarily surrender encroached lands
      (required for project interventions) but nobody will be forced out.
   d) The affected communities will be consulted in planning and implementing R& R activities.
   e) All those displaced will be socially and economically integrated with the local or host
      population.
      Adequate resources including physical, financial, and human will be made available to
      implement R & R activities under the project.
   f) Common pool resources, if affected, shall be replaced in consultation with the local
      community, especially keeping in mind the needs of the poor, and the vulnerable sections of
      the community.

    i. R&R entitlement framework: The R&R entitlement framework to support the project
    affected families is presented in the Table below


                      Table: Entitlement Framework for the Economic Rehabilitation of PAFs
Type of Impact         Unit of       Entitlement
                       entitlement
1.       Loss of       Titleholders The affected families will have option to choose any one from the following.
Agricultural land      family and    Option 1: Cash compensation as fixed by LA authorities + alternate land at
with valid title/      tribal with   occupancy price fixed by Govt. The extent of land to be allotted will be as
customary or           customary     per the Part III* of the Schedule of MPAPR Act 2001 + Registration charges.
usufruct rights        rights        Option 2: Cash compensation as fixed by LA authorities + Rehabilitation
                                     assistance equal to minimum agricultural wages of (a) 750 days for families
                                     losing entire land, (b) 500 days for families losing part land and becoming
                                     marginal farmer and (c) 375 days for families losing part land and after loss
                                     becoming small farmers.
                                     Option 3: Cash compensation as fixed by LA authorities + Option for IGA of
(ii) tenants, share    Family        equivalent amount for regular income.
croppers and lease                   Reimbursement for unexpired lease
holders
(iii) encroachers      Family
                                      These families are not eligible for any compensation. However, vulnerable
2. Loss of any         Owner
                                               Cash compensation as fixed by authorities
other immobile
asset




                                                         163
 3. Loss of access to Common Property Resources/ facilities
 a. Rural common       Community Replacement/augmentation of common property resources
    property
    resources          Community Replacement/access to equivalent amenities/services
 b. Civic amenities
 and services
 4. Loss of
 standing              Family          For either category, only the cultivator will get compensation at market rate
 crops/trees           cultivating     for crops and fruit bearing trees
 a. With valid title   land
 b. Tenant/lessee


Note: The relevant pages of Maharashtra Project Affected Persons Resettlement Act are scanned and presented in
Appendix N of IESA report.
5. Gender Development and Strategy: The focus group discussions with women groups and
   stakeholders consultation held in different project locations helped to identify gender issues that
   are relevant to the proposed project and to formulate measures to enhance their participation
   and access to project benefits along with others. Key observations from these discussions are:
                 Low / less participation in any development program.
                 Women play significant role in agriculture and other related activities, however
                  these are not recognized by communities.
                 Ownership of agricultural land is generally in the name of men.
                 Women cultivators have problems in accessing markets particularly because of
                  social and economic constraints in reaching nearby markets.
                 Wages to women are generally underpaid and are not at par with male workers for
                  the same type of work.
    While it is unrealistic to expect that the project will address all issues and concerns of women, a
    right approach would be to focus on specific issues that could address those that are most
    relevant to the project outcome. Following this approach, the gender development strategy of
    the project includes specific activities including identifying infrastructure needs and facilities
    for women members at the market, working with women Self Help Groups (SHG) and helping
    them to actively participate in the project activities. The proposed gender development
    strategy is given below.


                                        Gender Development Strategy

Stages            Procedures                    Activities                              Outcome
Preparation       Identify gender                List issues and prioritize             Identify issues that could be
                  concerns/issues in relation    Special attention should be made to    addressed under the project
                  to the project activities      identify infrastructure needs and
                  through PRA exercises          facilities for women members at the
                                                 market
                  Inform about the project       Organize women stakeholders            No. of consultations
                  activities and benefits        meeting                                 Minutes of the meetings
                                                                                         signed by participants.
                                                                                         Feedback from these
                                                                                         consultations

                  Sensitize other                Organize workshops on gender           No. of meetings held
                  stakeholders on gender         sensitization                           No. of participants
                  concerns/issues



                                                         164
Stages           Procedures                   Activities                               Outcome
                 Identify key areas of         Organize workshops meetings with        List concerns and
                 constraints that impact       women of the sub-project area            constraints
                 women’s involvement in
                 the project
Implementation   Ensure women                  Work with women SHG                     Monitor women
                 participation in project      Help SHGs to actively participation     representation in Market
                 activities                    in the project activities                committee
                                                                                        Record no. of women
                                                                                        involved in construction
                                                                                        activities
                 Ensure equal wages for        Maintain a Wage register at the site    Actual wages paid to women
                 equal work in all             and ensure it is filled on a daily       No. of complaints on wage
                 construction related works    basis.                                   payment
                 under the project             Monitor wage payment
                                               Try involve local SHGs in the
                                               construction activities
                 Ensure no women               Constitute an Anti harassment cell      No. of meetings of Anti-
                 harassment under the          comprising of members from Market        harassment Cell
                 project                       committee, PRIs and line                 No. of complaints registered
                                               departments to address women             No. of cases resolved
                                               harassment issues.
                                               Complaint register to be maintained
                                               at the market level and to be checked
                                               periodically by the Market
                                               Monitoring Committee.
                                               Ensure quick redressal of women
                                               abuse related issues
Operation        Ensure women                  Organize training for active            Monitor that women
                 participation in the          participation of women members in        producers get a fair share of
                 working of the market         the committee                            their price
                                               Ensure that women members attend
                                               all meetings of the Market
                                               committee or Producer Company /
                                               Association.
                 Capacity building of          Training calendar to be prepared        No. of trainings undertaken
                 women members and skill       and accordingly training to be           Number of women members
                 up-gradation                  organized                                trained

                 Employment generation         Involve SHGs                            No. of women members
                 for women in sub project      Source out some of the activities to    employed
                 activities                    women                                    No. of activities undertaken
                                                                                        by SHGs

6. Tribal Development and Strategy: There are some sub-projects that are located in areas
   predominantly inhabited by tribal. The key issues and concerns related to tribal vis-à-vis the
   project are summarized below:
       Tribal communities continue to practice traditional agricultural practices and hence little
        exposure to improve agricultural practices and use of farm inputs
     Limited exposure to emerging markets
     Limited access to institutional credit, farm inputs and agricultural extension services
     Poor leadership quality and inadequate representation/participation in the decision-making
        process
    To address these issues, the tribal development strategy of the project, presented below, aims at
    increasing active participation of tribal and their access to project benefits at par with the rest of
    the communities.



                                                        165
                                               Tribal Development Strategy
 Stages               Procedures                                            Activities & Outcome
 Preparation          Identify concerns/issues in relation to the project    List issues
                      activities through PRA exercises
                      Organize consultation with tribal to inform about      Number of consultations held
                      the project activities and benefits
                      Identify key areas of constraints that may be            List areas of constraints
                      improved through the project and develop detailed        Number of consultations & signed minutes
                      plan for tribal development                              List of activities specifically targeting tribal
                                                                                development
 Implemen-tation      Ensure participation of tribal in monitoring             Representation of members from tribal
                                                                                communities in monitoring committee
                      Employment to members from tribal community              Number of tribal employed
                      in carrying out actual construction work
 Operation            Ensure representation of tribal members in             Number of tribal members in the executive
                      decision making body of the producer company            committee
                      Capability building of tribal members and skill        Training calendar to be prepared
                      up-gradation                                           Number of trainings undertaken
                                                                             Number of tribal members trained
                      Employment generation for tribal in related sub        Number of women members employed
                      project activities                                      undertaking various activities
                      Help build linkages with major government              Number of projects linked in the sub project
                      schemes for tribal development particularly skill       locations
                      enhancement and technology up-gradation

7. Integrated Soil / Nutrient / Pest Management: While the project only envisages procurement
    of limited agricultural chemicals (fertilizers and pesticides) for the purpose of demonstration,
    successful outcomes and the possibilities of better marketing opportunities could drive up use of
    these in areas where project would be introduced and demonstrations held. An integrated
    strategy for managing soil / nutrients and pesticides would address the concerns related to
    overuse of agricultural chemicals. The strategy takes into account the broad principles of
    achieving maximum production with minimum inputs that minimize environmental pollution
    and manage pests below the economic threshold level. The strategy also includes IPM for the
    livestock sector. More specifically, the strategy provides a year-wise roadmap for sensitization,
    awareness building, training, demonstration and capacity building of relevant stakeholders to
    adopt INPM approach.
8. Training: The basic tenant for success of any project is competent and skilled human resource.
    It is desirable and therefore proposed that the concerned officials of line departments and other
    stakeholders of the project are adequately trained and capacitated to undertake project
    responsibilities. Following are the indicative lists of skills and competence requirements at sub
    project level.
  Stakeholders            Competence and Skill requirement
  Officials of              Identification, documentation and planning of Social and Environmental indicators at sub project
  MSAMB                      level
                            Monitoring and evaluation of social and environmental indicators
                            Training in documentation and data management
                            Ability to solve problems on a day to day basis
  Field employees            Effective communication to build and develop relationships with stakeholders particularly women
  and officials of line       and tribals
  departments                Institutional analysis and knowledge on relevant laws
                             Training on documentation and data management
                             Training on solid waste disposals and management of rain water harvesting systems
                             Extension skills
                             Ability to solve problems on a day to day basis




                                                                  166
     Stakeholders        Competence and Skill requirement
     Executive             Awareness on social and environmental indicators and its impact
     members of            Awareness on rules and regulations of the company
     producer              Leadership and ability to operate in a democratic and transparent way
     companies /           Relevant business and management skills
     producer              Knowledge on accounting and other administrative functions of the company / producer association
     association
     Beneficiaries and      Improved farm management practices, sustainable use of water, integrated pest management
     community               measures etc
     members including      Importance of better sanitation and hygiene including health of animals/cattle
     women and tribal       Addressing environmental and social issues and its mitigation measures

         For the purpose of providing ESMF arrangements an amount of Rs. 50.00 lakhs has been
         provided in the project which is included in the cost table of PCU.
9.       Conflict Resolution Mechanism: There is a need for a well defined conflict resolution
         mechanism as a number of issues may arise around equity, inclusiveness, participation and
         transparency issues become potential sources of conflicts, especially in context of collective
         action like the Producer Association (PA). “Community Level” conflict resolution
         mechanisms are fairly strong. Each producer group / farmer group has both formal structures,
         like Executive Committee (office bearers like president, secretary and treasurer) and General
         Body to take a call on conflict situation. The proposed Producer Associations (PAs) of the
         Farmer Groups (FGs) will form the “Cluster Level” mechanism for conflict resolution. The
         process, time period for resolution and responsibility for different levels of conflict
         management are prescribed.
10.      Monitoring and Evaluation: The project will have both internal and external monitoring
         mechanisms which will also cover ESMF activities under the project. In addition, the project
         will have provision for a mid-term evaluation of ESMF activities by a third party in
         collaboration with the project to get an independent validation of the progress, and take
         corrective measures mid way through the project. The learning from Monitoring and
         Evaluation of indicators would be built into project implementation processes for improving
         project performance.
11.      Institutional arrangement: The project will have a social and environmental cell in PCU
         with at least one Environmental officer and one Social expert. Considering the fact that all the
         major infrastructure activities are being implemented by the PIU MSAMB, there will be one
         officer to look after both social and environmental concerns of the project in PIU MSAMB.
         Agricultural Supervisior in PIU (Agricultural) is designated as Community Extension Officer
         and the Nodal Officer in PIU (AHD) will look after the additional work as Community
         Extension Officer responsible for community mobilization, and environmental and social
         aspects of the subprojects. In PIU (AHD), after initial one year of the project an independent
         Community Extension Officer may be appointed on contract for the project period, if need be.
12. Consultation Workshops under IESA: In order to make the contents of the IESA Report
     better known to the public and all the stakeholders, district level workshops are planned at all
     the district places in the Phase 1 districts. In these workshops the representatives of the public
     and all the stakeholders have been invited and they will be provided with: (i) the project
     document reflecting the current, revised scope of the project in the local language, (ii) the
     executive summary of IESA and ESMF (including R&R framework, Tribal Development
     Strategy, Conflict Resolution Mechanism), (iii) the dissemination note about public disclosure
     of IESA report, (iv) the brochures, posters and other dissemination material relating to IESA
     Report. The results of these workshops will be documented and will be shared with all the
     stakeholders and disclosed in the public domain.
13. Disclosure in public domain the IESA Study findings: The final report of the IESA Study
     (including R&R framework, Tribal Development Strategy, Conflict Resolution Mechanism),

                                                             167
the Executive Summary of the report of the IESA Study, along with the summary of the key
material changes, the Marathi translation of the Executive Summary of the report of the IESA
Study has been put in the public domain for the knowledge of all the stakeholders and the
public at large by publishing the same on the website of MSAMB (www.msamb.com) on 14th
May 2010, after the same was duly cleared by the World Bank.




                                         168
                                   C.3 PROCUREMENT

1. The implementation of MACP involves the participation of the department's viz. Agriculture,
   Animal Husbandry, and Agricultural Marketing. For policy decisions and advice HPC under
   the chairmanship of Chief Minister of the State has been constituted. Likewise, the Steering
   Committee headed by the Chief Secretary has also been established. The Principal Secreatary
   (Coop. & Mktg.) is the Nodal Officer for the Project. PCU headed by the Project Director and
   PIUs under the heads of the departments involved in the Project have been created for
   coordination and implementation of the Project.
2. During the implementation of the project various activities will be conducted by the
   concerned Line Departments. These activities involve procurement in the areas viz. works,
   goods / equipments, and consultancy services.
3. All procurements under the MACP to be carried out by PCU, various PIUs and beneficiary
   institutions, would be done as per the World Bank’s procurement procedure.
4. Procurement of all goods, works and services will be carried out in accordance with the
   World Bank’s "Guidelines: Procurement Under IBRD Loans and IDA Credits" dated May
   2004, revised October, 2006 (Procurement Guidelines); and "Guidelines: Selection and
   Employment of Consultants by World Bank Borrowers" dated May 2004, revised October,
   2006 (Consultancy Guidelines) and the agreed procedures described in the Legal Agreements.
   In case of a discrepancy between the contents of this manual and the provisions of the above
   Guidelines, the provisions in the Guidelines will prevail.
5. A Procurement Manual for the project has been prepared stating in detail the procedures to be
   followed during the procurement of goods, works and services along with the thresholds for
   each category. The Procurement Manual has been prepared, and will be given to all the PIUs
   and beneficiary institutions and all stakeholders in order to guide them on issues of
   procurement. The Procurement Manual will be translated in Marathi and the Marathi version
   of Procurement Manual will be given to all the line departments and all stakeholders.
6. Details of Component wise Activities and Implementing Agency.
                                        Component                                   Implementing
                                                                                      Agency
    Component A- Intensification and Diversification of Market Led Production
    A1 (i) Institutional Strengthening for Market-led Agri. Technology Transfer   ATMA-Agri Dept
    A1(ii) Preparation & Implementation of Marketing Strategies                   ATMA/Agri Dept
    A2     Agri-Business Promotion Facility (ABPF)                                PCU
    A3     Market Information Services                                            PIU-MSAMB
    A4     Live Stock Support Services                                            AH Dept
    Component B- Improving Farmer Access to Markets
    B1     Promoting Alternative Markets
    B 1.1  Product Aggregation and Sale through Producers’ Association            PIU-MSAMB
    B 1.2  Warehouse Receipts Development                                         PIU-MSAMB
    B 1.3  Rural Haats Markets                                                    PIU-MSAMB
    B 1.4  Introducing E-Marketing Platforms                                      PIU-MSAMB
    B2     Modernizing Existing Markets Upgrading Market Infrastructure
    B 2.1  Modernizing Wholesale Markets                                          PIU-MSAMB
    B 2.2  Upgrading Livestock Yards                                              PIU-MSAMB
    Component C- Project Management
    C (i)  Project Coordination Unit (PCUs)                                       PCU
    C (ii) Project Implementation Units (PIUs)                                    PIU




                                                   169
7. The Thresholds for Procurement Methods for PCU and PIUs and Review Conditions By
   Bank, for Civil Works, Goods, Community Procurement and Services would be as indicated
   below :-
   a.         Civil Works
    Expenditure          Value (threshold**) per              Procurement               Contracts Subject to
    Category             contract                             Method                    Prior Review / Post
                                                                                        Review**
    Civil Works          a) Civil works estimated to cost     International             Prior review by the
    by PCU and           more than US$ 10 million [>          Competitive Bidding       Bank
    PIU                  INR 500 million] equivalent          (ICB)
                         b) Civil works estimated to cost     National Competitive      First two works
                         more than US$ 50,000 [> INR          Bidding (NCB)             contracts under NCB
                         2,500,000.00] and less than or                                 regardless of value and
                         equal to US$ 10.0 million [<=                                  all subsequent
                         INR 500 million] equivalent                                    contracts costing more
                                                                                        than US$ 500,000
                                                                                        equivalent each will be
                                                                                        prior reviewed by the
                                                                                        Bank. All other
                                                                                        contracts by post
                                                                                        review
                         c) Civil works estimated to cost     Shopping (at least        Post review only
                         the equivalent of US$ 50,000 or      three quotations from
                         less (<= INR 2,500,000.00)           qualified contractors)

        ** If a transaction comprises several packages, lots or slices, the aggregate, estimated value of contracts
        determines the applicable threshold amount
   b.         Goods
    Expenditure          Value (threshold**) per       Procurement Method                   Contracts Subject
    Category             contract                                                           to Prior Review /
                                                                                            Post Review**
    Goods/               Contracts estimated to        International                        Prior review by the
    Equipment/           cost more than US$            Competitive Bidding (ICB)            Bank
    Machines by          300,000(>INR 15.0
    PCU and PIUs         million)
    Goods/               Contracts estimated to        National Competitive                 First two contracts
    Equipment/           cost more than US$            Bidding (NCB)                        under         NCB
    Machines by          50,000 and <= US$                                                  regardless of value
    PCU and PIUs         300,000 equivalent (>INR                                           and all subsequent
                         2.5 million but < INR                                              contracts costing
                         15.0 million)                                                      more than US$
                                                                                            300,000 equivalent
                                                                                            each will be prior
                                                                                            reviewed by the
                                                                                            Bank. All other
                                                                                            contracts by post
                                                                                            review
    Equipment/           Contracts estimated to       Shopping (includes issue of           Post Review only
    Materials/           cost less than or equal to   supply orders under DGS&D
    Tools by PCU         US$ 50,000 equivalent        rate contracts. State Rate
    and PIUs             (<= INR 2.5 million)         Contracts are not to be
                                                      considered as alternative to DGS
                                                      &D Rate Contracts. However,
                                                      state Rate Contracts can be
                                                      considered as one of the 3
                                                      quotations for shopping
                                                      procedure) Direct Contracting, if
                                                      the conditions of direct
                                                      contracting are met
        ** If a transaction comprises several packages, lots or slices, the aggregate, estimated value of contracts


