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									          WORLD BANK FUNDED



            MULTI-STATE
AGRICULTURAL COMPETITIVENESS PROJECT
              (MACP)


 PRELIMINARY PROJECT REPORT (PPR)


                       FOR

          MAHARASHTRA STATE


      GOVERNMENT OF MAHARASHTRA
               MUMBAI


                   PREPARED BY

       DR. R. M. Kharche (Retired M.D. MSAMB)


                  With the Help of

             MAHARASHTRA STATE
     AGRICULTURAL MARKETING BOARD, PUNE



                                                7th OCT, 2007
              THE MULTI-STATE AGRICULTURAL COMPETITIVENESS PROJECT (MACP) –
                                  MAHARASHTRA STATE


                                        CONTENTS

    Chapter                                                                         Page
                                             Title
      No                                                                             No
I              Introduction : Rationale for the Project                               1
     1.1       Present Scenario of Agriculture In Maharashtra                        1
     1.1.1     Agro Climatic Zones of Maharashtra and Important crops grown          3
               therein
     1.2       Regulation and Development of Agricultural Marketing                  7
     1.3       Potential for Food Preservation and Agri Processing Industry          8
     1.4       Agri Export Zones                                                    10
      1.5      Modern Terminal Markets (MTMS) for Maharashtra                       10
     1.6       Potential and Prospects of Dairy Industry                            11
     1.7       Potential and Prospects of Fisheries Development                     11
     1.8       Animal Husbandry as Strength to Agriculture                          12
     1.9       Co-operative Structure in Maharashtra: Strength for development:     12
     1.10      SHGs and Cooperatives                                                13
     1.11      SWOT Analysis of Agricultural Marketing & other related Sectors of   14
               Agriculture in the State
     1.12      Agricultural Technology Management Agency (ATMA)                     17
II             KEY ISSUES ADDRESSED UNDER THE PROJECT                               20
  2.1          Key Objectives and Features                                          20
  2.2          Targets for Reducing Wastage                                         20
  2.3          Support from World Bank                                              21
  2.4          Financial Involvement of GoI and GoM                                 21
  2.5          The PPR (Preliminary Project Report)                                 22
  2.6          AGRIMART – Past Experience and Policy Changes Proposed               23
  2.7          Few Other Issues                                                     26
  2.8          In-Principle Approval by State                                       26
III            COMPONENTS & SUB-COMPONENTS UNDER PROJECT                            27
  3.1          Expanding Market Infrastructure and Market Intelligence              27
  3.2          Increasing Farmers Access to Market Opportunities                    35
  3.3          Capacity Building                                                    37
Chapter                                   Title                                Page
   No                                                                           No
IV      EXPANDING MARKET INFRASTRUCTURE AND                                   38
         INCREASING FARMERS ACESS TO THE MARKET
  4.1   Sub-Component 1: Agrimart                                             38
  4.1.1 Agrimart as per Vegetable and Fruit Promotion Council of Kerala       41
        (VFPCK) Model
  4.1.2 Agrimart By Agriculture Marketing Co-operative Societies –            46
  4.1.3 Development of Rural Haats Into Agrimarts                             50
  4.1.4 Fish – Agrimarts                                                      54
  4.1.5 Milk & Milk Products Agrimarts (Milk Agrimarts)                       60
  4.2   Sub-Component 2: Market Intelligence                                  65
  4.3   Sub-Component 3: Strengthening of Existing Apmcs                      68
  4.3.1 Training of APMCs and their Staff                                     74
  4.4   Sub-Component 4: Agri Business Development Facility (ABDF)            76
  4.5   Sub-Component 5 : Onion Storage Structures                            81
  4.6   SUB-COMPONENT 6 : Onion Grading Units And Pack Houses                 85
  4.7   Sub-Component 7: Pledge Loan Scheme                                   88
  4.8   Sub-Component 8: Cold Chain Development                               90
  4.9   Sub-Component 9: Maharashtra State Agricultural Quality Standards     92
        Bureau
  4.10  Sub-Component 10: Clean Milk Production Enhancement Programme –       94
        Community Milking
  4.11  Sub-Component 11: Feasibility Study of The Proposed Milk Marketing    99
        Board (Dairy Department)
  4.12  Sub-Component 12: Faculties And Infrastructure for Supply of          100
        Fingerlings for Improving Quality Production of Fish
  4.13  Sub-Component 13: Private Cattle Market Cum Small Animal Abattoirs.   103
        (Animal Husbandry Department)
  4.14   SUB-COMPONENT 14: Strengthening of Existing Cattle Markets of        104
         Apmcs (Animal Husbandry Department)
  4.15  Sub-Component 15: Establishment of Poultry Dressing Plants (Animal    105
        Husbandry Department)
  4.16  Sub-Component 16: Establishment Gramin Suvidha Kendra (Gsk) as        106
        Information and Input Supply Centres.
  4.17   Accredited Godown Development of PACS                                108
  4.18   I.T. Connectivity of Commodity Exchanges of PACS                     108
         SUMMARY OF FUNDS ALLOCATION UNDER COMPONENT NO 1:                    109
         Expanding Market Infrastructure & Increasing Farmers Access To the
         Market
Chapter                                        Title                                       Page
  No                                                                                        No
 V           PREPARATION OF DISTRICT AGRICULTURAL PRODUCTION AND                          111
             MARKETING STRATEGY AND CAPACITY BUILDING
     5.1    Making Extension System More Functional:                             111
            Mainstreaming of ATMA And Improve Its Market Focus:
     5.2    Preparation of District Agricultural Production & Marketing Strategy 114
            (DAPMS)

     5.3     Implementation of District Agriculture Production And Marketing 115
             Strategy (DAPMS):
     5.4    Piloting Risk Management Mechanism                               120
     5.5    Strengthening of State Horticultural Processing Training Institute, 123
            Aurangabad.
     5.6    Strengthening og Horticultural Training Institute, Talegon Dabhade, 124
            District – Pune and its Development As Centre of Excellence as Post
            Harvest Management Institute.
     5.7    Strengthening of Growers Associations                               127
     5.8    Market Research / market Study                                                128
     5.9    Agriculture TV Channel – Feasibility Study                                    128
     5.10   Market Led Extension For Capacity Building (MSAMB)                            128
     5.11   Training, Research & Development Center                                       129
            (Dairy Department)
     5.12    Training And Extension (Fisheries Department)                                130
            SUMMARY OF FUNDS ALLOCATION UNDER COMPONENT NO 2:                             132
            Facilitating Intensification and Diversification of Agricultural Production
            and Capacity Building
VI           POLICY & ORGANIZATIONAL FRAMEWORK FOR                                        134
             IMPLEMENTATION AND MONITORING:
     6.1    Policy and Organizational Framework:                                          134
     6.2    The Maharashtra State Agricultural Marketing Board (MSMB) – Nodal             134
            Agency for MACP
      6.3   Project Implementation Unit (PIU) :                                           137
      6.4   Concurrent Monitoring & Evaluation ( By Line Departments)                     138
      6.5   Business Development Manager For Agrimarts:                                   138
      6.6   Monitoring And Evaluation By Nodal Agency                                     140
     6.7    Total Project Cost and World Bank Component
     6.8    Policy & Organizational Framework for Implementation and                      141
            Monitoring
            Appendix-1 Abbreviations                                                      142
        THE MULTI-STATE AGRICULTURAL COMPETITIVENESS PROJECT (MACP) –
                               MAHARASHTRA STATE

                                         CHAPTER I:

                                       INTRODUCTION

      RATIONALE FOR THE PROJECT
      The Multi State Agricultural Competitiveness Project (MACP) envisages Expanding
      Market Infrastructure and Market Intelligence, Preparation of District Agricultural
      Production and Marketing Strategies and Capacity Building so as to accelerate to
      build up knowledge and capacity in Agricultural Marketing and Extension. This will
      improve the competitiveness of the farmers and they will be in a position to get
      better returns for their produce. The World Bank (WB) has proposed a Multi State
      Agricultural Competitiveness Project.
      Maharashtra State has been identified as one of states besides Andhra Pradesh,
      Rajasthan, Tamilnadu, Orissa and Punjab.
      This Preliminary Project Report (PPR) is prepared for this purpose. This PPR is
      prepared by Dr. R. M. Kharche, (Retired M.D., Maharashtra State Agricultural
      Marketing Board (MSAMB) & Director of Marketing, Maharashtra) with the support
      of officers of concerned departments and officers of MSAMB, with the guidance of
      Principal Secretary (Co-operation & Marketing) and experts from National Institute
      of Agricultural Marketing (NIAM), Jaipur. Series of meetings of Stake-holders
      including the senior officers Line Departments namely Agriculture Marketing,
      Agriculture, Dairy, Animal Husbandry and Fisheries and the representatives of
      private sector were held and the inputs provided by them have been considered
      while preparing this PPR.

1.1   Present Scenario of Agriculture in Maharashtra

      Agriculture in Maharashtra is at crossroads. It is a mix of
      both opportunities and challenges. It is primarily dependent
      on rainfall. The total number of farmers in Maharashtra is
      1.06 Crores. Of the 307.58 lakh ha, 176 lakh ha. (57%) is
      under cultivation. The gross cropped area is 223.81 lakh
      ha. With cropping intensity of 127%. Substantial cultivable
      area (52%) is drought prone. The light soil type accounts
      for 40% of the cultivable area. The state is poorly endowed
      with irrigation facilities. Only 15.4% area is under
      irrigation as against the national average of 38.3%. The
pressure of population on the available land resource is on
the increase, resulting in declining per capita land holding
which according to 2001-02 census stands at 2.21 ha.
Pattern of land holding in Maharashtra is shown in table –
1.

Table - 1: Pattern of Land Holding in Maharashtra

                                    (Number in (‘000) unit, Area in (‘000) Hectares)

 Br               Category             Number      Area       % of        % of
 no                                       of                number of      land
                                       farmers               farmers     Holding
 1.   Marginal -unto 1 ha.              4266       2087       40.05       10.50
 2.   Small – 1 to 2 ha.                3176       4606       29.81       23.17
 3.   Semi Medium- 2 to 4 ha.           2152       5872       20.20       29.54
 4.   Medium – 4 to 10 ha.               943       5436       08.85       27.34
 5.   Large – above 10 ha.               116       1879       01.09       09.45
      All Sizes                         10653     19880      100.00       100.00


The Agriculture and Animal Husbandry sector contributes 13 % of the state’s GDP.
About 70 % of farmers in the state are categorized as small and marginal farmers
and posses only 30% of total cropped area. Amongst the allied activities related
to Agriculture, Animal husbandry, Dairy and Fisheries are important sectors in the
state. The area suitable for exploitation of marine fish is 1.12 lakh sq. meters.
There is good potential for inland fisheries. Against the potential of 6.30 lakh
tonnes of fish catch from marine area, the production during 2002-03 was 3.87
lakh tonnes. The Government plans to introduce intermediate fishing crafts up to
200 m depth which will fetch 6.30 lakh tonnes of fish catch.
Although the share of agriculture in the state income shows declining trend over the
last 40 years; it still continues to be the major economic activity for 55% of the
population. Besides the erratic monsoon and limited irrigation resources, following
are the major constraints impeding growth in Agriculture Sector are Inadequate
crop credit, Inadequate crop insurance cover, Poor marketing facilities, Inadequate
storage and post harvest infrastructure and Slow pace of watershed development.
Irrigated agriculture however, presents many opportunities for growth and
prosperity. The rain fed agriculture on the other hand poses many challenges for
improving productivity in the face of natural odds. Both the types call for major
policy initiatives and investment. Irrigated agriculture largely needs private
investment, where as rain-fed agriculture calls for heavy public investment
supported by policy initiatives.
The Maharashtra State with the constraints of irrigation has emerged as one of the
leading states in agricultural production, its share being more than 30% in respect
of many important crops. Maharashtra ranks first in the country in respect of
production of few major food grain, vegetables and fruit crops like Sorghum,
Arhar, Onion, Banana, Citrus, Grapes, Pomegranate, and cashew nut. It stands
second in the country in the production of Coarse Cereals, Gram, Soyabean and
Cotton.
Area and Production of major crops in Maharashtra and its share in the country’s
production is shown in table 2


Table – 2 : Area and Production of major crops in Maharashtra

Sr.       Crop                  Area           Production    (Million   Prodn.%   Rank
No                       (Million Hectares)           Tonnes)            Share
                       India     Maharashtra   India     Maharashtra
1     Sorghum          8.67          4.74      7.63         3.90         51.11     1
      (Jowar)
2     Bajara            9.58        1.43        7.68        1.03         13.41     4
3     Maize             7.59        0.47       14.71        1.00          6.80     7
4     Coarse           29.06        6.87       34.07        6.09         17.87     2
      Cereals
 5    Gram              6.93        1.02        5.60        0.71         12.68     2
 6    Arhar (Tur)       3.58        1.10        2.74        0.79         28.83     1
 7    Total Pulses     22.39        3.43       13.38        2.01         15.02     3
 8    Soyabean          7.71        2.35        8.27        2.53         30.59      2
 9    Sunflower         2.34        0.36       1.44         0.21         14.58     3
10    Groundnut         6.74        0.43        7.99        0.41          5.13     6
11    Nine Oil Seeds   27.86        3.65       27.98        3.37         12.04     4
12    Cotton            8.63        2.88       18.50        3.16         17.08     2
13    Rice             43.66        1.52       91.79        2.70          2.94     12
14    Mango             1.96        0.44       11.60        0.64          5.52      3
15    Banana            0.52        0.07       16.22        4.53         27.93      1
16    Citrus            0.71        0.24        5.99        1.43         23.87     1
17    Grapes            0.06        0.04        1.54        1.23         79.87      1
18.   Pomegranate       0.11        0.09        0.79        0.56         70.89      1
19    Onion             6.62        1.77        8.68        2.47         28.46     1


The average yields of many crops are quite low in Maharashtra as compared to
National average though there is good potential for improvement. Different Agro
Climatic Zones in the State with diverse soil and water conditions endows the state
with production of many high value crops with tremendous potential for increasing
productivity in Agriculture. Various interventions of the State Government and
Government of India in the fields of technology improvement and programs to
increase investment in Agriculture and allied sectors including Reforms in
Agricultural Marketing will bring in improvement in the productivity and growth in
Agriculture.
1.1.1 Agro Climatic Zones of Maharashtra and Important crops grown therein:
      The Maharashtra State has district a Agro Climatic Zones, with peculiar soil types,
      climatic and weather conditions. With such diversified conditions the State has the
      potential to grow number of crops ranging from Hill millets to high value cereals
      different fruits, vegetables, spices etc. Various crops grown and potential of
      production has been kept in view while framing proposals under this project.
      Details of different Agro Climatic Zones of Maharashtra and major crops grown
      therein are shown in following table 3.
      Table - 3 : Different Agro Climatic Zones of Maharashtra
      Name of the      Geographical spread of            Crop and cropping pattern
        Zone            the zone/Districts and
                           tahsils included
     1.              Comprises mainly of            Rice is the major crop i.e. 39% of
     SOUTH           Ratnagiri and Sindhudurg       cultivated area. Ragi 2nd important
     KOKAN           Districts Total area of the    crop 0.45 lakh. Ha. Vari is minor hill
     COASTAL         zone is 13.20 lakh ha. Area    millet grown on the slopes, pulses
     ZONE            under cultivation 3.5 lakh     like horse gram grown on residual
                     ha.                            moisture. Oilseeds- Niger/ Sesamum,
                                                    area under Summer Ground nut,
                                                    Jowar and Tur is likely to increase
                                                    with irrigation. Horticultural crops-
                                                    Mango, Coconut, Areca nut, Cashew
                                                    nut Jackfruit, Banana and Pineapple.
                                                    Spices like clove Nutmeg and Black
                                                    pepper
     2.              Comprises of Thane &           Rice is major crop 40,600 lakh. ha
     NORTH           Raigad districts. Total area   Vari 19,600 ha. Pulses-udid/tur,
     KOKAN           16.59 lakh. Ha. Net sown       Vegetables-brinjal, tomato,
     COASTAL         area 4.69 lakh. Ha With        Oilseeds-sesamum, niger, Fruits-
     ZONE            forest zone about 3%. 32%      banana, chicoo
                     of land is under forest.

     3.              It includes hilly high lying   25% area is under forest. Principal
     WESTERN         terrains of Kolhapur,          crops-rice/ragi/kodra & other
     GHAT ZONE       Satara, Pune, Ahmednagar       cereals. Rabi jowar, gram, niger,
                     & Nasik districts & small      groundnut, Sugarcane major crop.
                     area of Sindhudurg district.   Area under spices 353 ha. Fruits
                     Altitude varies front 1000-    &vegetables 2933ha.Well suited
                     1900mt                         conditions for rainfed crops. Fruits-
                                                    mango,cashew,jackfruit,jamun and
                                                    karwanda
     4.              Spreads over 19 tahsils of     Mainly dominated by kharif cereals,
     TRANSITION      five districts viz, Nasik ,    groundnut & sugarcane.Rabi crops
     ZONE -1         Pune, Satara, Sangli &         are taken where there are deep
                     Kolhapur. The area of the      soils & moisture holding capacity.
                     zone measures 10,289 Sq        Vegetables- potato,onion, chillies,
                     Km                             tomato &brinjal.Fruits-mango,
                                                    banana, guava cashew & grapes.
5.            This zone includes tahsils of   The zone is predominantly a kharif
TRANSTION     Dhule, Ahmednagar, Sangli       tract suitable for single rainfed crop.
ZONE-2        & central tahsils of Nasik,     Principal crops grown -kharif &
              Pune, Satara & Kolhapur         rabbi jowar, bajra, groundnut
              districts. Geographical area    ,wheat , sugarcane, udid, tur gram &
              17.91 lakh ha .Net area         ragi.
              sown is 8.86Lakh ha.
Name of the    Geographical spread of              Crop and cropping pattern
  Zone          the zone/Districts and
                   tahsils included

6.            This zone covers                Based on bimodal distribution of
SCARCITY      geographical area of            rainfall hence two cropping systems
ZONE          73.23 lakh ha. The gross &      are noticed .During kharif shallow &
              net cultivated area is 58.42    poor moisture retentive soils are
              ad 53.0 lakh ha                 cultivated. Medium deep ,moisture
              respectively.                   holding capacity soils are diverted
                                              to rabi cropping. Kharif cropping
                                              25-30%. Crops -bajra,jowar
                                              ,groundnut,safflower ,pulses etc.
                                              Productivity is rather low in both the
                                              seasons
7.            Comprises parts of              Jowar is a predominant crop
ASSURED       Aurangabad, Jalna Beed &        occupying 33% of gross cropped
RAINFALL      Osmanabad districts. Major      area cotton-22.55%.oilseeds
ZONE          parts of Parbhani &             5.17%, pulses 7.63 %.Kharif jowar
              Nanded & complete Latur         /bajra followed by gram , safflower
              Buldhana & parts of Akola ,     . Area under paddy is increasing.
              Amravati , Yavatmal,            Pulses -tur, mung, udid, gram &
              Jalgaon , Dhule & Solapur.      lentils .Oilseeds- groundnut, sesamum
              Area accounts to 75 lakh ha     safflower & niger. Sugarcane &
              . Gross cropped area is         summer crops are taken on
              67.8 lakh ha . Forest           availability of irrigation.
              accounts to 9.90 % of
              geographical area.
8.            The zone includes entire   Cropping patterns Involves Cotton,
MODERATE      Wardha, major parts of     Kh.Jowar, Tur, Wheat other Pluses &
RAINFALL      Nagpur Yavatmal 2 tahsils Oilseeds
ZONE          of Chandrapur & parts of
              Aurangabad , Jalna
              Parbhani & Nanded
              districts. Largest agro
              climatic zone encompassing
              49.88 lakh ha geographical
              area & 35.73 lakh ha net
              cropped area
9.         Includes entire Bhandara &     Paddy is predominant crop in
EASTERN    Gadchiroli and parts of        Bhandara. Rabi Pulses- Gram,
VIDARBHA   Chandrapur and Nagpur          Lathyrus. Paddy is followed by Rabi
ZONE       districts. Geographical area   Jowar Pulses and Oilseeds.
           is 32.7 lakh/Ha. And with
           almost 50% under forest.
           Gross crop area 10.8
           lakh/Ha.
Key development issues:

Improving farmer productivity and competitiveness and diversifying production to
raise the income of households dependent on Agriculture are important elements of
GoM’s agricultural strategy. As agricultural growth shows signs of decelerating,
there are serious concerns about the impact of this on rural poverty reduction.

The Government is emphasizing the need for increased agricultural productivity
and diversification to ensure better returns to the farmers and achieve the goal of
food self sufficiency. The policy will address the environmental concerns at the
same time. There is also a growing recognition that well functioning markets are
critical to support the commercialization and diversification of farming to efficiently
and competitively bring agricultural products to domestic and international
consumers.

There is increasing recognition that the Regulated Markets increase marketing costs
and uncertainty to the producers. The lack of Private Markets to compete with
regulated markets forces the farmers to bring their produce to the regulated
markets only, thus resulting in increased marketing costs and poor returns to the
farmers. The existing marketing system including collection, handling storage,
transport, processing, wholesaling, retailing and export of agricultural commodities
and associated infrastructure and support services still remain fragmented and
uncoordinated, involving intermediaries and markets with inadequate infrastructure
and facilities and supply chains involving high wastage and losses. The model
Agricultural Produce Market Committee (APMC) Act formulated by GOI has been
recently adopted by Maharashtra State recently paving way for entry of private
sector in development of agricultural markets and agri business. There is a growing
need to remove the bottlenecks to link the farmers to effective marketing system.

Objectives:

The proposed Multi State Agriculture Competitiveness Project aims to assist the
state government to address the critical issues of linking farmers more effectively
to markets and to foster the development of efficient and competitive marketing
systems. It would also encourage private investment in markets and agri business in
the state. The project would also aim to increase private sector investment in
agriculture and allied sectors and promote more effective use of government funds
already being allocated to line departments for extension and adaptive research.
The project would contribute to increasing productivity, diversification of enterprise
and income of farmers improving opportunities for employment and livelihood
support both on farm and in the non farm rural economy. The state government has
already taken a number of initiatives towards diversification and improving
productivity of agri-horticultural crops in the form of Employment Guarantee
Scheme (EGS) linked to horticultural area expansion programme and Maharashtra
      Agri Productivity Improvement Campaign (MAHAPIC). The project would build on
      the reformed extension system based on Agriculture Technology Management
      Agency (ATMA) concept through training, capacity building and knowledge
      transfer to the farmers with emphasis on market-led extension. The project would
      expand market opportunities for the farmers, diversifying marketing channels. It
      would establish and strengthen the backward and forward linkages for the
      farmers through AGRIMARTs with the help of Growers Associations.

      The project would improve competitiveness of farmers to capture increased income
      generating potential associated with shifting demand towards high value
      agriculture and higher quality of produce, greater urban demand. The project
      would enable farmers to respond positively to the changes in emerging markets
      with support for improved product quality and standards and realization of value
      addition opportunities.


1.2   Regulation and Development of Agricultural Marketing:

      In addition to the constraints regarding production of agricultural produce,
      marketing of agricultural produce has been identified as an important sector to
      fetch good prices to the farmers as well as quality produce to the consumers. The
      two key aspects of agriculture marketing that are dealt at the state level are the
      Developmental aspect and the Regulatory aspect. The developmental aspect of
      agricultural marketing is dealt by Maharashtra state Agricultural Marketing Board
      (MSAMB), a Statutory Autonomous Board, established on 23rd march 1984, its
      objectives being, i) To coordinate functioning of market committees, ii) To
      undertake state level planning of development of market committees, iii) To
      supervise and guide market committees in their preparation of plans and estimates,
      iv) To arrange seminars, workshops, exhibitions on subject related to agricultural
      marketing. The state marketing board also undertakes various schemes of Post
      Harvest Management, Market Intelligence and Export Promotion.

      The Regulatory aspect of agricultural marketing is dealt by Directorate of
      Marketing, (DoM) established in the year 1971. It works for regulation and
      promotion of, i) Agriculture Produce Market Committees, ii) Agriculture Co-
      operative marketing societies, iii) Agro processing co-operatives, iv) Fruits and
      vegetables co-operative marketing societies, v) Export promotion and post harvest
      management, vi) Schemes of constructions of godowns in rural areas, vii) Consumers
      cooperative societies.
      Present System of Agricultural Marketing:

      Agricultural produce Market Committees (APMCs) constituted under the
      Maharashtra Agricultural Produce Marketing (Development and Regulation) Act,
      1963 are the corporate, statutory bodies established for managing the markets in
      their respective areas. APMCs play a dominant role in the field of agricultural
      marketing in the state. There are 294 APMCs functioning along with 294 main and
      612 sub markets. Of these 39 APMCs have an annual income above Rs. 1 Crores
      and 68 APMCs have an annual income between Rs. 50 lakh to 1 Crores. The
      regulated markets in the state have most of the basic marketing infrastructures such
      as Office Building, Internal Roads, Electrification, Auction Platform, Water Supply
      System, Weigh Bridge, Shetkari Niwas, Godown, Cattle Shed, Fencing etc. These
      markets ensure fair market practices, arrange for resolving disputes, and build up
      a positive environment for carrying out working activities in particular and
      establishing itself as a local growth center in the areas concerned.