                                                          170
              determines the applicable threshold amount


         c.           Community Procurement
           Expenditure                Value in (threshold**) per                       Procurement Method                               Contracts Subject
           Category                   contract                                                                                          to Prior Review /
                                                                                                                                        Post Review**
           Goods,                     US$ 20,000 (INR 1,000,000)                       Shopping /                                       Post Review
           Equipment and                                                               DGS&D Rate Contract
           raw Materials                                                               Based on Unit Cost Database9
           Civil Works                US$ 50,000 (INR 2,500,000)                       Shopping/                                        Post Review
                                                                                       Force Account10
                                US$ 50,001 to 100,000                                  Local Bidding11
                                                                                                     Post Review
                                (INR 2,500,000 to 5,000,000)
              ** If a transaction comprises several packages, lots or slices, the aggregate, estimated value of contracts
              determines the applicable threshold amount

         d.           SERVICES by PCUs and PIUs
           Expenditure                Value (threshold**) per contract                              Procurement Method                            Contracts
           Category                                                                                                                               Subject to Prior
                                                                                                                                                  Review / Post
                                                                                                                                                  Review**
           Services,                  (a) More than US$ 200,000                                     Quality and Cost Based                        Prior Review by
                                      equivalent [>INR 10.0 million]                                Selection (QCBS –                             the bank. first two
           Service                                                                                  International Shortlist, if                   contracts
           Provider                                                                                 the value is above                            regardless of
           Contracts,                                                                               US$500,000)/                                  value and all
           Third party                                                                                                                            subsequent
           Supervision                                                                              Single Source Selection                       contracts valued
           services,                                                                                (SSS)12                                       above US$
           Research and                                                                                                                           300,000
           evaluation
           contracts,
           professional               (b) Contracts estimated to cost more                          Quality- and                                  Post Review by
           services,                  than US$ 50,000 (>INR 2,500,000 )                             Cost-Based Selection                          the bank, however
           training,                  and less than or equal to US$ 200,000                         (QCBS)/Consultant                             ToRs needs to be
           workshops &                equivalent (<= INR 10.0 million)                              Qualification (CQS) /Least                    pre agreed with
           fellowships                                                                              Cost Method (LCM)/                            Bank
           etc.                                                                                     Fixed Budget Selection
                                                                                                    (FBS)/Single Source
           By PCU and                                                                               Selection (SSS). Short list
           PIUs                                                                                     may comprise entirely of
                                                                                                    national consultants
                                      (c) Contracts estimated to cost more                          Quality and Cost Based                        Post Review by

9
  This method is used for equipment and machinery when there is a need to adopt certain minimum standards of specification, technology or a repeat order. To facilitate
consistent standards and comparable price ranges, the contract price agreed upon should be based on established estimates by PCU/PIU as shown in a Unit Cost Database.
These databases will be maintained by the PCU/PIU after carrying out a Floating of Enquiry (FOE). The UCDs should be kept updated and valid and can be useful for
communities in the preparation of proposals and in assessing whether a specific supplier is offering a “fair” price.
10
   Under a community force account, the community implements the subproject using its own resources (skilled and unskilled labor, materials, equipment), and may
subcontract part of the subproject. This approach offers several advantages. It is community driven and cost effective (inputs can be provided by the community at below-
market costs), and it injects funds into the community (e.g., through the payment of wages and materials).
11
  This method and value threshold is applicable only for Haats. In Local Bidding, open tendering procedures should be limited to local advertising using local newspaper
and posting notices at strategic places. Essentially this is like NCB except it is not mandatory to advertise in a newspaper of national circulation and bidding documents are
simpler. Target suppliers and contractors are often those within the vicinity of the beneficiary community. The request for bids spells out the works details, the criteria for
selection, and the deadline for submission of bids. Bids are opened in a public ceremony. The bids are normally evaluated by the Procurement committee. Bids are
examined to determine whether they meet the minimum specifications mentioned in the bidding documents (experience, quality of works, equipment, services offered, and
delivery dates). Bids that meet the minimum requirements specified in the bid invitation are retained for further evaluation and among the qualified bids, the lowest cost is
selected. Accordingly, for Rural Haats the DPRs and the bidding documents will be prepared by the Service Provider to be engaged by PIU (MSAMB). After approval of
the DPR & bidding document, the Rural Haat community procurement committee will float bids and take decision on the bid evaluation report, which will be prepared
with the help of the concerned service provider. In case, the bid price of the lowest evaluated responsive bidder exceeds 5% of the updated estimated/ DPR cost, the Rural
Haat community procurement committee will obtain written concurrence of the PIU, before award of contract

12
  Single Source Selection is subject to meeting the conditions as detailed in Consultancy Guidelines. Regardless of the value, every single source selection should be
submitted for prior review by the Bank with a detailed justification note.

                                                                                    171
              Expenditure               Value (threshold**) per contract                             Procurement Method                           Contracts
              Category                                                                                                                            Subject to Prior
                                                                                                                                                  Review / Post
                                                                                                                                                  Review**
                                        than US$ 5,000 (>INR 250,000 ) and   Selection QCBS/ Quality                                              the bank
                                        less than or equal to US$ 50,000     Based Selection
                                        equivalent (<= INR 1,000,000)        (QBS)/Consultant
                                                                             Qualification (CQS)/ Least
                                                                             Cost Method (LCM),
                                                                             Fixed Budget Selection
                                                                             (FBS). /Single Source
                                                                             Selection (SSS) and
                                                                             individual consultant
                                 (d) Less than or equal to US$ 5,000         Single source / Least Cost      Post Review by
                                 equivalent [<= INR 250,000]                 selection of firms/             Bank
                                                                             Consultant Qualifications
                                                                             Method Hiring of
                                                                             individuals
               ** If a transaction comprises several packages, lots or slices, the aggregate, estimated value of contracts
               determines the applicable threshold amount
8.          Procurement Plan - The PCU/ PIU of every line department will identify and finalize the
            procurement activities that will be undertaken in each subcomponent. Accordingly the
            phasing of such activities will be prepared for goods, works and services for all the activities
            put together. The Procurement Plans for 18 months initially and for every successive year will
            be prepared considering the packages for goods, works and services. The procurement plan
            for first 18 months has been prepared and the steps to procure goods and services required
            during the first phase of the project have been initiated. The Plan will be updated by the PCU
            in consultation with the PIUs every year and submit to the Bank for approval.
9.          Procurement Committee: A procurement committee has been constituted in PCU, and all
            concerned PIUs to compare, give advice and recommend to the competent authority regarding
            the quality and price of goods to be procured. These committees will be responsible for:
                                     Preparing a Procurement Plan.
                                     Approving what to buy, and when to buy?
                                     Finalize technical specifications and terms of references for goods / civil works
                                      and services respectively.
                                     Evaluation of bids , with the help of Service Providers, wherever applicable.
                                     Over sight and supervision of the procurement and contract management.
10. The composition of the procurement committee at PCU, PIUs, RHs, / FCSCs / Demonstration
    Units / PAs would be as follows :-
                   i) Procurement Committee at PCU– (a) Project Director, (Chairperson) (b) Chief
                      Finance Controller - Member, (c) concerned technical specialist/ Coordinator in the
                      PCU [ i.e the related specialist in MIS / M&E/ Agri-Business/Livestock/Agriculture/
                      Marketing] - Member (d) A chairperson of beneficiary institution or representative13 -
                      Member, (e) Procurement Specialist- Member secretary. This committee will perform
                      the procurement actions of the entire requirements of Goods, Works & Services under
                      the PCU’s domain. The representative of concerned Service Provider for APMCs will
                      always be an invitee for procurement of APMC Markets only.
                         This Committee will also prior review and approve the bid documents and bid
                         evaluation reports for all goods & works valued above $100,000 per contract relating to

13
     In case of packages where more than one beneficiary institution is involved, a nominee from each beneficiary institution should be invited for evaluation

                                                                                     172
                        procurements of PIUs (Agriculture /Animal Husbandry/ MSAMB). Like wise the
                        short lists, RFPs and technical & combined (technical & financial) evaluation reports of
                        all services valued above $100,000 per contract in respect of PIUs (Agriculture /Animal
                        Husbandry/ MSAMB) will be prior rewiewed and approved by this Committee.
                        However, wherever applicable, the prior review and clearance of the World Bank will
                        be obtained.
                 ii) Procurement Committee at PIU– (a) Commissioner / Director of the Concerned
                     Line Department (Chairperson) (b) Technical Specialist in the PIU, wherever
                     available – Member, (c) Nodal officer of PIU – Member, (d) A chairperson of
                     beneficiary institution or representative– Member, (e) Accounts officer, PIU –
                     Member, (f) Procurement Officer - Member Secretary.
                iii) Procurement Committee for RHs: Procurement at RH will be Community
                     Procurement. The procurement committee consists of (a) Sarpanch of the Village
                     Panchayat (Chairperson) , (b) DDR or his representative - Member, (c) Two members
                     from Haat Management Committee - Members (d) Representative of concerned
                     Service Provider (design supervision consultant) for Rural Haats - Member (e) Village
                     Development Officer (VDO) Panchayat - Member Secretary.
                        This procurement committee will undertake procurement of civil works upto US $
                        50,00014- and of goods upto US $ 20,000 only and, above this limit and up to US $
                        100,000 by following Local Bidding Procedures.

                iv) Procurement Committee for Farmers Common Service Centre (FCSC) -
                    Procurement at FCSC will be Community Procurement. The committee will comprise
                    of (a) Chairperson/President of the FCSC-Chairperson, (b) Three Members of the
                    elected management Committee of the FCSC - Members, (c) ARCS of the concerned
                    Taluka – Member, (d) Manager of the FCSC- Member Secretary.
                        The FCSC will undertake procurement of civil works upto US $ 50,000 and of goods,
                        equipments and services upto US $ 20,000.
                 v) Procurement Committee for Goat Demonstration Unit - Procurement under this
                    component will be Community Procurement. The committee consists of (a) Sarpanch
                    of Grampanchayat – Chairperson, (b) Three identified small ruminant farmers –
                    Members, (c) Livestock Development Officer of Panchayat Samittee – Member
                    Secretary. The Livestock Development Officer will be responsible for handing over of
                    purchased goats to identified small ruminant farmers.
                        The Committee will undertake procurement of goods, equipments and services upto
                        US $ 20,000.
                vi) Procurement Committee of Producer Groups (PGs) under SR Development
                    programme - Procurement under this component will be Community Procurement.
                    The committee will comprise of (a) President of PG - Chairperson, (b) Livestock
                    Development officer of Panchayat - Member, (c) Two members of PG - Members, (d)
                    Secretary of PG - Member Secretary.
                        The Committee will undertake procurement of goods, equipments and services upto
                        US $ 20,000.
11. Roles and Responsibilities and Contract Management Information: Roles and
   responsibilities of various project implementation bodies are detailed below:


14
     The threshold to be revised based on performance during the Mid Term Review

                                                                                   173
a.        PCU: The state PCU will be responsible for the overall procurement planning,
          implementation, procurement oversight and supervision and responsible for meeting
          project’s compliance with procurement methods / procedures as agreed between the
          project and the World Bank. PCU shall have a Procurement Unit with a Procurement
          Specialist and a Procurement Officer reporting to the head to ensure the proper
          implementation of the World Bank guidelines and procedures mentioned and agreed
          upon with the Bank. The Procurement Unit of PCU will procure the goods, services and
          works for the project planned at the state level and will have prior and post review
          responsibilities beyond certain ceilings at the PIU level. Its key activities include:
             Preparation and updating, as required, the procurement manual based on World Bank
              guidelines for implementation of the project.
             Consolidate, Review and approve all procurement plans of all the PIUs and
              procurement recommendations of PIU established in all the line departments.
              Support PIUs in undertaking large value procurements.
             Procure the goods, services and works required at PCU level.
             Train the PIUs and other staff in procurement with due diligence. Build the
              procurement capacity at all levels.
             Guide and monitor the process of procurement in PIUs and Community
              Procurement.
             Prior review and clear bid documents and bid evaluation reports for all goods and
              works procurement planned by PIUs valued above $100,000 per transaction within 7
              days of receipt.
             Prior review and clear, short lists, RFPs and technical and commercial evaluation
              reports of all services planned by institutions valued above $100,000 per transaction
              within 7 days of receipt.
             Prepare Unit Cost data Base and Item bank detailing & tender specification, names of
              respective manufacturers, indicative range of machinery / equipment etc.
             Undertake or commission and manage yearly post review of at least 10% of contracts
              issued by PIUs and community procurement carried out by beneficiary institutions.
             Maintain a Procurement Management Information System (MIS) on all key
              indicators to be agreed with the Bank and generate and share reports with all
              stakeholders. A Contract Register will be maintained and updated periodically.
             Procurement Specialist will be the Member Secretary of the Procurement Committee.
     b)   PIUs: At PIU level, there will be one Procurement officer to manage the procurement
          process. The procurement officer in the PIU would be reporting to the head of the PIU to
          ensure the proper implementation of the World Bank guidelines and procedures adopted
          by the institutions.
             Develop and Consolidate the annual procurement plan for PIU and organisation
              under the PIU.
             Train the institutional staff in procurement with due diligence. Build the procurement
              capacity at all levels.
             Guide and monitor the process of procurement.
             Prepare and submit all cases for prior review to the PCU and coordinate for
              clarifications and clearances



                                              174
                Undertake yearly post review of at least 10% of contracts issued by institutions under
                 the department.
                Act as the intermediary between PCU procurement section and institutions.
                Post review at least 10% of contract issued by community organisation.
                Prior review of first contract for civil works, goods and services issued by
                 community organizations
                Maintain a Procurement Management Information System (MIS) on all key
                 indicators to be agreed with the Bank and generate and share reports with all
                 stakeholders. A Contract Register will be maintained and updated periodically
                Procurement Officer will be the Member Secretary of the Procurement Committee
     c)      Community Procurement - Community Organization like Rural Haats, Farmer
             Common Service Centers for horticultural crops and foodgrains and identified small
             ruminant farmer from demonstration unit of Animal Husbandry Department, would be
             included under the community procurement activity. These organizations would be
             undertaking procurement on their own.         Item activities include (i) Prepare
             procurement plan and carry out procurement, (ii) Get post review of 10% of contract
             from the concerned PIU, (iii) Perform the procurement within the World Bank
             guidelines and procedures.
             The assets created by the organization like Rural Haats, FCSCs under Community
             Procurement will be verified by the Service Provider.
     d)      Service Providers (SP) - The SP would be finalised by the PIUs for the activities
             within the subcomponents related with the concerned PIUs. Such finalised SP, while
             preparing bidding documents and bid evaluation reports for works and goods would be
             required to follow the World Bank procedures for procurement of goods and
             equipments and Standard Bidding Documents agreed between the Project and the
             World Bank.
12. Agriculture Department: Commissioner Agriculture, will be the project implementing
   authority for Agriculture Dept. PIU, Agriculture will be the overall implementing agency for
   Component-A relating to Agriculture sub-components. Various works, goods and servicess
   to be procured under PIU Agriculture by various agencies are given below:
    Sr. No       Item                                                                        Procurement
                                                                                               Agencies
    1            Renovation of Nodal office including furniture for agri. nodal unit       PIU Agriculture
    2            Computer and Hardware for PIU agriculture                                 PIU Agriculture
    3            Laboratory and training equipments required by Horticultural Processing   PIU Agriculture
                 Training Institute(HPTI)
    4            Computer and Hardware for ATMA at each district level                     DSAO, ATMA
    5            Computer, printer, projector, furniture for farmers information and       DSAO,ATMA
                 advisory centre(two at each district)
    6            Seeds, pesticides, fertilizers, micronutrients and any other material     DSAO,ATMA
                 required for demo of various crops
    7            Need based training equipments for VANAMATI                               VANAMATI
    8            Staff required for PIU Agriculture                                        PIU Agriculture
    9            Staff required for strengthening of VANAMATI                              VANAMATI
    10           Staff required for strengthening of ATMA                                  PIU Agriculture


13. Animal Husbandry Department (AHD) - Commissioner of Animal Husbandry Department
    (AHD) will be the project implementing authority for Animal Husbandry. Various items of
    major procurement under PIU AHD are as given below:



                                                       175
      Sr.     Item                                                                      Procurement
      No                                                                                  Agencies
      1       Experts & staff in Market Intellegence Cell in AHD                       PIU AHD
      2       Need based training equipments for AHD Training Center                   PIU AHD
      3       Office furniture for PIU                                                 PIU AHD
      4       Equipments like computers, xerox machine, fax, telephone for PIU         PIU AHD
      5       Vaccination kit for lady link worker                                     PIU AHD
      6       Medicine, mineral mixtures, vitamins required for animal health check up PIU AHD
              camp
      7       Fodder seeds and fertilizers for demonstration unit                      PIU AHD
14. MSAMB - The Managing Director (MD) of MSAMB will be implementing authority for
    Agricultural Marketing. Procurement Officer within the PIU-MSAMB will assist the MD in
    the matters of procurement. The bidding documents will be prepared by PIU-MSAMB with
    the help of SP. The EOI and advertisement for applications will be sought by PIU-MSAMB.
   The finalization of the agency will be done by the Procurement Committee PIU MSAMB.
   The award of civil work contract will be given by the concerned beneficiary institution. The
   procurement to be carried out by PCU / PIU as per the limits prescribed above.