      However the present marketing system is placed with certain short comings viz. i)
      lack of standardization and enforcement of quality and grades. ii) Insufficient and
      ineffective services to farmers regarding inputs and information. iii) Lack of
      facilities regarding packaging, cold storage and processing. iv) Lack of private
      sector investment, etc.

      The purpose of regulation of agricultural markets was to protect farmers from the
      exploitation of intermediaries and traders and also to ensure better prices and
      timely payment for his produce. However over a period of time exporters,
      processors and retail chain operators were not able to get desired quality and
      quantity of produce for their business due to restrictions on direct marketing. In
      view of this, state government has committed itself to commercialize agriculture
      with various programmes having inbuilt mechanism for providing food security, job
      security to the masses and augmenting the flow of nutritious food supply within the
      purchasing power of masses. The state has already liberalized its agricultural
      marketing policies, to allow much greater private sector involvement in the
      marketing of farm produce, through amendment of the State Agricultural
      Marketing Act, which previously restricted farmers to selling farm produce through
      regulated markets controlled by the Agricultural Produce Market Committees only.
      The changes are broadly in line with the reforms being promoted by GOI
      throughout the country – promoting contract farming, direct marketing, establishing
      private markets etc.

1.3   Potential for Food Preservation and Agri Processing Industry:

      To reduce post harvest loses substantially and supply quality produce for
      consumers, both domestic and international; cold chain and Agricultural Processing
      needs to be improved. The food processing industry plays and important role in
Indian economy. The state stands first in the production of fruits and vegetables
and has an area of 17 lakh hectares under horticulture. Less than 2% of the farm
produce is currently processed in Maharashtra as against 23 % in China, 45 % in
Philippines, 50 % in Thailand and 70 % in Malaysia. Strengths of Maharashtra
are in the production of Mango, Banana, Grape, Orange, Pomegranate and
Onion besides other agricultural produce. These crops are grown mainly in
different pockets of Maharashtra in the districts shown in the following table – 4.
The food producing industry based on these products has to be given stress in these
districts.


Table – 4 : Important Fruit and vegetable crops of Maharashtra and Districts in
           which these crops are grown

 Sr.No. Commodity         Districts
 1.       Mango           Sindhudurg, Ratnagiri, Raigadh, Thane, Aurangabad,
                          Jalna, Beed, Latur, Ahmednagar and Nasik
 2.       Banana          Jalgaon, Dhule, Nandurbar, Buldana, Wardha, Nanded,
                          Parbhani & Hingoli.
 3.       Grapes          Nasik, Sangali, Solapur, Osmanabad
 4.       Oranges         Nagpur & Amravati.
 5.       Pomegranate Nashik, Pune, Sangli, Solapur, Osmanabad, Latur and
                          Ahmednagar.
 6.       Onion           Nasik, Ahmednagar, Pune, Satara, Solapur and Jalgaon.

Food Preservation and Agriculture Processing has been identified as a thrust area
by the Govt. of Maharashtra. Taking in to consideration the economic and social
benefits and huge employment potential, the state govt. has identified Potential
Food Processing in different regions with respect to the agricultural produce
obtained in those regions. Processing projects viz. post harvest management
centers, aseptic packaging and fruit processing of Mango, Grapes and Orange
have been identified in Konkan, Western Maharashtra and Vidarbha respectively.
It is expected to see doubling of production of fruits in the state within the next 3-5
years. This will create a lot of burden on existing marketing system in the state. To
some extent this can be overcome by greater agro processing and value addition
in the state. Also appropriate agro and food processing technologies and setting
up of processing units will help post harvest losses and help farmers to get better
returns for their produce.
1.4   Agri Export Zones:
      With the objective of promoting greater exports of fresh and processed
      agricultural produce from the country, the GoI has announced the creation of Agri
      Export Zone (AEZ). The concept is implemented by the Ministry of Commerce, GoI,
      through Agriculture and Processed Foods Export Development Authority (APEDA),
      New Delhi, the nodal agency for AEZ. The AEZ is expected to give focus and
      direction for exports of key agricultural produce with potential from the country. It
      involves a detailed action plan for the development of a specified geographic
      area/s for effecting systematically greater exports of a specific produce with the
      convergence of schemes of various departments. The Maharashtra State has
      identified following eight potential horticultural crops of commercial importance
      for AEZ. This will give momentum for steady and systematic growth of exports of
      these products.
      Table – 5 : Agricultural Export Zones sanctioned by GoI in Maharashtra.

      Sr.    Name of Crop for     District Covered in AEZ              Nodal Agency for
      No.      which AEZ is                                             Implementation
                sanctioned
      1      Mango (Alphanso) Sindhudurg, Ratnagiri, Raigadh          MSAMB
                              and Thane.
      2      Mango (Kesar)    Aurangabad, Jalna, Beed, Latur,         MSAMB
                              Ahmednagar and Nasik
      3      Onion            Nasik,    Ahmednagar,     Pune,         MSAMB
                              Satara, Solapur and Jalgaon
      4      Flowers          Pune, Nasik, Sangli                     MIDC
      5      Grape            Pune, Nasik, Sangli, Satara,            MIDC
                              Ahmednagar, Solapur
      6      Pomegranate      Nashik, Pune, Sangli, Solapur,          MSAMB
                              Osmanabad,        Latur     and
                              Ahmednagar.
      7      Banana           Jalgaon, Dhule, Nandurbar,              MSAMB
                              Buldana, Wardha, Nanded,
                              Parbhani & Hingoli.
      8      Orange           Nagpur & Amravati.                      MSAMB

1.5   Modern Terminal Markets (MTMs) for Maharashtra:
      Large modern markets with specialized infrastructure facilities for marketing of
      perishables such as fruits and vegetables, milk, poultry, fisheries and meat are
      planned in the State. The concept of Modern Terminal Market (MTM) has been
      developed and promoted by Government of India and looking at the potential in
      the State three locations have been identified viz: Babgaon in Thane District near
      Mumbai, Nasik and Nagpur for establishment of Terminal Markets on the lines of
      Safal Market of NDDB at Bangalore. These markets will receive the grant of 25%
      of their project cost from GoI. These markets will come up with Public –Private
      Investment.
1.6   Potential and Prospects of Dairy Industry:
      Nearly 41.3 Lakh Liters Per Day (LLPD) milk is procured by private sector where as
      40.9 LLPD milk procured by Govt. & Co-operative sector. Thus the organized
      sector is procuring around 82.20 LLPD 0f milk in Maharashtra. Out of this 62.16
      LLPD milk is sold in liquid form & remaining of it is used for various milk products.
      So there is necessity to convert this milk into value added products which can give
      larger benefit to the farmers.
      There are 26881 Dairy Co-operative Societies in the State of which 12970 DCS
      are in profit. These societies are rendering Yeomen services to the farmers in
      getting reasonable price for milk supplied by them, besides proving other services.
      There are 33 Govt. Dairies having milk processing capacity of 33.10 LLPD &
      similarly 27 dairies in Co- sector having milk processing capacity of 25.75 LLPD.
      The chilling capacity in Govt. sector is 7.21 LLPD (81 chilling centers) & 12.15 LLPD
      in Co-op sector (41 chilling centers). There are 5 milk powder plants having
      capacity of 51.00 MT per day in Government sector & 4 milk powder plants
      having per day capacity of 35.00 MT in co-operative sector. There are 111 dairy
      projects in Private sector having capacity 69.95 LLPD. The plants in Government &
      Co-operative sector are old & need to be modernized.
      Dairy industry has not developed in Vidarbha Region and therefore the farmers
      from this area do not get income supplementary to farming and this is one reason
      why this area has become Suicide Prone Area for the farmers. The numbers of
      suicides during 2001- 2007 in Vidarbha were around 2560 which are much more
      as compared to the other regions of the state. The marginal farmers need
      supplementary & additional support to farming which can be provided through
      dairy business. This picture will be changed with implementation of this project as
      some of the dairy co-operatives are proposed to be developed as AGRIMARTs.

1.7   Potential and Prospects of Fisheries Development:
      There is a tremendous scope for increasing the fish production in Marine/ Inland as
      well as Brackish water. Right now the fish production is 5.50 lakh M.T. and per
      capita per year consumption is only 3 kg in urban area and 1 kg in rural area.
      Besides 720 kms. of coastal line with continental shelf area of 1.12 lakh sq. km,
      there are 192 irrigation tanks having more than 200 ha water spread of which 39
      tanks have more than 1000 ha water spread. Total spread of water of these tanks
      is 1.86 lakh ha. Besides this there are 2065 tanks with less than 200 ha. spread of
      water, with a total spread of 101800 ha. Thus total water spread of irrigation
      tanks in Maharashtra is 2.87 lakh ha.             These tanks are given to fisheries
      development by the State to the Fisheries Department. In order to enhance fish
      production, there is good scope to develop reservoirs & lagoons which can be
      increase fish production up to 8 lakh M.T. But there is no infrastructure available so
      as to Market fish in fresh conditions. Fish is the perishable commodity & in order to
      keep the fish in good hygienic conditions infrastructure facilities like cold storage,
      washing, cleaning, grading, packaging facilities, ice factories, processing units are
      required. Accordingly various infrastructure facilities are suggested under this
      project.

1.8   Animal Husbandry as Strength to Agriculture:
      Animal Husbandry is a good subsidiary business to the farmers. However, the
      marketing of animals totally is dependent on middleman. So as to assure fair
      price to livestock & Livestock products in the marketing of these animals and animal
      products, elimination of middleman is proposed. Considering the objective to
      improve the competitiveness of the farmers the strengthening of the existing cattle
      markets of APMCs is also suggested. Like wise private participation in
      infrastructure development is also proposed so that fair competition in the market
      will provide fair price to Livestock owners.
      The poultry & Bird dressing & processing units are proposed outside Metros and
      big cities for value addition and to avoid collection of bio waste in the cities.


1.9   Co-operative Structure in Maharashtra: Strength for development:-
      The co-operative structure is very well developed in Maharashtra. These societies
      have contributed for the development of the State. Even though, there are some
      failures, large numbers of co-operatives are successful. The strength of co-
      operatives in Maharashtra can be understood from the following figures.


      Data regarding the growth of the co-operative societies in Maharashtra are shown
      in table no 6.


      Table - 6 : Different types of Co-operative societies in the State
                                                                             (Number)
               Type of              As on 30th June            As on 31st March
        Co-operative society        1961      1981         2001     2005       2006
       Apex and Central-
       Credit societies
          i)       Agricultural      37         28           32            33        33
          ii)      Non -             2           3            2             2        2
                   agricultural
       Primary agricultural
                                  21,400      18,577      20,551       21091       21,162
       credit societies
       Non-agricultural credit
                                   1,630       5,474      22,014      26,145       26189
       societies
       Marketing societies          344        423         1,115      1,314         1,380
       Productive enterprises*     4,306      14,327       39070      41,699       42,892
       Social service and other
                                   3,846      60,747      75,232      94,106      1,01,139
       co-operative societies**
        Total Societies            31,565      60,747     1,58,016 1,84,390        1,92,797
       The membership of all types of co-operative societies in the State as on 31st
       March, 2006 was 465 lakh, which was 1.5 per cent more than that on 31st March
       2005. The total working capital of these societies at the end of March 2006 was
       Rs.1,88,310 crore, more by 4.9 per cent than that at the end of March 2005
       The net advances given by co-operative societies during 2005-06 were more by
       4.7 per cent than the corresponding advances in the earlier year. As on 31st
       March 2006, the contribution of the State Government in the total paid-up share
       capital in co-operative societies was Rs.1656 Crore (14.6 per cent). The total
       outstanding loans of these societies as on 31st March, 2006 were Rs.97,222 crore.
       The Primary Agriculture Credit Co-operatives and Co-operative banks, Agricultural
       Marketing Co-operatives, Dairy co-operatives, Agro-processing Co-operatives are
       the societies contributing to Agricultural development and some of these societies
       have been proposed to be developed in this project, looking to the gaps in their
       working and required infrastructure.
       There is a program of the Government of Maharashtra and Government of India
       strengthen the coo-operative credit structure in Maharashtra. The necessary funds
       are going to be provided under the Revival Package of cooperative credit
       societies, where under Rs. 500 Crore amount is proposed under the PM’s special
       program.
1.10   SHGs and Cooperatives :
       The Co-operatives in Maharashtra are formal groups of the members which are
       registered under Maharashtra Co-operative Societies Act. These are functioning
       purely as democratic institutions are managed by elected Board of Directors. The
       elections to the board of these co-operatives are regularly held. The day to day
       management is looked after by the executive staff. Almost all societies have
       executive staff working with them. Though it is true that around 50% of societies in
       each sector are in losses, 50% societies are in profit and this shows the potential of
       success of this movement, if professional management is adopted by societies
       having problems. Co-operatives are therefore nothing but the formally registered
       form of SHGs. Even then, looking to the success of SHGs in various States in India
       and also in Maharashtra.
       Most of the proposals in MACP are proposed to be based on the initials and
       management by the farmers SHGs, their associations/companies wherever, the
       successful co-operatives are proposed to develop the infrastructure or share the
       responsibility of any programme under MACP, it will be undertaken as a Joint
       Venture by the Association/Company of SHGs and the Agricultural Co-operative
       concerned. To quote, the Agrimarts of different models proposed in this proposals
       will be developed by the farmers organizations viz. Associations/Companies of
       the SHGs of farmers and if necessary by the Joint Venture of SHGs Associations
       and the Agricultures cooperatives selected. The infrastructure may be outsourced
       for management by the owner of the Agrimart, so as to bring in better
       management and efficiency. Thus in APMC farmers SHGs and farmers co-
       operatives are considered as the primary organizations to developed and own the
       infrastructure and conduct other activities, so that the benefit of the project flows to
       the farmers.
       Investment by SHGs organizations and farmers cooperatives is considered better,
       as there is organic linkage between the members and the organization, members
       are involved in decision making, intermediaries are tried to be kept at minimum
       and surplus/profit shared by the members. Moreover, Private investment/Private
       management can be brought in and in MACP, it will be consciously proposed to
       bring in the private investment and private management of infrastructure.


1.11   SWOT Analysis of Agricultural Marketing & other related Sectors of Agriculture
       in the State:
       Strengths of the Present Marketing System & other Related Sectors of
       Agriculture

   •   There is a well-developed legal and administrative network existing in the State.
   •   Regulated markets are well spread out geographically.
   •   APMCs are managed by democratically elected body with very few exceptions
       where administrators are appointed if mismanagement is observed. Elections in all
       APMCs are regularly hold every five years.
   •   Markets have a good network.
   •   Fair and just representation to all functionaries in management of the committees.
   •   Attracting more and more volume of produce in the markets over the years.
   •   Only the agriculturists could be elected as Office Bearers of the committee.
   •   Market committees ensure fair market practices.
   •   Arrangement for resolving disputes etc.
   •   Adoption of innovative schemes for the benefits of agriculturist in particular and
       other functionaries at large.
   •   Building up positive environment for carrying out working activities in particular
       and establishing itself as a local growth center in the areas concerned.
   •   Four Agricultural Universities in the State and net work of colleges imparting
       education in the field of Agriculture, Horticulture, Veterinary, Dairy Science, Bio
       technology, Agriculture Marketing, Fisheries etc.
   •   Well structured Agriculture Department from Mantralay to village level, besides,
       Animal Husbandry, Fisheries, Dairy Development, Co-operation and Marketing
       Departments
   •   Krishi Vidyan Kendras in all districts.
   •   Very Good Soil and Climate conducive for variety of crops
•   Well developed Co-operative Agriculture Credit Structure, Dairy Co-operatives
    and Agriculture Marketing co-operatives.
•   Very huge Milk Production (around 80 lakh liters per day in the organized sector),
•   Self sufficient in food grains, oil seeds, fruits and vegetables,
•   720 KM long coastline for marine fisheries and 3 lakh Ha. of water reservoirs for
    inlands fisheries.
•   Largest exporters of Agri Produce.
•   Floriculture as protecting cultivation is growing fast. More than 3500 poly houses
    have come up in Pune, Satara, Nasik, Sangli and Ratnagiri Districts.

    Weaknesses of the Present Marketing System & other Related Sectors of
    Agriculture

•   Large numbers of small individual farmers are unable to effectively bargain in
    APMCs.
•   Intermediaries and system inefficiencies consume a disproportionate share of
    consumer prices. This eliminates any farmer incentive for improved productivity
    quality.
•   Dependency of farmers on traders’ credit continues to significant extent. Farmers
    lose freedom to find the best buyer.
•   Services to farmers are ineffective in linking inputs and information to farmers
    leaving them without proper seed, fertilizer, chemicals, price information and
    technical advice.
•   Markets lack transparency; trade practices raise consumer prices, reduce farmers’
    incomes and hide transaction from public view. Authentic price and quantity
    information is difficult to obtain.
•   Inefficiency in the management of markets results in long chain of intermediaries,
    multiple handling, loss in quality and increased gap between producer and
    consumer prices.
•   Huge loss of produce (al most 10% in non perishable and 30% in perishable) due
    to improper post harvest handling and inadequate processing and value addition
    facilities.
•   Lack of standardization and enforcement of quality and grades is an important
    factor in discouraging transparency and contributes to losses.
•   Large numbers of small retailers, each handling small quantities, create high
    overheads leading to high margins on produce.
•   Substantial portion of marketable surplus of agricultural produce is being
    marketed outside.
•   Management of regulated markets in general is traditional one i.e. no effective
    grading, standardization, packing; scientific and modern weighing systems. Many
    a time’s payments and clearance of sale are delayed. Village sales, contracting
    the gardens etc. are commonly prevalent.
•   Personnel of regulated markets are not well trained and sometimes lack in
    adequate experience.
•   Inadequate sources of Irrigation
•   Irregular Rainfall
•   Very small and marginal holding which are fragmented
•   Majority farmers are in Traditional Farming
•   Extension service need to be strengthened
•   Poor participation in Crop Insurance
•   Inadequate Crop Finance
•   Poor and inadequate marketing and storage facilities.

    Opportunities in the Present Marketing System & other Related Sectors of
    Agriculture

•   There are pockets that are untapped where there are possibilities for establishing
    regulated markets for benefits of the society as a whole.
•   The State has committed to commercialize agriculture with various programmes
    having inbuilt mechanism for providing food security, job security to the masses and
    augmenting the flow of nutritious food supply within the purchasing power of
    masses, there is a need for good markets.
•   Ensuring the benefits of direct dealing.
•   Human Resource Development Programme for progressively committed Market
    Committees is a must.
•   There are financial Assistance Schemes by the Central Government/State
    Governments for implementing various projects regarding establishment of Post
    Harvest Handling Infrastructure, Marketing Infrastructure, Food Processing Industry
    etc.
•   Reforms in Agriculture and Agricultural Marketing introduced by Government of
    India.
•   National Horticulture Board, National Horticulture Mission and various other
    schemes of assistance started by Government of India.
•   Scheme of Watershed development and farm tanks.
•   Horticulture being implemented under Employment Guarantee Scheme.
•   Policies of various Foreign Countries allowing imports of fruits and vegetables from
    India. Export opportunities in World Market.

    Threats to the Present Marketing System & other Related Sectors of Agriculture

•   Regulated markets no longer get priority from Government and those will have to
    face the competition.
   •   Inadequacy of space to handle the volume of arrivals at present that is going to
       continue in the future can result in diverting of portion of trade outside the market
       yards.
   •   Competition with the World Markets and local institutions may perish if those do
       not improve and with stand to the competition.

1.12   Agricultural Technology Management Agency (ATMA):
       The Agriculture Technology Management Agency (ATMA) model for rationalization
       and reorientation of public extension services, developed under NATP, is being
       applied to all districts. Some line departments are taking steps to locate project
       interventions within a larger departmental work program for synergistic use of
       project and departmental resources. Impetus for reform is also being provided by
       the central government which, under the Tenth Plan, links provision of additional
       earmarked funds to governance and institutional reforms.
       The Govt. of Maharashtra already initiated actions to implement the ATMA model
       in all 33 districts of the state. The project initiated under World Bank Project
       “National Agriculture Technology Project” (NATP) in 1998 with 4 districts namely
       Ahmedngar (1998-99), Amrawati,(1999-2000), Aurangabad (2000-01) and
       Ratanagiri (2001-02). It has been extended to 16 districts in 2005-06 under the
       Central Government scheme named as Extension Reform Scheme. The remaining 17
       districts have been directed to adopt ATMA model developing SREP’s in 2006-07
       under World Bank Assisted Project Maharashtra Water Sector Improvement
       Project(MWSIP) .Thus the ground work for implementing de-centralize extension
       through ATMA has been done. The implementation experience has brought out
       certain inadequacies which will need to be addressed to make extension more
       effective.
       ATMA would be the grass root level agency for supervision, coordination and
       implementation of the Project. ATMA exists in all the districts of Maharashtra and
       has the advantage of being autonomous and it has adequate amount of flexibility
       in decision making. Besides, it has the representation of all the line departments at
       the district level. ATMA therefore has been identified to coordinate, supervise and
       guide the project activities with the help of line departments involving SHGs,
       Farmers co-operatives, NGOs, Private sector etc.

       ATMA has the Governing Body headed by Collector of the District, and all the
       officers of the concerned Departments are members of ATMA, besides
       representatives of the farmers, KVKs. The key functions of the Governing Body of
       ATMA are:

       (i) Review and approve ADP and annual work plans that are prepared and
           submitted to the G.B. by the participating units;
(ii) Receive and review annual progress reports submitted by the participating
      units;
(iii) Provide feedback and direction to these participating units, as needed, about
      the various research and extension activities being carried out within the
      district;
(iv) Receive and allocate project funds to carry out priority research, extension
     and related activities (e.g. organize farmers) within the district;
(v) Foster the organization and development of Farmers Interest Groups (FIGs) and
     Farmers Organizations (FOs) within the district;
(vi) Facilitate greater involvement of private sector firms and organizations in
     providing inputs, technical support, demonstrations, training, agro-processing
     and marketing services to farmers;
(vii) Encourage agriculture lending institutions to increase the availability of capital
     to resource poor and marginal farmers, especially SC, ST, and women
     farmers;
(ix) Enter into contracts and agreements as appropriate to promote and support
     agricultural development activities within the district;
(x) Identify other sources of financial support that would help ensure the financial
     Sustainability of the ATMA and its participating units;
(xi) Establish revolving funds/accounts for each participating unit, and encourage
     each unit to make available technical services, such as artificial insemination or
     soil testing, on a cost recovery basis, moving towards full cost recovery in a
     phased manner;
(xii) Arrange for the periodic audit of ATMA's financial accounts; and
(xiii) Adopt and amend the rules and by-laws of the ATMA.

Besides, the Governing Body, ATMA has managing committee headed by District
Superintending Officer with the concerned departmental officers at district level as
its members. Key functions of the Managing Committee of ATMA are :

(i) Carry out periodic participatory rural appraisals (PRAs) to identify the
      problems and constraints faced by different socio-economic groups of farmers
      within the districts;
(ii) Prepare an integrated, strategic technology plan (STP) for the district that
      would specify short- and medium-term adaptive research as well technology
      validation and refinement and extension priorities for the district; these
      priorities should reflect the important farmer constraints identified during the
      PRA;
(iii) Prepare annual work plans and budget proposals that would be submitted to
      the ATMA G.B. for review, possible modification, and approval;
(iv) Maintain appropriate project accounts for submission to PIU for audit purposes;
(v) Coordinate the execution of these annual work plans through participating line
    departments, KVKs, NGOs, FIGs/FOs and allied institutions, including private
    sector firms;
(vi) Establish co-coordinating mechanisms at the block level, such as Block Resource
      Centres (BRCs), Farmers Advisory Committees (FACs) and Block Technology
      Teams (BTTs), that would integrate extension and technology transfer activities
      at the block and village levels;
(vii) Provide annual performance reports to the G.B. outlining the various research,
      extension, and related activities that were actually carried out, including
      targets achieved; and
(viii)Provide secretariat to Governing Board and initiate action on policy direction,
      investment decisions and other guidance received from the Board.

ATMA would have pivotal role to play in implementation, monitoring, coordination
of MACP of the district level with the support of all line departments and various
institutions involved in the project.
          CHAPTER II:

                            KEY ISSUES ADDRESSED UNDER THE PROJECT

2.1       Key Objectives and Features:

      •   Empowering farmers through marketing, by forming producer groups to meet the
          needs of Small and Marginal Farmers.
      •   Developing SME (Small and Medium Enterprises) marketing model as ‘third front’ in
          addition to existing APMCs (Agriculture Produce Market Committees or Mandis)
          and Corporate marketing models (of Supermarkets) and develop backward and
          forward linkages catering to supply of inputs & Advisory services.
      •   Set up AGRIMARTs (a farmer-entrepreneur market - collection center with
          Grading, Packing and Auction facilities to be managed by farmers / private
          sector.
      •   Improve Market Access and on farm productivity of Small and Marginal Farmers
          by improving market infrastructure, intelligence & value addition.
      •   Participation of Private Sector in Agricultural Marketing, Creation of Post Harvest
          Infrastructure & Agricultural Processing & Value addition, Market Led Extension
          Services, Establishing Linkages with urban retail chain.
      •   Shifting Demand towards high value agriculture products and higher quality
          products in the various sectors of Agriculture, Horticulture, Animal Husbandry,
          Dairy, Fisheries including Processed Foods and Value Added Produce.
          Convergence amongst the line departments i.e. Agricultural Marketing, Agriculture,
          Animal Husbandry, Dairy and Fisheries.
      •   Key Features of the Project: Linkages with ongoing projects; Private sector
          involvement; Representation in project committee from private sector and
          involvement of SHG’s and farmers cooperatives in view of strengths of this sector in
          Maharashtra.