  Sr. No.       Item                                                                                       Agencies
  1             Service Providers                                                                          PIU
  2             Civil Works (Except FCSCs, Rural Haats)                                                    PIU
  3             Goods and Equipments (such as Food grain Pulses Cleaning Grading Unit, Electronic          PIU/ PCU
                Auction Hall Machinery and other items)
  4             Civil works for APMCs markets, LSM                                                         PIU/ PCU
  5             Refurbishment and renovation of PCU Office                                                 PCU
  6             Equipments required for Computerised Auction System, Electronic Auction Hall and           PIU/ PCU
                E-Trading of perishables
  7             Tally software required for standardized accounting system of APMCs and regular            PIU/ PCU
                accounting system of spending units (Except the offices of DDRCS)
  8             Office furniture and equipments for PCU                                                    PCU
  9             Equipments for central data centre for IPP and hardware required for field level for IP    PIU/ PCU
                and MIS
  10            Staff required for PCU                                                                     PCU
  11            Office furniture, Equipments like computers, fax, xerox and software for equipments        PIU
                and drawing for PIU
  12            Repairing of warehouses for MSWC                                                           MSWC
  13            Repairing of Godowns of APMCs                                                              APMC
  14            Computer hardware required for Standard Accounting system and e-trading platform           DDR
                at APMC level
  15            Electronic weigh bridge 40 MT capacity for APMCs, electronic weigh bridge of 1.5           PIU
                MT, 1 MT for LSM and SR market, Milking machines with accessories, desktop
                computers and peripherals for live stock markets and SR markets
  16            Setting up of laboratory, need based equipments, computers, hardware for MSWC              PIU
                and APMCs godown
  17            Staff required for PIU (HO and Field)                                                      PIU

15. Methods & Procedure of Procurement for goods and works – MACP would follow the
    procedures as laid down in the procurement manual prepared for the project and annexed to
    this PIP.
16. Service Providers (SPs) – The average number of SPs per phase of the Project would be
    around 35. As the number of the agencies would be hired as service providers under the
    project is large, the various tasks for SPs will be clubbed as shown below.
   Sr.      Subcomponent for which SP is proposed                No. of Units under     No. of units      Total no. of
   No.                                                                   the              per SP             SPs
                                                                  Subcomponent
  1         Upgrading & modernization of APMCs. (PIU)                    100           6 (1 SP for 2          17

                                                        176
 Sr.    Subcomponent for which SP is proposed                    No. of Units under   No. of units   Total no. of
 No.                                                                     the            per SP          SPs
                                                                  Subcomponent
                                                                                        district)
 2      Upgrading & modernization of LSMs. (PIU)                         24                 6             4
 3      Upgrading & modernization of RH. (PIU)                          300             12 to14          24
                                                                                      (1 SP for 2
                                                                                        district)
 4      FCSC (Food grains and F&V). (PIU)                               400             12 to14          32
                                                                                      (1 SP for 2
                                                                                        district)
 5      At PCU level:                                                    --            (1 SP for         19
        (i) SP for Procurement Training, (ii) SP for M&E,                                 each
        (iii) SP for Commodity Profiles (iv) SP for ABPF                               activity)
        (v) SP for Internal audit, (vi) SP for External audit,
        (vii) SP for Study of 20 Value Chains, (viii) SP for
        Study of New Business Models, (ix) SP for Study
        of Dairy Marketing Development, (x) SP for
        Study of Fisheries Marketing Development, (xi)
        SP for Study of Agricultural Insurance, (xii) SP for
        Meat Trade Study for Pune City, (xiii) SP for
        Community Asset Verification, (xiv) SP for study
        of Geographical Identification of Important Crops
        ( xv) SP for MIS system xvi) SP for SMS impact
        study xvii) SP for finance, policy and e-trading
        xviii) study of modern design of markets xix) SP
        for study of Agri. Business
 6      At PIU-MSAMB level:                                              --            (1 SP for          8
        (i) Training of Trainers of NIPHT, (ii) Electronic                               each
        Auction Hall, (iii) Study of Electronic Trading of                             activity)
        Perishables, (iv) SP for Computerized Auction
        System, (v) SP for IPP vi) SMS services (vii)
        MID (viii)Virtual market study,
 7      At PIU-Agriculture:                                              --            (1 SP for          2
        (i) NGO for CIG / FIG / PG formation, (ii)                                       each
        Training modules of the training of agric service                              activity)
        provider
 8      At PIU Animal Husbandry:                                         --            (1 SP for          2
        (i) Economic & Market Intelligence Cell in AHD,                                  each
        (ii) SR Development.                                                           activity)
        Total SPs                                                                                        108

b. As the number of consultants / SPs is reasonably large monitoring & management of these
   SPs will be done through (i) Regular reporting of the progress of work by SP to PIU / PCU,
   (ii) Analysis of the reports received, (iii) Monthly review of work, progress, payments,
   problems, complaints redressed, (iv) Corrective steps by suitable instructions, guidance,
   actions. For doing this function effectively Contract Monitoring & Management Cell will be
   created in each PIU of the line departments and in PCU.
c.     Contract Monitoring & Management Cell in PIUs:
            Commissioner / Director of the line department - Chairperson
            Procurement Officer – Member
            Technical Officer (Civil) - Member
            Account Officer (PIU) - Member
            Nodal Officer, PIU (Member Secretary)
       The PCU will call the Nodal Officers of the PIUs for the SP Monitoring & Management
       Cell review meetings.
            Project Director – Chairperson
            Chief Finance Controller - Member

                                                       177
               M & E Specialist - Member
               Procurement Specialist - Member
               Marketing Coordinator - Member
               Technical Officer –Civil - Member Secretary
17. Training & Support
     a. Procurement Training will be given to the concerned staff of the PCU/PIU/line departments
        including the district level officers. This will be done through a consultant in the initial
        period of 6 months.
     b. The PIU of the line department will co-ordinate with the concerned Beneficiary Institutions
        and communicate to them their role in the procedures of procurement including Community
        Procurement. A list of persons/ employees of Beneficiary Institutions who are involved in
        the process of procurement will be identified and workshop / training will be conducted to
        make them understand the procurement procedure to be followed. Personnel from the
        concerned PIU and PCU will also participate in the workshop/ training. This training will be
        conducted by Procurement Specialist from PCU and Procurement Officer from PIU.
     c. SPs for APMCs, RH and LSM will be provided training through workshop by World Bank
        expert.
18. Disclosure of Information about Tendering and Award of Contracts on the website: For
    all procurements conducted by PIU, information on pre-qualification of the contractors and
    award of contracts would be posted on the MSAMB’s website. In general the following
    information would be put on the MSAMB’s website. The information which would preempt
    the bidder to quote to the level of estimate or near the estimate shall not be disclosed.
        Making publicly available, all annual procurement schedules promptly after finalization.
        Posting all bidding documents and requests for proposals.
        Making available to any member of the public, promptly upon request, shortlist of all the
         consultants and in case of pre-qualification, list of all pre-qualified contractors and
         suppliers.
        The information on all pre-qualified applicants and award of contracts.
        Posting annual progress and mid-term review reports of the project.
19. Grievance Management Mechanism:
d.       In order to deal with the complaints received from the contractors/ suppliers effectively, a
         complaint handling mechanism would be available at the Central/ State/ PCU level, and
         immediate action would be initiated on receipt of complaints to redress the grievances. All
         complaints on receipt would be entered in a register. These complaints would be addressed
         within 30 days and mentioned in the evaluation report of the tender. If a complaint is
         received after award of contract, its enquiry / investigation would be conducted and its
         report would be communicated to the concerned departmental head and the PD.
e.       Complaint Handling Mechanism: All complaints would be handled at a level higher than
         that of the level at which the procurement process is being undertaken and the allegations
         made in the complaints would be enquired into. If allegations are found correct, appropriate
         remedial measure would be taken by the higher administrative authorities.


                                                 ***




                                                 178
                        C. 4 FINANCIAL MANAGEMENT

1. The implementation of the MACP will be by three line departments and autonomous bodies.
    The three line departments are the Dept. of Co-operation & Marketing, the Dept. of
      Agriculture, and the Dept. of Animal Husbandry. The Dept. of Co-operation and Marketing
      is the Nodal Department.
    The autonomous bodies involved are viz.:
              (i)    MSAMB – Maharashtra State Agricultural Marketing Board (under Dept. of
                     Co-op. & Mktg.)
              (ii)   MSWC – Maharashtra State Warehousing Corporation (under Dept. of Co-
                     op. & Mktg.).
              (iii)  ATMAs – Agricultural Technology Management Agency, one in each of 33
                     districts (under Dept. of Agriculture).
              (iv)   Other Training Institutions: VANAMATI and ( under Dept. of Agriculture),
                     NIPHT (under MSAMB)
Funds Flow:
2. The entire funds flow structure is clearly documented below and depicted in Charts I to IV at
   the end of this chapter. It explains how funds will flow from the GOM, to the concerned line
   departments, PCU and PIU in MSAMB and MSWC.
3. Funds from the World Bank will be made available to the Government of Maharashtra through
   the GoI under the standard terms of on-lending between GoI and the States. The Bank will
   provide an initial advance, which will be transferred to GoM. The advance will initially be
   around US$ 5.00 million, and every quarter this balance will be replenished to the extent of
   amount spent out of this advance as evidenced by the consolidated quarterly Interim Unaudited
   Financial Reports (IUFRs) furnished by the PCU to the Bank in pre-agreed formats. The basis
   of preparation of these quarterly IUFRs will be the project accounts. The Bank will finance 90
   percent of the project expenditures excluding beneficiary contribution under a single
   disbursement category comprising works, goods, consultants’ services, training, and operating
   costs. The balance 10.% will be borne by the Govt. of Maharashtra.
   The Government of Maharashtra will pass on the funds (both Bank finance and own
   contribution) to project implementing agencies through budgetary grants.
4. The project funds will be budgeted in GoM’s budget, as an identifiable budget head, under the
   Major Head “ 4435 – Capital Outlay on Agricultural Programmes (under Marketing and
   Cooperation Department) and, under the subhead “Maharashtra Agricultural Competitiveness
   Project.” The project components and sub-components as sub-heads. The Finance Department
   of the GoM will provide the funds to Dept. of Co-operation and Marketing based on approved
   annual budget, which will further reallocate the funds based on the annual work plan and
   budget to Dept. of Agriculture and Dept. of Animal Husbandry through the BDS system.
Funds Flow to Agriculture Department:
5. The Dept. of Agriculture will further allocate budgetary grants through BDS to Commissioner
    Agriculture. PIU Agriculture will be part of the office of Commissioner of Agriculture. The
    budget allocation order for Agriculture Department will specify the funds provided for activities
    to be implemented by the Dept. of Agriculture under MACP, viz. (i) Line department wise
    training / demonstration programs and activities under ATMA (Allocation to Agriculture Dept.
    programmes and Animal Husbandry Dept. programmes under ATMA would be clearly
    specified in this order), (ii) Training under VANAMATI and Horticulture Training Institute,
    (iii) Foreign Training, (iv) PIU Agriculture Expenses.


                                                179
Activities of PIU - Agriculture:
6. The DDO in the office of Commissioner Agriculture will draw funds through BDS for the
   following expenses, viz. (i) PIU Expenses, (ii) Service Provider expenses, (iii) Foreign tours of
   Officers, (iv) Buyers Sellers meet (State level)
Funds to ATMA
7. ATMA is a district level autonomous body (registered Society), which is a convergence of line
   departments like Agriculture, Animal Husbandry, Dairy, Fisheries, and Sericulture etc. For the
   MACP project, funds to ATMA for training and demonstration programs will be released for
   two line departments, viz. Dept. of Agriculture and Dept. of Animal Husbandry. So the
   budgetary grants which are received by the Commissioner Agriculture through BDS will
   explicitly mention in the budget release order the grants under Agriculture and Animal
   Husbandry departments. After the Dept. of Agriculture in Mantralaya releases grants through
   BDS to the Commissioner Agriculture, the DDO in the office of Commissioner Agriculture will
   access the BDS and submit bill to the treasury. After passing of the bill, the treasury will
   transfer the funds to the bank account of the ATMAs through a system of Electronic Funds
   Transfer (EFT). The ATMA account for MACP Project would be jointly operated by the
   DSAO who is the ex-officio Project Director of ATMA and the DDO in his office. This grant
   allotment will be based on the budget release order as mentioned above to carry out the
   activities of ATMA scheduled for that year as per the Annual Plan.
Activities of ATMA under Agriculture Department:
8. For the activities of ATMA under Agriculture Department, including payment of staff of
   ATMA taken on contract for MACP activities, the DSAO would release the cheques to the
   contractors for the following activities, viz. (i) Preparation of Marketing Strategy Supplements,
   (ii) Mobilization of farmers into CIGS / FIGS, (iii) Training of officers, (iv) Training of farmers
   / field extension functionaries /Agriculture Service Providers, (v) Demonstrations, (vi)
   Exposure visits, (vii) Innovative pilots, (viii) Buyers sellers meet (district level), (ix)
   Strengthening of growers’ association, (x) Procurement of computers.
Activities of ATMA under Animal Husbandry Department (AHD)
9 . For the activities of ATMA under Dept. of Animal Husbandry, the Project Director, ATMA
    (DSAO) will issue a funds through core banking to DDO bank accounts of DAHO for the
    activities of training and demonstrations under AHD. The DAHO will use the same for
    activities as and when required. The activities of AHD under ATMA are as follows, viz. (i)
    Mobilization of farmers and SR farmers into CIGs, (ii) Training of farmers from the area of
    LSM & SR markets, (iii) Demonstrations for animal management techniques and fodder
    production technology, (iv) Exposure visits to goat demonstration units / LSM markets.
Funds flow to VANAMATI
10. As far as the grants for the training institution VANAMATI is concerned, the DDO in the office
    of Commissioner Agriculture will draw funds through the BDS and submit bill to Treasury.
    After passing the bill, the treasury will transfer the funds to the Bank account of VANAMATI
    through a system of Electronic Funds Transfer (EFT).
Grants to Horticulture Processing Training Institute, Aurangabad (HPTI):
11. HPTI is the institute of Agriculture Department which works under the control of Regional
   Joint Director Agriculture (RJDA), Aurangabad. Funds will be disbursed by the Commissioner,
   Agriculture under BDS to Regional Joint Director Agriculture, Aurangabad. RJDA,
   Aurangabad will draw funds from Treasury and pay cheques to the contractors of HPTI,
   Aurangabad. HPTI will submit accounts to RJDA, Aurangabad, who in turn will submit
   accounts to PIU Agriculture.

                                                 180
Release of Funds to Training Institutions and Demonstrations based on standard rates
prescribed
12. The release of funds for Training Institutions and demonstrations of ATMA will be based on
    standard unit costs prescribed for these activities under State level programs. Disbursement of
    funds to ATMA will be in the form of advances and in tranches on the basis of the work
    program to be undertaken. Each ATMA will have to submit quarterly Interim Un-audited
    Financial Reports (IUFR) in agreed formats within 15 days of the end of quarter . The quarterly
    reports will have to be submitted for the earlier tranche for the release of the next tranche of
    funds. The monitoring of these training programmes will be robust and will be carried out by
    M & E Specialist from VANAMATI with the help of field staff of line departments concerned.
Funds Flow to Co-operation & Marketing Department
13. The Co-operation and Marketing Department in Mantralaya will release grants to MSAMB for
    (i) PIU – MSAMB, (ii) PCU – MSAMB. The MSAMB shall maintain two separate project
    bank accounts – one for PCU and the other for PIU-MSAMB. The “PCU-MSAMB Account”
    will be jointly operated by the Project Director / Chief Financial Controller and Accounts
    Officer of PCU. From this account the following expenses of PCU will be incurred, viz. (i)
    expenses for ABPF, (ii) expenses for internal and external audit, (iii) expenses for
    consultancies, and, (iv) PCU expenses. The PIU account will be jointly operated by the MD,
    MSAMB and Accounts Officer of PIU. From this account the following expenses of PIU will
    be incurred, viz. (i) expenses for market intelligence, (ii) expenses for training at NIPHT, (iii)
    expenses for various service providers (iii) PIU–MSAMB expenses. NIPHT however, will be
    also one of the accounting center and it will maintain all accounts and records of funds received
    and expenditure incurred by it.
Funds Flow to District Deputy Registrar C. S.:
14. The Director of Marketing gives funds through BDS to DDRCS for components of APMC
    Markets, RH, and FCSC. The office of the District Deputy Registrar Cooperative Societies
    (DDRCS) will be the major spending unit for activities under Subcomponents “Promoting
    Farmer Common Service Centres”, “Modernisation of wholesale markets” and “Upgrading
    Rural Haats” Expenditures on all these three subcomponents will be shared by the Government
    of Maharashtra and the Beneficiary concerned in pre-determined ratios.

                                                                                                   Beneficiary
        Sr                                                               Project and GoM
                        Component & Subcomponent                                                  Contribution
        No                                                                Contribution%
                                                                                                       %
        Promoting Alternative Markets
         1 Product aggregation through Farmers Groups/Farmers Service Centers
            -- Stage-I Investments                         75.0               25.0
            -- Stage-II Investments                        50.0               50.0
        2   Rural Haats Markets
            -- Basic Infrastructure (Stage I)              90.0               10.0
            -- Productive Infrastructure (Stage II)        75.0               25.0
        Modernizing Existing Markets
        3   Modernizing of Wholesale Markets(APMCs)
            -- Basic Infrastructure                        50.0               50.0
            -- Productive Infrastructure                   25.0               75.0
       GoM’s share for these will be redistributed15 by the Director of Marketing and Cooperation
       through BDS to the district level DDRCS office for payment of contractors / suppliers. The

15
     After the Director of Marketing receives the grants through BDS from Co-operation & Marketing Department

                                                         181
   DDRCS will release a pre-numbered recipt / give a sequential inward number from the Inward
   Register of the DDRCS office, to the supplier/contractor on submission of invoice. The
   payments for the Government share towards expenditures incurred on the above-mentioned
   activities will be released from the treasury once treasury bills are raised by the DDRCS office
   within seven working days after submission of contractors’ / suppliers’ invoices recommended
   by the respective APMC, designated Service Provider and Market Field Engineer of MSAMB
   based on terms of contract and physical progress. The Treasury will issue a cheque in the name
   of the concerned contractor or supplier / DDRCS on receipt of cheque from treasury will
   deposit the same in his account and make that payment to contractor by electronic transfer to
   the account of the contractor. This will mitigate corruption and fraud risk.
   Separate Bank Account for Beneficiary Contribution:
15. In order to achieve the objectives of Parts B.1 and B.2 of the Project, it shall be ensured that no
    activity shall be undertaken under Parts B.1.1 and B.1.3 of the Project unless the Beneficiary
    shall have first opened a bank account in a commercial bank and deposited therein an amount
    equivalent to its full share of the cost of carrying out the activity, and, under Part B.2.1 of the
    Project unless the Beneficiary shall have first: (a) opened a bank account in a commercial bank
    and deposited therein an amount equivalent to one third (1/3) of its full share of the cost of
    carrying out the Activity; and (b) entered in to a loan agreement with a reputable lender
    pursuant to which the said lender shall make available to the Beneficiary an amount equivalent
    to two third (2/3) of Beneficiary’s full share of the cost of carrying out the Activity.
15. The beneficiary contribution supposed to be collected upfront from APMCs covered under
    modernisation program of MACP will be deposited in a separate bank account opened for this
    purpose at district level in Bank. The beneficiary contribution from all the APMCs identified
    for modernisation from that district will be deposited in this account. This account will be a
    joint account of the concerned DDRCS and the DDO in the office of DDRCS. The cheques will
    be issued by the joint signatures of the concerned DDRCS and the DDO in the office of
    DDRCS, only after receiving contractor’s/supplier’s invoices checked by designated service
    provider and field engineer of MSAMB based on terms of contract and physical progress and
    recommendated by the Chairman & the Secretary of the respective A.P.M.C. There would be a
    single account at the district level having separate ledgers for each APMC which shall be
    maintained by DDRCS with the help of accountant. The expenses incurred from this account
    are to be made towards contractors & suppliers of APMCs.
   Funds flow for FCSC & RH
17. It has been decided to do the procurement in FCSC & RH by following the method of
   community procurement. The beneficiaries would follow either shopping or force account
   method. In view of this FCSC & RH are not required to deposit their contribution in the
   beneficiary account of DDRCS. The FCSC & RH will open the accounts with Bank for project
   funds. Initially these beneficiaries will deposit their contribution in these accounts. These
   institutions after spending from their own contribution will submit photocopy of passbook of
   account, photograph of work completed, invoices and muster roll (in case of force account) and
   utilisation certificate duly signed by Chairman and SP of the concerned beneficiary to the
   DDRCS with a request to release further advance. Advance of 25% and 30% of the total cost of
   work in case of FCSC & RH respectively will be released by DDRCS to the concerned
   beneficiary within 7 working days either by treasury cheque or by core banking method amount
   which will be deposited in the account of the beneficiary. The proposal for release of II advance
   will be submitted by the beneficiary to the DDRCS after spending 50% of the I advance with
   the documents stated above. Similar procedure will followed for third advance. After receipt of
   the proposal for advance, DDRCS shall release the same within 7 working days from the date of
   receipt of the proposal. After completion of the work, utilisation certification of the last advance
   & completion certificate duly signed by Chairman and SP and the invoices and copy of