2.2       Targets for Reducing Wastage:
          It is known that almost 25 to 30 % of the fresh agriculture produce i.e. fruits &
          vegetables, milk, fish, meat is wasted because of inadequate post harvest
          infrastructure in the state. Likewise 10 to 15 % of the other Agriculture Produce is
          wasted. Various programs suggested under MACP would result in reducing waste
          to a great extent. Any program aimed at improving the productivity and growth
          rate in agriculture has to lay stress on this issue of reduction in loss of agriculture
          produce because of improper post harvest handling, inadequate infrastructure for
          this and very low quantity of produce being processed in value added products.
          Whatever initiatives are suggested under MACP project may not be able to
          achieve measurable reduction in post harvest losses, but this project will definitely
          create awareness amongst the various stakeholders about this vital aspect and
          may have indirect positive impact in this area in the long run.

2.3       Support from World Bank:
      •   The support from World Bank would be in the form of ‘back to back credit’, i.e.
          World Bank to GoI and GoI to States under the same terms and conditions as
          received from the World Bank by the GoI.
      •   The Central Government has approved a back to back funding plan, under which
          soft loan can come from IBRD and Grant from IDA.
      •   The actual funding structure would be worked out by the World Bank at a later
          date. They will also decide the assistance package (or proportion of IBRD and IDA
          support), on a State to State basis.
2.4       Financial involvement of GoI and GoM:
      •   The assistance available from the Central and State Government under there on
          going schemes in the form of grant, has been considered while preparing the
          proposals under MACP. Generally, it is the experience that loan component is not
          available to all the beneficiaries and therefore in spite of the schemes of
          GoI/GoM, the program suffers.
      •   Recently the Central Government has launched the special program with an object
          of enhancing the growth rate in Agriculture sector, which otherwise is declining. As
          corrective measures, GoI has announce the Prime Minister’s special program for
          Agriculture which has two components viz. (i) Additional central assistance
          program, where under the provision of Rs.2500 crore is suggested. This money will
          be available to State for Infrastructure Development. (ii) Food security mission
          where under Rs.5000 crore assistance is proposed to be given by the GoI to the
          States. Out of Rs.30,000 available under these program Maharashtra State
          expect to get about Rs.3,000 crore for various sub sectors of agriculture.
      •   This proposal has already been posed to Hon’ble Prime Minister by GoM, and
          final view on this will be taken by GoI within a month or two, by which time MACP
          will also have final shape.
      •   It is proposed to adjoin the amount available under Prime Minister’s special
          program while suggesting various components under MACP. The attempt is to see
          that additional Central Assistance program and Food Security Mission of GoI
          becomes supplementary and complementary to MACP. The programs under MACP
          will be wedded to National Food Security Mission and Additional Central
          Assistance Program.




2.5       THE PPR (Preliminary Project Report):
•   This PPR is prepared keeping in view the points raised by the Department of
    Planning, GoI viz.:
    o     No duplication of similar ongoing initiatives in the State has been made
    o     Private sector involvement is encouraged.
    o     Government funds are used more effectively.
    o     Market risk mitigation and remunerative prices to farmers are planned
          through various initiatives.
    o     Existing system shall not be adversely affected by the proposed
          infrastructure under this project.
    o     The schemes/projects/activities which have already been implemented
          successfully, the experience has been narrated with examples and
          considering the gaps/inadequacies in availability of funds, the expansion of
          the program/scheme/ activity has been suggested under the project.
    o     The scheme/project/activity which has not been tried but conceptually prima-
          facie appear to be technically and financially feasible and will have positive
          impact in furtherance of achieving objective of the project has been
          proposed on pilot scale in small numbers. Once these activities are successful
          the same would be expanded and taken up on large scale.
•   PPR is prepared after talking to stakeholders, i.e. all the line departments, farmers,
    farmers’ co-operatives, SHGs, NGOs and Private Sector. All the Line Departments
    have given the inputs regarding the present status of on going programme of their
    departments and the proposals have been incorporated based on the potentials.
•   On-going schemes and programs of GoI and GoM are kept in mind while
    preparing the PPR (i.e. convergence of schemes)
•   The following points are addressed in this PPR:
    o     Total project cost estimates of the components and subcomponent.
    o     The contribution by the beneficiary/private sector, GoI/ GoM assistance
          under the existing schemes and WB component of assistance.
    o     Selection criteria of the beneficiaries
    o     Ownership and management of the assets which would be created
    o     Scope and scale of proposed activities
    o     Pace of implementation
    o     Costs table
    o     Implementation arrangements
    o     Expected output, monitoring and control plan

    Environmental and Socio Impact Studies:
•   To understand the environmental and socio impact of the MACP project experts or
    consultants will be hired.
•   The cost of environmental and socio impact study shall be met by the Nodal
    Agency i.e. Maharashtra State Agricultural Marketing Board (MSAMB), Pune.
      •   Line Departments and their coordination has been considered while preparing PPR
      •   Four Line Departments in the State are concerned with the project – Agricultural
          Marketing, Agriculture, Animal Husbandry (including Livestock, Poultry, Fisheries
          and Dairy) and Planning.
      •   Coordination – Interdepartmental coordination is a key to success in
          implementation.    The Maharashtra State Government has indicated that
          Maharashtra State Agricultural Marketing Board (MSAMB) shall function as Nodal
          Agency for coordinating the project with the Line Departments through “Project
          Director”.
      •   Regional Imbalance has been kept in mind while preparing this PPR. Since large
          production from Maharashtra is sent to other states of the country, many initiatives
          for improving productivity and quality of production have been included in the
          Report.

2.6       AGRIMART – Past Experience and Policy Changes Proposed:
          The Agri- Mart Concept is new in Maharashtra State. However from the guidelines
          received from World Bank, the following observations regarding AGRIMART are
          noted -
      •   Large number of agricultural co-operatives are successfully functioning in
          Maharashtra. These societies assemble the agricultural produce, add value to the
          same by primary processing or even in some cases processing involving high
          technology, sell the product and try to give additional price to the producers.
          Many of the agriculture societies are into the supply of the inputs and credit.
          Examples of Primary Agricultural Credit Societies, Agricultural Marketing Societies,
          Dairy Co-operative Societies, and Fisheries Societies can be given. These societies,
          in the real sense are functioning as Agrimarts. However, most of these societies
          need lot of improvement for making them better Agrimarts. As a farmers market,
          an Agrimart involved assembling of Agricultural produce, Grading, Sorting,
          Cleaning, Washing and Packing the produce, adding further value in produce by
          undertaking processing activity, determining agro-technology and market led
          information to the farmers and establishing linkages with retail chain, modern
          terminal markets, Processing Units, transporting perishables in Cold chain, Providing
          warehousing facility and arranging credit against warehouse receipts, require lot
          of infrastructure to be developed at these societies, need continuous training and
          capacity building of all the stakeholders, for the success of Agrimarts.
                  Therefore it has been proposed to develop Agrimarts of different models
          by involving Farmers, Agricultural marketing, Dairy and Fisheries Co-operatives. It
          has also been thought to develop some Rural Haats - traditional village markets as
          Agrimarts. The various programs suggested under MACP will make these Agrimarts
          Successful, building the strength of the producers and making them more
          competitive.
SHG/SHG Associations/Companies Model for Agrimarts and other programmes
under MACP
The Agrimarts model would be totally farmers oriented, organized by them,
managed and operated by them for their own benefit and to serve their needs.
To achieve this, at the village level the producers of various commodities like
Grapes, cereals, pulses, oilseeds, cotton, Horticultural crops, dairy fisheries, animal
husbandry, poultry will be organized into Self Help Groups (SHGs). Each SHG
may consist of 15 to 20 farmers and in each village there right be 20 to 50 groups
depending on the number of farmers in that village.
The SHGs from the villages falling in one Tahsil would be organized into
Cooperatives/Associations. These organization would be called as Growers
Association or Growers Cooperatives.
The Growers/Cooperatives/Associations at various places in one district will form
the federations/producer company.
The producer company may also be formed at Taluka level depending upon the
number of farmers/SHGs involved in the program.                  Taluka level
federations/producer companies will be linked to ATMA at the District level. The
producer companies will be registered under Section 581 A of the Indian
Companies Act, 1956.
Taluka level Associations/Companies of the SHGs will develop the Agrimarts. The
existing organizations like Agricultural Marketing Cooperative. Rural Haats, Dairy
Cooperatives Societies, Fisheries Cooperatives Societies, so as to involve large
number of farmers, while developing Agrimarts, will be connected to
SHGS/Associations/Companies of SHGs Such an activity may also be a Joint
Venture between the Association/Company found by the SHGs and the
Cooperative already functioning.
Promotion and development of such a structure will involve following steps
(i) Motivate the farmer to form SHGs, through concerted efforts by the extension
    staff of line departments functioning with ATMA and up to village level.
(ii) Organize SHGs.
(iii) Training of the Group Leaders of SHGs.
(iv) Completing the paper work involved in Formation of Associations/
    Cooperatives/Companies of SHGs.
(v) Registration of Associations/Cooperatives/Companies of SHGs.
(vi) Organization and Registration of District level federation of Associations/
     Companies/Cooperatives of SHGs
(vii) Organization and Registration of State level federation of Associations/
     Companies/Cooperatives of SHGs
    The Associations/Companies of SHGs will develop the Agrimart. The Agrimart will
    function like a Collection Centre where there will be infrastructure facilities of
    grading, packing, marketing, retailing, cash and carry, transportation, supply of
    inputs. In due course of time, it may have the value addition facilities like dal mill,
    converting Arhar into Lentils, Wheat into Maida etc.
    After the functioning of Agrimart is stabilized and it become financially sound , the
    higher level processing may be undertaken.
    These Agrimarts will be linked to the Retail Malls, Processing Units, Export Houses
    and Modern Terminal Markets.
    The produce will be brought by the members of the SHGs linked to the Agrimarts
    and also by nonmember farmers. The produce coming at the Agrimart may be
    sold at the local market and some produce may be purchased by
    Wholesaler/Processor/Retail Mall/an Exporter.
    The Product Mix coming at each Agrimart will depend upon the location of
    Agrimart, cropping pattern in the area and other agricultural activities like dairy,
    poultry, fisheries, animal husbandry etc.
    Thus the farmers will be linked through SHGs and Associations of SHGs to Taluka
    level market/District level Market and the Terminal Market. This will make the
    whole agri marketing system proposed to be developed through Agrimarts as
    farmers oriented.


•   The credit needs were the most important drivers in Fisheries sector /case study.
    The fluctuation in price at which ice was made available by colluding ice plant
    owners to fisherman was critical.
•   Price Realization was a very important driver of success of AGRIMARTs. It was
    found that the large producers already have bargaining power and do not find
    the need for AGRIMARTs.
    The PPR takes into account these observations and necessary care shall be taken so
    that AGRIMARTs are successful and become important tool in improving
    competitiveness of the farmers & Agriculture.
•   The present Maharashtra State Agricultural Marketing (Development and
    Regulation) Act, 1963, with the newly amended provisions and the rules made
    there under provide for establishing Private Markets, Direct Marketing, Contract
    Farming, E-trading etc. However these provisions do not accommodate or facilitate
    the setting up of AGRIMARTs. Therefore, the State Government has decided to
    exempt the AGRIMARTs from the Provisions relating to minimum distance, minimum
    investment and minimum infrastructure criteria applicable to the Private Markets
    under the Maharashtra Agriculture Produce Marketing (Development & Regulation)
    Act, 1963. The necessary orders under section 59 of the Act are being issued by
          the State Government which will facilitate the establishment of AGRIMARTs as
          Private Markets as proposed in this Project Report.

2.7       Few other Issues:
      •   The objective of this Project is to give strength to small and marginal farmers and
          make them competitive by improving their access to markets, expanding markets
          and market intelligence & by diversifying agriculture production & capacity
          building.
      •   The various initiatives / components under the project shall be set up in rural areas
          which shall be demand driven, relevant to farmers, focused on software (training,
          management advise etc)
      •   All Line Departments have prioritized the activities and such priority Components
          have been included in PPR.
      •   GAP (Good Agricultural Practices) shall be extended to marginal and small
          farmers so as to improve the quality production and competitiveness of the
          Agriculture.
      •   Market Information system using Mobile phone has been proposed.
      •   Strengthening of the existing Agriculture Produce Market Committees has been
          included.
      •   Full Time Project Team consisting of experts / subject matter specialist in each Line
          Department concerned have been identified & these will function in respective
          offices of Heads of Departments & shall be coordinated by Nodal Agency
          (MSAMB) through Project Director.
      •   Independent Autonomous Agri Business Development Facility (ABDF) _ Maharashtra
          Industrial Technology Consultancy Organization (MITCON) has been identified
          which will work with MSAMB as ABDF.
      •   Adequate provision and Arrangements are made for monitoring and Evaluation of
          the Project.

2.8       In-Principle Approval by State:
      •   State Government has to give an in-principle approval for going ahead with the
          project. Andhra Pradesh Government has given an in-principle approval.
      •   State approval for going ahead with the project is expected.
                                             CHAPTER III:

                      COMPONENTS & SUB-COMPONENTS UNDER PROJECT

         The project would cover all districts of Maharashtra. Project activities are proposed
         on the basis of guidelines suggested by World Bank. The Maharashtra Agricultural
         Competitiveness Project addresses the various problems relating to improving
         productivity in Agriculture, Post harvest infrastructure, Value addition & Food
         preservation and improved marketing systems in all sectors of Agriculture including
         Agriculture, Horticulture, Animal Husbandry, Dairy, Fisheries etc. Adequate
         importance is given to Marketing Intelligence, Agriculture extension & Market Led
         Extension involving Private Sector, Farmers Groups, SHGs, Farmers Cooperatives
         so that Agriculture & Agriculturist become really competitive.
         To provide a conceptual framework for the project, all proposed activities would
         be grouped into three main components.

3.1      Expanding Market Infrastructure and Market Intelligence
      (i) Modernizing Market Infrastructure and Management Systems
         This would involve changes in government marketing policy; investment in market
         infrastructure, marketing information, and training; and innovation in market yard
         management, with linkages to agribusiness.
         (a)    Policy Environment:
         The Maharashtra State has already amended the APMC Act 1963 on the lines of
         Model Act suggested by Government of India. The Rules under this Act have also
         been published. The amended APMC Act includes the provisions for establishing
         Private Markets, Contract Farming, Direct Marketing, e-trading etc.
         The establishment of new marketing arrangements as provided for by the
         amendment of the APMC Act, 1963 would provide attractive opportunities for
         farmers to diversify into high value crops, increase value-addition, access to new
         markets and sell through new channels and chains. The new marketing regulations
         will facilitate greater involvement of the private sector in Agricultural marketing. In
         particular the changes will promote contract farming, private involvement in
         wholesaling and distribution, in special export zones and in the development of
         specialized AGRIMARTs. Warehouse receipted credit will be promoted on large
         scale. Private-Public partnerships can build, operate and transfer marketing
         facilities and for outsourcing of management of a specific facilities. Alternative
         marketing systems can be developed with prior approval of the State Government.
         The contract farming, direct marketing will help involvement of private sector in
         wholesaling and distribution and in the areas of investments in food processing,
         value addition & Exports. It will also boost investment in creating Post Harvest
         Handling Infrastructure reducing wastage of agriculture produce after harvest
substantially. The rules ensure that approval process of required licenses is smooth
and transparent, duration of licenses is long enough (e.g. more than four years).
The establishment of AGRIMARTs would be exempted from the requirements of
minimum distance, investment & infrastructure criteria. The State Government is
issuing orders in this behalf soon. The provisions applicable to APMCs will not be
applicable to AGRIMARTs. The definition of contract farming, draft of contract
farming Agreement & other issues relating to contract farming are made simple
and flexible in the APMC Act 1963 of the State. This will create conducive
conditions for contract farming benefiting both buyers & sellers as also processors,
exporters & retail chain operators.
(b)        Market Infrastructure and Management:
AGRIMARTs:

•       The Multi-state Agricultural Competitiveness Project (MACP) envisages the
        development of opportunities through which farmers may capture increased
        value from better access to markets through forward linkages

•       One option that is being explored in conjunction with India’s State Governments
        is the development of rural marketing hubs or Agri-Marts

•       The Agri-Marts would typically aim to help producers achieve a higher price
        by aggregating products and / or taking the products up the value chain

•       The infrastructure of these Agri-Markets would likely to be constructed by
        MACP and operated by a local entrepreneur, possibly in conjunction with
        producer groups in the surrounding area.
Various models of AGRIMARTs are proposed considering the need and the
experience of the past in the state and outside the state. The AGRIMARTs would
be single commodity AGRIMARTs or multi commodity AGRIMARTs, but all these
AGRIMARTs will have the following common features-

(i)        Initially few numbers of AGRIMARTs will be developed from each model
           and after evaluation regarding the working and success of each type of
           AGRIMARTs, the successful models will be replicated on large scale to meet
           the potential of the state.

(ii)       Very specific criteria have been listed for selection of the locations of the
           proposed AGRIMARTs.

(iii)      Besides wholesale trade, the arrangements and facilities for retail trade
           would be provided.

(iv)       AGRIMARTs will function as collection centers and will be linked to Terminal
           markets, Retail Chin, Export Houses and Processing Industry etc.
(v)      There would be arrangements of cash and carry to serve the consumers of
         the local area.

(vi)     AGRIMARTs would be owned by SHGs of farmers, Farmers cooperatives,
         Local bodies (Panchayats or Municipal Councils) or Private Sector and
         would be operated by the owner group or through private sector under the
         supervision and coordination by ATMA.

(vii)    Access of traders to AGRIMARTs would be smooth with the permission of
         owners or operators of the AGRIMART.

(viii)   The ultimate aim of AGRIMART program would be to deliver a system
         whereby value addition activities will be all brought together to create
         improved market access for farmers and a mechanism for delivering higher
         quality products, with lower transaction cost to large scale traders and
         agri-business.

(ix)     If the owner of Agrimart is other than private sector like co-operative, local
         panchayat, SHG etc. The infrastructure created would be outsourced for
         operation and management to that it is managed professionally and
         efficiently.

(x)      Agrimart Would be linked to the market led extension agencies and ABDF
         through ATMA. So as to upgrade the skills of the Agrimart’s Management
         in Marketing Agri-business Development.

(xi)     AGRIMARTs will have the facility of providing agricultural inputs the
         fertilizers, pesticides, seeds, saplings, cattle feed, agricultural equipments,
         fish fingerlings etc.

(xii)    There would be Business Development Managers in the areas of Agriculture
         and Horticulture, Dairy Development, Fisheries, Animal Husbandry and
         Agricultural marketing at the state level located with MSAMB. They will
         constantly take steps to develop business of Agrimarts.
Following models of AGRIMARTs are proposed under MACP-
1.       Farmers Agrimart – on the lines of Fruits and Vegetables Development
         Council of Kerala. (Total 50)
2.       Agricultural Co-operative Marketing Society – Agrimart (Total 50)
3.       Modernization of Rural Haat or Agrimart (Total 50)
4.       Fish- Agrimart for Marine and Inland Fisheries. (Total 10)
5.       Milk and Milk Product AGRIMARTs. (Total 10)
The detail write up and costing on infrastructure require to develop Agrimarts is
given under Chapter – IV


These Agrimarks will be developed by the SHGs Associations/ Companies of the
producers and if necessary by entering in to Joint Ventures with the selected
Cooperatives. This would help to cover large number of the beneficiary including
the members of the cooperatives concerned and the nonmembers of the
cooperatives who will be covered as members of SHGs through their Associations/
Companies.
SHGs and their Associations would be involved not only in development of
infrastructure but also in the areas of training, extension, linkage with ATMA,
monitoring and coordinating various activities under the project.
(c)    Developing Marketing Skills:
Marketing expertise will be deployed in the PCU (Project Coordination Unit), in the
line departments both at State and District level – under the umbrella of the ATMA,
and with the cadre of Marketing Master Trainers at the FFSs (Farmer Field
Schools). The PCU would contract five experts covering: (i) marketing infrastructure
(engineering); (ii) marketing Operation (iii) marketing information and intelligence;
(iv) marketing extension; and (v) agribusiness. Positions (i) & (ii) be responsible for
the Market Infrastructure program, will concentrate on facilitating Market Access.
Three persons marketing cell will be located in each of the State level PIU’s (Project
Implementation Unit) in (Agriculture, Horticulture, Animal Husbandry, Fisheries and
Food Processing). Their roles would cover: (i) marketing extension; (ii) marketing
information; & intelligence; and (iii) agribusiness. Line Departments shall nominate
staff for these positions.
All ATMAs would contain a three person Marketing Unit comprising a Subject
Matter Marketing Specialist, on contract basis from a locally based NGO and two
Marketing Specialists deputed from their respective Line Departments in
accordance with local needs and priorities. A major focus of the program will be
to raise the level of knowledge, information and expertise in Marketing. Elements
of this program will be to ensure that Marketing needs and opportunities are
embedded in the District Agriculture Production and Marketing Strategy (DAPMS).
Marketing staff at the PCU in the Line Departments at the State & District level will
be trained. Training will also be used to create a cadre of Master Trainers in
marketing. These trainers, in conjunction with staff of the District Marketing cell will
provide practical marketing extension training courses to FIGs (Farmer Interest
Groups) and SHGs (Self Help Groups).
Looking to the huge requirement of training various training institutions will manage
the overall training program down to the level of training marketing master
trainers. It would be expected to draw on private /commercially oriented trainers
   as well as expert private institutions 2 persons with the necessary skills and
   infrastructure to deliver the technical components of the marketing courses.
   Monitoring and oversight of this program will be that of the PCU Marketing
   Extension specialist and it would be overall responsibility of Nodal Agency i.e.
   MSAMB.
   The Investment Grant scheme will be tailored to mobilize the small amounts of
   money required by FIG / SHG to progress their marketing strategies that emerge
   out of the Marketing Extension process.

(ii) Promoting Agribusiness Investment – Agribusiness Development Facility:
     The project envisages the establishment of an externally managed Agribusiness
     Development Facility (ABDF) aimed at energizing the agriculture small and medium
     enterprises in the state to make a significant contribution to developing agro
     businesses with the ultimate aim of increasing farm household income and rural
     employment. ABDF is intended to function as a one-stop shop for local agro-
     entrepreneurs and service providers to access business resources, training and
     information. The three major areas of focus of ABDF are (i) increasing access to
     finance (ii) increasing access to business services needed by agro enterprises, and
     (Hi) improving the business policy environment.
   (a)      Increasing Access to Finance:
   ABDF will work closely with banks and the non-bank financial institutions to bring
   about a change in their culture and performance in serving agribusiness SMEs, with
   the objective of building the capacity of financial institutions interested in
   increasing the quality and quantity of lending to agribusiness. This will be done
   through a range of activities, including (i) tailor-made training programs, for banks
   and other financial institutions aimed at developing and expanding their
   agribusiness lending portfolio, (ii) technical assistance to partner financial
   institutions (PFI) in improving systems and processes, and developing new financial
   products for the target market segments, and sector wise training of bankers to
   create awareness about agri-business financing. Through service providers, ABDF
   would also facilitate technical assistance to entrepreneurs in order to help them
   prepare bankable proposals that will improve their chance of obtaining credit.
   In selecting PFls, ABDF should develop and apply a number of eligibility criteria.
   For example PFI should show commitment with track record of the financial
   institution to increased financing to the agribusiness sector; open and transparent
   information sharing; Dedicated staff and management time; and willingness to pay
   (on a cost sharing basis) for ABDF services. Example of the services and activities
   anticipated, include:

   •     Enhancing commitment to agribusiness financing
   •     Spreading knowledge of agribusiness financing
   •     Improve efficiency of agribusiness financing
•     Introducing new tools for agribusiness financing.
•     Develop the outreach and the volume of agribusiness clients
•     Support in bank training curriculum development
•     Training the trainers
•     Profile agribusinesses in what they need in terms of financial products.
•     Develop MIS systems based on agreed MOU with banks
•     Monitor PFl's performance: Number of agro-enterprises financed, number of
      loans,
•     Quantity and quality of loans, efficiency of lending, etc
•     Credit scoring
(b)      Increasing access to Business Development Services:
The increase Access to Business development services is ABDF's main thrust
absorbing 50% of its resources. This component is designed to improve the
competitiveness and performance of agribusiness enterprises by increasing their
access to services needed to develop their business. This would be achieved
through a combination of vocational training programs, technical assistance and
training to Small and Marginal Farmers, institutions and stakeholders associations,
and dissemination of knowledge to entrepreneurs.

Under this component, ABDF will adopt a sub-sector (product wise - value chain)
approach which focuses on addressing market gaps and sub-sector constraints,
from farm to plate, and design appropriate interventions across the value chain.
ABDF will provide private entrepreneurs with technical assistance for product
development, access to technology, packaging, marketing, training, and other
needed support services in order to improve productivity and competitiveness in
the selected sub-sectors. To the extent possible, these will be developed through
private sector service providers and institutions, following a service, provider-led
business model. In selecting the service providers, ABDF should develop and apply
clear eligibility criteria. For example, the service provider should be committed to
targeting the agribusiness segments, and willing to share information and cost.