                                                 182
   passbook of account will be submitted to DDRCS. DDRCS with the help of accountant
   provided under the project shall keep all the records, accounts & documents relating to FCSC &
   RH for each works seperately.
    Funds flow to MSWC
18. MSWC, being an autonomous body and being outside the BDS system, the DDO in the DOCM
    will draw funds from the treasury and issue cheques to MSWC. MSWC will also have a
    separate bank account named MSWC-MACP which will be operated by MSWC. The expenses
    to be incurred from this account will be for (i) Repairs of MSWC godowns, (ii) Providing lab
    equipments in MSWC godowns, (iii) Connectivity with Commodity exchanges.
   Funds flow to Animal Husbandry
19. The Animal Husbandry Department in Mantralaya will reallocate budgetary grants through the
    BDS to the office of Commissioner, Animal Husbandry. The budget allocation order will
    specify the funds provided for activities to be implemented by the AHD under MACP. DDO
    from Commissioner AHD will draw funds as per BDS from treasury and give to PIU for
    expenses of the following: (i) Market Development Cell, (ii) Grants to training center of AHD,
    (iii) Providing vaccination kits to lady link workers and (vi) PIU AHD Expenses. However for
    two activities, the Commissioner AHD will further reallocate the budgetary grants through BDS
    to the district level functionaries of AHD of 6 districts namely Beed, Yavatmal, Sangli, Satara,
    Pune, Ahmednagar. These activities are i) Supply of bucks and rotary chaff cutters to farmers in
    goat demonstration units (Goat as high value enterprise: (for 4 districts Sangli, Satara, Pune,
    Ahmednagar ) and (ii) Supply of bucks to SR farmers (Support to SR federation: for 2 districts
    Beed, Yevatmal). Deputy Commissioner of AHD who is a district level functionary for AHD
    will submit the bill to treasury and the treasury will issue cheques in the name of contractors/
    suppliers for activities under the project.
Preparation and Approval of Budget
20. Preparation of budget is a bottom-up exercise. All the participating agencies will prepare annual
    budget based on the activities planned to be implemented under MACP during each financial
    year. Preparation of the Annual Budget will be guided by the Work plan and Procurement Plan
    of each participating agency under MACP. The spending units will submit their budget
    proposals to the respective departments in Mantralaya. Each PIU will submit consolidated
    budget to PCU which in turn will prepare consolidated budget for the project after due
    consultation with all stakeholders. The consolidated budget with department wise provision will
    be considered by the Planning and Finance Department with the concurrence of DOCM. The
    consolidated budget for the project will then be placed before legislature for approval. In the
    State budget document the entire budget for MACP will be shown under the budget of DOCM
    with a break up for components and subcomponents. After approval of the budget by the State
    Government, the Dept. of Planning & Finance, GOM will allocate provisions as per the budget
    to the Department of Cooperation and Marketing.
21. Once the budget is approved by the State Government, the DOCM will allocate provisions as
    per the budget to the respective line departments. The copies of the Budget allocation order
    will be given to the Secretaries of line Departments, PCU, PIUs. The PIUs will in turn allocate
    it to the District Offices of all concerned line departments. This order will also be published on
    Website of MSAMB.
22. The Drawing and Disbursing (DDO) officer of the DOCM (Under Secretary) will draw and
    disburse funds as per the budget to PCU, PIU-MSAMB and MSWC as these agencies operate
    through commercial bank accounts and not the treasury system. The orders regarding the
    changes if any in budget provisions, instructions etc. in this behalf will also be copied to all
    concerned mentioned above & published on the project website.


                                                 183
Administrative Setup for Finance Management:
23. The Finance function in the PCU will be led a by the Chief Financial Controller who is on
   deputation from the State Finance Department. He will be responsible for overall coordination,
   monitoring and control of the financial matters of the MACP. He will be assisted by a team of
   four people – a Finance Specialist who is a qualified CA who will oversee the audit
   arrangements, an Accounts Officer, an accountant and a Cashier. A computer literate accounts
   graduate (Accountant with computer knowledge) with at least three years experience of
   maintaining accounts will be hired in all the Accounting Centers except MSWC, NIPHT, HPTI,
   Dist. Dy. Commissioner (AHD).
24. There is a Drawing & Disbursing Officer (DDO) in each of the Head Office - the Dept. of Co-
    operation & Marketing, Dept. of Agriculture, and Dept. of Animal Husbandry. Besides these,
    there are designated officers from the Regional Offices of various line departments, and, the
    district Offices of DDR carry out functions of the DDO. A customized training module for
    project financial management will be developed and training imparted to all DDOs/HODs
    before implementation begins. Similar training for accountants hired from the market should be
    completed within 3 months after effectiveness. This training activity will be undertaken by the
    Finance Team of PCU, MACP.
25. The financial management training will be conducted by the Finance Team in PCU & PIU to all
    the concerned officers, accountants and staff in implementation in respect of keeping of
    accounts, preparation of IUFR, submission of claims to World Bank and all other financial
    matters.
Internal Control Framework:
26. A Financial Management Manual has been prepared which documents in detail the financial
    management processes namely, budgeting, funds flows, internal control, significant accounting
    policies, financial reporting and audit arrangements. This will serve as a reference manual and
    ensure uniformity across participating agencies. The FM Manual has been translated in the local
    language Marathi and will be available with all the implementing agencies. The manual, both in
    Marathi and in English, will also be available on the MSAMB’s Website.
27. For each spending unit the applicable framework would be the delegation of financial and
    administrative powers laid down through State Financial Rules /government orders.
    Additionally this will be supported by the approval process for specific project activities
    outlined in the project FMM/COM. The FMM will be a living document. It will be reviewed
    periodically to ensure that it remains valid and adequate during project implementation and may
    be amended as per requirements on the ground. However every change will need to be
    approved by the Project Director and Financial Controller and the Bank. Some of the other key
    control parameters are as follows:
      Each project accounting unit will furnish quarterly unaudited interim financial reports and
       to PCU.
      Spending units operating commercial bank accounts will prepare bank reconciliation
       statements on a monthly basis.
      Spending units operating through the treasury will reconcile accounts with the State
       Accountant General (A&E) on regular basis. This is in line with the existing control
       framework laid down by the State Financial Rules.
      Service standards will be laid down regarding release of payments, approval of bills etc.
       Payments will be made through EFT/RTGS wherever possible.




                                               184
        Almost 70% of the Project funds are estimated to be spent on civil works. The Project
         design provides for technical supervision by MFEs of all civil works which will reinforce
         assurance on the end-use of funds.
        The Internal control framework will be strengthened by periodic internal audit. Internal
         auditors will do physical verification of assets on a sample basis.
        An annual external audit of financial statements will be conducted for all participating
         agencies.
        An M&E Framework for the Project will be developed by an external M&E Agency in
         consultation with PCU and PIUs. The external M&E agency will also conduct the Baseline
         Survey for project; a computerized Project Monitoring Information System (PMIS) will be
         developed for monitoring all MACP Project activities. Six-monthly M&E reports to the
         PCU
Accounting and Financial Reporting
28. The accounting centers are the offices where the basic accounting in respect of financial
    transaction for the project activities shall be carried out. These accounting centers shall be
    responsible for maintaining the relevant vouchers and supporting documents pertaining to
    project related transactions in a separate file up until 1 year after the submission of the last
    project external audit report to the Bank. They are also responsible for timely submission of
    accounts as well as, annual audited financial statements & submission of financial records for
    audit. Detailed guidelines for on significant account in policies, financial reporting structure
    including frequency of reporting are provided in the Financial Manual.
29. The States mainstream accounting system maintained by the State Accountant General /monthly
Drawing and Disbursement Officer (DDO) accounts will be used to account for expenditures
incurred through the State Treasury system. Where separate bank accounts are maintained,
accounts will be maintained on Tally software. The accounting system will be a cash based system
as followed by the State Government. There are 80 accounting centers as per the funds flow
arrangement for various components and sub components under the Project.

30. Summary of Accounting Centers

                                Department                                No. of A.C.
       Agriculture Department                                                  36
       Co-operative and Marketing Department                                   37
       Animal Husbandry Department                                             7
                                                                Total          80
   Consolidated interim unaudited financial reports (IUFRs) shall be submitted to the World Bank
   on a quarterly basis within 45 days of the end of the quarter. The reporting formats of IUFRs
   will be agreed upon and included in the FM Manual.
Audit Arrangements
External Audit:
31. The external audit of the project accounts outside BDS, except MSWC, will be conducted by
    the firm(s) of CA. External audit of MSWC and BDS accounts under the Project will be
    conducted by CAG. For this audit the concerned DDOs will submit annual accounts to AG on
    or before 30th June of the folloing year. If the C&AG Audit Report is not received by 30th
    September of thet year, the Project will get external audit done by appointing Chartered
    Accountant(s), who shall be appointed as per TOR agreed by the Bank. Audit of expenditures
    incurred by ATMAs and the expenditures from beneficiary contribution will be conducted by
    private firm of Chartered Accountants. It was agreed that consolidated unaudited financial

                                                185
   statements of the expenditures incurred by the departments under the project will be submitted
   to the C&AG latest by June 30th which will provide three months to CAG to undertake audit.
   Following this, in case if the C&AG is unable to submit the audit report by due date (i.e.
   September 30th), the project may, after seeking confirmations as may be required under the laws
   of the land, assign the audit of the departmental expenditures to a private chartered accountant
   firm which is independent and acceptable to IDA. Audit by C&AG will be conducted in
   accordance with generic criteria agreed with the C&AG for audit of bank financed projects.
   Audit by private CA firm(s) will also be conducted in accordance with pre-agreed TORs. The
   CA firm(s) would be appointed based on a competitive process and meet minimum criteria
   established in the FM Manual.
32. In addition, an audit report by the C&AG for the designated account held at GoI would also be
    submitted in the usual manner. Thus, the following audit reports will be submitted to the Bank
    within six months from the end of each financial year, subject to what has been stated in the
    above para.
  Implementing Agency           Audit of                               Auditors

  All Implementing agencies     Consolidated Financial Statements      State AG (Audit)
  except ATMAs,                 of the Project except for ATMAs,
  VANAMATI, NIPHT,              VANAMATI, NIPHT, Beneficiary
  Beneficiary Contribution      Contribution Accounts, and
  Accounts, and MSAMB           MSAMB.
  ATMAs , VANAMATI,             Compiled Financial Statements          Private CA Firm
  NIPHT, and Beneficiary
  Contribution Accounts, and
  MSAMB
  DEA / GOI                     Special Account                        Comptroller &       Auditor
                                                                       General of India
Internal Audit
33. The project will appoint, within six months of effectiveness, independent firm(s) for carrying
    out internal audit of the project. The firm would be appointed based on a competitive process
    and meet minimum criteria established in the FM Manual.
Project Audit Review Committee:
34. A constant monitoring of the audit programme is absolutely essential for regular and timely
    completion of the external and the internal audit. For this purpose, the Project Audit Review
    Committee headed by the Project Director has been constituted in the PCU-MACP with the
    following members: (i) Chief Financial Controller (PCU), (ii) Finance Specialist (PCU), (iii)
    Nodal Officer PIU (MSAMB ), (iv) Nodal Officer PIU ( Agriculture ), (v) Nodal Officer PIU (
    AHD ), (vi) Accounts Officer, PIU (MSAMB), (vii) Accounts Officer, PIU (Agriculture), (viii)
    Accounts Officer, PIU (AHD), (ix) Representative of AG, (x) Representative of CA firm
    assigned with internal audit, (xi) Accounts Officer (PCU) (member secretary). This Committee
    will consider the key audit issues and monitor timely follow-up and corrective actions. The
    Audit committee will appraise the Principal Secretary (Co-operation & Marketing) and the
    State Government, every six months, about the significant audit issues and actions taken. The
    audit committee will hold quarterly meetings to carry out the above functions.




                                               186
                                            Chart – I

                      Funds Flow for Agriculture Department

                          Finance Department



                  Co-operation & Marketing Department



                 Agricultural Department in Mantralaya



                                    BDS


        Commissioner Agriculture – PIU Unit
           PIU Expenses
           Foreign training
           SP Expenses                                                      BDS
           Buyer Seller Meet (State level)


                                                      Through core          Joint Director Agri.
                                                        banking                 Aurangabad
                   Through core
                     banking
                                               VANAMATI
                                                                                     Cheque
                    ATMA
              (Separate Bank A/c)                                        Contractors of HPTI

                                   Cheque

                  Bank A/C                                    DAHO

Agri. Component                                           AHD Component
   Contractual staff of ATMA                                 Training to farmers of livestock & SR
   Preparation of Marketing Strategy Supplement,              markets.
   Mobilisation of farmers into CIGs / FIGs,                 Exposure visits of LSM , SR market and
   Procurement of computer,                                   Goat demonstration unit.
   Training for officers & farmers,                          Demonstration on livestock management
   Demonstrations,                                            and fodder production technology
   Exposure visits,
   Innovative pilots,
   Buyers sellers meet (district level),
   Strengthening of grower association




                                                187
                                          Chart – II

        Funds Flow for Co-operation and Marketing Department



                                      Finance Department

                                                            BDS

                          Co-operation & Marketing Department

                                                                             BDS
                        Cheque                       Director of Agricultural
                                                           Marketing

                                                                            BDS

      PCU                        PIU                 MSWC                  DDRCS
     MSAMB                     MSAMB
    Bank A/C 1                BankA/C 2

                                                           Repairs of
                                                            godowns
 PCU Expenses                                             Lab                    Separate bank
                                     PIU
 ABPF                                                      equipments             A/C for
                                      Expenses
 Audit (Internal &                  Market               Connectivity           Beneficiary
  External )                          Intelligence          with                   Contribution3
 Consultant                         Service               commodity
  Expenses for M &                    Provider              exchanges
  E Procurement
  training
                              NIPHT
                                                                    For Contracts
                                                                     APMC
                                                                     Rural Haat
                                                                     Farmer Common Service
                                                                      Centers (food grain /
                                                                      Horticulture crop )




       1
         -PCU – MSAMB A/C jointly operated by Project Director and Chief Finance Controller &
       Accounts Officer
       2
         -PIU – MSAMB A/C jointly operated by M.D., MSAMB and PIU- Accounts Officer
       3
          -Beneficiary A/C operated by DDRCs and DDO from the DDRCs office on recommendation of
       the bill by concerned beneficiary




                                            188
                     Chart - III

Funds flow for Animal Husbandry Department


                  Finance Department

                                BDS

       Co-operation & Marketing Department

                                BDS

Animal Husbandry Department in Mantralaya (ADF)

                                        BDS

         Commissioner of Animal Husbandry –
                      PIU unit




       PIU Expenses
       Service Provider
       Market Development Cell
       Training Centre of AHD
       Supply of bucks and rotary chaffs cutters to
        farmers in goat demo. units
       Supply of bucks to SR farmers
       Vaccination kits to lady link workers




                         189
                                                                          Chart IV
                                                          The Fund Flow Chart under MACP (Summary)

                                                                       Finance Department

                                                                                      BDS

      Agricultural Department in                   BDS          Co-operation & Marketing Department                         BDS         Animal Husbandry
             Mantralaya                                                                                                                 Department in Mantralaya
                                                                                               BDS
                                  BDS
                                                                                                                                                                BDS
                                                                                                     Director of Agricultural
        Commissioner Agriculture – PIU Unit
                                                                                                           Marketing                           Commissioner of Animal
         PIU expenses                                                 Cheque
         Foreign training                                                                                                                      Husbandry – PIU unit
                                                                                                                              BDS
         SP expenses
         Buyer Seller meet (State level)
                                                                                                                             DDRCS
                                                                 PCU                 PIU                 MSWC
     BDS                   Through core                                                                                                                PIU Expenses
                                                                MSAMB               MSAMB
                             banking                                                                                                                   Service Provider
                                                                 A/C 1               A/C 2
                                                                                                          Repairs of                                  Market Development
                                                                                                           godowns                                      Cell
  RJAD              ATMAs             VANAMATI                                                                                    Separate bank
                                                                                                          Lab                                         Training Centre of
Aurangabad                                                                                                                        A/C for
                                                                                                           equipments                                   AHD
                                                                                                                                  Beneficiary          Supply of bucks &
                           Separate            PCU Expenses                        PIU Expenses          Connectivity
                           Bank A/C                                                  Market               with                   contribution 3        rotary chaffs cutters
       Cheque                                  ABPF
                                               Audit Internal & External             Intelligence         commodity                                    to farmers in goat
                                                                                     Service              exchanges                                    demonstration units
  Contractors of                               Consultant Expenses for
                                                                                      Provider                                                         Supply of bucks to SR
     HPTI                                       M & E Procurement
                                                training                                                                                                farmers
   Aurangabad
                                                                                                           For Contracts                               Vaccination kits to
                                                                                    NIPHT                   APMC                                       lady link workers
    DSAO                         Cheque                      DAHO
                                                                                                            Rural Haat
Agri. Comp.                                              AHD Comp.                                          Farmer
                                                                                                                                    1
Contractual staff on ATMA                                 Training to farmers of livestock & SR             Common                   -PCU – MSAMB A/C jointly operated by
Preparation of Marketing Strategy                          markets.                                          Service                Project Director /Chief Finance Controller &
Supplement, mobilization of farmers into                  Exposure visits of LSM , SR market and            Centres                Accounts Officer.
                                                                                                                                    2
CIGs/FIGs, Procurement of computer,                        Goat demonstration unit.                          (foodgrain /             -PIU – MSAMB A/C jointly operated by M.D,
Training for officers & farmers,                                                                             Horticulture           MSAMB and PIU- Accounts Officer
                                                          Demonstration on livestock management                                    3
Demonstrations, exposure visits, innovative                                        190                                                 -Beneficiary A/C operated by DDRCs and DDO
                                                           and fodder production technology                  crop)
pilots, buyers sellers meet (district level),                                                                                       from the DDRCs office on recommendation of
strengthening of grower association                                                                                                 the bill by concerned beneficiary
Maharashtra Agricultural Competitiveness Project




                     C. 5 MONITORING AND EVALUATION

1. The project monitoring and evaluation (M&E) will contain the following distinct but
   interrelated aspects:
    i) The Implementing Departments / Implementing Agencies will regularly monitor and
    report on the Project’s physical and financial inputs and outputs.
    ii) The M&E consultant will concurrently monitor and evaluate project processes,
    approaches, institutions and quantify short term outputs and outcomes. The M&E agency
    will also carry out the baseline survey and the evaluations of the project’s outcomes and
    impacts at mid-term and prior to project completion.
2. The Project M&E mechanisms will emphasize stakeholder participation, and, will be
   designed to facilitate rapid identification of shortcomings and problem areas, and,
   facilitate the mid-term corrections, where necessary, to project design and / or
   implementation arrangements to enhance the prospect of the project meeting its
   development objectives.
3. M&E Reviews: There will be two major reviews to be carried out jointly by GoM and the
    Bank. The first major review would be at the time of the 2 nd Mid Term Review (MTR) of
    the Project, and, the second major review around the time of the Project completion. The
    first review would include an impact assessment of the project to date, but will also focus
    on procedures; implementation processes and recommend adjustments in the project
    design and / or implementation arrangements to overcome identified bottlenecks. The
    second major impact evaluation review would be a comprehensive overall impact
    assessment including quantitative and qualitative assessment of progress against project
    development objectives. To enable comparative assessment of a with / without project
    situation (as opposed to the more standard before / after project situation), the impact
    assessments and analysis will also collect and use statistically robust comparable data
    from control (non-project) areas.
4. Project Co-ordination Unit (PCU) and Project Co-ordination Units (PCUs): There are three
    line departments involved in the Project (the Department of Agriculture, the Department
    of Animal Husbandry, and the Department of Agricultural Marketing). All of these
    departments have established their respective Project Implementation Unit (PIU) that is
    responsible for implementation of activities carried out by their respective departments.
    The Project Co-ordination Unit (PCU), headed by the Project Director, has been
    established to facilitate coordination across the various line departments for the Project
    implementation. PCU and all PIUs will work under direct supervision and control of PD,
    MACP.
5. M&E Responsibilities of the PCU: The PCU has the operational responsibility for planning
    and coordinating M&E activities for the entire Project. A full-time senior M&E specialist
    recruited in the PCU is responsible for overseeing all activities related to M&E. The PCU
    is responsible for: (i) Analysis of all project-level M&E information and generation of
    regular six-monthly M&E reports; (ii) Updating key performance indicators by
    consolidating information provided by the different implementing agencies and the
    external M&E agency; (iii) Conducting independent field visits to monitor
    implementation and outputs of selected project activities; (iv) Commissioning special
    M&E studies as needed; (v) Identifying bottlenecks and corrective actions, if needed; (vi)
    Documenting success stories; (vii) Regular reporting to the Project Steering Committee;