Where local service providers are not available or would take too long to develop
(mismatch in timing between the needs of the SMEs and the development of local
service providers), ABDF would provide direct assistance to SMEs and use this as a
training mechanism for local providers and disseminate the expertise to the rest of
the: sector either by using their own staff resources or independent consultants
contracted 'specifically for this purpose.

ABDF will also help in developing stronger backward and forward linkages within
the agro-food systems and the local economy. Linkages between corporate entities
and SMEs and producer groups will be facilitated through formal and informal
networking activities.
Because resources are limited, prioritization is inevitable; ABDF would focus initially
on four or five sub-sector value chains. These will be identified based on discussions
with stakeholders, and primarily based on analytical work to be commissioned
prior to the launch of ABDF's activities. DASP PCU would contract a consulting firm
to undertake the analysis based on clearly defined Terms of reference, prior to
project launch.

The study would highlight the importance of the selected sub-sectors in boosting the
development of agribusiness activity in the state, based on well defined criteria;
such as growth trends, competitive advantage, potential for value addition
generation, and potential for employment, etc. It will map out the market or the
industry structure of the selected sub-sectors, providing details on the players
/actors who are on its value and supply chains.

It will generate a list of existing and potential service providers with whom ABDF
could work to develop and expand their services to growth oriented SMEs in the
sub sector. Finally, the study would identify the constraints and opportunities that
might potentially open up avenues for ABDF to make direct interventions and/or to
commercially contract service providers to do so. During the first six months of its
operations, and depending on entrepreneurs demand, ABDF may revise the choice
of sub-sectors to be addressed in the initial phase of the project.

Examples of potential sub-sectors/value chains identified during the course of
project preparation may look like this (in alphabetical order) for reference: Amla,
Bananas, Floriculture, Frozen fruits, Frozen vegetables (peas, cauliflower, carrot,
egg plant, etc.), Liquid milk and milk products (butter, ice cream, milk powder, etc),
Mangoes, Medicinal and Aromatic plants, Mushroom, Organic foods, Oilseeds ,
Potato based products, Poultry, Ready-to-eat food items (potato chips, peanuts,
etc.), and Spices. Example of menu of services and activities include:

•   Training
•   Marketing: labeling, packaging
•   Processing technology
•   Product and market profiles          .
•   Supply chain development: Developing linkages between SMEs and large
    corporate
•   Cold storages investment facilitated by ABDF
•   Feasibility studies
•   Export promotion
•   Linking to FI / business plans
•   Partnerships with IIA (Indian Institute of Agriculture) and CII
•   Accounting skills, Business management skills
•   Working on strengthening service providers and institutions (In-company
    training)
•     Food safety training HACCP / certification and standards.
•     Annual expositions / Study tours

(c)      Business Enabling Environment:
A conducive business environment is essential for the growth and development of
agribusiness sector in the state. ABDF will work with all parties concerned in order
to minimize the barriers for agribusiness development arising from the existing
regulatory policies and their implementation. ABDF will also work on establishing
new and supporting existing business membership organizations to develop their
capacity to provide services to their members on a sustainable basis, with the aim
at improving SMEs business environment. ABDF will work with local institutions to
collect data on the agribusiness sector in order to better understand its
characteristics and constraints and monitor its development.
ABDF will devote most of its time and services to the customer who participate
directly in the selected supply chain (i.e. growers, handlers, processors, and
marketers) or to those who provide goods and services to these chains. It could
nonetheless uncertain, on a very limited basis, requests from other interested
parties such as researchers, policy makers, educators, and planners. This would
help ABDF maintain a wide broad base of support.
(d)      Examples of services and activities involved include:
•     Policy dialogue and lobbying / advocacy
•     Policy related to agribusiness and investment climate and implementation
•     Establishment of documentation and Knowledge center. .
•     ABDF Website
•     Cross cutting issue; Environmental and social issues
Though ABDF will be operated along private sector lines, in its initial years, it is not
designed as a profit generating entity. Nonetheless ABDF will not provide services
free of charge, and would be careful not distort the market for technical
assistance. It is important for client enterprises to pay a reasonable share of the
costs of goods and services received. A negotiated cost sharing arrangement,
especially with small and medium agro-enterprises (as defined by GOI from time
to time) is envisaged in order to ensure clients commitment. For example, for
training activities, participants will be charged an admission fee that covers the
direct costs of the event, but not necessarily the full cost of the expertise (especially
if it is external) brought in to make the presentation. It is expected that ABDF will
charge the full cost of its services for large corporate.
It is essential that ABDF works proactively with the other implementing institutions of
the project, particularly the marketing cell of PCU, the ATMAs and the line
departments. This will facilitate the communication, raise the awareness of all
stakeholders involved and pave the way for linkages to be established. However,
         it is crucial for ABDF's success that it remains focused on its primary objective of
         developing business services to its intended beneficiaries: the agribusiness SMEs.
         Therefore, "buy-in" of the private sector community is critical for success of ABDF.

         (e)    MITCON and MSAMB to jointly function as ABDF:
         Series of discussions were held with the officers of the line departments and
         officers of Nodal Agency i.e. MSAMB. It was felt that the ABDF should be such
         institution which has full autonomy, flexibility in working and it has adequate
         experience and expertise. It was suggested that Maharashtra Industrial Technical
         Consultancy Organization (MITCON) has long standing in the field and sufficient
         expertise to function as ABDF under MACP. The MSAMB has also sufficient amount
         of autonomy, flexibility and has expertise in Agri-business areas. Therefore it has
         been suggested that MSAMB and MITCON should jointly take on themselves the
         responsibility of ABDF under the project. Both these organizations will share the
         responsibility under the guidance and direction of the Governing Council under the
         Chairmanship of Principal Secretary of Co-operation and Marketing, Government
         of Maharashtra.


3.2      INCREASING FARMERS ACCESS TO MARKET OPPORTUNITIES

      (i) Market Information and Intelligence:
         Project activities would include: (i) Collection of market information for
         dissemination. This will cover Product Market Profiles (volumes, prices, supply
         patterns, quality, demand trends, packaging, enterprise profitability etc), Contacts
         (buyers, input providers, processors, agribusiness) and an understanding of the
         alterative and changing Market Channels (ii) establishment of a relevant and daily
         updated price information service linked to mobile phone network and the DASP
         web portal; (iii) provision of one mobile phone to every farmer field School (FFS)
         covered by the Project; and (iv) set-up of internet kiosks for each ATMA, district
         AGRIMART and a selected number of FFS.

         Expanding Market Information:
         Support for provision of comprehensive information systems for growers, traders,
         processors and exporters on the prices and volumes traded in the major outlets,
         linked eventually with information on product standards, certification, and
         regulatory policies and procedures,

         Improving Regulatory Frameworks:
         Strengthening of regulatory services designed to improve the safety and quality
         assurance of domestic and export products, through direct support to necessary
         public services and by ensuring a competitive policy environment to encourage
         private participants wherever feasible.
Strengthening Supply Chains:
Improving the management of both coordinated and traditional supply chains by
working with the private sector to identify and promote domestic and export
market opportunities through market surveys, trade fairs etc; and facilitating
linkages between growers, traders, processors and exporters. Promoting and
empowering producer organizations in all relevant sub-sectors (agriculture,
horticulture, dairy, livestock and fisheries) to better capture economies of scale and
value-addition opportunities.
Facilitate Intensification & Diversification of Production
By making extension and adaptive research more relevant and accessible to
farmers; encouraging the development and introduction of more effective
agricultural production systems, and reducing the risk associated with- change
especially for small operators

Making Extension Systems more Functional:
Introduction and /or further development of decentralized pluralistic extension and
adaptive research system through adoption of the ATMA management concept
based on the underlying principles of farmer participation, collaboration between
line Departments and public-private partnerships.

District Agricultural Production and Marketing Strategy:

Under the project initiated under NATP of World Bank first Agriculture Technology
Management Agency (ATMA) was formed in Ahmednagar District in 1999-2000 in
Maharashtra and later this was extended Amravati (1999-2000), Aurangabad
(2000) and Ratnagiri in 2001. There after concept of ATMA was extended 16
districts and now it has been extended to all districts of Maharashtra. Under the
banner of ATMA, District Agriculture Production and Marketing Strategy for each
district (four in first instance and now for additional 16 districts) have been
prepared. These DAPMS are based on the resources in the district taking in to
account crop production, dairy, animal husbandry, fisheries and other resources like
irrigation, soil conditions etc. The DAPMS for the remaining districts are being
prepared and this work will be completed soon. The DAPMS will be kept in view
while implementing various project proposals submitted under MACP.
These would be developed with the pro-active involvement of farmer advisory
committees, and increasingly determine how public funding for adaptive research
and extension is allocated at the district level

Market-Led Extension:

To facilitate introduction of innovative agricultural and livestock production systems,
there is a need to develop more marketing expertise within extension services.
      The project would therefore support an extensive training program aimed at
      transforming the existing production-oriented approach of the extension service
      towards an approach that puts markets and market-demand at the center of
      knowledge-transfer activities conducted by the extension service.
      Piloting Risk Management Mechanisms:
      Introduction of risk mitigation mechanisms for small and marginal farmers – such as
      appropriate insurance products, warehouse receipts and commodity futures –
      would be tested through MoUs with private sector providers.

3.3   Capacity Building:
      This will mainly focus on various training programme to the farmers and farmers
      groups including SHGs etc. The training would include all the aspects which will
      improve the competitiveness of the Farmers and Agriculture. Agricultural Extension
      for technology transfer from State level to the level of actual visiting the farmer’s
      farms for guidance, Market led extension, training for improving technology
      adoption in the fields of Animal Husbandry, Dairy, Fisheries, Post Harvest
      Management, Value addition, Food preservation and processing, Storages
      including cold storages etc would be included in the sub components proposed
      under this component.
                                          CHAPTER IV:

                       EXPANDING MARKET INFRASTRUCTURE AND

                       INCREASING FARMERS ACESS TO THE MARKET

4.1   SUB-COMPONENT 1: AGRIMART

      CONCEPT
      An AGRIMART is a market activity of the farmers. It could be established by SHG
      / Cooperatives / Private Sector or Association of farmers especially the small and
      marginal farmers, from specified nearby areas, who have come together for the
      purposes of marketing their produce collectively to gain from economies of scale.
      The produce could be sold either in unprocessed or processed form or value added
      form so as to get maximum returns. The AGRIMARTs create the choice of multiple
      channels of marketing to the farmers besides those are already open and or likely
      to be opened up to them in view of the amendment to the APMC Act, 1963.


      SHGs and Their Associations / Companies :
      The farmers, fishermen, dairy farmers, would be organized in to respective SHGs
      depending on the size of the village and number of the farmers, fishermen, dairy
      farmers etc., 10 to 20 SHGs having 15 to 20 members in each SHG will be
      organized in each village. The SHGs in a Taluka or a group of 15 to 20 village,
      depending on the production and potential for production of particular commodity
      and other related commodities, an Association / Company of the SHGs will be
      formed for Group of villages / for a Taluka. These companies will be registered
      u/s 581A of Indian Companies Act 1956 or as society under Societies Registration
      Act, 1860. The district and state level Associations/ Federations of SHGs
      Associations at lower level will be formed for proper coordination, training,
      guidance and for establishing various backward and forward linkages. Taluka /
      District level Associations of SHGs will be connected to terminal markets retail chain
      processing unit and export houses, besides, these associations may sell same
      produce locally in Agrimarts.
      The SHGs associations forming the Agrimarts will have Joint Ventures with the
      selected cooperatives, which are proposed to be involved in the MACP proposal
      under various components. The infrastructure created at Agrimarts may be
      managed by the Joint Ventures or may be outsourced to private entrepreneurs.
      Thus the whole programs of setting up of Agrimarts will be centered around the
      main beneficiary i.e. “Farmer / Producer”. This model will bring maximum benefit
      of better realization of each produce to the farmer / producer.
AGRIMARTs shall be set up for all the agricultural produce and also for other
agricultural produce such as dairy products, fish, cattle etc. The AGRIMARTs can be
specialized and cater to the marketing needs of a single commodity or for multiple
commodities. The size, structure and numbers of AGRIMARTs are determined on
the basis of production of various crops and farmers requirements from specified
regions across the State.
The aim of the AGRIMART program would be to deliver a system whereby added
value activities will be all brought together to create improved market access for
farmers and a mechanism for delivering higher quality products, with lower
transaction cost to large scale traders and agri-business.

   •   The Multi-state Agricultural Competitiveness Project (MACP) envisages the
       development of opportunities through which farmers may capture increased
       value from better access to markets through forward linkages

   •   One option that is being explored in conjunction with India’s State
       Governments is the development of rural marketing hubs or Agri-Marts

   •   The Agri-Marts would typically aim to help producers achieve a higher
       price by aggregating products and / or taking the products up the value
       chain

   •   The infrastructure of these Agri-Markets would likely be constructed by
       MACP and operated by a local entrepreneur, possibly in conjunction with
       producer groups in the surrounding area.
The AGRIMARTs basically would bring producers and consumers in direst interface
with each other and will do the following –

   •   Establish infrastructure for efficient marketing of Agri. Produce providing
       additional platform to the farmers so that they get better value of their
       produce.

   •   Will function as collection centres for the terminal markets.

   •   Undertake and facilitate supply of seeds, fertilizers, pesticides to the
       producers.

   •   Would be linked to the Food Preservation/ Processing units, Modern
       Terminal Markets, Retail Chain Operators and Exporters.

   •   Would actively undertake dissemination of Agri. Technology and support
       services, Market Information.

   •   Would be linked to Commodity Exchanges so that the producers will have
       additional platform available for marketing their produce.
     •   Would be linked to ATMA for coordination with various line departments,
         agencies, training etc.


Management of AGRIMARTs –
The AGRIMARTs will be managed by the organisation who will establish the same
or its management may be outsourced to private service provider. The AGRIMARTs
will be managed professionally. The assets proposed to be created will be owned
by the organisation setting up the AGRIMARTs, the same will be operated and
managed by private entrepreneur to whom the same shall be outsourced. Ten
percent of the income generated will be earmarked and kept in reserve for the
maintenance of the assets and infrastructure.


Different Models of AGRIMARTs Proposed under MACP -
Looking to the experience of the past and the various organizations functioning in
the field of Agricultural marketing in Maharashtra following different Models of
AGRIMARTs are proposed under MACP.             Initially small numbers of such
AGRIMARTs are suggested and after evaluation of their success this program will
be further expanded.
The following models of AGRIMARTs are proposed under this project.
1.       AGRIMARTs as per Vegetable and Fruit Promotion council of Kerala
         (VFPCK) Model
2.       AGRIMARTs by Agriculture Marketing Co-operatives
3.       Development of Rural Haats onto AGRIMARTs
4.       Fish AGRIMARTs
5.       Milk and Milk Products AGRIMARTs.


POLICY ISSUES:
Though there is no provision under the present APMC Act, after amendment, to
facilitate the setting up of the AGRIMARTs in the State, the provision to set up
Private Markets exist. The AGRIMARTs will be set up as Private Markets and run
by farmers groups, SHGs, farmer’s co-operatives, NGOs or Private sector. The
AGRIMARTs are going to be exempted from the conditions to be fulfilled to
establish private markets namely the minimum distance from existing APMC and
minimum land, minimum infrastructure, and minimum investment required. Thus there
would be no difficulty to establish the AGRIMARTs as proposed in this Project
Report. The AGRIMARTs shall not attract any of the provisions applicable to
APMCs.
4.1.1 AGRIMART AS PER VEGETABLE AND FRUIT PROMOTION COUNCIL OF
      KERALA (VFPCK) Model

     (i)    Establishing AGRIMARTs by farmers: Mobilization of Farmers into SHG
            and Producer Companies :

     The Agri-Mart- The producers Market are supposed to be owned and operated
     by the farmers associations. The farmers involved in owning and operating the
     AGRIMART will need to come together and organise themselves into self help
     group (SHG). Each SHG will comprise of about 20 farmers. About 7-15 SHG‘s will
     come together to form into an association. The form of association would be
     preferably a Joint Stock Company. The farmer producer companies will take up
     the responsibilities to establish AGRIMART for efficient marketing of primary
     agriculture produce, with the appropriate grading .The AGRIMART would also
     provide backward and forward linkage to the farmers
     The AGRIMART would be sponsored by ATMA taking into account the production
     potential of agri-commodity in a particular region. The responsibility of organizing
     farmers into Self Help Groups, Associations and training them in different aspects
     of production and marketing will be shouldered by the ATMA concerned. Among
     the SHGs the farmers taking up responsibility in production, credit and marketing
     will be identified. The training to the member farmers will be channeled through
     these farmers.
     Each AGRIMART would focus on marketing of major commodities grown in the
     particular region. Along with this, it will also cater to other agriculture produce in
     the region. The Member farmers of AGRIMART will be those who grow the major
     commodity of the region.
     All the members of AGRIMART should be ready to organise into SHG, Company
     and contribute equity to the producer company. They should be ready to get
     themselves trained in the modern methods of Production and marketing. It will be
     binding on each member to market his own produce at the AGRIMART jointly
     owned by them. The member should be ready to pay the service charges to
     AGRIMART to cover maintenance of the market.
     The organisation and training of farmers is vital to the establishment of AGRIMART
     .This will help farmer get acquainted with modern marketing systems and empower
     them to have access to market information, market intelligence .This will ultimately
     lead to get better prices for their own produce. The training will also help them
     share the responsibility of marketing their own produce.
The ATMA will organise the member farmers and train them in production and
marketing practices. At least 2 training programs would be organised in a year.
Besides training, the ATMA would have to spend some amount on meetings and
registration of farmers’ groups. Some training material will also have to given to
the farmers. The mobilisation of farmers of this kind will be restricted to the first
year of project. The outlay proposed is @ Rs 2.50 lakh per association. Thus for
50 producer associations/ companies the mobilization expenditure is estimated at
Rs 112.50 lakh which would be funded by World Bank.


(ii)   Establishment of Agri-Marts
Such concept of Agri Marts has been successfully implemented in Kerala by VFPCK.
The Agri-marts would provide inputs and technical services to the farmer members,
thus ensuring backward linkage.
The existing marketing system of agricultural commodities is fragmented and un co-
ordinated, involving layers of intermediaries. The markets do not have adequate
infrastructure facilities and linkages with supply chain. This results in high wastage
and losses. As a part of Agricultural Marketing Reforms the Govt of Maharashtra
has adopted the Model Marketing Act and notified the rules under the said Act.
The amended marketing law provides for the establishment of Private Markets. The
AGRIMARTs proposed under this project will be a step forward in expanding
market infrastructure, opportunities and increasing farmer access to the efficient
markets.
The AGRIMART would facilitate forward linkages of farmers and producer
organizations to markets by creating competitive, open and balanced supply
chain; they will act as end to end solution provider across the value chain from
production to marketing. During the initial stage of the project the AGRIMART
would be operated by local small or medium enterprises (SME) or by private
entrepreneur. As the project matures, Agri-Marts would be managed by the
producers companies or associations.
The agri-marts are conceived as producers market with focus on transparency and
efficiency in the marketing system. The marketing would involve less cost to the
producer and increase in producers share in Consumer’s Rupees .The Agri-Marts
are conceived to be run by producer companies. As such they will be profit making
entities with multiple revenue streams. The main source will be commissions from
sale of Agriculture produce. Income is also expected from agri input sale, service
fee for credit and insurance facilitation and fees for facilities for value added
services (like grading, packing, logistic etc.). The AGRIMART will start with basic
post harvest facilities and gradually move on to value added facilities like cold
store, automated grading and packing line etc. based on producer and market
need.
Having regard to the major Agriculture commodities produced across the state, 50
farmers AGRIMARTs are proposed to be established in different potential
production zones as per VFPCK Model.


 Sr. No                  Major Agri-Commodity            No. of Agri-Marts
     1                             Rice                             5
     2                          Soybean                             2
     3                           Cotton                             2
     4                          Sorghum                             5
     5                            Pulses                            4
     6                           Mango                              2
     7                           Banana                             5
     8                           Grapes                             5
     9                        Pomegranate                           4
     10                           Onion                             5
     11                        Sweet lime                           1
     12                         Orange                              5
     13                        Vegetables                           5
                                  Total                            50

The locations of AGRIMART will be decided based on the objective criteria like
production potential of the major Agriculture commodity, marketable surplus
generated ,organisation of farmers into SHG and producer association (PA),
identification of Master farmers , availability of land, nearness to roads
,availability of basic infrastructure. Though these AGRIMARTs are proposed in the
potential production zones of the selected commodities, these AGRIMARTs will
handle all the other fruits, vegetables and other agricultural produce. The
AGRIMARTs will be located in Rural and Semi-Urban areas where the
infrastructure of existing markets is weak or absent.
The basic infrastructure required for establishment of AGRIMART and the estimated
cost of construction is given in table 7.
Table – 7 : Cost Estimates of Infrastructure in Farmers Agrimart.
                                                                            (Rs in lakh)
 Sr.No                Particulars               Unit Cost         Area        Total Cost
   1     Land                                  5 lakh per 2..00 acre          Rs 10 .00
                                               acre
   2     Internal Road ,water supply & Rs 10.00               -               Rs 10.00
         electricity facilities etc.
   3     Weigh Bridge (30 MT capacity)         Rs 8.00 lakh   -               Rs 8.00
   4     Auction Hall                          Rs 500 per 2500 Sq,f           Rs 12.50
                                               Sq.feet
   5     Godown ( 500MT capacity)              Rs 2000 per                    Rs 10.00
                                               MT
   6     Input supplier shop( 10 shops)
         a) 5 shops of 150 sq.feet each        Rs 500 per 750 Sq feet         Rs 3.75
                                               Sq.feet
         b) 5 shops of 300 sq.feet each        Rs 500 per 1500                Rs 7.50
                                               Sq.feet
                                                          sq.feet
   7     Cleaning,      Grading,       Packing, Rs 500 per 4000               Rs 20.00
         Labeling, with machinery.             Sq.feet        sq.feet
   8     Farmers Training Hall                 Rs 500 per 1000                Rs 5.00
                                               Sq.feet
                                                          sq.feet
  9.     Farmers Hostel                 Rs 500 per 500 sq.feet                Rs 2.50
                                        Sq.feet
  10     Administration office          Rs 500 per 500 sq.feet                Rs 2.50
                                        Sq.feet
  11     Computer .furniture .telephone -          -                          Rs 2.50
         etc. (LS)
  12     Common Facilities like. bathroom -      -                            Rs 2.50
         & toilet (LS)
  13     Multi-commodity retail shop/ Rs 500 per 500 sq.feet                  Rs 2.50
         consumer shop ( Milk & Milk Sq.feet
         Products, Fish ,Meat & other
         products) -5 shop
  14     Vermicompost        unit/ Garbage -                  100 Sq feet     Rs 0.75
         pit
                                                              Total           Rs 100.00


50 AGRIMARTs will be established during five years with the total cost of Rs
5000.00 lakh. NHM will give grant of Rs. 5.00 lakh per Agrimart and additional
        20% assistance is expected from GoI under Marketing Infrastructure Development
        Scheme. Besides the state Government may provide 20% from the additional
        Central Assistance and Food Security Mission programme to these Agrimarts. The
        project cost on establishment of AGRIMART would be shared by the equity from
        farmers, subsidy under NHM and financial assistance from world Bank as under
                                                                                  (Rs. In lakh)
         Equity    from Subsidy         GoI Grant    GoM             World         Total
         farmers         from NHM                    (PM’s           Bank
                                                     Programme)
         50.00           250.00         1000.00      1000.00         2700.00       5000.00


        The mobilization and training part of farmers will precede establishment of Agri-
        Marts. The mobilisation of farmers and training activity will take place in the first
        year of project. The construction of AGRIMART would be completed in the second
        year.


(iii)   Establishment of Integrated processing units at Agri-Mart
        AGRIMARTs would serve to establish and strengthen backward and forward
        linkages, leading to value addition to the farmers produce. The value chain of
        Agriculture produce would become strong only with provision of processing
        facilities at Agri-Marts. The farmer producers will stand to gain financially, if they
        are able to market processed products at their Agri-Marts. Multi commodity
        processing unit will therefore be established at 20 selected AGRIMARTs during
        later stage of the project i.e. during 4th and 5th year of the project. The integrated
        processing units will be run by the Producers Associations or leased out to SME for
        operation. Each processing unit is estimated to cost Rs 50.00 lakh. The project cost
        on this will be contributed by the equity from farmers (10%), subsidy under
        Ministry of Food Processing Industries scheme (25 %) “Establishment, Expansion and
        Modernisation of Food Processing units” and the financial assistance from World
        Bank (50 %). The share of each of these sources will be as under
                                                                                  (Rs in lakh)
          Equity from     Subsidy from MOFPI          GoM          World         Total
         farmers 10%          (25% Grant)            (25%)          Bank
                50.00             250.00             250.00        450.00      1000.00

4.1.2 AGRIMART BY AGRICULTURE MARKETING CO-OPERATIVE SOCIETIES –
There are 339 Taluka Agriculture Marketing Co-operative Societies in
Maharashtra and 871 Agriculture Commodity Marketing Societies of which 498
are in profit. These societies are established with the main objective of marketing
of Agri. Produce of their members and supply of inputs required by the farmers.
However, experience shows that majority of these societies are only handling the
business of supply of inputs, though there are quite a few number of societies which
are also engaged in the activities of marketing of the Agricultural Produce of their
members.
Besides these Taluka Marketing Co-operative Societies, some of the commodities
Marketing Co-operative Societies have come up in the recent past like Grape
Growers Co-operative Societies, Pomegranate Growers Co-operative Societies,
Onion Growers Co-operative Societies etc. Some of these societies are really
doing well and earning profits. Recently ‘TECHNOSERVE’ has conducted case
study of ‘Agricultural Marketing Co-operatives of Maharashtra’1 and brought
out very specifically that the Agricultural Marketing Co-operatives as a matter
of fact are functioning as AGRIMARTs. TECHNOSERVE has come out with the
success stories of four Agri. Marketing Co-operatives in Maharashtra. This study
has revealed that these societies are providing services like – Marketing of Agri
Produce, Market linkage to Producer Members, Export of Agri Produce, Technical
Guidance to Members, Supply of inputs and services, Input Services, Value
Addition and Arrange Study Tours and Visits of Farmers to Exhibitions modern
farms besides other services.
Agriculture Marketing Co-operatives are the co-operative organisation of the
producers from a specified area, commonly one taluka and are formed with an
object to handle multi-commodities or single commodity. These societies provide
services like supply of inputs to their members and also to non members. However
as stated earlier, most of these societies except the societies dealing in fruits and
vegetables, cotton and sugarcane, are mainly involved in supply of inputs to their
members.
The Board of Directors of these societies are elected barring few exceptions where
there is mismanagement, Registrar appoints the administrator. From the study of
Technoserve it is amply clear that these societies could be a boon farmer members
provided those undertake both the functions of Agriculture Marketing and Supply
of Inputs. TECHNOSERVE has very specifically brought out that Agriculture
Marketing Co-operatives are examples of successful AGRIMARTs. It is therefore
proposed to develop 50 Taluka Agriculture Marketing Co-operative Societies, to
start with, as AGRIMARTs with all the infrastructural facilities during the project
period of MACP and thereafter the program will be taken up on a larger scale to
cover large number of societies.
The farmers/producers from the area of operation of Taluka Agricultural
Marketing Cooperatives will be organized into SHGs. In each village 15 to 200
SHGs having 20 members in each SHG will be organized. These SHGs from each
taluka will form the Association/Company at the Taluka level.
The Association/Company of SHGs will have collaboration by way of Joint Venture
with Taluka Agriculture Marketing Cooperative for organizing and managing the
Agrimart.
Criteria for selection of Taluka Marketing Societies proposed to be developed as
AGRIMARTs.
The societies fulfilling the following parameters only will be selected for inclusion
under the program under MACP.

     •   It should be consistently in profit for the last three years.

     •   It should possess its own land for infrastructure development

     •   It should be in audit class “A” for the last three years. The audit should
         have been completed regularly for the last three years.

     •   It should have full fledged C.E.O. / Manager/ Managing Director.

     •   It should not be in default to any bank for Term loan or Cash Credit loan.

     •   It should have its Godown of at least 500 M.T. capacity.

     •   The society should be willing to enter in the area of business of risk of
         agriculture marketing.
Table -8 : Infrastructure proposed to be developed at selected 50 Agri.
Marketing Co-operatives and Cost Estimates.
 Sr. Particulars                                                         Rs. In Lakh
 no.
 1       Electronic Weigh Bridge (30 M.T.)                                  8.00
 2       Auction Platform and Shed 2000 sq.ft.                              10.00
 3       Internal Roads, drinking water, Toilets (LS)                       10.00
 4       Retiring Room for farmers (500 sq.ft.)                             2.50
 5       Pack house with Washing /Grading facility (2000 sq.ft)             10.00
 6       Reefer Van of 5 M.T. capacity for linkage with Pickup and          10.00
         Retail chain/Processing unit/Terminal markets for
         Transporting perishables
 7       Retail Market Arrangements- Platforms with sheds (2000             10.00
         sq.ft)
 8       Pre-cooling of 5 Tonnes per batch capacity and Cold                50.00
         Storage of 25 Tonnes capacity
 9    Primary Processing 25 tonnes per day capacity cleaning,            50.00
      grading, packing and labeling of foodgrains
 10   Training facility for farmers (Training Hall – 1000 sq.ft)          5.00
 11   Furniture /Fixtures/Computers etc. (LS)                             5.00
      Total                                                             170.50


The cost of this infrastructure works out to be Rs. 170.50 lakhs per AGRIMARTs, of
which Rs.42.50 Lakhs (25% subject to the max. of Rs 50 Lakh) will come from
Marketing Infrastructure Development Scheme of Government of India; Rs. 17.05
Lakh (10 %) will be invested by the Joint Venture of Association of SHG and the
Agriculture Cooperative Marketing Society concerned and 65% i.e. 110.95 Lakh is
proposed to be availed from the World Bank.
Requirement of funds for mobilizing farmers, meetings etc.
In addition to this the other items of costs are mobilizing, farmers, meetings,
training, publishing literature and Pamphlets and information dissemination. This
will be a continuous programme and Rs.1lakh per society per year has been
considered for this purpose. Thus total estimated expenditure on this account
would be Rs.250 Lakh during the project period which may come from World
Bank. Out of this it is proposed that Rs.125 lakh will come from State/Central
assistance and Rs.125 lakh from World Bank.
Proposal under MACP
Initially, it is proposed to develop 50 Agriculture Marketing Cooperative Societies
into AGRIMARTs during the project period of 5 years. Selection of these Societies
shall be done on the basis of criteria mentioned above, out of the total 1210
Agriculture Marketing Cooperative Societies. Thus the total investment involved for
this sub component and the financial assistance proposed from World bank is
shown in the table, no. 9.
  Table -9 : Total Investment involved for developing Agriculture Marketing Co-
  operative Societies as AGRIMARTs.


 Activity       No of       Unit      Total     Contribution      GoI         WB
                Units       Cost      Cost        by Agri        Grant     Assistance
              proposed                           Marketing      (25 %)      (50 %)
                                                  Society
                                                  (10 %)
AGRIMARTs        50        170.50 8225.00         822.50       2056.25     2878.75
  – Agri
 Marketing
  Co-op
 Societies
 Publicity,      50        25.00     250.00          0          125.00      125.00
 Farmers
 Meetings
   etc.


  The programme will be phased over a period of 5 years. During the first year of
  the project period, selection of the societies for the program, initial training to their
  staff regarding the project, completing the formalities for development of
  infrastructure etc. would be completed. During the II, III year of the project
  period the infrastructure proposed will be completed. In the meanwhile training to
  farmers, group meetings etc. would be continued. During IV and V year full
  fledged benefits of the project would start flowing to the farmers.
  On successful implementation of this program, it will be extended to large number
  of Agricultural Marketing Co-operatives in the State.


  Spread of Activities -
  These AGRIMARTs would be actively involved in following main functions :
      (I)     Mobilizing farmers through meetings, training programs, exposure visits,
              written communications.
      (II)    Procurement, Aggregation and value addition including storage,
              grading, sorting, cleaning, processing, packaging, labeling, branding of
              the produce.
      (III)   To function as link between the producers and the buyers which includes
              identification of buyers, negotiate terms, fix price, conduct transaction,
              provide specialized services like pre-cooling, cold storage and
              preparing for exports, finalize price, link up to professional
              management.
    (IV)   Focus on common objectives, develop strong local leadership, operate
           as business, share risk jointly, develop loyalty among members by
           serving them better and maintaining organic linkages with them.
    (V)    Operations like business : Pricing the commodities on the basis of bench
           marking used for further negotiations, adhering to quality standards,
           professional management, continuous research and development for
           learning new ideas, new products, new technologies, market trends and
           to make strategic decisions like storage, value addition activities,
           investment in infrastructure, access to new markets, exports,
           diversification of activities to increase earnings .


Ownership of Assets and Management of operations of AGRIMARTs of the
Agricultural Marketing Co-operatives.
The operations of AGRIMARTs will be -

•    The assets of AGRIMART will be owned by the concerned Joint Venture of the
    Association/Company of SHGs and Agriculture Marketing Co-operative. which
    has developed AGRIMART.

•    Some of the activities will be managed by the owner and highly technical
    activities like pre-cooling unit, cold storage, reefer transport etc. will be
    outsourced to private entrepreneurs.

•    The management of Agriculture Marketing Co-operative is fully democratic
    wherein all members participate in General Body meetings, in which board
    guidelines of working are framed and policy decisions are taken by Board of
    Directors. The execution is carried out by the full time employees thus imbibing
    the professional Management in the working.

•     The AGRIMARTs will earn income from Membership fees, Service charges for
    the service provided, margin in agri marketing activities, profit in supply of
    inputs, income from the infrastructure outsourced, rent etc.


4.1.3 DEVELOPMENT OF RURAL HAATS INTO AGRIMARTS :


CONCEPT
Rural Haats are the places where there is direct interface between farmers and
consumers. Usually they are held once or twice a week (Weekly markets). There
are 3500 such rural haats in the State today, where the farmers sell their produce
directly to the consumers. The trading generally takes place in a dusty space
without any infrastructure. There is no drainage, toilets, drinking water source and
shelter against sun, rain or wind. The farmers from the surrounding areas and
immediate vicinity participate in the activity. The market place is generally
unhygienic, lacks sanitation and this is source of diseases to human being and
spoilage of produce. The idea is to provide at least the most basic of facilities and
services such as clean drinking water, electricity, roads, sheds etc, by developing
minimum infrastructure at the selected Rural Haats. Special features of these
markets are:

•      On an average 90% of the arrivals in these markets are of agricultural
       commodities and around 10% are of non agricultural commodities.
•      The price realized by the farmer for his produce in the Rural haats is better
       than what he would have got in the wholesale APMC market and likewise
       the consumer stand to gain by paying comparatively lower price in this
       market, than he would have paid to the retailer.
•      The Rural Haats are held on the land owned by the local panchayats
       normally and are managed by these panchayats, municipal councils or
       corporations. These bodies recover nominal fees per day from the sellers
       of the produce for using the space but the consumers are not charged.
•      The provisions of the Maharashtra Agricultural Produce Marketing
       (Development and Regulation) Act 1963 are not applicable to these
       markets as the transactions are of retail nature. Therefore the APMCs do
       not recover Market Fees in these markets nor do they regulate these
       markets.

Proposal under MACP :

•       Most of these markets are held weekly and few of these are held twice in
       the week. However, because of the tremendous rise in population, in
       bigger town daily retail markets of vegetables and fruits are held. These
       are more than 300 towns in the state having more than 25,000 population.
       It is proposed to develop these markets at 50 selected places as daily
       markets which will operate at least for 6 days in a week. Considering the
       growing demand of the population for fruits, vegetables, meat and fish, the
       Rural haats at larger towns will function for 6 days in a week regularly.
•      It is proposed to develop these rural haats as AGRIMARTs where both
       retail and wholesale marketing of agri produce will take place.
•      The producers in 10 to 15 villages around the location of proposed
       Agrimart will be organized into SHGs and these SHGs will be organized in
       to Associations. Around 15 to 20 SHGs with the membership of 20 farmers
       in each SHG will be organized in each village. Thus there will be around
       300 to 400 members of SHGs in each village and in the vicinity of
       proposed Agrimart, in 10 to 15 villages there will be 3000 to 4000
       farmers linked to these SHGs. These SHGs will be further organized into
         Associations of SHGs. These SHGs will be linked to the Agrimarts. The
         SHGs / their associations will get involved in extension and training
         activities, and coordinating Agrimart activities with the farmers.
•        These markets being the AGRIMARTs will not attract the provisions of
         Maharashtra Agricultural Produce Marketing (Development and Regulation)
         Act 1963.
•        The infrastructure like weighbridge (30MT), Auction plat form with shed
         (2000 Sq.ft.), Pack house for cleaning, grading, sorting and packing (2000
         Sq.ft.), Retail shops for input suppliers have been suggested besides the
         provisions of other infrastructure, so as to improve the rural haats.
•        The cost estimates of the infrastructure proposed for improving one rural
         haat and its conversion in to AGRIMART is shown in the following table-


Table – 10 : The detail break up of the tentative project cost per unit for
improvement of Rural Haat and its conversion in to AGRIMART.
    SN           Particulars          Approx. Total   Unit Rate    Total Rs in Lakh
                                         Area
    1    Platforms with sheds for     1200 Sq.feet    500/sq.ft           6.00
         Retailers
     2   Retail Row Shops (6Nos)      1200.00 sq ft   500/sq.ft           6.00
     3   Washing Place                  200 sq.ft     250/sq.ft           0.50
     4   Drinking Water Taps (LS)                                         1.00
     5   Parking (LS)                                                     0.75
     6   Electricity (LS)                                                 0.75
     7   Compound Wall (LS)                                               1.00
     8   Internal Road (LS)                                               2.00
     9   Toilet Block                   400 sq. ft    500/sq.ft           2.00
    10   Watchman Cabin                 100 sq ft     500/sq.ft           0.50
    11   Weigh Bridge (30 MT)                           8.00              8.00
    12   Auction Platform with shed    2000 Sq.ft.    500/sq.ft.         10.00
    13   Pack house                    2000 Sq.ft.    500/sq.ft.         10.00
    14   Training hall for farmers     500 Sq.ft.     500/sq.ft.          2.50
    15   Training to Farmers              LS                              1.00
                       Total                                             52.00


Out of the total cost of Rs.52 lakhs per market, 10% is supposed to be for non
agricultural commodity marketing. Thus for MACP project the cost of Rs.46.80
lakhs per unit has been considered. Therefore total investment required under this
component for 50 units is Rs. 2340.00 lakh. Out of the total investment of 2340
lakh for Agri Marketing, 25% i.e. Rs. 585.00 lakh will be available from Govt. of
India as grant and balance 75% (i.e. Rs.1755 lakh) is proposed to be availed
from World Bank. The local Panchayat/municipal council will bear the cost for
    development of infrastructure supposed to be for the share of non agril. marketing
    i.e. Rs 260.00 lakh.

•   Selection Criteria for Improvement of Rural Haats:
    In view of the budgetary constraints, though all 3500 Rural Haats in Maharashtra.
    require improvement, it has been decided to initially take up 50 selected Rural
    Haats for improvement and their conversion in to AGRIMARTs, under MACP, during
    the project period. The locations will be selected on the basis of following criteria :
    (i) Rural /Semi Urban Centre having more than 25000 population.
    (ii) There is already weekly Rural Haat functioning. The places where Rural Haats
          are held twice in a week will be given preference.
    (iii) The local Panchayat / council should have its own land for Rural Haat and
          should pass the resolution about its willingness to invest 10% of the cost of the
          project in proposed infrastructure; and its willingness to outsource management
          of infrastructure and keep 10% of the earnings as reserves towards
          maintenance of the fixed assets.
    (iv) The locations which would otherwise be covered by the project proposals of
          conversion of Agricultural Marketing Cooperatives into AGRIMARTs will be
          covered in the second phase of the program.

    Operations and management of Infrastructure:
    • The Market Staff of the Rural Haat AGRIMART will monitor the operations in the
      AGRIMART. They will ensure that prices which are collected form 2 to 3 nearby
      wholesale markets are made known to the farmers and consumers by adding 20
      to 30% in those prices, to be the prices in Rural Haat AGRIMART. They will see
      that these prices are respected.
      The security staff will ensure that wholesalers do not use the retail market stalls
      but they can operate in wholesale market.
      The cleaning staff will keep the Market clean and tidy.
    • Retail facility of Rural Haat AGRIMARTs will be used only by farmer – consumers
      and both will stand to gain.
    • Farmers will be able to use retail facilities as well as wholesale market of Rural
      Haat AGRIMART.
    • These markets would be the excellent examples of the Rayaatu Bazars of
      Andhra Pradesh or the Uzhavar Santhaigal in Tamilnadu.
    • The ownership of the market and the infrastructure to be created under the
      project will be with the local panchayats/municipal councils or the local panchyat
      may lease out the whole facility to Association/ Company of SHGs, for
      management. After Alternatively the infrastructure may be managed by private
      player to whom it will be outsourced. The service provider will manage the
      infrastructure and will recover charges from the beneficiaries, the pre decided
      amount will be paid by him to the local Panchayat/council. Ten percent of the
       revenue earnings shall be earmarked towards the maintenance fund of the
       infrastructure and will be invested separately to be used for the repairs,
       maintenance and expansion of the infrastructure in future
      • Once this model succeeds, large number of Rural Haats will be covered under the
        program.

4.1.4 FISH – AGRIMARTS (Acquamarts)

      Maharashtra has tremendous potential for development of fisheries. However, at
      present the fishermen and the fish farmers catch fish and sell the same to the
      traders. Because of this the value realized by the farmers is very low. The present
      system suffers from the following.
      (i) The fish farmers do not get good quality fingerlings.
      (ii) Lack of infrastructure for cleaning, washing, packing of fish.
      (iii) Non availability of Ice
      (iv) Non availability of Cold Storage
      (v) Lack of availability of Transport including Reefer transport.

      Proposals Under MACP :

      Infrastructure facilities are required for keeping the fish in healthy & fresh
      condition for marketing up to the consumers. It is proposed to establish 10 Fish
      AGRIMARTs in the State under this project.


      Fish being perishable commodity, marketing of fish in
      proper manner is required in the interest of producers and
      consumers. Fish marketing is, however, under the control
      of private traders whereas major portion of Fish production
      is contributed by Cooperative Sector. Various activities
      have been proposed under MACP to be assisted by world
      bank. The project involves public and private participation
      for encouraging the marketing of Fish. The project Aims at
      improvement of existing marketing system, creating market
      infrastructure and opportunities, improving market access
      and trading, extensions and support to fishermen’s
      business.
      Fish AGRIMART is a fish marketing structure based on the
      lines of AGRIMART. Presently there is no such system
where producers, consumers and traders can directly meet
for their business. In this Fish AGRIMART, fisheries
business development facility will be provided.
Considering the resources, it is proposed to set up 5 Fish
AGRIMARTs in Marine Districts and 5 Fish AGRIMARTs in
Inland Districts, in the beginning and after evaluation of the
experience more Fish AGRIMARTs will be proposed and
established.

It is proposed that these fish AGRIMARTs will be developed by the Associations of
the Self Help Groups of the fishermen, fish producers / farmers. These associations
will be registered as companies under Companies Act or societies under the
Societies Registration Act of 1960. Financially sound and well managed fish
cooperative will be selected, who will be encouraged to join the development of
Fish Agrimart (Acquamart) by having partnership / Joint Venture with Associations
of SHGs.
These Associations / Joint venture of Associations and cooperative societies will be
linked to ATMA for extension activities, training, coordination and monitoring.
On an average 3000 fishermen will be linked to one Aquamart from 15-20
SHGs/ Cooperatives. It is roughly estimated that about 15 MT fish will be brought
per day for about 250 days in a year. Thus total arrivals of fish in each
Aquamart will be around 3750 tonne per year. Wholesale price of fish is around
Rs. 25000/tonne of which about Rs. 15000/ tonne is received by the producer
and Rs. 10000 is available to the Associations/Company/ Cooperative society
managing the tank. As against this the retail price is Rs. 40/ Kg. This includes the
cost of cleaning, handling, ice, transport and share of intermediary. Thus total
turnover even at the minimum, wholesale price, at each Agrimart per annum is
estimated to be of the order of (3750 MT X Rs.25000) = Rs. 937.50 lakh. The
produce may get around Rs. 30/kg. in wholesale market at AGRIMARTs, because
of proper handling of fish. It is therefore very moderately, estimated that the
margin of around 10% for Agrimarts will make Rs. 93.37 Lakh per year. Same
additional income will also be received by the Agrimarts from rentals of shops,
retail business input supply etc. which will take care of management and cost
repayment of interest and installment of loan. The selection of fisheries
cooperative societies and federations will be done on the basis of following
criteria :
(i)      The society should have at least 150 members
(ii)     It should be in profit for the last 3 years
(iii)   It’s account should have been audited for the last 3 years and it should
        have been placed at least in ‘B’ Audit class
(iv)    It should be willing to source out the infrastructure for operations and
        management to the Private entrepreneurs, on terms and conditions to be
        mutually decided under the guidance of Nodal Agency MSAMB/Governing
        Council for the MACP.
Besides above criteria for selection of societies for putting up AGRIMARTs in Maine
and Inland sector, following points will also be considered while selecting the
locations for developing the fish AGRIMARTs.

Marine Sector :

There are three major fishing Harbors namely Sassoon
Dock, New Ferry wharf at Mumbai and Mirakarwada at
Ranagiri.
Considering 15 MT daily fresh marine fish handling
capacity of each AGRIMART, the site will be selected where
minimum number of 250 number of mechanized boats are
registered and landing.    It is proposed to establish
AGRIMART at Taloja near Mumbai, Satpati Dist. Thane,
Shreevardhan, Dist. Raigad, Dapoli, Dist. Ratnagiri and
Malwan Dist. Sindhudurga.

Inland Sector:

Considering 15 MT fresh inland fish handling capacity of
each AGRIMART, the site will be selected adjacent to semi
urban town where land, approach, electricity and water is
available.
It is proposed to cover an area of 25 Reservoirs each
having more than 200 ha. Water spread area or 10
reservoirs each having more than 1000 ha water spread
area.
Infrastructure facility will be provided as mentioned in
table 11 in each Fish AGRIMART.


Table – 11 : Infrastructure Proposed to be created in Fish AGRIMART
(Acquamart) in Marine and Inland Sectors.
                                                                        (Rs in Lakh)
  Sr.          Sub. Item             Requirement /          Rate            Total
  No                                       Unit                             Cost
 1.1    Land cost                  2 Acres             Rs. 5 /- Lakhs    Rs. 10.00
 1.2    Auction shed               10000 sq.ft         Rs. 500/sq.ft     Rs. 50.00
 1.3    Cleaning, washing tank     2500 sq.ft          Rs. 500/sq.ft     Rs. 12.50
        and platform- 5 units
        each of 500 sq.ft.
 1.4    Cold storage at Aqua       5 tonne capacity    Lump sum          Rs. 10.00
        mart
 1.5    Cold storage at            30 tonne capacity   Lump sum          Rs. 60.00
        collection centre
 1.6    Ice factory                15 tonne capacity   Lump sum          Rs. 40.00
 1.7    Fish retail shops with     1000 sq.ft          Lump sum          Rs. 15.00
        electricity, water, deep   (5 shops each of
        freezer, furnitures &      200 sq.ft)
        fixtures
 1.8    Weigh bridge with 5        1                   Lump sum          Rs. 6.00
        mt capacity &
        electronic operation
 1.9    Fishermen guest house,     2000 sq.ft          Rs. 500/sq.ft     Rs. 10.00
        office/ stores with
        necessary amenities
 1.10   Common toilet &            200 sq.ft           Rs. 500/sq.ft     Rs. 1.00
        bathroom 4 units each
        of 50 sq.ft
 1.11   Compound wall                                  Lump sum          Rs. 3.00
 1.12   Internal roads                                 Lump sum          Rs. 5.00
 1.13   Diesel Generator set of    1                   Lump sum          Rs. 20.00
        125 k.v.
 1.14   Packing house              500 sq.ft           Rs. 500/sq.ft     Rs. 2.50
 1.15   Water supply &                                 Lump sum          Rs. 5.00
        electric installation
        arrangements
        Total for one fish                                               Rs. 250
        AGRIMART

2) Transportation
  Sr.          Sub. Item               Requirement /       Rate            Cost
  No.                                      Unit
 2.1    Insulated Trucks with      1                                    Rs. 12.00
        eight MT capacity
 2.2    Utility van / Tempo        1                                    Rs. 8.00
                                                                        Rs. 20.00
 3      Providing Road and         10 centre for      Rs. 5/- Lakhs Rs. 50.00
        facilities viz shed,       each AGRIMART      per centre
        Godown toilet, Drinking
        water at landing /
        collection centre
        Total (1+2+3)                                                 Rs. 320.00
 4      Sub-Component Strengthening of fisheries co-operative societies
 a)     Loans for inputs like fish 10 Societies per   Rs. 5/-         Rs. 50.00
        seed, fishing craft and    AGRIMART
        Gears i.e. nets & Boats
        Sub Component, Assistance to fisheries Development and marketing
        Association
 a)     Margin Money for           1                                  Rs. 20.00
        newly formed fisheries,
        Development &
        marketing Association
        Computerization &                                             Rs. 10.00
        Networking & Software
        Grand Total                                                   Rs. 400.00


Operation of the AGRIMART:- The AGRIMART will be
operated by ‘Fisheries Development & Marketing
Association’ constituted for this purpose. The members of
the Association will be representatives from concerned
SHGs/Cooperative Societies.      Regular management and
maintenance of the assets as well as business of the
AGRIMART will be run by this Association.

AGRIMART will undertake the activities by hiring the
Consultancy services for business development, Market
intelligence etc. to improve the profitability of the project.
These Fish AGRIMARTs will become a pilots and
depending upon success, expansion and addition will be
made.