                                                   191
Maharashtra Agricultural Competitiveness Project



    and (viii) Six-monthly reporting to the World Bank on the Project status. The six-monthly
    reports would include, inter alia, (a) An up-to-date physical and financial expenditure data
    compared to annual and end-project targets; (b) An updated indicator of project
    performance compared to annual and end-project targets; (c) The successes and the
    problems encountered during the reporting period with suggested remedial actions; and
    (d) The socio-economic and environmental impacts of the project.
6. M&E Responsibilities of the PIUs and VANAMATI: The Nodal officers in each of these
    PIUs are responsible for monitoring of the implementation of the individual activities of
    the sub-component within the purview of the respective departments. The data would be
    consolidated and validated by the relevant PIUs and PCU. In addition to the PIUs, the
    VANAMATI will play a role in training ATMAs in M&E, as well as, facilitating the
    M&E data collection for field activities implemented by the ATMAs. A full-time senior
    M&E specialist recruited in the VANAMATI is responsible for overseeing all activities
    related to M&E in the field, especially, related to the ATMAs. The PIUs and the
    VANAMATI are responsible for: (i) Consolidating and analyzing all M&E data provided
    by District and Taluka officers, ATMAs, APMCs, MSWC warehouses and Service
    Providers, as relevant; (ii) Validating M&E data in the MIS entered at the District /
    Taluka / APMC level and entering additional data as required; (iii) Monitoring field level
    activities and identifying corrective actions, if needed, as well as documenting success
    stories; and, (iv) Providing monthly reports to the PCU. Implementing agencies, through
    their District and Taluka offices or APMCs/MSWC warehouses would assume the
    primary responsibility for collecting data to update the input/output indicators.
7. The implementing agencies, through their District and Taluka offices or APMCs / MSWC
    warehouses, would assume the primary responsibility for collecting data to update the
    input/output indicators. The data would be consolidated and managed by the relevant
    PIU and PCU. In addition to the PIUs, VANAMATI will play a role in training ATMAs
    in M&E as well as facilitating M&E data collection for field activities implemented by
    the ATMAs.
8. M&E Responsibilities of the External M&E Agency: Responsibilities for the external
   M&E agency include creating an M&E framework for the entire MACP project in
   consultation with the PCU and PIUs. This will include defining key process and
   performance monitoring indicators, data collection frequencies, and formats for collecting
   the relevant information.
9. All aspects of the project – including technical, institutional, environmental, social,
   economic, financial, and procurement status will be monitored to help indicate actual
   achievement compared to the plans in the PIP, Environmental and Social Management
   framework, Procurement and Financial Management guidelines, Project Operations
   Manuals and other relevant documents. The M&E framework will clearly specify data
   collection responsibilities of the different implementing agencies and the external
   consultants. The external M&E agency will be responsible for collecting data for their
   independent monitoring of both process and performance indicators.
10. The external M&E agency will also: (i) conduct the Baseline Survey for project; (ii)
    develop a computerized Project Monitoring Information System (PMIS) for monitoring
    all MACP Project activities; (iii) monitor and evaluate the progress in the provision of
    critical project inputs and activities; (iv) undertake participatory monitoring and
    evaluation for relevant activities through the use of community score cards, focus groups,
    and participatory social auditing.; (iv) evaluate progress in achieving the project outputs
    and outcomes and evaluate the project’s impact at key junctures during the project period


                                                   192
Maharashtra Agricultural Competitiveness Project



    to assess progress towards achieving project’s objectives; (v) strengthen the capacity of
    the project implementing agencies to monitor project impacts and use the PMIS by
    providing on-the-job training; (vi) provide six-monthly M&E reports to the PCU which
    would summarize achievements of the preceding six months, cross-cutting issues and
    recommendations, and updated project indicators and (viii) provide three comprehensive
    reports - the baseline survey and two impact evaluation assessments at the time of the
    project midterm review and project completion.
11. Baseline Survey: For each subcomponent under MACP, baseline figures have been taken
    on the basis of the available data and considering the possible growth under each activity
    targets for each project year have been worked out. The results of the activities will be
    measured in terms of reference framework and the targets fixed will be used to monitor
    the implementation and evaluate the performance of various activities under the project.
12. The baseline survey will need to measure baseline values of all the indicators in the
    project Arrangement for Result Monitoring as well as values of additional indicators as
    agreed with the PCU. Baseline values will need to be compiled for performance
    indicators for every component and sub-component of the project.
13. In order to enable an impact evaluation of the project it is critical that the sample design
    for the baseline survey includes controls. The controls will include markets, villages and
    households in Talukas where no MACP activities are being implemented. The consultants
    will be responsible for determining the final breakdown of treatment versus control
    markets and households to ensure statistically meaningful comparison can be made.
    Control markets and villages should have similar socio-economic characteristics to the
    treatment sample. Propensity score, or other matching methods, will need to be used to
    assess the validity of the controls in the analysis of the baseline data. Probability
    sampling must be used to select a sample such that it will allow statistically robust
    estimates of difference in key parameters of interest.
14. Specific tasks related to the baseline survey:
          i. Developing an appropriate sample design (this will include developing the
             sampling methodology, sampling stages & strata, the sample frames, the system
             for selecting the sampling units and the procedures for the calculation of the
             expansion factors for the sample to the universe);
         ii. Develop and finalize baseline survey questionnaires;
        iii. Arranging for the questionnaires to be translated into relevant languages (Marathi)
        iv. Field test the questionnaires;
         v. Incorporating revisions to the questionnaire after field testing the questionnaires;
        vi. Hiring and training the field supervisors and enumerators;
       vii. Planning the field work logistics;
      viii. Conducting a pilot survey and revising the questionnaire based on the findings of
            the pilot survey;
        ix. Preparing survey implementation and questionnaire documentation;
         x. Supervising survey implementation and ensuring quality control;
        xi. Developing the data entry program, supervising the project database and arrange
            for data cleaning and entry



                                                     193
Maharashtra Agricultural Competitiveness Project



       xii. Analyze and report the findings of the survey and provide datasets and final
            documentation.
15. Draft Report on the Sampling Strategy: The consultants will need to prepare a draft report
    on the sampling strategy including details on the proposed methodology and the sample
    frame and how the sample design will be implemented in the field and the methodology
    (formulas) for the calculation of expansion factors for the sample to the universe. The
    draft report will need to be discussed in detail with the MACP PCU. Once the report on
    the methodology for the sample design is finalized and cleared by the MACP PCU the
    consultants will develop the sample frame and select the sampling units. Once the
    sampling units have been selected, an initial set of expansion factors should be computed.
    A final report on sample design will be prepared with all details of the sampling
    methodology, development of the sample frame and calculation of expansion factors. The
    final report on sample design will need to be cleared by MACP PCU before
    commencement of the field survey.
16. Draft Survey Instrument: The consultants will finalize the data to be collected in the
    baseline survey after discussion with the PCU and PIUs. The draft survey instrument (in
    English) will be shared with the PCU and cleared before the field testing. After the field
    testing, the questionnaire should be translated into Marathi and piloted in the field. Some
    representatives of the MACP PCU may participate in the field testing and pilot as
    observers. After the pilot, final revisions will need to be made to the questionnaire and
    cleared with the PCU before the actual survey can be implemented in the field.
17. Fieldwork Progress Reports: The SP will prepare the brief fieldwork progress reports for
    the PCU at the end of each month. The report will include the number of surveys
    competed, problems encountered and how they were resolved (for example, the number
    of replacement households and why they were necessary) and the number of
    questionnaires entered in the data entry software. Replacement households/traders will be
    identified during the sample design. No deviation from the sample design will be
    permitted in the selection of replacements.
18. Sample Surveys of Markets with respect to Transaction Costs: The M&E Agency will
    undertake sample surveys of the markets of the existing transaction costs, both official
    and unofficial, in APMCs. The agency will carry out these surveys at baseline, at MTR
    and at project end in order to establish whether additional regulation, transparency and
    competition have reduced these transaction costs. (IFPRI Delhi have developed the survey
    and analysis techniques for measuring the transaction costs within APMCs from their
    work in markest in Bihar and Uttarakhand – Contact Bart Minten at
    B.Minten@cgiar.com. M&E Consultant may use the results of this study while designing
    the survey.)
19. The firm will be responsible for all data entry, data cleaning, database management, as
    well as coding open-ended questions, and verification of the data. An ASCII version of
    the data as well as a complete data set including all variable names, descriptions and
    value labels prepared in a commonly used software package (either STATA or SPSS) will
    be provided to GoM within 1 month of the end of field work. Data from the GPS readings
    should be provided in a GIS shape file.
20. The Project Development Objective (PDO) and overall objectives of MACP: The Project
    proposes to improve the productivity and quality of produce in agriculture and allied
    sector by various interventions. The objective of better and reasonable returns to the
    farmer of his produce can be achieved if the farmer access to the markets is improved.


                                                   194
Maharashtra Agricultural Competitiveness Project



    This has been proposed to be achieved by infrastructure development and creating
    alternative marketing channels. The Project Development Objective (PDO) is “To
    increase agricultural productivity, profitability and market access of the farming
    community of Maharashtra”.
21. Components and Sub-components
       Component A: Intensification and Diversification of Market led Production
                 – A1: Market-led Agriculture Technology Transfer
                 – A2: Agri Business Promotion Facility
                 – A3: Market Information Services
                 – A4: Livestock Support Services
       Component B: Improving Farmer Access to Markets
                 – B1: Promoting Alternative Markets
                        B1.1: Product Aggregation and sale through Producers’
                          Association
                        B1.2: Warehouse Receipts Development
                        B1.3: Rural Haat Markets
                        B1.4: Introducing e-Marketing Platform
                 – B2: Modernizing Existing Markets
                        B2.1: Modernizing Wholesale Markets
                        B2.1: Upgrading Livestock Yards

22. Indicators to be measured in Baseline Survey are enumerated below. There are the
    following six core indicators identified for M&E:
             – The share of wholesale and retail price received by the farmer.
             – Changes in crop yields.
             – Compliance with business standards by Office of Director of Marketing (e.g.
                no. of days required for issuance of licenses).
             – Number of farmers utilizing the Market Information Services via SMS.
             – Volume and value of sales of market transactions in APMCs and Rural Haats
                (RHs).
             – Change in lease value of RHs.
    (i) Project Outcome Indicators:
             – The share of wholesale and retail price received by the farmer.
             – Changes in crop yields.
             – Compliance with business standards by Office of Director of Marketing
                (e.g. no. of days required for issuance of licenses).
             – Degree of price integration across markets in Maharashtra.
             – Changes in farmers’ house hold income in real terms.
    (ii) Intermediate Outcome Indicators:
         Component A: Intensification and Diversification of Market led Production.
             A.1 Market led Agricultural Technology Transfer
             – Farmers adopting improved production techniques and management practices
                in agriculture.
             – Increase in farm diversification.
             A.2 Agri Business Promotion Facility
             – Number of agri-preneurs and PAs (FGs, if available) accessing government
                schemes.
             A.3 Market Information Services
             - Number of farmers utilizing the Market Information Services via SMS.
             A.4 Livestock Support Services

                                                   195
Maharashtra Agricultural Competitiveness Project



             - Increase in number of goats in the target area.
        Component B: Improving Farmer Access to Markets
                 B.1 Promoting Alternate Markets
                     B1.1 Product Aggregation and sale through Producers’ Associations
                     – Commodities aggregated through FGs and FCSCs.
                     B1.2 Warehouse Receipts Development
                     – Number of farmers obtaining warehouse receipts.
                     B1.3 Rural Haat Markets
                     – Volume and value of sales of market transactions in Rural Haats
                         (RHs).
                     – Change in lease value of RHs.
                     B1.4 Introducing e-Marketing Platforms
                     - Volume and Value of sales of products traded through the E-trading
                     pilots.
                 B.2 Modernizing Existing Markets (APMCs & LSMs)
                 - Volume and value of sales of market transactions in APMCs.
(iii) Social and Environmental Indicators
    Volume of organic waste generated at targeted mandis
    Representation of women and tribals in market management committees
23. A well designed Management Information System (MIS) will be used for the reporting
    system of the progress and achievement under different activities. The online flow of
    information through MIS from the beneficiary organization and the District Officer of the
    implementing department to PIUs and from PIU to PCU would help to monitor the
    execution of the projects and also to evaluate the project results, periodically.
24. Audit of all the activities under the project from lowest level to PCU will be conducted
    regularly. There will be two systems of Audit viz. internal audit and external audit. The
    arrangements of audit have been described under the chapter on Financial Management.
    The number of external auditors to be appointed will be decided by the PCU in
    consultation with the M & E Consultant.
25. The whole process of monitoring and evaluation will thus involve number of important
    steps and there will be internal evaluation and external evaluation to carry out all the steps
    under M & E, an expert Consultant organization will be appointed at the start of the
    project, so that M & E Consultant will be able to start from the stage of carrying out
    baseline survey, fix the benchmarks, review the targets fixed and revise if necessary,
    develop MIS, decide the terms and conditions of selection, of the internal auditors and
    external auditors and will review the work of the project at every stage and give
    evaluation reports to the PCU regularly.
                                                   ***




                                                     196
Maharashtra Agricultural Competitiveness Project



     C. 6 GOVERNANCE AND ACCOUNTABILITY ACTION
                       PLAN

1. For the success of any project which is externally aided it is required to "ensure that the
   proceeds of any loan are used only for the purpose for which the loan was granted, with
   attention to consideration of economy and efficiency and without regard to political or
   other non-economic influences or consideration". The Borrower for such projects would
   be required to formulate procedures and institutional controls to guide project staff in
   guaranteeing that loan funds are not misused, and that the Borrower takes appropriate
   actions to reduce the chances of corruption. These procedures and controls also seek to
   balance anticorruption objectives with the need to ensure that the cost of doing business
   does not go up unnecessarily.
2. It must be underlined that anti-corruption work is not about grand strategies, but about
   management support for discrete and consistent measures. Key is close monitoring and
   follow-through, to ensure that, the projects systematically incorporate what is being learnt.
   The PCU & PIUs needs to take each specific project situation into account to prioritize
   and sequence actions. They also need to establish procedures that avoid possible misuse
   and maximize value for money. Careful supervision is required to ensure that agreed
   procedures are complied with in letter and in spirit, as also to track the achievement,
   output and outcomes. PCU & PIUs would also introduce anticorruption and demand-side
   measures to prevent problems in existing projects. Better controls and detection naturally
   bring more irregularities to the surface. Additionally, as communities come to trust the
   project, they will complain and demand more. These pressures must be anticipated and
   accepted as part of the price that must be paid for creating a more efficient system.
Project Design Principles & Implementation and Grievance Redressal Mechanism
3. The project realizes that the one tool which can make a marked influence on good
   governance is free and wider access to information by the community and this can also
   ensure that the principles governing implementation are not subverted at any level by any
   individual. Accordingly, the project intends to adopt, suo-moto disclosure of information
   as its guiding principle in its endeavor to ensure transparency. Similarly the authorities
   responsible for the implementation will also be spelt out. Experience shows that success of
   a project is very closely associated with an efficient and responsive Grievance Redressal
   Mechanism which is based on a responsive administration. Such a system would be in
   place in the Project. In addition to this, the project, in line with the requirement of the
   Right to Information Act (2005) (RTI Act) shall provide on demand information as
   prescribed by law.
4. Grievance Redressal Mechanism: The project intends to implement a robust and responsive
    grievance handling mechanism at various levels by putting in place specific persons who
    shall be entrusted the responsibility for the same, with provisions of online tracking and
    monitoring of the deliverance on this score. The entire objective of the GAAP is to put in
    place systems which are transparent in functioning, information that is accessible by all
    and above all a governance mechanism which delivers as per the designed principles of
    the Project. For this purpose Administrative Officer in the PCU and the Nodal Officers of
    PIUs of all line departments will be appointed. Similarly, PD in PCU and the Heads of the
    Departments would be the Appellate Authorities to decide upon the appeals pertaining to
    RTI. All the names of these officers will be displayed on the projects website. All the line
    departments have already information officers and Appellate officers functioning in their


                                                   197
Maharashtra Agricultural Competitiveness Project



    offices and institutions under their control assisted by the Govt. from Taluka level to State
    level. Regional information Commissioners and State information Commissioners are
    appointed under RTI Act, who function as state level appellate authorities.
5. To prevent corrupt officials and contractors from siphoning off public works funds by
    creating fake beneficiaries and underpaying real ones, activists first use the Right to
    Information Act to obtain all records relating to the program (muster rolls, measurement
    books, technical sanctions and utilization certificates) and publicly share and verify these
    with scheme participants. Additionally, they together with scheme participants and other
    members of local community visit worksites, interview field assistants/ other officials, and
    cross-check implementation reports. A key objective is to seek out ghost beneficiaries and
    inflated numbers of days worked, as also to ensure that officials are meeting the Act's
    other commitments. To ensure proper education of the APMC stakeholders in this regard,
    the implementation of the reforms and their expected benefits to the stakeholders will be
    given wide publicity in the APMC area. Contact persons & their contact addresses / phone
    nos. will also be displayed prominently for the knowledge of the farmers, traders,
    commission agents, hamaals, and tolaaidars, etc.
Project Management Systems facilitating Transparency and Public Disclosure:
6. Civil society / Beneficiary Organization can be a valuable partner to both the project teams
   and the beneficiaries in ensuring that projects work well. Most often, it is the Civil society
   / Beneficiary Organization that organizes and builds beneficiary capacity to avail
   effectively of government programs, prevent irregularities, and gives vital feedback to the
   relevant authorities. At the same time, it serves as an objective check on all the project
   actors in reducing collusion and enhancing outcomes. Civil society / Beneficiary
   Organization can also support the project team in tackling other major challenge - that is,
   identifying project beneficiaries and those whom they trust to represent them.
7. Right from the outset, it is thus important to regularly consult and share project
   information with key Civil society / Beneficiary Organization groups. A proactive, well-
   structured and ongoing engagement with Civil society / Beneficiary Organization can
   build generalized goodwill and insulate the project from a variety of negative internal and
   external influences. The implementation of the reforms, which form essential part of
   MMIP of APMCs, will be made known to all the stakeholders via prominent public
   display. The mechanisms by which to build civil society / Beneficiary Organization
   project oversight and involvement might be (i) Enhanced disclosure, (ii) Systematic
   monitoring of the project by beneficiaries and the media, (iii) Improved complaint
   handling systems, (iv) User satisfaction surveys, and (v) Soliciting feedback from the
   bidding firms. The GAAP of the project will be developed with these elements which will
   be integrally built in the project structure.
(i) Regular reporting of project information:
8. The project information will be shared with the stakeholders from the commencement of
    the sub-project. This includes procurement and financial management records from the
    stage of planning & designing and implementation. The quality of the implementation will
    be ensured under the overall guidance of the M&E Consultant (PCU) and M&E
    Specialists (one each in PIU Agriculture and PIU MSAMB).
9. The Right to Information Act (2005) (RTI Act) presents a sound regulatory framework in
    which to situate the regular reporting of project-related information to the public. Full
    compliance in letter and spirit is thus suggested for all new projects, especially with the
    proactive disclosure provisions of the Act that touch on procurement and financial


                                                   198
Maharashtra Agricultural Competitiveness Project



    management information. Every public entity is required to "maintain all its records duly
    catalogued and indexed in a manner and the form which facilitates the right to information
    under this act and ensure that all records that are appropriate to be computerized are,
    within a reasonable time and subject to availability of resources, computerized and
    connected through a network all over the country on different systems so that access to
    such records is facilitated."
(ii) Monitoring by Civil society / Beneficiary Organization
10. While enhanced information disclosure will facilitate systematic project monitoring by the
    public, civil society / Beneficiary Organization will, in any case, gather its own
    information to hold authorities and programmes accountable. It may thus be both useful
    and strategic to proactively incorporate mechanisms for ongoing civil society / Beneficiary
    Organization monitoring into the project design.
11. The members of beneficiary institutions, viz., APMC, RH, LSM, FCSCs along with the
    prominent personalities of the village where Project interventions are undertaken would be
    involved quarterly to get the feedback of the activities undertaken in the Project. The
    details of feedback would cover the following: (a) quality of the work performed, (b)
    misappropriation of allocated funds, (c) the progress of work compared to the timelines of
    the Project, (d) dissemination of the Project details, and (e) transparency in the conduct of
    the Project activities.
12. The district officer of the concerned line dept. would collect the data of feedback from
    such villages by sending personnel to such villages on quarterly basis and submit the data
    so collected to the concerned PIU through PMIS. The format for the feedback would be
    devised by the respective PIU and sent to all the district offices of the concerned line
    depts.
(iii) Complaint handling mechanisms
13. Since an effective complaint mechanism energizes public vigilance against irregularity, it
    is provisioned for in project design. Also, once the project is effective, it would be
    constantly assessed for efficacy. Most essential though, is to ensure that whistle-blowers
    are completely protected since they often play the greatest role in anticorruption efforts.
    For this reason, it will be ensured, that all complainants would be assured of strict
    confidentiality and professionalism, and that no actions are taken against innocent people.
    Additionally, complaints against project staff should be handled by an independent entity
    for the system to be credible.
14. All the district level offices of the line depts., viz. Coop. & Mktg. Dept., Agriculture Dept.
    and Animal Husbandry Dept., will designate one senior officer, in each district office, as
    the Grievance Redressal Officer, who will receive any complaint relating to any matter
    relating to the project. The District Head of the concerned line departments will be
    designated as the Appellate Authority relating to the grievance redressal. The names and
    contact details of these officers will be published on the website of MSAMB. The details
    of the scope and nature of complaints, procedure for handling complaints, designated
    authorities at district level, public disclosure are mentioned in the subsequent para on the
    Grievance Redressal Mechanism. The nature of complaints which may be envisaged to be
    received by the Grievance Redressal officer at the district level can be enlisted as follows:
    (i) Procurement related complaints, (ii) Quality of material used in constructed related
    complaints, (iii) Quality of construction related complaints, (iv) Measurement of work
    completed related complaints, (v) Completion Certificate related complaints, (vi) Payment
    of the bill related complaints, (vii) Quality of delivery related complaints.


                                                   199
Maharashtra Agricultural Competitiveness Project



iv) User Satisfaction Surveys (concurrent with M&E Reports)
15. Independent User Satisfaction surveys are now becoming a commonly used tool for public
    monitoring and feedback. PCU & PIUs would conduct such a survey with the assistance
    of the SP for M&E, since findings often help to pinpoint areas of vulnerability that may
    have been missed during the mapping exercise. These surveys will be conducted by the SP
    for M&E at the end of II year and IV year concurrent with the submission of the M&E
    Report. The parameters will mainly comprise of no. of farmers satisfied with the improved
    infrastructure, no. of private players satisfied with the introduction of reforms, no. of PPP
    enterprises that have reached their break even point (BEP). The universe for the survey
    will be the area of operation of the APMCs and the RHs selected for the development &
    implementation of Modernization & Improvement Plans. The construction of the survey
    questionnaire (and its translation in local language, Marathi) will be done by the SP in
    consultation of the PCU. The results of the survey will be disclosed on the project website.
v) Feedback from bidding firms
16. Periodic feedback from firms would provide valuable insights into the behaviour of the
    implementing agencies during the procurement process. For this reason, feedback from
    rejected bidders, as also from reputed firms that chose not to bid for supply, construction,
    or other contracts in the project would be invited.
Participatory Management:
17. MACP is built upon the basic principle of Participatory Management which envisages that
    the project is to be primarily driven by the beneficiary / community at all levels. This
    logically implies that the beneficiary / community shall have oversight over the project
    during the entire phase which includes planning, implementation and consolidation. In the
    post consolidation phase the project shall be self sustainable and therefore the activities
    therein would be replicable.
18. To translate this principle into reality, the project has provided for, that the beneficiary
    organization shall decide on the entire planning of the project viz. the identification of
    activities to be undertaken, infrastructure that need to be erected and the same will be
    approved by the GB of the Co-operative society / APMC / Producer Association. The
    procurement at the level of Producers Associations, for the infrastructure necessary for
    establishment of FCSCs, will be through community procurement as per the guidelines of
    the WB. For the execution of all these activities the PCU shall provide all necessary
    assistance to the PIU during the entire project.
19. The project will also have many activities which shall have to be implemented by the PIU
    and farmers organizations / implementation agency, which may include civil works or
    livelihood activities. Since there will be dual implementation mechanism in shape of the
    PIU and the farmers organization / implementing agencies, that the project design has
    ensured that there are adequate safeguards and controls built in to provide control and
    monitoring of the project components to both the implementing partners.
20. Accordingly the project has provided for, that in all the tenders which will be finalized by
    the PIU, there shall be the President of the concerned beneficiary organization (APMC/
    Panchayat / FCSCs) or his representative as a member of the Tender Committee, who shall
    be present during the tender opening and finalization if the said member chooses to do so
    and sign the tender proceedings. However, the absence of the concerned member from the
    tender meetings will not be a reason for postponement of decision making. Similarly,
    before any payments are made to the contractors, it will be mandatory for the PIU to
    obtain a certificate from the Chairman / Chief Executive Officer of the concerned

                                                   200
Maharashtra Agricultural Competitiveness Project



    beneficiary organization to the effect that the work has been executed as per the design
    and estimate.
Designated Officers under the RTI Act 2005 and Designated Officers under Grievance
Redressal Mechanism:
21. The safeguard arrangements under the Project, which comprise of implementation under
the provisions of the RTI Act 2005 and Grievance Redressal Mechanism, are as under. The
contact details will be disclosed on the project and MSAMB websites and will be updated
regularly.
    (a) RTI Act: The Information Officer and the Appellate Authority for seeking information
    under RTI Act for various sub-components in the project are given below:
   Sr.       Activity                                     Time
                                           Information Officer                Appellate Authority      Time
   No.                                                    Period                                       Period
             Component A: Strengthening Market Support Services
   1         Market –led Agriculture
             Technology Transfer
   (i)       ATMA Activities               Deputy Director in       As per    Superintending           As per
                                           Office of SAO            RTI Act   Agriculture Officer      RTI Act
   (ii)      Line Deptt. Training          Principal of Institute   As per    Superintending           As per
             Institutes (Vanamati, Horti.                           RTI Act   Agriculture Officer      RTI Act
             Proc. Trg. Instt., AH Trg.
             Instt., NIPHT)
   2         Agri-Business Promotion      Administrative      As per          Project Director         As per
             Facility                     Officer, PCU        RTI Act                                  RTI Act
   3         Market Information and       Manager (IT),       As per          Nodal Officer, PIU-      As per
             Intelligence                 MSAMB               RTI Act         MSAMB                    RTI Act
   4         Livestock and Animal         Livestock           As per          Deputy Commissioner      As per
             Health Development           Development Officer RTI Act         Animal Husbandry         RTI Act
             Component B: Improving Farmer Access to Markets
             Promoting Alternate Markets
   5         FCSCs (Food grain /          Secretary/Manager   As per          Asst. Registrar C. S.    As per
             Horticulture)                                    RTI Act                                  RTI Act
   6         Warehouse Receipts           Manager, Warehouse As per           Deputy manager,          As per
                                          Godowns of MSWC     RTI Act         MSWC                     RTI Act
   7         Upgrading Rural Village      Village Development As per          Asst. Registrar C. S.    As per
             Haats                        Officer             RTI Act                                  RTI Act
   8         Electronic Marketing         Secretary APMC      As per          District Deputy          As per
             Pilots (E-trading / Virtual                      RTI Act         Registrar C. S. (for B   RTI Act
             Markets)                                                         class APMCs)
                                                                              Asst. Registrar C. S.
                                                                              (for C class APMCs)

             Modernization of Wholesale Markets
   9         Upgrading and            Secretary APMC                As per    District Deputy          As per
             Modernization of                                       RTI Act   Registrar C. S. (for B   RTI Act
             APMCs                                                            class APMCs)
                                                                              Asst. Registrar C. S.
                                                                              (for C class APMCs)
   10        Modernization of LSMs         Secretary APMC           As per    District Deputy          As per
             and SR Markets                                         RTI Act   Registrar C. S. (for B   RTI Act
                                                                              class APMCs)
                                                                              Asst. Registrar C. S.
                                                                              (for C class APMCs)
             Component C: Project Management
   11        Project Co-ordination   Administration                 As per    Project Director         As per
             Unit (PCU)              Officer, PCU                   RTI Act                            RTI Act


                                                            201
Maharashtra Agricultural Competitiveness Project



   Sr.       Activity                      Information Officer          Time       Appellate Authority      Time
   No.                                                                  Period                              Period
   12        Project Implementation        Nodal Officer, PIU -         As per     Director of Marketing,   As per
             unit (PIU - MSAMB)            MSAMB                        RTI Act    MS, Pune                 RTI Act
   13        Project Implementation        Nodal Officer, PIU -         As per     Director (Extension),    As per
             unit (PIU - Agriculture)      Agriculture                  RTI Act    O/o Comm. (Agri.),       RTI Act
                                                                                   MS, Pune
   14        Project Implementation        Nodal Officer, PIU -         As per     Commissioner (Animal     As per
             unit (PIU - Animal            Animal Husbandry             RTI Act    Husbandry), MS, Pune     RTI Act
             Husbandry)


    (b) Grievance Redressal Mechanism:
    The Grievance Redressal Officer and the Appellate Authority for the addressal of the
    grievances for various sub-components in the project, along with the time period
    stipulated for addressing the complaints finally, are given below. The contact details will
    be disclosed on the project and MSAMB websites and will be updated regularly.
      Sr.      Activity                  Grievance          Time                     Appellate           Time
      No.                                Redressal Officer  Period                   Authority           Period
               Component A: Strengthening Market Support Services
      1        Market –led Agriculture
               Technology Transfer
      (i)      ATMA Activities           Deputy Director in 30 Days                  Superintending      30 Days
                                         Office of SAO                               Agriculture
                                                                                     Officer
      (ii)     Line Deptt. Training                Deputy Director in    30 Days     Superintending      30 Days
               Institutes (VANAMATI,               Office of SAO                     Agriculture
               Horti. Proc. Trg. Instt., AH                                          Officer
               Trg. Instt., NIPHT)
      2        Agri-Business Promotion             ARCS (Adm.) in        30 Days     Dist. Dy.           30 Days
               Facility                            the office of                     Registrar Coop.
                                                   DDRCS                             Socys.
      3        Market Information and              ARCS (Adm.) in        30 Days     Dist. Dy.           30 Days
               Intelligence                        the office of                     Registrar Coop.
                                                   DDRCS                             Socys.
      4        Livestock and Animal                Livestock             30 Days     Deputy              30 Days
               Health Development                  Development                       Commissioner
                                                   Officer                           Animal
                                                                                     Husbandry
               Component B: Improving Farmer Access to Markets
               Promoting Alternate Markets
      5        FCSCs (Food grain /         ARCS (Adm.) in  30 Days                   Dist. Dy.           30 Days
               Horticulture)               the office of                             Registrar Coop.
                                           DDRCS                                     Socys.
      6        Warehouse Receipts          ARCS (Adm.) in  30 Days                   Dist. Dy.           30 Days
                                           the office of                             Registrar Coop.
                                           DDRCS                                     Socys.
      7        Upgrading Rural Village     ARCS (Adm.) in  30 Days                   Dist. Dy.           30 Days
               Haats                       the office of                             Registrar Coop.
                                           DDRCS                                     Socys.
      8        Electronic Marketing Pilots ARCS (Adm.) in  30 Days                   Dist. Dy.           30 Days
               (E-trading / Virtual        the office of                             Registrar Coop.
               Markets)                    DDRCS                                     Socys.
               Modernization of Wholesale Markets
      9        Upgrading and               ARCS (Adm.) in  30 Days                   Dist. Dy.           30 Days
               Modernization of APMCs      the office of                             Registrar Coop.
                                           DDRCS                                     Socys.


                                                              202
Maharashtra Agricultural Competitiveness Project



      Sr.      Activity                    Grievance                   Time         Appellate           Time
      No.                                  Redressal Officer           Period       Authority           Period
      10       Modernization of LSMs       ARCS (Adm.) in              30 Days      Dist. Dy.           30 Days
               and SR Markets              the office of                            Registrar Coop.
                                           DDRCS                                    Socys.
               Component C: Project Management
      11       Project Co-ordination Unit  Administrative              30 Days      Project Director,   30 Days
               (PCU)                       Officer                                  PCU
      12       Project Implementation unit Nodal Officer, PIU          30 Days      Project Director,   30 Days
               (PIU - MSAMB)               - MSAMB                                  PCU
      13       Project Implementation unit Nodal Officer, PIU          30 Days      Project Director,   30 Days
               (PIU - Agriculture)         - Agriculture                            PCU
      14       Project Implementation unit Nodal Officer, PIU          30 Days      Project Director,   30 Days
               (PIU - Animal Husbandry)    - Animal                                 PCU
                                           Husbandry

Governance Risks & Mitigation Measures:
22. As implementation of any activity has a certain element of risks involved in it, the project
    has identified some of the major risk elements which can have an adverse bearing on the
    success of the project. The list below is not necessarily a comprehensive one and it is very
    likely that some more may be encountered during the project implementation stage. The
    project realizes that Financial and Procurement Management and Actions of any level of
    implementing partners which subverts the principles of implementations as designed in the
    PIP, are the key elements which can have an adverse bearing on the motivational level of
    the stakeholders and thereby on participation which has a direct bearing on the success of
    the project. Accordingly, the project has come up with a General Risk Assessment and a
    Procurement Risk and Mitigation Plan.
Disclosure on the Project Website and MSAMB Website
23. The disclosure policy of the project envisages that all information, except such
   information which is likely to preempt the bidders to quote close to the estimate or as per
   estimated cost, will be made available to the community at the State, District and the IA
   level. To deliver this policy, the project plans to put all information on MSAMB web site,
   in English & in local language, which shall have all information relating to the
   commencement of the Project, its objectives, dept. involved, project design, the
   implementation plan, procurement plan, and all assessment study reports. Apart from
   these, copies of all Govt. orders which have a bearing on the Agri. Marketing System and
   various project activities shall also be put on the website in English and Marathi. The
   strategy would be to provide quarterly information like:
         i.   Project component and sub-components,
        ii.   Procurement plan excluding the details of costs,
      iii.    Details of tender notices,
       iv.    Award of contracts and value thereof,
        v.    Details of the contractor,
       vi.    Details of the officials implementing the project at various level,
      vii.    Their roles and responsibilities,
     viii.    Details of Grievance Redressal Mechanism and Contact Nos.
       ix.    Powers and functions, the procedures as per the PIP,
        x.    Details of civil works undertaken and work in progress,
       xi.    Stipulated period of completion of work,
      xii.    Details of civil works completed.
     xiii.    IESA Report and Annexures.
     xiv.     Procurement Manual.
      xv.     Financial Manual.
     xvi.     Community Operations Manual.



                                                            203
Maharashtra Agricultural Competitiveness Project



    The Suo Moto Disclosure Matrix gives the details of information that will be provided at
    the various levels and the method of dissemination.

The project will develop an Integrated Project Portal to strengthen project MIS systems. This
will include the development of external and internal websites. The information from any
project related document likely to preempt the bidder to quote close to the estimated cost or at
estimated cost will not be disclosed on the website.
        External website: Information in external website will include Project Information,
         Components Details with Activities and Budgeted Funding, Details of target
         beneficiaries under each component, Details of Procurement Progress, Details of
         Physical Progress, Details of Financial Status under each component, Details of targets
         and performance indicators, Details required under RTI, Complaint Management &
         Grievance Reporting.
        Internal website: Information in internal website will include: Internal MIS Reports for
         Component Activity planning and monitoring, Reporting on M&E Indicators,
         Procurement and Financial Management Systems including the use of Budget
         Distribution System (BDS), Asset Management System for all assets created under
         MACP.
Governance and Accountability Action Plan (GAAP):
24. The GAAP has been integrated into the project design to ensure that project funds are
    used effectively and efficiently and key stakeholders are provided the mechanisms to give
    feedback and enable their grievances to be addressed in a responsive and accountable
    manner. During project preparation, a review of potential risks for corruption was
    conducted and measures to mitigate these risks were formulated and integrated into the
    project design. These are summarized in GAAP below, including the identified risks and
    mitigation measures implemented by the project and responsibilities envisaged at
    different levels.
(i) Procurement:
25. Procurement capacity and procedures: To enhance the procurement capacity in the
    implementation agencies, the project is providing for a Procurement Specialist in the PCU
    and Procurement Officer in PIU-MSAMB, PIU-Agriculture. All the officers will be
    trained on World Bank procurement procedures. A Procurement Manual describing
    World Bank standards has been developed to be used across the project. In addition to the
    Bank prior review process, the MSAMB procurement unit will also conduct prior review
    of the architectural plans and designs, bids and shortlists of contractors / suppliers,
    evaluation reports and final recommendation for the market construction activities.
26. Transparency in procurement: To ensure transparency in procurement processes several
    measures have been incorporated. A procurement committee will be established in every
    producer / farmer association to ensure the soundness of the procurement process and
    ensure appropriate disclosure among the community.
27. Procurement Committees: The following committee in PCU will look after the
   procurement costing more than US $ 100,000 and above per item for PIU MSAMB (for
   beneficiary institutions under Agriculture Marketing Dept.), as well as, the procurement
   for PCU. The composition of procurement committees at PCU / PIU-MSAMB /
   MANDIS / HAATS level will be as follows:




                                                   204
Maharashtra Agricultural Competitiveness Project



        PCU – At State PCU level the procurement committee will comprise of the (a) Project
         Director, (Chairperson) (b) Chief Finance Controller - Member, (c) concerned
         technical specialist/ Coordinator in the PCU [ i.e the related specialist in MIS / M&E/
         Agri-Business/Livestock/Agriculture/ Marketing] - Member (d) A chairperson of
         beneficiary institution or representative - Member, (e) Procurement Specialist-
         Member secretary.
         Note: With regard to procurement of PIU (Agriculture Marketing) only, the PCU will
         perform the procurement of works & goods above US $ 1.00 lakh.
        PIU – At PIU level the procurement committee will comprise of the (a)
         Commissioner / Director of the Concerned Line Department (Chairperson) (b)
         Technical Specialist in the PIU, wherever available – Member, (c) Nodal officer of
         PIU – Member, (d) A chairperson of beneficiary institution or representative–
         Member, (e) Accounts officer, PIU – Member, (f) Procurement Officer - Member
         Secretary.
         Note: The PIU (Agriculture Marketing) will perform the procurement of goods &
         works pertaining to Agriculture Marketing upto US $ 1.00 lakh. For the other PIUs
         the entire procurement process of good, works & services would be undertaken by the
         respective PIU only.
        Markets – At Rural Haats the procurement committee will comprise of the (a)
         Sarpanch of the Village Panchayat (Chairperson) , (b) DDR or his representative -
         Member, (c) Two members from Haat Management Committee - Members (d)
         Representative of concerned Service Provider (design supervision consultant) for
         Rural Haats - Member (e) Village Development Officer (VDO) Panchayat - Member
         Secretary.
         Note: The market will undertake procurement of civil works upto US $ 30,000- and of
         goods upto US $ 10,000 only.
        Community Procurement - Community Driven Development (CDD) is tool to provide
         social and infrastructure services to the poor people. It empowers poor people to
         organize the economic activities and manage locally available resources. It improves
         their governing capacity and provides security. Thus CDD gives control of decision
         and resources to community groups. The formation of Farmers Common Service
         Centre (FCSC) is community driven development. The procurement of civil works,
         goods and services required for the development of Farmers Common Service Centre
         (FCSC) will be handled by the procurement committee of the FCSC and also the
         procurement of goats for identified small ruminant farmer under demonstration
         programme of Animal Husbandry Department (AHD) will be carried out by
         procurement committee of demonstration unit.
         Note: The procurement of civil works, goods and services required for the
         development of Farmers Common Service Centre (FCSC) will be governed by the
         threshold limits given in the Procurement Manual (which will be provided, in
         Marathi, to all the beneficiary institutes and all other stakeholders).
        Procurement Committee of Farmers Common Service Centre (FCSC) - The
         committee will comprise of (a) Chairperson/President of the FCSC-Chairperson, (b)
         Three Members of the elected management Committee of the FCSC - Members, (c)
         ARCS of the concerned Taluka – Member, (d) Manager of the FCSC- Member
         Secretary.