 Each fish AGRIMART will thus require the investment of Rs. 400 lakhs and 10 fish
AGRIMARTs will require investment of Rs.4000 lakh of which Rs.1780 lakh is
proposed to be received from World Bank under MACP, as shown in the following
table 12.
Table – 12 : Total Cost Estimates for 10 Agrimarts for Fish.
                                                                       (Rs in Lakh)
Sr.      Name        Physi-    Unit   Total           Expected Contribution From
No                      cal     cost       cost       GoI.    GoM        Pvt.   Formers World
                      Target/                          *       **               Group/ Bank
                       unit                                  (25%)              Society Loan
                                                                                 (10%) (60%)
     Component “A” Infrastructure

1    Subcomponent      10     250     2500     625     625           0          250    1000
     fish AGRIMART
2    Subcomponent      10     20      200              50            0          20     130
     Transportation
3    Subcomponent      100    5       500      100     100           0          50     250
     Providing Road
     and facilities
     viz shed,
     Godown, toilet
     drinking water
     at landing/
     collection centre
4    Sub component 100        5       500      -       125           0          125    250
     Strengthening
     of fish co-op.
     societies
5    Subcomponent      10     20      200      -       50            0          50     100
     Asstt. To fish.
     Dev. And
     marketing
     Association
6    Subcomponent      10     10      100      25      25            0          0      50
     computerization AGRIM
     , networking &    ARTs
     software
     development
     Total (A)         -      -       4000     290     0             0          0      3710
     Component “B” Training & Extension – Subcomp. Training

1    Training to      10000     0.01   100        -          -       -          -      100
     fishermen
2    Trainers         200       0.05   10         -          -       -          -      10
     training
3    Awareness        100       0.05   5          -          -       -          -      5
     programme
4    Exposure field   100       0.05   5          -          -       -          -      5
     visits
     (10trainees in
     each batch)

*Central Government Grant @ Rs. 1 lakh /landing Centre.
** GoM Share Capital.
Sr.       Name          Physi-    Unit       Total              Expected Contribution From
No                        cal     cost       cost        GoI.      GoM      Pvt. Formers World
                        Target/                                                    Group/ Bank
                         unit                                                      Society Loan
5     Study tour        50        0.10   5           -           -        -       -        5
      within country
      (interstate)
6     Foreign           2         2.50   5           -          -        -      -        5
      Training
7     Demonstrations    20        1.00   20          -          -        -      -        20
      at Aquamart/
      Landing centre
8     Multiutility      10        50     500         -          -        -      -        500
      Centre/
      Training centre
      with Aqualab &
      all
      infrastructure
      Total Training                     650                                             650
      Component – B
      Subcomp.
      Exten.
      Evaluation/
      Monitoring
      support (Hiring
      of Consultant/
      expert )
a)    Co-ordination     100       2      200         -          -        -      -        200
      for data
      collection
b)    Market Analysis   10        5      50          -          -        -      -        50
      / Advice (each
      one for
      Aquamart)
c)    Information/      10        3      30          -          -        -      -        30
      Publicity
d)    Audit / Account   10        5      50          -          -        -      -        50
e)    Management,       -         -      10          -          -        -      -        10
      Co-ordination
      Total             -         -      340         -          -        -      -        340
      Total B           -         -      990         -          -        -      -        990
      (Training &
      Extensities)
      Grand Total of    -         -      4990        750        975      -      505      2760
      Project (A+B)
     Advantages Anticipated:
        (i)   Spoilage will be reduced due to better handling and better
              transportation
        (ii)  Profit taken away by middlemen will be reduced.
        (iii) Fishermen/farmers will be able to get better price for their produce.
        (iv)  Good quality, clean, fish would be available to consumers at
              reasonable price directly form the AGRIMARTs retail shops or from the
              supply chain.
        (v)   Fish AGRIMARTs will be linked to retail malls to bring the advantages
              of Direct selling to consumers for better price realization.
        (vi)  Management and Operations will be professional & efficient as these
              would be handled by private entrepreneurs.


4.1.5 MILK & MILK PRODUCTS AGRIMARTS (MILK AGRIMARTS)

     Milk production is very important activity supporting agriculture and it has the
     capacity to make nonviable agriculture as viable. In Maharashtra, total milk
     collection by Government milk schemes and Dairy cooperatives is 40.90 LLPD and
     that by Private dairies is 41.30 LLPD. Thus the milk collection by the organised
     sector is 82.20 LLPD. Out of this 62.16 LLPD milk is sold in liquid form and the
     balance milk is used for making various milk products. There is a scope to put up
     more value addition and milk processing plants in Maharashtra.
     The milk producer farmers are paid on the basis of the price of milk fixed by the
     Government. The farmers milk cooperative Societies undertaking value addition
     units can pay higher price to the farmers from the additional income generated
     through value addition. However the numbers of such societies is not very large.

     Out of 26881 dairy cooperative societies 12970 societies are in profit. Out of 87
     dairy cooperative federations are in profit.
     It is proposed to undertake the programe of strengthening of Dairy Cooperative
     Societies as a part of MACP by developing these societies as milk AGRIMARTs.
     However, it is proposed to form 15 to 20 SHGs of Milk producers having 20
     members in each SHG in the area of operation of Dairy Cooperative Society
     selected for development of Agrimart. These SHGs will be organized into
     Association / Company of the SHGs who will have Joint Venture with the DCS
     selected for development and management of infrastructure in Agrimarts
     proposed. As a matter of fact DCS are playing the role of AGRIMARTs where the
     milk producer not only gets reasonably good price of milk from DCS but some of
     the societies are serving the dairy farmers by supplying the cattle feed, quality
     cans, veterinary services and technical know how for improving productivity of milk
     and hygienic milk production. Some of the DCS has got arrangements with the
     District Central Cooperative Banks or Commercial Banks where under, these DCS
undertake to recover loans provided by these Banks to dairy farmers for buying
cows, from milk price. However, many of the DCS, does not have such facilities.
Developing these societies as AGRIMART with the associations of SHGs of Milk
producers will strengthen these societies and those would be able to serve farmers
better and will also be able to give additional price to the farmers for the milk
supplied by them.

There are more than 500 DCS in the State having collection of more than 5000
liters per day. It is proposed to select only 20 DCS as pilots for development of
the same as milk AGRIMARTs, under MACP during the project period of 5 years.
On successful implementation of this program it will be extended on large scale to
DCS.

The following selection criteria will be applied to select 20 DCS for this program.
DCS selected may be primary DCS or the Taluka level Milk Federation.
1. DCS should have minimum of 5000 liters milk collection per day even during
   lean period.
2. Minimum number of members should be 100 with 250 milch animals and land
   of at least 2 Acres of its own.
3. It should be in profit for the last 3 years.
4. Its account should have been audited for the last 3 years and it should have
   been placed in ‘A’ audit class.
5. It should have its own land for infrastructure development.
6. It should be willing to invest 10% of the cost of investment from its own funds.
7. If the project is being undertaken by Primary DCS, it should be willing to enter
   into joint venture with Taluka Milk Cooperative Federation Association of SHGs
   of Milk Producers and DCS and Taluka Milk Cooperative Federation and
   association of SHGs would jointly invest 10% of the cost of investment from
   their own funds.

The infrastructure and activities proposed for the Milk – AGRIMARTs of DCS/
Cooperative Milk Federations, are shown in Table 13.
Table – 13 : The Cost Estimates of the Infrastructure to be created for Milk Agrimarts.
A-     Infrastructure
                                                                               Rs in Lakh
Sr Activity              No. of units per Unit      Total     Total Contri- Sate World
.n                       AGRIMART           Cost    cost      cost   bution Govt Bank
o.                                                  per       for    by       25% Assis-
                                                    AGRI- 20         DCS/            tance
                                                    MART units milk
                                                                     Feder
                                                                     ation/
                                                                     SHGs
                                                                     Associ
                                                                     ation
                                                                     (10 %)
1 Community milking 1                       15      15        300 30          75     195
    centre
2 Milk & Milk            1                  25      25        500 50          125 375
    product Malls
3 Shops for inputs       4 of 300 sq.ft     1.50 6            120 12          30     78
    supply               @ Rs.500/Sq.ft.
4 Training Hall for      1                  5.00 5            100 10          25     65
    farmers Training     (11000 sq.ft.
                         @Rs.500/sq.ft.)
5 Farmers Rest           1                  2.50 2.50         50     5        12.5 32.5
    Room                 500 sq.ft
                         @Rs.500/ sq.ft.
6 Godown for cattle 1                       10      10        200 20          50     130
    feed                 500 M.T.@
                         Rs.2000/M.T
7 Insulated van          1                  10      10.00 200 20              50     130

8   Mobile Van for      1                  20      20.00   400     40       100    260
    Marketing &
    Extension
9   Veterinary          300 sq.ft. @       1.50    3       60      6        15     29
    Dispensary with     Rs.500/sq.ft. +
    Shed for animals    500/sq.ft.@ Rs.
                        300/sq.ft.         1.50
10 Milk & Milk          300 sq.ft. @       1.50    1.50    30      3        7.5    19.5
   testing lab          Rs.500/sq.ft.
   building
   Total (A)                                     98        1960 196         490    1314
1 Salary of             0.50 x 12 x 5      30.00 30        600 60           150    390
   Veterinary
   Doctors & Staff
2 Salary of             0.50 x 12 x 5      30.00 30        600     60       150    390
   Extension Staff
3 Veterinary            LS                 5       5       100     10       25     65
   Dispensary
   Equipments
4 Milk & Milk           LS                 5       5       100     10       25     65
   testing lab
   Equipments
   Total (B)                                       70      1400 140         350    910
    A +B                                             168      3360 336         840     2224


Thus the total cost of developing 20 DCS into AGRIMARTs will be Rs. 3360 lakh of which
Rs.3024. lakh are proposed to be availed under MACP from World Bank

Operations and Management of the infrastructure created:

The joint venture of Associations of SHGs, DCS and Milk Coop. Federations would operate
and manage the infrastructure themselves or will source it out to some private entrepreneur
to operate and manage the same. The input supply shops will be rented out to the
suppliers besides running their own supply shops of cattle feed by DCS so that farmers get
inputs at reasonable cost.
The owner of the Agrimart will keep 10% of the income from the infrastructure towards its
maintenance and reserve fund.

Justification for developing DCS into AGRIMARTs
This proposal is justified on the following grounds
        (i) Community milking will result in hygienic milk production and yield of milk will
               also increase.
        (ii) The cost of transportation of milk from dairy farms of farmers to the DCS will
               be saved
        (iii) The spoilage and contamination of milk will be reduced.
        (iv) Milk and Milk Product Malls will bring additional income to the DCS and
               consumers will get quality products.
        (v) The dairy farmer will get better price of milk
        (vi) Farmers will get quality inputs at reasonable price
        (vii) Mobile Vans for Marketing & Extension will result in increased sale of Milk
               and Milk products and dissemination of technology amongst the farmers
        (viii) The Milk AGRIMARTs of DCS will be linked to Retail Chain/Terminal Markets
               and the milk and milk products will be transported by insulated vans to
               Retail Chain Stores and Terminal Markets
        (ix) DCS will play important role of technology dissemination through Training at
               DCS level to the member farmers and milk producers.
        (x) DCS will be able to provide veterinary services to the milk producers,
               thereby reducing the incidence of diseases, which will improve health of
               animals and also hygiene of milk produced by these milk producers


       The cost estimates of all the proposed AGRIMARTs of different Models are shown
       in Table 14.
       Table – 14 : Cost Estimates of proposed AGRIMARTs
                                                                              (Rs in Lakhs)
    AGRIMART Esti-         No. of Total     Contri-        GoI grant    GoM       W.B
    - Type   mated         Units   Cost     bution         NHM          Under     Assis-
             cost Per      Propo Rs. in     by Co-         @ Rs. 5      PM’s      tance
             Unit          sed in Lakhs     op. / by       lakh/        Prog-
                           1st              farmers        Agrimart     ram
                           Phase            SHG            20 %
                           agains           Associa-       Under
                           t the            tions          Market
                           Potent                          Infrastru-
                           ial in                          cture
                           state                           Scheme
1   AGRIMART by SHGs Companies (VFPCK Model)
a    Mobilizing 2.50       50       125.00          0               0    31.25      93.75
     farmers &
     forming SHGs
     & registration
     of Companies
     (50)
b    Infrastructure 100.00 50      5000.00     50.00         1250.00 1000.00 2700.00
     for
     AGRIMARTs
     (50)
c    Integrated 50.00      20      1000.00    100.00          250.00    250.00     400.00
     Agro.proce-           (Sele-              (10%)
     ssing units at        cted
     AGRIMART              Loca-
     (10)                  tions)
     Total                     120 6125.00    150.00         1500.00 1281.25 3193.75
     (a + b + c)
2    a)             170.50      50 8525.00    852.50         2131.25 2131.25       3410.0
     AGRIMARTs                                 (10%)           (25%)   (25%)        (40%)
     by Agri
     Marketing
     Co-op.
     b) Publicity 5.00          50  250.00       0.00         125.00    0.00  125.00
     Total (a+b)                50 8775.00    852.50         2256.25 2131.25 3535.00
3    Rural Haat 52.00           50    2600    260.00          585.00    0.00 1755.00
     AGRIMARTs
4    a) Fish        400.00      10 4000.00    500.00          750.00 1000.00 1750.00
     AGRIMARTs
     b) Training 99.00          10  990.00       0.00           0.00    0.00  990.00
     Total (a+b)                   4990.00    500.00          750.00 1000.00 2740.00
5    Milk           168.00      20 3360.00    336.00            0.00 840.00 2184.00
     AGRIMARTs
     Total                     180 25850.00 2098.50          5091.25 5252.50 13407.75




       POTENTIAL FOR AGRIMARTS IN MAHARASHTRA
       Considering the population of the State and quantum of agricultural production
       including the production from allied sectors of Animal Husbandry, Dairy, Poultry,
      and Fisheries etc large number of AGRIMARTs can be set up in the State. However,
      only 180 AGRIMARTs of different models are proposed over a period of five
      years of the project period, Total outlay proposed is Rs 25850.00 lakh of which
      W.B assistance proposed is Rs. 13407.75 lakh.


4.2   SUB-COMPONENT 2: MARKET INTELLIGENCE

      CONCEPT
      The latest technology development in the marketing sectors should be disseminated
      to the farmers through various modes of the technology like mobiles, display
      boards, AGMARKNET, Futures trade etc.
      The market led information such as daily market prices of commodities, arrivals,
      technology etc. proposed to be disseminated to the farmers through mobile. At
      present there are about 106 lakhs farmers in the State.


      The MSAMB has already signed MoU with Reuters India Private Ltd., (Reuters) as a
      service provider for this activity on 27th May 2007, for a period of 6 months, on
      pilot basis covering 22 APMCs from the state. As per the MoU, the MSAMB had
      issued circular to the concerned APMCs, for supplying the information relating to
      daily arrivals and prices (minimum, maximum and model price) data of agricultural
      commodities regulated in concerned APMCs.
      Reuters appointed their representatives in the concerned APMCs for collection of
      record of daily arrivals and prices data of agricultural produce brought in to the
      APMCs. The data collected from APMCs after compilation by Reuters, is made
      available to the subscribers using all delivery platforms viz. mobiles, internet, voice
      portals, radio, print, television etc.
      Reuters had already started implementing the scheme and the subscribers are
      receiving the information about arrivals and prices of different commodities
      through SMS on mobile handsets.
      Looking to the success of the scheme and the response received to it from the
      farmers and considering the usefulness of the same to the farmers MSAMB and
      Reuters would extend the validity period of MoU and may cover all the APMCs in
      the state.
      Reuters is the largest marketing information provider in the world and MSAMB has
      signed MoU with them for supply of market information to the farmers. Besides
      the information on arrivals and prices, it may also relate to crop husbandry,
      horticulture and other aspects like whether forecast, financial new and other
      related information. The farmers would be beneficiated with the information flow
      to them as they would be able to take many important decisions regarding their
      agriculture business.
Moreover, because of the information about arrivals and prices of commodities,
the farmers would be in a better position to negotiate the prices of their produce
and can also decide when to sell, where to sell and at what price to sell their
produce.
Considering the number of farmers in Maharashtra it is worth covering at least 1
lakh farmers per year under the program. Thus 5 lakh farmers could be covered
in 5 years. The service provider may consider to give services of supply of
information to those farmers free for 6 months who buy their own handsets and in
Marathi (user friendly) become subscriber of the service provider for a
reasonably long period of about 5 years. This will cost the company around Rs
1500 lakh.
It would be in the interest of the farmers and the service provider to have long
term relationship. Because in that case it would be possible to supply information
like pattern of arrivals, price fluctuations, production trends, etc. and relations
between different such functions.
Proposal under MACP
Besides the individual farmers, it is proposed to cover the following functionaries
under the scheme who would disseminate information to the millions of farmers in
the state. Those cooperative societies which are in profit and working well will be
selected for this program. The user friendly Marathi Language handset would be
supplied to these bodies. Such handsets may cost Rs. 2000 per handset.
It is proposed that the beneficiary institutions will contribute 10% of the cost
(except village extension workers and block technology team) and 10% may be
provided by service provider and the balance may be given as World Bank
assistance.
The estimates of the proposed investment are shown in table 15.
Table – 15 : Estimates of Proposed Investment for Market Intelligence.
                                                                      (Rs. In Lakhs)
 Sr.   Farmer/         Number    Own         Comp.     State      World        Total
 No    agency          of   cell contrib     contribut Share      Bank
                       phones    ution       ion (10              share
                                 (10%)       %)
 1     Master          900       1.80        1.80      0          14.40       18.00
       Farmers
 2     Village         9000        0         18.00      18.00     144.00      180.00
       Extension
       workers
 3     Block           353         0         0.71       0.71      5.64        7.06
       technology
       Team
 4     FIG             500         1.00      1.00       0         8.00        10.00
 5     Management      125          0.25      0.25       0         2.00        2.50
       Agency     of
      Agri-Mart
 6    Primary          5000        10.00     10.00      0         80.00       100.00
      Agricultural
      Credit
      Cooperatives
 7    Agricultural     500         1.00      1.00       0         8.00        10.00
      Marketing
      Cooperatives
 8    DCS        and   5000        10.00     10.00      0         80.00       100.00
      Dairy
      federations
 9    APMCs            294         0.58      0.58       0         4.72        5.88
      Total            21672       24.63     43.34      18.71     346.76      433.44


Development of Software for Training:
This also involves the development of software and providing training to the
service providers and farmers. It is proposed that a sum of Rs. 5 Crore be set
aside for this work. The requirement of the funds for Hardware for this purpose
would be available under the Agmarknet programme of Government of India.


Market Intelligence through Agmarknet
There are 294 APMCs in Maharashtra. All these APMCs are connected by internet
under the scheme of Agmarknet of Government of India. The Hardware has been
provided to all APMCs with the initiative of Maharashtra State Agricultural
Marketing Board, by Government of India as 100 % grant. Likewise the
Government of India provided grant for training of the Staff of APMCs concerned
with handling of computers under the Agmarknet Scheme. All these APMCs are
connected to the Maharashtra State Agricultural Marketing Board (MSAMB) and
data regarding market arrivals and prices of Agricultural Commodities is received
daily by MSAMB and this information is available on the website of MSAMB to the
users including farmers.
Potential for Market Intelligence in Maharashtra:
Looking to the number of farmers in the state which is around 1.06 Crore there is a
tremendous scope for market intelligence in Maharashtra. Besides the information
about market arrivals, prices etc the information on quality standards, grades,
market demands, export potentials, Good Agriculture Practices (GAP), agricultural
technology for quality production etc. has to be disseminated continuously to the
farmers, farmers groups, SHGs, farmers co-operatives and other functionaries
involved in Agriculture Marketing. Nodal agency by coordinating the line
departments, commodity exchanges and the service providers will attend to this
task.
      EXISTING SCHEMES
       GOI                        Agricultural Marketing Information System Network
                                  (AGMARKNET). 100 % grant for supply of
                                  Hardware to APMCs



4.3   SUB-COMPONENT 3: STRENGTHENING OF EXISTING APMCs

      CONCEPT
      Majority of agricultural produce (an estimated 40 to 50 % of the total reported
      production of the state) is sold through regulated markets or the Agriculture
      Produce Market Committees (APMCs) having 294 main market yards, and 612 sub
      market yards. For the most part they provide basic market infrastructure facilities
      such as internal roads, drainage, electricity, water, weigh bridges, auction hall,
      traders shops, etc. In Maharashtra all the APMCs are managed by the elected
      committees, except where mismanagement is observed, Administrator is appointed.
      At present out of 294 APMCs hardly 10% APMCs have the Administrators. The
      elections of the committees of APMCs are regularly held every 5 years by the
      Government as provided under the APMC Act. This is a strength in Maharashtra
      that beneficiaries are involved in the management of APMCs..
      These APMCs do not have modern facilities to handle agricultural produce the
      quantum of which is going to increase over the coming years due to growing
      production. It has been proposed to strengthen and improve 2 large APMCs, 10
      District Level APMCs and 20 Taluka Level APMCs from amongst the largest APMCs
      on pilot basis by providing the modern infrastructure to these market committees.
      Total arrivals of Agricultural Produce in all APMCs in Maharashtra and its value
      during the last 3 years are indicated in the following table 16.
Table – 16 : Total arrivals of Agriculture Produce during the last 3 years and its
       value in APMCs in Maharashtra.


Sr. No.           Year          Total Arrivals               Total Value
                                 (Qty. in MT)               (Rs. In Lakh)
1         2002-03                      17205911                      1059980.45
2         2003-04                      19853697                      1969868.96
3         2004-05                      17373866                      1743399.15


Likewise the details of Arrivals and Value of Agriculture Produce in top 40 APMCs
in 2004-05 are shown in the following table 17.
Table - 17 : Total arrivals of Agriculture Produce in Top 40           APMCs in
      Maharashtra during 2004-05.
Sr. No.             APMC              Total Arrivals             Total Value
                                       (Qty. in MT)              (Rs. in Lakh)
1         Mumbai                                 3681964                683158.40
2         Nasik                                  1820552                    29807.60
3         Pune                                   881353                     76181.64
4         Pimpalgaon                              455274                    23008.98
5         Nagpur                                  445087                    45702.32
6         Solapur                                431386                     23853.66
7         Lasalgaon                               402057                    16932.35
8         Kolhapur                               307313                     30237.89
9         Malegaon                               302451                      9218.38
10        Sangali                                203542                     47798.30
11        Rahuri                                 203365                      7851.34
12        Vasai                                  183480                      9710.49
13        Yeola                                  165871                      5531.08
14        Dhule                                  147163                     11759.34
15        Latur                                   144169                    20390.39
16        Manmad                                143821                     4225.97
17        Akola                                 139884                    14945.70
18        Khed                                  130546                     7396.31
19        Kalyan                                127116                     7592.19
20        Satana                                127011                     5220.52
21        Khamgaon                              116221                    15711.85
22        Junnar                                114745                     6301.13
23        Manchar                               114381                     3638.93
24        Hingamghat                            111409                    16321.00
25        Chandvad                              115063                     2566.31
26        Nanded                                 94836                     9229.48
27        Nandgaon                               92427                     2716.03
28        Armori                                 88554                     5132.00
29        Gondiya                                83667                     5066.86
30        Sinnar                                 80961                     2470.87
31        Gevrai                                 78583                    13384.88
32        Ahmednagar                             78029                     8538.49
33        Kalvan                                 75638                     2931.16
34        Jalgaon                                70775                    11817.18
35        Chandrapur                             66183                     4893.95
36        Indapur                                66167                     4217.91
37        Pachora                                65160                     7103.87
38        karad                                  64938                     5614.19
39        Wardha                                 64305                     7448.73
40        Akluj                                  61887                     4064.66


It is proposed to select 32 APMCs from this list by applying following criteria of
selection of APMCs. If number of taluka level APMCs are not adequate to get 20
APMCs selected, those will be drawn from the other taluka level APMCs arranged
by descending order based on the total arrivals.
    Criteria for Selection of APMCs for Modernization.
       i.      APMC should be willing to invest 25% of the cost of development from its
               own funds. (Financial position of concerned APMC should enable it to do
               so).
      ii.      APMC should have adequate land to put up the infrastructure proposed.
     iii.      The APMC should be willing to outsource the management and operations
               of commercial infrastructure like Cold Storage, Food grain Cleaning
               Grading and Packing unit, Ripening chambers, Pack house with Grading
               line, Electronic Auction System and Pre-cooling unit to Private Entrepreneur
               on the agreed lease rent to be paid to the APMC by the operator. The
               operator shall intern be bound to make the facilities available to the
               producers at the agreed price which shall be clearly spelt out in the
               agreement between APMC concerned and the operator of the facility.
     iv.       The APMC should have independent Secretary (C.E.O.)
      v.       The APMC should have elected Managing Committee.

•           The need is to provide the modern infrastructure to all the APMCs in the State
            and the Government of India is seized with this matter and the Agricultural
            Marketing Infrastructure Development Scheme has already been launched by
            Government of India under which 25 % of the project cost is available as
            subsidy without any higher limit to APMCs. However, looking to the vast
            quantum of the infrastructure required in these APMCs, few selected items of
            infrastructure are being proposed in only 32 APMCs to have demonstration
            effect to show that this kind of development works and it is in the interest of the
            farmers. Remaining APMCs will be covered under the Government of India
            Scheme.