                                                   205
Maharashtra Agricultural Competitiveness Project



          Note: The FCSC will undertake procurement of civil works upto US $ 30,000 and of
          goods, equipments and services upto US $ 10,000.
         Procurement Committee of Demonstration Unit under AHD- The committee will
          comprise of (a) Sarpanch of Grampanchayat – Chairperson, (b) Three identified small
          ruminant farmers – Members, (c) Livestock Development Officer of Panchayat
          Samittee – Member Secretary. The Livestock Development Officer will be
          responsible for handing over of purchased goats to identified small ruminant farmers.
          Note: Livestock Development Officer will be responsible for handing over of
          purchased goats to identified small ruminant farmers.
28. Disclosure of Procurement Information: All tender notices, bid documents, status of
    contracts at the state and district level will be posted in the MACP project website.
    Information on contracts awarded, works to be executed, and the schedule of completion
    will also be displayed at the project sites (e.g. markets, haats, FCSCs). Databank
    including information on items, rates will be set up at the PIUs through periodic market
    surveys to provide standard specifications and indicative price ranges for commonly used
    items. Appropriate mechanisms for compliance with the RTI Act for suo moto disclosure
    will also be in place. The information from any project related document likely to
    preempt the bidder to quote close to the estimated cost or at estimated cost will not be
    disclosed on the website.
29. Technical Quality Control and Verification: The project will involve a significant amount
    of construction activities in the market infrastructure improvement and modernization
    subcomponent. During implementation, the project will provide for Quality Control of all
    civil works in the APMCs, through MFEs, and in the Rural Haats. Post review and
    verification of physical assets will also be undertaken by internal auditors.
30. Quality Assurance of the Civil Works: The quality of the implementation will be ensured
    under the overall guidance of the M&E Consultant (PCU) and M&E Specialists (one in
    VANAMATI with the help of PIU Agriculture, and, one in PIU MSAMB). Taluka field
    officers will undertake quality check by sample testing 5% of the physical outputs. The
    procedures will be developed by the M&E Consultant (PCU) and M&E Specialists for
    quality check of the output by sample testing. The quality of the civil works will be
    ensured by a market field engineer (MFE) to supervise and monitor all the works on
    sample basis. The bill claims from the civil contractors will be verified prior to the release
    of amount.

    SP raises a bill for        Market Field         Upon satisfactory           DDRCS, upon
    civil construction         Engineer (MFE)      verification, Chairman     receiving endorsed
      reg. MMIP in             verifies the bill      APMC endorses         bill, initiates action for
          APMC                                            payment                    payment




(ii) Financial Management:
31. Financial management capacity: The project funds would be received through the State
    Government budgetary allocations. The key objectives of the budgeting system are to: (a)
    Ensure budgeting control, (b) Provide an estimate of the funds needed for the project and
    the time when such funds are required, (c) Set target, analyze variance and fix
    accountability, (d) Provide a basis for periodical monitoring. To enhance the financial
    management capacity in the implementing agencies, the project is providing a Chief
    Financial Controller, a Financial Specialist and an Accounts Officer in the PCU, and,


                                                       206
Maharashtra Agricultural Competitiveness Project



    Accountants, one each at the DDRCS office (33) and ATMA (33) for agricultural
    marketing and agriculture dept. activities respectively. The project will provide financial
    management training to be completed during the first 6 months of the project. Standard
    software (TALLY - 9) will be used to ensure uniformity across spending units. A
    Financial Management Manual has been developed for the project which will lay down
    fund flow arrangements, delegation of financial powers at all levels, internal control
    framework, financial reporting arrangements and audit arrangements. This manual will
    serve as a reference manual for all spending units.
32. Financial management oversight: Oversight will be strengthened by recruiting an
    independent audit firm to conduct an external audit. The project will also have internal
    audit to ensure that internal controls are operating as intended. The internal audit will
    include physical verification of assets on sample basis. Almost 70% of the Project funds
    are estimated to be spent on civil works, goods & equipments. The Project design
    provides for third party technical supervision of all civil works which will reinforce
    assurance on the end-use of funds. A disclosure policy has been worked out to enhance
    transparency and accountability in the Project. Bank’s supervision will be strengthened by
    periodic SOE Reviews. Payments for the market modernization will be processed only
    after the certification from the SP, beneficiary institutions and technical support personnel
    of PIU-MSAMB has been received.
33. Project Audit Review Committee: Audit will comprise of both external and internal audit.
    The Project Audit Review Committee, headed by the Project Director, is constituted in
    the PCU, MACP, with the following members, for regular and timely external and
    internal audit of the project accounts: (i) Chief Financial Controller, PCU, (ii) Finance
    Specialist, PCU, (iii) Nodal Officer PIU (MSAMB ), (iv) Nodal Officer PIU
    (Agriculture), (v) Nodal Officer PIU ( AHD ), (vi) Accounts Officer, PIU (MSAMB),
    (vii) Accounts Officer, PIU (Agriculture), (viii) Accounts Officer, PIU (AHD), (ix)
    Representative of A.G., (x) Representative of the C.A. firm assigned with internal audit,
    (xi) Accounts Officer, PCU (Member Secretary). The Project Audit Review Committee
    will be responsible for timely audit and timely follow up of the rectification / corrective
    measures on the basis of audit reports. It will also attend to the following: (i) Periodical
    review of progress of internal and external audit, (ii) Review of rectification of audit
    observations, (iii) Corrective steps on audit observations, (iv) Give necessary instructions
    to the field staff of line departments and various institutions covered under MACP, to
    extend necessary support to audit teams and complete the record writing regularly, (v)
    Appraise the Principal Secretary (Cooperation & Marketing) / State Government, every
    six months about the progress and other matter of audit. The audit committee will hold
    quarterly meetings to carry out the above functions.
34. Disclosure of Audit Information: All the information regarding audit will be posted in the
    MACP project website, which will include: information on audit due, audit completed,
    and the executive summary of audit report/s.
(iii) NGO Contracting:
35. Experience in other projects has pointed to weaknesses in the selection of NGOs to
    implement various project activities resulting in the mis-use of funds. Non-government
    Support Organizations (SOs) will be contracted as consultants in the Project to assist with
    community mobilization and capacity building. However, no project funds would flow
    through them. The project has formulated a set of predefined selection criteria and a
    transparent selection process agreed with the GoM which takes into account, among



                                                   207
Maharashtra Agricultural Competitiveness Project



    others, past experience, audited reports of NGOs, availability of infrastructure and human
    resources, and feedback from past clients.
36. As the Project implementation involves large number of activities and equally large
    number of transactions, the following safeguard measures to mitigate the risks are
    envisaged: (i) Internal Checks & Systems and Reconciliation of Accounts: for covering
    mechanism of crosschecking, (ii) Project Audit – Internal Audit & External Audit: for
    validating the transactions by a third party expert, (iii) Computerized Accounting System:
    for Standardized practices and procedures, thus reducing eventuality of omission and
    commission, (iv) Periodical Reporting – MIS: for monitoring progress in respect of the
    short term and long term Project Goals.


(iv) Monitoring & Evaluation:
37. Regular feedback on project performance would be obtained from (i) Bi-annual
   monitoring reports (drawing from randomly selected field verification), (ii) Baseline,
   Mid-term and Final impact evaluation reports produced by an external M&E agency, who
   would independently collect information on various project aspects through primary
   surveys in project areas. Project M&E mechanisms will emphasize stakeholder
   participation. They will be designed to facilitate rapid identification of shortcomings and
   problem areas. They will facilitate mid-term corrections, where necessary, to project
   design and / or implementation arrangements to enhance the prospects of the project
   meeting its development objectives. The project would be subjected to two major
   reviews to be carried out jointly by GOM and the Bank, i.e., the first review would be at
   the time of the second Mid-term Review (MTR) of the project, and, the second review
   around the time of project completion.
Safeguards:
38. There would be a separate Environment & Social Cell (ESC) within the PCU. This cell
    will have one Social Development Specialist and one Environment Specialist and will be
    responsible to coordinate with the participating Project Implementation Units (PIUs). At
    PIU-MSAMB there is a Social / Environment Officer who will be responsible to
    coordinate community mobilization, as well as, addressing social and environmental
    concerns at the sub-project level. The Agricultural Supervisior in PIU (Agriculture) will
    be designated as Community Extension Officer and the Nodal Officer, PIU (AHD) will
    be given additional responsibility of Community Extension Officer for attending to
    safeguards aspects under the project. To address the issue of lack of capacity amongst the
    implementing agencies, a capacity development and training programme will be
    undertaken for which provision has been made under PCU cost tables. To avoid the
    delays in implementation of the Resettlement Action Plan necessary steps will be taken.
Grievance Redressal Mechanism:
39. The implementation of the various subcomponents of the project involve interaction
    between stakeholders and the service providers, mainly, implementation civil works in
    MMIP. Apart from procurement, there are a large number of other issues related to the
    implementation of the various subcomponents. The implementing agencies will exert to
    ensure the implementation as per the WB norms, but the contingency of emergence of
    any untoward incidence and any of the party getting aggrieved due to it, cannot be
    overruled. Therefore, at the district level each Implementing Agency, and their respective
    parent department, shall designate a senior officer as the District Grievance Redressal



                                                   208
Maharashtra Agricultural Competitiveness Project



    Officer. The Head of the District Office of the Department shall be the Appellate
    Authority.
40. Types of Complaints: The nature of complaints which may be envisaged to be received
    by the Grievance Redressal officer at the district level can be enlisted as follows. The
    complaints may relate to procurement, contract, work, payment, or any other matter
    touching to MACP. Grievance Redressal Officer will have to deal with these complaints.
                  (i)       Complaints related to the procurement.
                  (ii)      Complaints related to the quality of material used in construction.
                  (iii)     Complaints related to the quality of construction.
                  (iv)      Complaints related to the measurement of work completed.
                  (v)       Complaints related to the Completion Certificate.
                  (vi)      Complaints related to the payment of the bill.
                  (vii)     Complaints related to the quality of delivery.
41. Complaint/s through Complaint Boxes: The aggrieved parties (stakeholders or SPs) can
    forward the complaints to the respective District Grievance Redressal Officer by writing
    to the authority. There will be Complaint Boxes in each of the offices of the
    Implementing Agencies. The Complaint Boxes will be opened by the District Head of the
    Office and District Grievance Redressal Officer on a specific day in a week. The District
    Head of the Office will take note of the complaints in the complaints register, give interim
    reply to the complainant, take action on the complaint/s, and, provide final reply to the
    complainant. The details of the arrangement regarding Complaints Boxes will be as
    follows:
      Sr.       Office where            Persons        Further action to be taken on complaint/s by the Head
      No.      the Complaint        responsible for    of the Office receiving the Complaint/s
                Boxes will be         opening the
                  provided         Complaint Boxes

      1       District Deputy     DDRCS           &    (i) Register the complaint in the complaints register &
              Registrar Coop.     District Grievance   provide unique code no. to the complaint, (ii) Provide
              Societies           Redressal Officer    interim reply to complainant in 7 days, (iii) Take
                                  in O/o DDRCS         necessary action and provide final reply to complainant in
                                                       30 days, (iv) In case, any complaint pertains to higher
                                                       authority, forward the complaint in 7 days to appropriate
                                                       higher authority, under intimation to the complainant.
      2       District            DSAO & District      (i) Register the complaint in the complaints register &
              Superintending      Grievance            provide unique code no. to the complaint, (ii) Provide
              Agricultural        Redressal Officer    interim reply to complainant in 7 days, (iii) Take
              Officer (DSAO)      in O/o DSAO          necessary action and provide final reply to complainant in
                                                       30 days, (iv) In case, any complaint pertains to higher
                                                       authority, forward the complaint in 7 days to appropriate
                                                       higher authority, under intimation to the complainant.
      3       Deputy              DCAH & District      (i) Register the complaint in the complaints register &
              Commissioner        Grievance            provide unique code no. to the complaint, (ii) Provide
              Animal              Redressal Officer    interim reply to complainant in 7 days, (iii) Take
              Husbandry           in O/o DCAH          necessary action and provide final reply to complainant in
                                                       30 days, (iv) In case, any complaint pertains to higher
                                                       authority, forward the complaint in 7 days to appropriate
                                                       higher authority, under intimation to the complainant.

42. Complaint Boxes will also be provided at APMCs, Rural Haats and the HQs of the
    Producers’ Associations (operating the FCSCs). The CEO of the organization (Secretary
    of APMC / VDO of the GP / Secretary of the PA) will be responsible for taking note of
    the complaints received in the complaint boxes and taking further necessary action/s on


                                                          209
Maharashtra Agricultural Competitiveness Project



    them. (The complaints, if any, regarding the PAs / FCSCs in the association formative
    stage, will be received by the District Grievance Redressal Officer in O/o DDRCS).
43. In order to take prompt action/s on the complaint/s, the Complaint Boxes at all the above
    locations will be closely monitored through Project Management Information System
    (PMIS). Each complaint will be given a unique code number, and, the opening of the
    complaint boxes regularly on the specified days, the total no. of complaints received, no.
    of complaints to which interim replies have been provided, no. of complaints resolved
    finally, pending complaints and the reasons thereof, etc. will be monitored by the PCU
    and the PIUs through the PMIS. The PCU and PIU will also review the performance of
    the complaint redressal arrangements through Complaint Boxes, and, take further steps,
    including punitive action/s on the persons found responsible, if necessary, to minimize the
    frequently occurring complaints.
44. Complaint/s received over Telephones: The aggrieved parties (stakeholders or SPs) can
    also forward the complaints to the respective District Grievance Redressal Officer on
    telephone. The PCU will have dedicated phone line to receive the complaint/s. The
    Implementing Agencies (IAs) will give appropriate publicity to the PCU telephone
    number/s and the telephones of the District Grievance Redressal Officer for receiving the
    complaints, which will be operated during the office hours by an authorized person. The
    details of the complaints will be registered by the District Grievance Redressal Officer, in
    the complaints register maintained for this purpose. The complaints received on telephone
    shall be addressed by the District Grievance Redressal Officer in the same manner as in
    the case of written complaints. The information about the redressal of the complaints
    received will be published and disclosed on the project website and the website of the
    MSAMB.
45. District Grievance Redressal Officers: All the concerned district level offices of the
    concerned line Department’s (Agriculture, AHD, and, Co-operation & Marketing) will
    have one designated Grievance Redressal officer and the Head of that concerned district
    will be designated as appellate authority for this purpose. The details of designated
    officers are as follows. The names and the contact details of the District Level Office of
    the Implementing Agency, District Grievance Redressal Officer and, Appellate Authority
    will be disclosed on the project website. This information will be updated regularly.
                           District Level Office of the   District Grievance Redressal     Appellate
     Department
                           Implementing Agency            Officer                          Authority
     Agriculture           Superintending Agricultural    Deputy Director (DD) in the      Superintending
     Department            Officer (SAO)                  office of SAO                    Agricultural
                                                                                           Officer (SAO)
     AH Department         Deputy Commissioner AH         Livestock        Development     Deputy
                           (DC)                           Officer (LDO) in the office of   Commissioner
                                                          DC (AH)                          AH (DC)
     Department       of   District Deputy Registrar      Asst.      Registrar    Coop.    District Deputy
     Co-operation     &    Coop. Societies (DDRCS)        Societies (ARCS) in the          Registrar Coop.
     Marketing                                            office of DDRCS                  Societies
                                                                                           (DDRCS)


46. Timeline for Grievance Redressal: Timeline for the grievance redressal at District
   Grievance Redressal Officer level will be as follows: (i) Any complaint will be given
   interim reply within 7 working days of its receipt, (ii) Within 30 working days of receipt
   detailed reply and proposed line of action of any, will be communicated to the
   complainant, (iii) Within 2 months of receipt of the complaint, proposed action (if any)
   will be completed and will be communicated to complainant.


                                                          210
Maharashtra Agricultural Competitiveness Project



47. Appeals and Appellate Authority: In case complainant is not satisfied with action taken
    by the Grievance Redressal Officer, he / she may file an appeal before the concerned
    authority mentioned in the above para. The appellate authority will dispose of the appeal
    within 30 working days. The appellate authority may take the any one of the following
    action/s, as deemed fit: (i) Enquire into the original complaint and the action taken by the
    Grievance Redressal Officer, (ii) Appoint appropriate person to enquire as above, (iii)
    Remand back the complaint to the Grievance Redressal Officer for review.
48. Actions on Complaints/ Grievance: There may be following types of actions proposed as
    the result of enquiry / appeal: (i) Administrative Action – Appropriate action will be taken
    in view of the legality of nature of the complaint and the result of the enquiry will be
    communicated to the complainant, (ii) Disciplinary Action – Appropriate Disciplinary
    action (light / severe) will be taken against the defaulting officer / staff in accordance with
    the Conduct Rules. The same will be communicated to the PCU / PIU for taking further
    appropriate action at their level, (iii) Action on Serious fraud – Appropriate action will be
    taken to lodge police complaint against the person found guilty.
49. Reporting about Grievance Redressal: The information about the grievance handling will
    be disclosed on the project website and will be updated periodically. Periodic returns will
    be submitted to World Bank authorities through MIS in prescribed format for
    communicating the status of the complaint received and actions taken.
Community Operations Manual (COM)
50. The COM has been prepared to provide the requisite information about MACP to all the
    stakeholders at a single source. The manual details out in simple manner various elements
    of MACP Project. It facilitates greater participation from community members by
    explaining the project components to them and clarifying their role in the project. The
    project information is presented in simple, lucid manner and in local language. It includes
    information about project design, project development objectives, and, various
    components of the project. All the details of each of the components, their
    implementation arrangements, funds flow, M&E arrangements, output / outcome
    indicators, community procurement aspect, and, involvement of community in project
    implementation. COM contains information about complaint redressal mechanism, and,
    contact details of the District Grievance Redressal Officer where a person can lodge her /
    his complaint/s.
51. The COM (in Marathi) is made available on the website of MSAMB and printed copies
    of COM booklets (Marathi) are made available to all implementing agencies, all
    beneficiary institutions, and, all other stakeholders.


                                                   ***




                                                     211
Maharashtra Agricultural Competitiveness Project



                             Governance and Accountability Action Plan
                                                                                   Agency
Issue           Mitigation Measures                                                                     Timing / Duration
                                                                                   Responsible
Procurement
Procurement (a) Project providing for dedicated Procurement Specialist and (a) PCU, PIUs                (a) Project life
capacity            a Procurement Officer in PCU and one Procurement Officer
                    in each PIUs.
               (b) Training of all project procurement staff on World Bank           (b) PCU, PIUs      (b) 2 programs of 5
                    procurement procedures                                                              days duration
               (c) Orientation to top management in all entities on linkages         (c) PCU, PIUs      (c) 4 programs in
                    between adherence to project plan for project outcomes and                              first year, repeat
                    oversight requirements                                                                  in 2nd year
               (d) An online Help Desk facility by a resource agency for             (d) PCU            (d) For 6 months
                   capacity building for first 6 months
Procurement (a) A Procurement manual meeting Bank requirements, with                 (a) PCU, PIUs      (a) In the
procedures          standard bidding documents, evaluation templates to be                                  beginning
                    used across the project
               (b) In addition to Bank’s prior review process, MSAMB                 (b) MSAMB          (b) Project life
                    procurement unit also to perform prior review of
                    architectural plans and designs, bids, short lists of
                    contractors / suppliers, evaluation report and final
                    recommendation for market construction activities
               (c) Appropriate thresholds to ensure higher extent of prior           (c) MSAMB/         (c)Project life
                    reviews in first phase of project                                Bank
Transparency (a) Procurement Committee in every producer / farmer                    (a) PIUs           (a) Project life
in procurement      associations to ensure soundness of the process and
decisions           disclosure requirements among the community
               (b) Item / Rate Banks set up by PIUs through periodic market (b) PIU                     (b) Once in every
                    survey to provide standard specifications and indicative                                year
                    price ranges for the common user items
               (c) Mandatory record keeping through maintaining data and             (c) PCU, PIUs      (c ) Project life
                    records for all contracts at state and district level (including
                    through computerization of procurement data)
               (d) Disclosure of all tender notices, bid documents, status of        (d) PCU, PIUs      (d) Project life
                    contracts, on the MACP project website
               (e) In project supported markets (mandis, haats), public display (e) All agencies        (e) Project life
                    of updated information on contracts awarded, works to be
                    executed, schedule of completion.
               (f) Compliance with Right to Information Act for suo moto             (f) All agencies   (f)Project life
                    disclosure (indicative list of information to be disclosed at
                    state, district).
Technical      (a) Evaluation process during market modernization, selection (a) PIU-                   (a) Project life
Quality             process to ensure technical quality of mandi market                   MSAMB
Control/Verifi      modernization plans
cation         (b) Project will provide for Third-party Quality Control through (b) PIU-                (b) Project life
                    MFE of all civil works in the APMCs and in the Rural haats            MSAMB
                    improved                                                         (c) PCU            (c) Project life
               (c) Post review and verification of physical assets by the
                    Internal Auditors                                                (d) Bank           (d) Project life
               (d) Enhanced post-reviews by Bank, including during
                    supervision missions
Financial Management
Financial      (a) Project providing support for additional Financial                (a) PCU, PIUs       (a)   Project life
Management          Management staff (3) at the PCU and Accountants (33) at
Capacity            the district level.                                              (b) PCU,            (b) First 6
               (b) Providing training of project FM staff                            PIU-MSAMB &             months of
                                                                                     PIU-Agri.               project




                                                            212
Maharashtra Agricultural Competitiveness Project



                                                                                   Agency
Issue           Mitigation Measures                                                                 Timing / Duration
                                                                                   Responsible
Record          (a) Improving accounting through use of double entry using         (a) PCU, PIUs     (a) Project
keeping             Tally software                                                                       initiation
                (b) MIS strengthened to include financial management records (b) PCU, PIUs
                                                                                                    (b) Project life
Payments        (a) Payment processed for market modernization only after          (a) DDRCS        (a) As required
                    certificate of recommendation from the SP and the                under
                    beneficiary institutions concerned is received.                  intimation to
                                                                                     PIU-MSAMB
                (b) Establishing service standards, e.g. payment must be           (b) DDRCS       (b) As required
                    released within 15 days of receipt of order for payment          under
                                                                                     intimation to
                                                                                     PIU-MSAMB
Auditing        (a) External audit by independent agency to conduct external       (a) PCU         (a) Annual
                    audit (AG’s Audit for BDS Accounts & MSWC Accounts.
                    CA’s Audit for non-BDS Accounts)                               (b) PCU          (b) Continuous
                (b) Internal audit by PCU (Firm of CA)
NGO Contracting
                (a) Non-government Support Organizations (SOs) to be               (a) PIUs         (a) Project life
                    contracted as consultants for assisting with community
                    mobilization and capacity building but no project funds
                    would flow through them
                (b) Transparent SO selection criteria and process agreed which     (b) PIUs         (b) Project life
                    takes into account, among others, past experience, audited
                    reports of SOs, availability of infrastructure and human
                    resources, and feedback from past clients
Monitoring and Evaluation
Data collection (a) In addition to government produced progress reports,           (a) PCU           (a) Project life
and system to       regular feedback on project performance would also be
track project       obtained from (i) bi-annual monitoring reports (drawing
implemen-           from randomly selected field verification), (ii) baseline,
tation              mid-term and final impact evaluation reports produced by
                    an external M&E agency who would independently collect
                    information on various project aspects through primary
                    surveys in project areas;                                      (b) PCU, PIU-     (b) Project life
                (b) Development of an Integrated Project Portal to strengthen          MSAMB
                    project MIS systems                                            (c) PCU, PIUs     (c) Project life
                (c) Development of project external and internal websites.
                    Information in external website to include Project
                    Information, Components Details with Activities and
                    Budgeted Funding, Details of target beneficiaries under
                    each component, Details of Procurement Progress, Details
                    of Physical Progress, Details of Financial Status under each
                    component, Details of targets and performance indicators,
                    Details required under RTI, Complaint Management &
                    Grievance Reporting. Information in internal website to
                    include: Internal MIS Reports for Component Activity
                    planning and monitoring, Reporting on M&E Indicators,
                    Procurement and Financial Mgt Systems including the use
                    of Budget Distribution System (BDS), Asset Management          (d) PCU, PIU-     (d) Monthly
                    System for all assets created under MACP                           MSAMB,        (e) Monthly
                (d) Reports produced by Third party Quality Control                (e) PCU, PIU-
                    consultants (MFEs)                                                 MSAMB,

                (e) Web disclosure in Marathi and in English
Complaints      (a) At the district level each Implementing Agency, and their      (a) PCU, PIUs     (a) Project life
handling and        respective parent department, shall designate an officer as
resolution          District Grievance Redressal Officer.                          (b) APMCs,        (b) Project life
mechanisms      (b) The Head of the District level Office of the Department            PIU-


                                                           213
Maharashtra Agricultural Competitiveness Project



                                                                                  Agency
Issue           Mitigation Measures                                                                Timing / Duration
                                                                                  Responsible
                    shall be the Appellate Authority.                                 MSAMB,
                (c) The complaints may relate to procurement, contract, work,         DoM
                    payment, or any other matter touching to MACP.                (c) Haat          (c) Project life
                (d) The aggrieved parties (stakeholders or SPs) can forward the       Committee,
                    complaints to the respective District Grievance Redressal         PIU-
                    Officer in writing (or telephonically) to the authority.          MSAMB,
                (e) There will be Complaint Boxes in each of the offices of the (d) DDRCS           (d) Project life
                    Implementing Agencies.                                            office
                (f) Complaint Register will be maintained to register
                    complaints received in writing (or telephonically).
Other Governance issues
Governance in (a) Participatory consultation with market users in selection of (a) APMCs,           (a) At market
APMC                market investments                                                Haats,            design phase
Management (b) Selection process of regulated markets to be supported                 Producers’    (b) At market
                    includes criteria on commitment of Agricultural Produce           Associations      selection
                    Management Committee to adopt management reforms                  , SP              phase
                    including: (i) public display of market income &              (b) PIU-
                    expenditure, tender documents, (ii) adopting computerized         MSAMB
                    and standard accounting procedures, preparation of annual
                    reports as per standard accounting norms; (iii) public
                    display of price information in the market through multiple
                    price display boards, (iv) adopt model byelaws as
                    prescribed by MSAMB.                                          (c) APMCs,       (c) At project
                (c) Public Display of all the reforms to ensure implementation                         initiation phase
                    of reforms.                                                   (d) PIU-         (d) At project
                (d) Project will support capacity building of APMC’s on               MSAMB            initiation phase
                    planning, budgeting and market management
ATMAs           (a) Approval of Annual Action Plans by ATMA Governing             (a) DOA,         (a) Once a year
                    Board having representation of farmers and other                  ATMA
                    stakeholders
                (b) Participatory consultation with farmers in the preparation of (b) DOA,         (b) Through out
                    district marketing strategy supplement (MSS) and strategic        ATMA             MSS and
                    research and extension plan (SREP)                                                 SREP
                                                                                                       preparation
                (c) Organization of field days for farmers at demonstration       (c) ATMA         (c) Once per crop
                    sites to assess productivity gains from the demonstrated                           season
                    technologies
Project Preparation
Assessment      (a) As part of project preparation a study titled “Maharashtra (a) State Project (a) Project
and mitigation      Governance Action Plan” was carried out through                   preparation       preparation
of fraud and        independent consultants; based on the findings of the study       team, Bank
corruption          which identified potential areas of fiduciary and governance
risks               weaknesses, a Governance and Accountability Action Plan
                    has been prepared which forms part of the borrowers
                    Project Implementation Plan.
Project Supervision
Field           (a) Bank supervision missions would visit randomly market         (a) Bank          (a) Project life
verification of     and ATMA sites to assess and physically verify work
project             financed under the project. These site visits would include
implementation      in-depth interaction with market users, including market
                    committees, farmer interest groups, and non-government
                    support organizations assisting with community
                    mobilization and capacity building. Areas to be visited will
                    take in to account the following criteria: (i) random
                    selection from district-wise list of markets/ATMAs under
                    the project; (ii) special emphasis on regulated markets
                    supported by the project and those markets/ATMAs
                    identified by the complaint handling system.


                                                          214
 Maharashtra Agricultural Competitiveness Project



                                        LIST OF ABBREVIATIONS


ABBREVIATION                                             DETAILS
ABPF                     Agri Business Promotion Facility
ACP                      Annual Credit Plan
ADF                      Animal Husbandry, Dairy and Fishery
AES                      Agriculture Extension Staff
AGMARKNET                Agricultural Marketing Information Network
AHD                      Animal Husbandry Department
AHEO                     Animal Husbandry Extension Officer
AM                       Agri Mart
APEDA                    Agriculture & Processed Food Products Export Development Authority
APMC                     Agriculture Produce Market Committee
AR/ ARCS                 Assistant Registrar/ Assistant Registrar of Co-operative Societies
ATMA                     Agricultural Technology Management Agency
BDO                      Block Development officer
BDS                      Budget Distribution System
BMC                      Bulk Milk Cooler
BMP                      Better Management Practices
BoQ                      Bill of Quantity
BOT                      Build Operate & Transfer
BTT                      Block level Technology Team
CA                       Chartered Accountant
CBO                      Community Based Organizations
CCI                      Chamber of Commerce
CD                       Compact Disk
CDD                      Community Drive Development
CEO                      Chief Executive Officer
CIFA                     Central Institute of Fresh Water Aquaculture
CIGs                     Common interest groups
CII                      Confederation of Indian Industry
CSC                      Common Service Centers
CVC                      CENTRAL Vigilance Commission
DAC                      Department of Agriculture and Co-operation
DAPMS                    District Agricultural Production and Marketing Strategy
DDO                      Drawing and Disbursing Officer
DDR /DDRCS               District Deputy Registrar/ District Deputy Registrar of Co-op. Societies
DGSD                     Directorate General of Supplies & Disposals
DMI                      Director of Marketing and Inspection
DoM                      Director of Marketing
DPR                      Detailed Project Request
DROA                     District Rural Development Agency
DSS                      Decision Support System
DSR                      District Scheduled Rates
EMD                      Earnest Money Deposit
EMIC                     Economic & Market Intelligence Cell
EoI                      Expression of Interest


                                                     215
 Maharashtra Agricultural Competitiveness Project



ABBREVIATION                                          DETAILS
ESC                      Environmental and Social Cell
ESMP                     Environmental and Social Management Plan
FAC                      Farmers Advisory Committee
FCSC                     Farmers Common Service Center
FICCI                    Federation of Indian Chamber of Commerce & Industry
FIAC                     Farmer Information and Advisory Centers
FIGs                     Farmer Interest Groups
FMC                      Fund Management Committee
FPO                      Food Processing Order
FPP                      Full Project Proposal
FRP                      Fiberglass Reinforced Plastics
FWM                      Fish Wholesale Market
GAP                      Good Agricultural Practices
GB                       General Body
GDP                      Gross Domestic Product
GIS                      Geographical Information System
GIS                      Galvanized Iron Sheet
GMP                      Good Manufacturing Practices
GO                       Government Orders
GoI                      Government of India
GoM                      Government of Maharashtra
HACCP                    Hazard Analysis Critical Control Point
HMC                      Haat Management Committee
HPTI                     Horticulture Processing Training Institute
IA                       Implementing Agency
IBRD                     International Bank for Rural Development
ICB                      International Competitive Bidding
ICM                      Integrated Crop Management
ICT                      Information and Communication Technology
IDA                      International Development Agency
IDWG                     Inter Departmental Working Group
IESA                     Integrated Environmental and Social Assessment
IFB                      Invitation for Bidding
IIM                      Indian Institute of Management
INM                      Integrated Nutrient Management
INPM                     Integrated Nutrient & Pest Management
IPP                      Integrated Project Portal
IPM                      Integrated Pest Management
IT                       Information Technology
KMS                      Knowledge Management Systems
KVKs                     Krishi Vigyan Kendra
LCD                      Liquid Crystal Display
LDO                      Livestock Development Officers
LEO                      Livestock Extension Officers
LED                      Liquefied Electronic Display
LLPD                     Lakh Liters Per Day
LLLW                     Lady Link Livestock Workers


                                                    216
 Maharashtra Agricultural Competitiveness Project



ABBREVIATION                                           DETAILS
LPD                      Liter Per Day
M&E                      Monitoring and Evaluation
MACP                     Maharashtra Agricultural Competitiveness Project
MANAGE                   National Institute of Agricultural Extension Management, Hyderabad
MAVIM                    Mahila Arthik Vikas Mahamandal.
MCCIA                    Maratha Chamber of Commerce Industry & Agriculture
MCX                      Multi Commodity Exchange
MDP                      Management Development Progrmmes
MID                      Market Information Display
MII                      Market Information and Intelligence
MIS                      Management Information System
MMIP                     Mandi Modernization and Improvement Plan
MMIP                     Market Modernization and Improvement Plan
MoU                      Memorandum of Understanding
MSAMB                    Maharashtra State Agricultural Marketing Board
MSS                      Marketing Strategy Supplements
MSWC                     Maharashtra State Warehousing Corporation
MT                       Metric Tonne
MTR                      Mid Term Review
MWSIP                    Maharashtra Water Sector Improvement Project
NABARD                   National Agriculture Bank and Rural Development
NADP                     National Agricultural Development Programme
NATP                     National Agricultural Technology Project
NBHC                     National Bulk Handling Corporation
NCB                      National Competitive Bidding
NCDC                     National Co-operative Development Corporation
NCDEX                    National Commodity & Derivatives Exchange Limited
NFSM                     National Food Security Mission
NGC                      New Generation Co-operative
NGOs                     Non Government Organizations
NHB                      National Horticulture Board
NHM                      National Horticulture Mission
NHRDF                    National Horticultural Research and Development Foundation
NIPHT                    National Institute of Post Harvest Technology
NMCE                     National Multi Commodity Exchange
O&M                      Operations and Maintenance
OHP                      Over Head Projector
PA                       Producer Associations
PACS                     Primary Agriculture Credit Cooperative Society
PAD                      Project Appraisal Document
PC                       Producer Company
PCN                      Project Concept Note
PCU                      Project Coordination Unit
PD                       Project Director
PERT                     Project Evaluation & Review Technique
PG                       Producer Groups
PHM                      Post Harvest Management


                                                    217
 Maharashtra Agricultural Competitiveness Project



ABBREVIATION                                              DETAILS
PIU                      Project Implementation Unit
PMC                      Project Management Committee
PMIS                     Project Monitoring Information System
PPP                      Public Private Partnership
PPR                      Preliminary Project Report
PRA                      Participative Rural Appraisal
QCBS                     Quality and Cost Based Selection
R&R                      Resettlement & Rehabilitation
RAMETI                   Regional Agriculture Management & Training Institute
RFP                      Request For Proposal
RHMIP                    Rural Haat Modernization & Improvement Programme
RML                      Reuters Market Light
RP                       Resettlement Plan
RTI                      Right to Information
SAO                      Superintendent Agriculture Officer
SAU                      State Agriculture University
SC                       Steering Committee
SEMF                     Social and Environmental Management Framework
SHG                      Self Help Group
SMES                     Small & Medium Enterprises
SMS                      Subject Matter Specialist /Short Message Service
SOP                      Standard Operation Procedures
SP                       Service Provider
SR                       Small Ruminant
SREP                     Strategic Research and Extension Plan
TOR                      Terms of Reference
ToT                      Training of Trainers
TPD                      Tonnes Per Day
TNA                      Training Need Assessment
VANAMATI                 Vasantrao Naik Agriculture Management & Training Institute, Nagpur
VDO                      Village Development Officer
VGF                      Viability Gap Funding
VLLW                     Village Lady Link Workers
VLW                      Village Level Worker
VOs                      Village Organizations
WB                       World Bank
WBM                      Water Bound Macadam
XI FYP                   XI Five Year Plan
ZP                       Zilla Parishad


                                                    ***




                                                      218

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:122
posted:1/16/2012
language:
pages:218
Description: Marketing Strategy of Bank of Maharashtra document sample