•           Two largest APMCs (A Type) selected will be provided with the following
            infrastructure
    I. Electronic Auction Hall – 2 Nos
    II. Cold Storage (2000 MT)
  III. Pack House for Fruits and vegetables ( 5000 sq. ft) with grading line
 IV. Food grain Cleaning, drying, Grading, packaging and labeling unit (50 MT
       per day)
  V. Ripening Chambers (5 MT/day) 5 each
 VI. Pre-cooling units 5 MT per batch
VII. Internal Computerization
VIII. Other Misc assets such as Crates, Genset, Dock seal, Fork lift, weighing scale
       etc
    The total cost estimate for this infrastructure per APMC works out to be as under.
 Sr.              Particulars                  Capacity/Area     Cost Rs in Lakh
 No.
  1 Cold storage 2000 M.T.- Multi                2000 M.T.             160
     chambers – one unit
  2 Food grain cleaning, grading,              50 M.T. /day            100
     packing Unit – one unit
  3 Ripening chamber – 5 units                    5 M.T.               125
  4 Pack House for perishables with             5000 Sq. ft.            80
     grading line – one unit
  5 Electronic Auction System – 2 units         5000 Sq. ft            175

  6     Internal Computerization with all                              200
        activities
  7     Pre-cooling Unit for Fruits &           5 M.T./shift            60
        vegetables
  8     Other Misc assets such as Crates,                              100
        Genset, Dock seal, Fork lift,
        weighing scale etc
        Total                                                         1000

Out of 31 Market committees at district level 10 largest among those on the basis
of arrivals are proposed to be developed as B Type market Committees with
following infrastructure.
 Sr. No.             Particulars            Capacity/Area      Cost Rs in Lakh
    1    Cold storage - Multi                 1000 M.T.              80
         chambers – one unit
    2    Food grain cleaning, grading,      15 M.T. / day            30
         packing Unit – one unit
    3    Pack House with grading line        2500 Sq. ft.            55
         – one unit
    3    Internal Computerization with                               60
         all activities (LS)
         Total                                                      225

Out of the remaining APMCs at Taluka level, 20 largest APMCs on the basis of
arrivals are proposed to be modernized as C Type Model. The cost estimates for
the infrastructure proposed per APMC are shown below.
 S.N.                 Particulars            Capacity/Area       Cost Rs in Lakh
   1     Cold storage - Multi chambers         500 M.T.                40
         – one unit
  2      Food grain cleaning, grading,       10 M.T. / day                20
         packing Unit – one unit
  3      Pack House – one unit                2500 Sq. ft.                25
  4      Internal Computerization with                                    40
         all activities
         Total                                                         125
Thus this component will cover 32 APMCs. The remaining 262 Main Yards and also
sub yards will be covered under Government of India Scheme.
Proposal under MACP
Since strengthening of APMCs to meet the changing and growing needs of the
farmers and traders in the State and enable them to face likely competition from
private markets and other evolving forms of marketing systems in the State and the
country, the APMCs would require support under the project. Considering the
important role played by APMCs in Agricultural marketing in the country, around 7
% of the funds are proposed for strengthening these 32 APMCs in the state.
Details of which are shown in table 18.
Table – 18 : Estimates and Cost of Modernizing Selected AMPCs.
                                                                            (Rs in Lakh)
    SN      Items      Total      Unit        Total      APMCs        GoI 25%     World Bank
                       Unit       Costs       Cost       Contri-       Grant      Assistance
                                                         bution
    1      A Type        2        1000        2000       500.00       500.00       1000.00
           APMCs
    2      B Type        10        225        2250       562.50       562.50       1125.00
           APMCs
    3      C Type        20        125        2500       625.00       625.00       1250.00
           APMCs
            Total        32                   6750      1687.50       1687.00      3375.00

Out of the total expenditure, 25 % i.e. 1687.00 lakh would be available as back
ended subsidy from GoI. The APMCs will be able to repay the balance amount
within a period of 5 to 7 years.


Justification for the Proposal :
The proposal is justified on the following grounds –
•       It will result in creation of modern post harvest handling      infrastructure at
        selected APMCs in the state and this will serve as a demonstration to the other
        APMCs to take up such investments.
•       There would be reduction in losses of perishables due to better post harvest
        handling.
•       The producers will be able to get better price for their produce, because of
        grading and cleaning, facilities for food grains and pre-cooling, cold storage
        and ripening chambers for perishable vegetables and fruits.
•       The traders and farmers co-operatives will be able to use these facilities and
        will be able to link themselves to retail chain and could be able to export their
        produce.
•       This will create additional source of income to APMCs so that they can stand
        competition in the changed environment.
      •   Though finance is available from banking sector in India for such investment
          and GoI has subsidy scheme, starting of the successful pilots are necessary so
          that     banking sector comes in a big way and meet the huge demand
          anticipated for modernization of all APMCs.


      Capacity of APMCs to manage :
      APMCs are capable to handle such projects.                However, for the efficient
      management it is proposed that, the commercial infrastructure to be created under
      this proposal, will be outsourced by APMC to private entrepreneur for which detail
      agreement will be signed between APMC concerned and the service provider. Ten
      percent of the income generated will be earmarked for the maintenance of the
      infrastructure.


      EXISTING SCHEMES
       GOI DMI Scheme for Development/ Strengthening of Agricultural Marketing
                 Infrastructure, Grading and Standardization, Back ended subsidy up to 25
                 % of the cost of the project without higher limit, for APMCs


4.3.1 TRAINING OF THE APMCS AND THEIR STAFF :
    • There are 294 APMCs in the state with 294 main yards and 612 sub yards. The
      committees are elected every five years as provided under the Maharashtra
      Agriculture Produce Marketing (Development and Regulation) Act 1963. Only in
      the exceptional circumstances, when mismanagement is observed Administrator is
      appointed to manage the affairs of APMC.
    • The constitution of APMC provides that out of 18 elected members of the
      committee, there are 13 representatives of Agriculturists, 2 representatives of
      traders/ commission agents one representative of coolies, one representative of
      other market functionaries like weigh man and one women’s representative. The
      APMC Act provides that Chairman and Vice-chairman of the APMC must be from
      the Agriculturists constituency.
    • The APMC has full time secretary (CEO), Accountant, Inspectors, Supervisors and
      number of other employees. Total number of employees of APMCs in the state is
      around 7500 (except peons and class IV)
    • The elected committee members whose number is around 5000 and number of
      employees is around 6000 (except peons and class IV) need to be continuously
 trained in various areas of management of APMCs, so that APMCs are managed
 professionally.
• It is proposed to conduct continuous training program for APMC members and
 employees, at YASHADA, the state level apex institution for training the personnel
 of Government, Co-operative, Public and Private sector. This will be residential
 training of 5 days, in the batches of 25 participants in each batch. Thus the cost
 estimate of training per person per day works out to be around Rs. 1500/-,
 training of one batch would be (Rs. 7500 X 25) Rs. 1,62,500/- .

• The contingencies of around Rs. 37,500/- per batch are considered to meet Travel
 expenses and other incidentals thus making the total cost of training of one batch
 works out to as Rs. 2 lakhs. Around 200 batches will have to trained to cover the
 committee members and 240 batches to cover all the employees, except peons
 and class IV.
• Total cost of this training works out to Rs. 880 lakh over the project period of five
 years of which 10% is proposed during first year of the project, 25% each during
 II, III and IV year of the project and 15% during the last year of the project.
• It is proposed to avail 25% assistance from Government of India and balance of
 Rs. 880 lakh may be funded by the World bank.


 Nature of Training :

 YASHDA, Pune has been conducting the training programmes on small scale, at the
 initiative of MSAMB, for the committee members and employees of APMCs. The
 Training Needs Assessment (TNA) has been carried out for various categories of
 employees and the committee members by YASHADA. The “Training Modules” for
 different target groups have also been prepared based on TNA studies. The
 training program needs to cover all the committee members and all the employees
 of APMCs, so that the APMCs could be managed professionally.
4.4   SUB-COMPONENT 4: AGRI BUSINESS DEVELOPMENT FACILITY (ABDF)

      CONCEPT


      Agribusiness Development Facility :
      The project aims to establish Agri Business Development Facility (ABDF) to promote
      private sector involvement in Agri Processing, Agri Marketing and Agri Business
      Plans. A range of consultancy services are required for successful running of Agri
      Business. This includes commercial and technical services. The ABDF will (i) facilitate
      banking sector to work with Agri-business and specially small and medium size
      business (ii) direct assistance to SME with preparation of business plans ,(iii) bring in
      technical assistance for Agri-business, (iv) carry out market studies and value chain
      analysis ,(v) catalyse sectors to improve the ways that whole value chain operates
      ,(vi) carry out analysis of policy options and work with government to improve
      business enabling environment ,(vii) mobilise creation of linkages between private
      Agri-Business Sector and farmers group

      DETAILS
      It has been proposed to utilize the expertise with MSAMB and Maharashtra
      Industrial Consultancy Organization (MITCON) as ABDF. MSAMB is a statutory
      board and has full autonomy and flexibility. It has full fledged consultancy
      division under its project department dealing with Agri Business. MITCON is a joint
      venture of ICICI Bank, IDBI, IFCI, MIDC, MSSIDC, MSFC and Commercial Banks
      established in 1982, as a company under the Companies Registration Act, 1956.
      MITCON is a professionally managed ISO 9001 : 2000 Company.
      Strengths of MITCON as a ABDF
      It is professionally managed consultancy organization having more than 25 years
      of experience. It is autonomous and has complete independence without any
      external interference. The Board of Directors of the company consists of top level
      management, experts from different fields. The Agri business, Agro Processing,
      Agri marketing, Bio technology have been major areas of thrusts in which MITCON
      has the expertise and experience. They have at their credit the spectacular
      achievements in the following areas.

      i)      Entrepreneurship Development Division :

      This division of MITCON has 15000 sq.ft. Training Centre with well equipped
      classrooms at Agriculture College Campus, Pune with well-equipped Library and
      six regional offices in Maharashtra and well equipped training centres in all the
      district of Maharashtra. MITCON have 100 trainer-facilitators providing services
upto grass-root level. During the year 2006-2007, MITCON have trained more
than 90,000 participants in various training programmes.

Various Vocational / Entrepreneurship Development Training Programmes
conducted by MITCON are - Milk Processing, Poultry Farming, Goat Farming, Emu
Farming, Floriculture, Green House, Cashew Processing, Dehydration of Fruits &
Vegetables, Bamboo Products, Food Processing based Entrepreneurship
Development Programmes, Entrepreneurship Development Programmes on Wine,
Bio-Diesel, Cultivation of Medicinal and Aromatic Plant, Packaged Drinking Water.


ii)    Agri Business Division :

MITCON prepares Techno-Economic Feasibility Reports for - Horticulture, Dairy,
Animal Husbandry, Poultry, Cultivation, Floriculture, Agro-Engg., etc.

This division also conducts prestigious training programmes on Agriclinics &
Agribusiness Centres Scheme & Diploma in Agricultural Extension Services for Input
Dealers.

iii)   Bio-Technology Business Incubation Centre

MITCON has established Bio-Technology Business Incubation Centre with the help
of Department of Science & Technology, Govt. of India and APCCT, New Delhi.

iv)    Market Research And Infrastructure Development Division

Spectrum of services of Market Research and Infrastructure Development Division
are - Market Potential (Demand-Supply) Studies, Techno-Economic Feasibility
Reports (TEFR), Detailed Project Reports (DPR), Technology Transfer, Project
Appraisal / Evaluation Services, Socio-Economic Impact (SIA) Assessment for
Special Economic Zones (SEZs), Organization Restructuring, Socio-Economic
Evaluation Studies.
v)     Cluster Development Division :

MITCON has worked with UNIDO team for capacity
building of floriculture farmers in Lonavala, Pune
floriculture cluster for three years. The programme was
funded by Department of Science and Technology, Govt. of
India, New Delhi. Apart from this, MITCON has worked for
Automobile Cluster at Pune, Dal Mill Cluster at Akola,
Textile Cluster at Ichalkaranji, Forging Industry at Pune.
MSAMB and MITCON will undertake following training and other activities to
achieve the objective of ABDF. Total estimated cost for the project period works
out to Rs. 770.00 lakhs. The work involved will be share between MSAMB and
MITCON, considering their strengths and expertise in various fields. The MSAMB
as a nodal agency for MACP will see that all the programs suggested are
properly implemented.


PHASE - I
Area Assessment Survey and Study Of District Profiles
Complete study of each district of Maharashtra shall be conducted to identify Agri
based business opportunities for the marginal and small farmers.
This will be done by using various tools viz. desk research. interaction with existing
entrepreneurs, bankers & officers of various institutions. Survey of backward &
forward linkages and supply chain management shall also be included in this study.
The existing and potential activities will be highlighted in the report.

PHASE - II
Promotion of the Scheme
Promotion of the scheme shall be done throughout Maharashtra by using various tools
viz. radio jingles, slogans on walls, road shows, leaflets, brochures, advertisement in
newspaper to create awareness about the project. Besides this the workshops and
seminars of the potential SMEs will be organised.

PHASE - III
Content Development
Based on the area assessment survey, agro-based project profiles & course material
shall be prepared. 100 nos. of feasible project profiles will be prepared.

PHASE - IV
Training
Based on the area assessment survey, various training programmes on agribusiness
shall be designed and conducted. The highlights of the training programmes are as
follows :

a.      Promotion
Promotion of the project and training programmes shall be done through press
releases, advertisement and awareness camps.
b.     Duration
The duration of the training programme shall be of 30 days (non-residential).


c.  Target Group
Framers, Farmers groups; SMEs; Officers of Banks

d.     Selection
The participants will be selected through screening of application forms, and
personal interviews. For this process, selection panel of entrepreneurs, trainer,
Govt. officers, banker, etc. will be appointed.


e.   Venue
In every district of Maharashtra at the location suitable for
the participants.

f.     No. of Participants
       Total 8500 nos. of participants shall be trained in a
       span on 5 years (project period) throughout
       Maharashtra.
       Around 400 offices of various banks would be trained
       from all over the State, covering around 12 officers
       per district during the first year of the project. This
       training will be of 2 days in the Agribusiness areas
       the potentials, project studies project evaluation,
       financing and monitoring of the projects. This training
       will be repeated during 4th year of the project. It will
       be 1 day training. The cost of this training works out
       to be Rs 12 lakh for 1st year programme (Rs
       1500/day/participant X 2 days X 400) and for IV year
       it will be Rs 6 lakh.
       Depending upon the potential in particular district, 25
       to 75 nos. of participants shall be trained per year per
              district. Hence, total nos. of participants trained in
              each district during the project period shall vary from
              125 to 375 nos.
              25 nos. of participants shall be trained per batch.

              17   No. of Training Programmes

              Total 340 nos. of training programmes shall be
              conducted in a span of project period throughout
              Maharashtra.
              Total 68 nos. of training programmes shall be
              conducted per year throughout Maharashtra.
              Depending upon the potential in the district, 1 to 3
              nos. of training programmes shall be conducted per
              year.

       PHASE – V
       Monitoring And Evaluation
       For proper monitoring & evaluation of the project, web portal shall be designed.
       Follow-up services shall be imparted to the participants of the training programme
       for six months on completion of the training programme.

       PHASE – VI
       Refreshers’ Course
       To ensure maximum success rate of the start-up activities (enterprises) under this
       project, five days Management Development Programme (MDP) shall be
       conducted for the participants of entrepreneurship development programmes. This
       Management Development Programme shall be designed after accessing the
       training needs of ex-participants. The MDPs may be on subjects viz. marketing,
       finance, logistics, retail, etc. Participants of entrepreneurship development training
       programme shall be imparted MDP after 3 months of completion of this training.
       All the participants trained in the Entrepreneurship Development Programme shall
       be imparted MDP. Thus, 340 nos. of MDPs shall be conducted under this project.
Total cost estimates on ABDF are given in Table 19.
Table – 19 : Details of Cost Estimates of ABDF

Year wise Statement Of Expenditure
                                                                                         (Rs. Lakhs)
   Srl.    Item of                   Details             First    Second     Third     Fourth     Fifth
           Expenditure                                   Year      Year      Year       Year      Year
      1.                   This   task    shall  be      99.00         --         --        --         --
           Area            completed within 6 months
           Assessment      @ Rs. 3 lakhs per district
           Survey &        x 33 districts
           Study of
           District
           Profiles
      2.                   Promotion of the scheme       10.00      05.00     03.00     02.00          --
           Promotion of    shall be done by using
           the Scheme      various tools viz. radio
                           jingles, slogans on walls,
                           road shows, leaflets,
                           brochures, advertisement
                           in newspaper.
      3.                   This   task    shall  be     100.00          --        --        --         --
           Content         completed during the first
           Development     year of the project. 100
                           project profiles @ Rs.
                           10,000/-
      4.                   68 batches shall be          102.00    102.00     102.00    102.00    102.00
           Training        completed under this
                           project. The expenses on
                           the training programme
                           shall be Rs. 1.50 lakhs
                           per batch of training
                           programme.
      5.                   Web portal shall be           20.00       2.00      2.00      2.00       2.00
           Monitoring &    designed & follow-up
           Evaluation      services      shall  be
                           extended to the trained
                           participants.
      6.                   68 MDPs shall be              17.00      17.00     17.00     17.00     17.00
           Refreshers’     conducted during the
           Course          project   period.     The
                           expenses on MDP shall be
                           Rs. 25,000/- per batch.
      7                    2 days programme in first     12.00                           6.00
           training to     year and 1 day in IV
           Bank            year
           officials
                             Total                      270.00    126.00     124.00    129.00    121.00
                          Grand Total                                                         770.00
                                                                 Rupees Seven Crore Seventy Lakh only



4.5        SUB-COMPONENT 5 : ONION STORAGE STRUCTURES
Concept And Experience of The Past
Total onion production in the State is around 18 lakhs tonnes which is almost 30 %
of the country. Around 90 % of the export of fresh and 70 % of processed onion is
from Maharashtra. The idea is to store fresh onion in a scientifically designed
storage or Ventilated structures. This type of indigenous storage of onion improves
shelf life of onion up to 6 months. This enables the farmers to realize a better
price for their produce. The structures are set up on farm by farmers and farmers
groups.     In the absence of storage structures, the farmers have to sell their
produce at the time of harvesting and due to glut of onion arrivals in the market,
the prices of onion fall almost to such level that the realization from the sale of
onion is not sufficient to meet the cost of cultivation of onion. Such distress sale of
onion many a times create law and order situation compelling the State
Government to buy onion at support price. The State Government faced with this
situation had resorted to support price operations for onion in 1999-2000 and had
suffered huge losses. Since then, the State Government has consciously decided not
to undertake buying of onion at support price by Government, instead to overcome
the problem, the program to assist the onion growers for construction of ventilated
storage structure for onion storage on the fields of the farmers, has been started
since 2001.
The cost of setting up of a ventilated onion storage structure was estimated to be
Rs 2000 per MT by Government of India /NHRDF, in 2001. As the prices of steel
and cement increased, this cost was revised to Rs. 3200 per MT. in 2006 and now
it has been reestimated to Rs. 6000 per MT., 25% of this is provided as grant to
the farmer and rest of the amount is either invested by the farmer or is funded
through bank loan. The subsidy component is released after the storage structure
is completed and verification report is received.
Till 2006, the scheme was jointly implemented by Department of Agriculture and
MSAMB, part of funds for subsidy coming from the Agriculture Department and
part by MSAMB. The verification of storage structure was done by joint team
consisting of representatives from both the organizations.
Since 2001 till 31/3/2007, total amount of Rs. 1958 lakhs has been distributed as
subsidy under the scheme creating 3.23 lakhs MT. of ventilated storage structure of
onion on the farmers fields at the production point in Maharashtra State. Out of
the total amount of assistance given by way of grant, the share of MSAMB is of the
order of Rs625 lakhs in which 1.07 lakh tonnes storage capacity is created..
Hereafter also Rs. 1000/- per tonne is going to be provided by Agriculture
Department and Rs. 500/- per tonne by MSAMB.
The ventilated storage structures constructed are of 5 MT, 10 MT, 15 MT, 20 MT,
25 MT and 50 MT as per the need of the farmer/ farmers group. The Technical
Specifications and Design of each type have been worked by Agriculture
Department in consultation with NABARD, National Research and Centre for Onion,
Rajgurunagar, Dist, Pune and MSAMB.


How Producers are benefited :
The onion growers store the onion produce in Rabi season and late rabi season in
these storages. The loss to the farmers due to very low prices during the glut
immediately after harvest is avoided. Loss of onion on account of rottening is
reduced from 30 to 35 % to 5% because of storage of onion in ventilated
storages as compared to traditional storage of onion in heaps covered by
trash/straw. The producer can get around Rs. 2000 to Rs.4000 more per MT. of
onion, if the onion is stored and sold in lean season. Thus the produce having
ventilated storage of 25 MT with the cost of construction of about Rs. 1.5 lakh
today can recover the investment in 2 to 3 years. The life of such storage structure
is around 10 years.


POTENTIAL FOR ONION STORAGE STRUCTURES IN MAHARASHTRA
Considering the total production of 18 lakh Mt of onion in the State and of this
nearly 50 % is of storable type of onion, viz. Agri Found Light Red (AFLR) type, the
storage capacity requirement can be as high as 5 lakh MT in the State. The State
Government has decided to create the total ventilated storage capacity of 5 lakh
MT in Maharashtra. Thus additional storage capacity of around 1.77 lakh MT is to
be created considering the capacity already created.

EXISTING SCHEMES
 GOI                     Capital Investment Subsidy @ 20 % by NHB for
                         Construction/Expansion/Modernisation Of Storages Of
                         Horticulture Product
 MAHARASHTRA             Onion Storage Subsidy @ 25 % by MSAMB and
                         Department of Agriculture


Proposal under MACP
Even though the existing schemes provides financial support to the growers for
construction of ventilated onion storage structure, the farmer has to bring in 75 %
to 80% by way of his contribution and loan. This is possible only to the medium
and large farmers as they have adequate security to offer. It becomes difficult to
the small and marginal farmers to either bring in their own contribution of 25%
and also to get loan from the Bank because of their incapability to offer adequate
security to the Bank. It is therefore proposed to assist small and marginal farmers
who are onion growers and whose area under onion is only upto 1 Ha. Marginal
farmers are those whose land holding is upto 1 Ha. and the small farmers have
whose land holding between 1 Ha to 2.5 Ha.
There are 7 major onion growing districts in Maharashtra. The area and
production of onion in these districts is shown in the following table 20.
Table - 20 : Area and Production of Onion in Maharashtra
 Sr.no. Name of the District    Area in Ha             Production in ooo’
                                                       tonnes
 1       Nasik                  38916                  519.81
 2       Pune                   22451                  366.71
 3       Ahmednagar             19233                  269.42
 4       Solapur                7938                   95.92
 5       Satara                 6374                   67.61
 6       Jalgaon                1562                   20.70
 7       Dhule                  2666                   49.59
         Other Districts        18951                  297.71
         Total                  118091                 1687.47


It may be noted that Government of India has sanctioned AEZ for Onion covering
these districts and various programmes of quality improvement and improving per
hectare yield are being undertaken.
As the number of small and marginal farmers are around 34% out of the total
farmers, storage capacity of 1.77 lakh tonnes to be created, around 0.60 lakh
tonnes storage capacity would be required by the small and marginal farmers, it
proposed to create storage capacity of 10000 MT during each year beginning
from 2008 to 2011 The cost of construction of ventilated onion storage has been
estimated at Rs.6000 per tonne of which 75% is proposed to be given as loan
under MACP and the beneficiary would get the subsidy to the maximum of 25% of
the cost under NHB/MSAMB Scheme. Thus the amount of loan to be given per
tonne would be Rs.4500 and the requirement of funds during the project period
beginning from II year of the project will be Rs.450 lakhs per year. Making the
total requirement of Rs.1800 lakhs. Remaining 1.60 lakh tonnes of onion storage
capacity will be created by availing loans from Banks and subsidy available under
the existing schemes.
During the first year of the project the beneficiaries would be identified in the
onion districts by the joint team of the Agriculture Department and Marketing
Department.


Selection criteria
(i)     Onion grower should fall in the category of small and marginal farmer.
(ii)    The area grown under onion should not be more than 1 Ha.
(iii)   Farmer should give the undertaking that he shall construct the onion storage
        structure as per the technical specifications circulated by the Agriculture
        Department and he shall use that structure for storing the onion.
(iv)    He should also undertake that he shall refund the amount of loan within the
        stipulated period with interest.
(v)     He should not be the Trader or Commission agent or Direct Marketing
        License Holder within the meaning of Maharashtra Agriculture Produce
        Marketing (Development and Regulation) Act, 1963 and rules under that
        Act.
(vi)    The Self Help Groups of onion growers and their associations will be
        encouraged to construct number of onion storage structures as a cluster of
        the central location for the benefit of members of SHGs. This will reduce
        cost of supervision and security and cost of marketing may be reduced as
        bulk marketing will be possible.
      Implementation Co-ordination and Monitoring of the Program
      The individual onion growers complying with the conditions mentioned above and
      their SHGs, small groups will be considered for grant and financial assistance.


      It is proposed that the amount of assistance under MACP should be routed through
      MSAMB, the nodal agency designated for MACP project who will be responsible
      to disburse and recover the amount of loan and also claim / grant and adjust
      subsidy of 25% against loan. The MSAMB will be responsible to monitor and
      coordinate the implementation of construction of onion storages. Fund required for
      creating Onion Storages under MACP are shown in table 21.


      Table – 21 : Funds required for Onion Storage under MACP
       Sr. Particulars        2007-     2008-     2009-      2010-      2011-     Total
       no.                    2008      2009      2010       2011       2012
       1    Onion storage -             10000     10000      10000      10000     40000
            scheme to be
            created in MT
       2    Total   cost -              600       600        600        600       2400
            @Rs.6000/MT
            (Rs. In Lakh)
       3    World Bank -                450       450        450        450       1800
            Component
            (Rs. In Lakh)
       4    GoI(NHB)          -         150       150        150        150       600
            +MSAMB
            subsidy


4.6   SUB-COMPONENT 6 : Onion Grading Units and Pack houses

      Onion is normally sold ungraded, loose by the farmers. This results into lot of
      wastage due to handling. Onion is highly cross pollinated crop and it is very
      difficult to maintain the purity of the variety unless high quality certified seed is
      used by the producer every year. At present almost 75% of the producers use the
      seed produced by the farmer themselves or by the other farmers. Out of the total
      quantity of 7500 quintals of seed required for planting the area of about 1 lakh
      Ha. under onion every year in Maharashtra, hardly 1500 to 2000quintals of the
      certified seed is produced by the State and National Seeds Corporation, seed
      companies and the Agri Universities. This leaves the large number of farmers to
      grow their own seed or to buy the seed in local market and use it for planting new
crop of onion. Therefore even from one field Onion is not uniform. The produce
also has different size of bulbs.
The State Government has been addressing to this issue and State has decided to
produce more quantity of certified seed through the State and National Seed
Corporation, Agri Department and Agriculture Universities in the State. Even then,
the problem of unevenness of the produce with regard to the size of bulbs would
continue. Uneven size of the bulbs in the produce of onion affects the price
realized by the farmer. At present the grading and sorting of onion is done even
by the exporters by employing human labour. This involves very heavy cost of
grading and sorting and the human bias is also affects the process of grading and
sorting.
Experience has shown that properly graded and sorted onion fetches at least
Rs.1000 to Rs.1500 per tonne more than non graded produce. Looking to the
huge production of around 18 lakh tonnes of onion in Maharashtra every year, of
which almost 6 to 7 lakh tonnes being exported, huge mechanical grading, sorting
and packing units are required in Maharashtra. One such unit is installed by
MSAMB at Indapur in Pune District with the total investment of around Rs.250 lakhs
of which APEDA has given 75% grant. This unit has the capacity of 10 M.T. per
hour. It is however felt necessary to provide grading machine of small size to the
onion grower/ SHGs/ Co-operative Societies of Onion growers who could install
the same in small pack houses of their own for onion grading and packing. This will
add value to the produce of the farmers and will fetch them better price.
Proposal Under MACP
It is proposed to provide the loan assistance of 50% of the cost of Mechanical
grading machine having the capacity of 0.5 tonne/hour, which is developed by the
National Research Centre, Rajgurunagar, District Pune. The cost of this machine is
estimated at Rs.20000. Few of such machines have been installed by the APMCs in
Onion growing districts and are working successfully extending benefits to the
farmers. Farmers are not coming forward to install the machines and build pack
houses, as loan availability is the main constraint. If World Bank loan is made
available the program will become popular and it will add strength to the onion
growers as they will get more price of the onion. A small pack house of 150 sq. ft.
with the estimated cost of Rs.60000/- is proposed to be assisted with this machine.
An onion grower individual farmer or the group of farmers (SHG) or Cooperative
Society of farmers will be provided with this assistance. The beneficiary has to
contribute 25% of the cost and machines and pack houses.
The cost estimates of onion grading machines and pack houses are shown in table
22.
Table – 22 : Financial requirement under MACP for Onion Grading.
                                                                          (Rs. In Lakhs)
 Sr. Activity       Physica Unit           Total   Self         NHB/        World Bank
 No                 l Target cost          cost    contributi   NHM         Component
                    units                          on      by   assis-
                                                   producer /   tance
                                                   SHG/         (grant)
                                                   Coop.
 1    Onion         1000       0.20        200     50           50         100
      Grading
      Machine
 2    Onion         1000       0.60        600     150          150        300
      Pack
      houses
      Total         1000       0.80        800     200          200        400


 Though the requirement under this component is very large, to start with only 1000
 grading machines and 1000 pack houses are proposed in the first phase during
 the MACP project. If the program is successful large number of such units will be
 established in Maharashtra.
 Selection Criteria of the beneficiaries
     (xiii)   The beneficiary must be the onion grower or group of onion growers/
              SHG of onion growers or cooperative society of the farmers growing
              onion.
     (xiv)    The beneficiary should have installed the onion storage structure of 25
              MT capacity of their own.
     (xv)     The beneficiary should be willing to invest own contribution of 25% of
              the cost.
     (xvi)    The beneficiary should have land to construct the pack house of 150 sq.
              ft.
     (xvii)   The beneficiary should not be the trader or commission agent or direct
              marketing license holder within the meaning of the Maharashtra
              Agriculture Produce Marketing (Development and Regulation) Act,
              1963 and Rules there under.
     (xviii) He should undertake that he shall repay the amount of loan together
             with interest within the stipulated period.
 Implementation, Coordination, Monitoring of the Program:
 The MSAMB will function as Nodal agency for this program and will coordinate
 and monitor the same. The World Bank assistance will flow to the beneficiary
      through MSAMB, who shall be responsible to identify the beneficiaries, disburse the
      amount of assistance, coordinate and monitor the program, give training to the
      beneficiaries and recover the loan together with interest from the beneficiaries and
      pass it on to the State Government.


4.7   SUB-COMPONENT 7: PLEDGE LOAN SCHEME

      Concept and Past Experience
         •   In harvesting season there is a huge arrival of particular commodity in the
             market in very short period, which causes substantial fall in market prices of
             that commodity. Farmers do not have capacity to hold their stock, so they
             have to sell their produce at a very meager rate in the market. Under the
             pledge loan scheme the farmer keeps his produce in the APMC godown
             and gets 75% of the value calculated at the prevalent market price of the
             produce kept in the godown as advance. As the prices of the commodity
             rise in the market the farmer sells his produce in the market and repays his
             advance and thus fetches higher price for his produce at reasonable levels.

         •   The MSAMB has introduced the scheme of pledge finance for the benefit of
             farmers of the State. Initially, Green gram, Black gram, Lentils, Soyabean,
             Paddy, Sunflower and Yellow gram where covered under the scheme.
             From year 2004-2005, MSAMB has extended this scheme for Sorghum,
             Pearl millet and Maize and since 2005-06 raisin, Cashew Seed & Onion
             have also been included under the scheme.

         •   Under this scheme, a farmer can store his produce in Godowns of APMC
             and can immediately get 75% of the price of his produce (for Sorghum,
             Pearl millet and Maize 50% or Rs.300/- whichever is less). For raisin
             farmer can immediately get 50% of his price of his produce from APMC.
             The APMCs maintain this pledged stock free of cost. The farmers can sell
             their produce when the prices are higher. The pledge loan limits are
             sanctioned to APMCs by the MSAMB as per their demand.

         •   Under the scheme, the farmer is given advance against his pledge produce
             to the extent of 50% to 75% of the value of the produce calculated at the
             price prevailing in the market, on the date of pledging the produce. The
             MSAMB charges the interest @ 6% on pledge loan given to APMCs except
             for the loan given for Cashew in which case interest @ 8% is charged. The
             farmer is allowed to avail this facility up to a period of 180 days. Details
             of amount sanctioned as pledge loan to APMCs, its recovery during the last
             5 years is shown in table 23.
    Table - 23 : Details of amount distributed to the APMCs under the scheme
    and Recovery of loans is given below :
                                                                 (Rs. In Lakhs)
        Sr. Particulars                                   Year
        No.                     2002-03      2003-04     2004-05     2005-06     2006-07
        1.  No. of APMCs           23          27          26          27          31
        2.  No.           of      800         1500        3500        1200        2281
            beneficiaries
        3.  Amount               358.85       603.89     1530.34      564.18     929.88
            Distributed
        4.  Recovery              100%        100%        100%        100%        100%


•      The MSAMB is running the scheme from its own funds. Though there is a
       huge potential to expand the coverage of the scheme, due to constraints of
       funds, the MASMB could not do so. The MSAMB had approached NABARD
       to give refinance to the extent of Rs.100 crores to the Board so that the
       MSAMB can cover large number of farmers, who will be benefited by
       selling his produce when prices are reasonably good. However NABARD
       declined to give refinance to MSAMB on the ground that MSAMB is not the
       financial institute.

       Interestingly, though there is a refinance scheme of NABARD for pledge
       loan of food grains applicable to Cooperative and Commercial Banks, not
       a single Bank in Maharashtra has been able to avail benefit under the
       scheme and pass on the same to the farmers due to various reasons. It is
       only MSAMB in the state which is implementing the scheme of pledge loan
       to farmers, from it’s own funds, though on small scale.

Benefits of the Pledge loan scheme:
1.     Normally the producers are required to sell their produce immediately
       after harvest mainly for two reasons (a) The immediate need of money to
       meet his requirements (b) No storage facility is available with the
       producers. Both these exigencies are addressed under the scheme and the
       producers are not required to sell their produce at distress sale.
2.     Pledged produce is scientifically stored in Godowns which minimize losses
       and maintain quality. The produce is protected from the possible damage
       by rats, insects, birds and rodents, due to scientific storage.
3.     The scheme results in giving reasonably good price to farmers as farmers
       will not be able to sale during the glut season at distress prices. To illustrate
       the prices of Soybean are in the range of Rs.9500 to Rs. 10000 per tonne
       immediately after harvest in November / December whereas these prices
       are around Rs. 15000 to Rs. 16000 per tonne in May/ June. This can
       fetch around Rs. 6,000 per tonne more to the producer who has availed the
       facility of pledge loan scheme. Even after providing for interest on
       advance and reduction of weight in Storage, farmer can get around Rs.
             3000 to Rs.4000 per tonne as a direct benefit because of higher price to
             his produce
      4.     The benefits are available to the producer only & not to trader or hoarders
             of produce. There is a constant monitoring of the scheme by APMC and
             MSAMB.

      Proposal Under MACP

      It is proposed to expand the pledge loan scheme to cover large number of farmers
      with the help of assistance from World Bank under MACP. MSAMB would invest
      Rs. 2000 lakh as its commitment and will avail Rs. 2000 lakh from Government of
      India from Additional Central Assistance Scheme of Prime Minister declared
      recently. In view of the fact that the Godowns of PACS will also be available for
      Pledge Loan Scheme to APMCs. Under the Additional Central Assistance Program
      assistance will be available to PACS for repairs of their godowns in the scheme
      and Rs. 4000 lakh may be provided by World Bank under MACP to MSAMB
      through the State Government. At present, the MSAMB provides loan to APMC @
      6% rate of interest, from its own funds and MSAMB loses around 3 to 4% from its
      resources. If the World Bank loan comes as a soft loan, the MSAMB may not be
      required to lose, otherwise MSAMB, anyway will have to bear the additional
      burden on interest in the interest of the farmers of the State.

      The assistance that will be provided under MACP in the first year will be revolved
      during the project period and the recovery would be 100%

      Funds proposed for pledge loan scheme is thus Rs. 2000 crore from Government of
      India Rs.4000 lakh from World Bank under MACP and Rs.2000 lakh from MSAMB.


4.8   SUB-COMPONENT 8: COLD CHAIN DEVELOPMENT

      CONCEPT
      Maharashtra State is the major producer of the fruit and vegetables in the country.
      With the effective implementation the EGS scheme the cultivated land under
      horticulture crops in the State increased by almost 500 %. The present level of
      production of horticultural produce in the State is expected to go up by 100 %
      within a very short period of next 2-3 years. It is estimated that as much as 30 -
      35 % of fruit and vegetable production is lost on account of lack of adequate post
      harvest infrastructure. Agricultural produce of the farmers do not get remunerative
      prices due to lack of grading, proper packaging and in turn there is huge post
      harvest losses. In future establishment of Cold Chain in the State has a prime
      importance for fetching good prices for agricultural produce in the International
      markets.
The perishable agricultural produce will get storage facility if cold storages are
established by Agricultural Produce Market Committees (APMCs) and Co-operative
societies functioning in the various regions of the State. This will not only reduce glut
in the market and avoid price fluctuation but it will also increase the shelf life and
quality of agricultural produce. Thus in turn the producer would get remunerative
prices for their produce. Under the component of setting up of AGRIMARTs and
Strengthening of APMCs, Pre-cooling units, cold storages and Ripening Chambers
have been proposed. Likewise cold storages are proposed for fish and dairy
products. However for transporting the Agriculture Produce in cold chain, reefer
transport system would be required. Use of reefer vans for transporting perishable
products is increasing steadily and it will continue to increase. Therefore the
provision for making Reefer Transport vans available to the AGRIMARTs is
proposed to be established under the projects.


COSTS
The cost of one Reefer Van vehicle of 7 MT capacity is estimated at Rs 15 lakhs.
DETAILS
The cold chain proposed under the component includes the provision for Reefer
Vans to AGRIMARTs, Since the AGRIMARTs are going to be linked to Rural Chain,
processing units, and export units Reefer Vans will be required to maintain cold
chain for perishables like fruits, vegetables, fresh milk products etc.
Proposal under MACP :
On an average the cold chain needs of the State has been estimated at Rs 390
Crores by the State Marketing Board. Initially a very moderate number of 125
Reefer vans are proposed to be given to the AGRIMARTs APMCs taken up for
modernization under MACP and State Level commodity marketing organizations.
Total investment of Rs. 1875 Lakh is proposed for this purpose. 25 % of the cost
will come by way of contribution by the beneficiary AGRIMART and 25 % as grant
from GoI under the existing scheme and the rest 50 % is proposed to be availed
from World Bank under MACP during the four years of the project period
beginning from II year of the project The Agrimarts where reefer vans / insulated
trucks are proposed are not included in this component.
The proposal is to provide 125 Reefer vans under the project with the total outlay
of Rs 1875 lakh., as shown in table 24.
      Table – 24 : Cost Estimates for Providing Reefer Vans.
                                                                               (Rs. In Lakh)
           [   Activity    No of       Unit     Total    Private sector   GoI     World
                          units (vs    Cost     Cost      contribution   grant     Bank
                          potential   (Rs in   (Rs in    (Contribution   25% assistance
                           in the     Lakhs)   Lakhs)          by                  50%
                           State)                        beneficiaries)
                                                             25%
       Reefer             125         15.00     1875        468.75      468.75 932.50
       Vans               (1000)
       Total                                    1875         468.75       468.75 932.50


      EXISTING SCHEMES
       GOI                            NHB gives subsidy of 20 % for the purchase of Reefer
                                      vans.


      The reefer vans will be given to private entrepreneurs for their operations and
      management by AGRIMARTs, on rentals.


4.9   SUB-COMPONENT 9: MAHARASHTRA STATE AGRICULTURAL QUALITY
      STANDARDS BUREAU


      CONCEPT
      For the purpose of creating the standards, provide training in this regards, etc it is
      proposed to create Maharashtra State Agricultural Quality Standards Bureau
      (MSASB) in the MSAMB.
      The major work of the MSASB will be as below
      1.              Develop the standards for fresh agril produce as well as for processed
                      products on lines of International and National standards. The expert
                      agency with the guidance of NIAM, MANAGE would be identified and
                      the work of developing Standards for different crop produce would be
                      assigned to this body.
      2.              Disseminate the Standards to the farmers and make these standards
                      popular amongst farmers; APMCs; AGRIMARTs; Terminal Markets etc.
      3.              Training of the trainers and then training to the farmers for grading and
                      standardization
      4.              The existing laboratories of Maratha Chamber of Commerce and
                      Industries, National Research Center for Grapes at Pune will be used for
                      testing standards. .
COSTS
The moderate provision of Rs 5 Crore to meet the cost of Expert Agency to be
appointed by MSAMB is made and the provision for trainings the farmers about
various standards in AGRIMART areas @ Rs 10 lakh each is made. Thus total
provision of Rs 1800 lakh is proposed under this component. The quality standards
Bureau will be self supporting as the services provided will be against the charges
to be borne by beneficiaries. Out of the total cost of Rs. 2300 lakh, Rs. 500 lakh
towards the expert agency for developing standards may be fully funded by
World Bank and out of the training cost Rs. 1800 lakh 25% is proposed to be met
by assistance from Government of India and balance may be funded by World
Bank.
DETAILS
International Standards for fruits, vegetables, food grains, meat, fish etc have
been developed and they are getting importance as export from the country is at
increasing rate. On the similar lines standards for the fruits, vegetables, meat, fish,
food grains etc. should be developed for the Domestic market.
These developed standards should be made popular in the International and
Domestic Markets. This activity will help to boost the quality production of the
produce. Consumers will get the quality produce. In turn, farmers will get better
prices for his produce and ultimately it will help to increase export from the
country.


SUGGESTIONS UNDER MACP
The cost of Expert Agency and training for farmers about standards is shown in
table 25.

Table – 25 : cost of Expert Agency for developing standards and Training of the
same.
                                                                         (Rs. In lakh)
 Activity                           No of units        Unit Cost         Total Cost
                                   (vs potential     (Rs in Lakhs)     (Rs in Lakhs)
                                   in the State)
 To meet Expenses of expert                              500          500.00
 agency to develop standards                             (LS)
 Training Program for farmers     180                     10          1800.00
 relating to standards in 125     AGRIMARTs
 AGRIMART, 1000 farmers           1000 farmers.
 per Agrimart @ 1000 per
 trainee.
                                  Total                               2300.00
4.10   SUB-COMPONENT 10: CLEAN MILK                       PRODUCTION         ENHANCEMENT
       PROGRAMME – COMMUNITY MILKING

       India is the largest milk producer in the world. However, 98% of the total milk
       produced in the country is produced by more than 60 million milk producers living
       in more than 5 lakh remote villages. This is true fro Maharashtra too. With the
       total milk collection of around 82 LLPD by the organized sectors by Government,
       cooperatives and private dairies, these are around 20 lakh milk producers spread
       over around 25000 villages in the State. The advantageous position in
       Maharashtra is that almost 18.42 lakh milk producers are organized themselves
       into 26881 DCS and 87 Dairy Cooperative Federations, Thanks to the
       programmes like operation flood programme, efforts of NDDB, Government of
       India, Government of Maharashtra and at the local organizations like BAIF and
       many other farmers cooperatives. Even though the Maharashtra can boast to be
       the largest milk producer in the country, most of the our dairy farming is in
       backyards of the farmers scattered in the state and carried out in traditional way,
       leaving tremendous scope for improvement in productivity of milch animals and
       quality milk production.

       The Concept of Community milking

       A historical perspective in the evolution of modern dairy production is the
       developed dairy nations.
       In the sixties dairy production in today’s developed dairy countries like Sweden
       was similar to the structures in India today. There were several farms and milk
       production was a backyard activity. In the seventies it was recognized the majority
       of the diseases encountered by the milk producers were multifactor in causation.
       Factors like hygiene, nutrition and general management were recognized to be the
       major determinants of disease (Martin et al 1990)1. Reproduction and production
       inefficiencies and inability to identify disease at a sub-clinical level were identified
       to be the major cause of economic loss to the farmer (Goodger and Rupanner,
       1982)2. Along with this their was an increasing awareness among consumers who
       formed the main pressure group instrumental in developing regulations on the
       antibiotic, dioxin and mycotoxin residues in milk. All this resulted in high health
       levels at a herd level in contrast to an individual animal level. This resulted in
       systems that were engineered to predict underlying problems related to
       production, health and quality at a sub-clinical level. Dairy production was
       performed through proactive programs through positive and preventive
       intervention resulting in efficient production.


       Without transforming the existing diffused production structure into a more
       intensive system is it possible to improve?
An attempt is hereby made through the “village as a farm approach”. The main
objectives of this proposal are:
    •         Improve the milk yield and productivity of the herds through education.
    •         Improve milk quality by harvesting milk hygienically using milking
              machines at the milk collection centers.
    •         Improve the microbiological quality of milk by reducing the total
              bacterial count by 50%.
    •         Saving on transportation and spoilage of milk.

The infrastructure at the community milking centre consists of a milking system, milk
cooling and storage facility, milk quality evaluating and recording system, hygiene
kits and power generation. The community centre will act as a platform for overall
development of the village. The program will be initiated by a training program
where trainers from the extension wing of the dairy will be trained on aspects
related improving productivity and milk quality.

Community milking centres

Community Milking Centres (CMC) will be introduced in Maharashtra in Mult state
Agriculture Competitiveness Project (MACP) funded by the World Bank.. The
mission of this project is “Improvement in Milk Quality & Yield by establishing
modern dairy farming in Maharashtra”.

Each CMC will be equipped with a bucket milking machine, bulk milk cooler and an
automatic milk collection unit (AMCU). Training will be provided to the farmers for
improved feeding breeding and management.

Success Story of Community Milking :
This project was implemented in DCS and in Kolar district of Karnataka, The
results of which can be summarised in a nutshell as follows:
•       At the farmer level improved milk production, reduced incidence of mastitis,
        comfortable milking routines and improved milk price.
•       At the DCS level, control over milk quality through reduced milk
        adulteration, increased milk collection, reduced spoilage, improved milk
        quality (TBC), increased membership.
•       For the milk union reduced spoilage, reduced transportation cost, better
        milk for high value products, tetra packed milk in this case.

Reference:
1 Martin, S.W. (1989) Causal inferences: An epidemiologist’s view point. Can. Vet. J. 30: 302-303

UNICEF, 2004.http://www.unicef.org/india/nutrition_144.htm, 2004.
2 Goodger, W. J. and Ruppanner, R. (1982) Historical perspective on the development of dairy

practice. J. Am. Vet. Med. Assoc. 180: 1294-1297
    This success story set a trend in this region and has in the last one year resulted in
    over 150 CMC installations. The national dairy development board (NDDB) has
    approved this concept as a viable idea and recommended it to the milk unions .

Quantifying the Impact of Community milking

1.       High yielding HF cows where milked hygienically and with good milking
         routines which improved production in most animal ranging from 5 to 20%

2.       Due to good pre and post milking hygiene like disinfecting each milking unit
         in a disinfectant solution prior to milking and dipping the teats in teat dip
         after milking case of clinical mastitis in most centres that 50%.

3.       As the animals are healthier and the milk is harvested in to clean milking
         cans without any occasion of contamination from the environment the
         hygienic quality of the milk improves 20 times.

4.       The very high quality of milk produced due to this improved system is
         preserved by immediately cooling it at source thus improving the final
         quality of milk over 6 times.

Results
• There was a remarkable improvement in the raw milk quality with the MBT
   values improving from 0.45 to 2 hours to 5.45 to 6.30 hours
•    The total bacterial count in improved fro 15 to 7 m to 0.16 to 0.4 m.
•    Incidence of clinical mastitis was reduced by 50%
•    Loss due to spoilage of milk reduced to less 0.3%.
•    There was lowering of transportation cost as milk was collected only once a
     day instead of twice a day earlier.
•    The improved quality of raw milk led to an improved capacity utilization of the
     UHT plant and the opportunity of producing Amul Masti Dahi was created.
•    In survey conducted where more than 100 stake holders were interviewed the
     beneficiaries reported that the CMC’s have increased the comfort of
     operations and made keep dairy cows relatively easier.

The CMC as a development alternative

The community milking center becomes the platform for over all development in
milk production. The farmers and their milking animals visit the CMC twice a day
and interact with the CMC managers and each other thus providing a channel for
exchange of information.
The Community Milking is also successfully being implemented at Phaltan in
Satar District, with all the benefits highlighted in Kolar Project.
Training

Training will be given to the CMC operators on the Village as a Farm concept.
Specific training on basic concepts milk production will be provided by experts
through participatory teaching and knowledge transfer methods. This training is
intended for trainers who will train others. Training and tools will be provided for
animal registration useful for maintaining lifetime records of each animal in the
village. Training will be provided to generate a daily activity schedule for animal
owners and CMC managers for activities such heat detection, pregnancy diagnosis,
drying off, steaming up, vaccination, deworming, calf dehorning, insurance etc.
Training on hygiene and milk quality and somatic cell count will be provided and
data collection and monitoring at the bulk milk cooler for each day and CMT score
registration for each animal once a month will provided. Training will also be
provided on generating and interpreting alarm lists on animals not showing heat,
calved animals not showing first heat, animals wit fertility problems, animals not
achieving peak yields in the desired period, animals with low milk yields, per
lactation day, animals with longer open days, animals with lower than 100 days
production, animals with longer inter calving periods etc.

Milking systems

The drawing shows the main components of a bucket milking installation

a)     Vacuum pump unit (pump, motor, sanitary trap/ vacuum tank).
b)     Vacuum pipeline with vacuum cocks and drainage valves.
c)     The bucket unit consists of the cluster, long pulse tube, vacuum hose, long
       milk tube, and bucket with a pulsator mounted on the can cover.
d)     WA2 cluster cleaner.
e)     Vacuum regulator & Vacuum gauge

The milk flows from the cluster through the long milk tube into the bucket which has
a volume of 20 liters. The bucket functions as a intermediate storage vessel for the
milk of one or more buffaloes and as a vacuum reserve.

Benefits of a bucket milking system

•      Suitable for herds up to 100 milking cows
•      Cows are milked faster and cleaner compared to hand milking
•      Improved milk quality compared to hand milking
•      The operator can milk more animals compared hand milking
•      One bucket unit can milk up to 6-7 buffaloes /hr /unit (usually 3- 4 units
       per milkier).
Bulk Milk Coolers

A direct expansion open semi cylindrical type cooling tank of 2000 LPD
capacity designed as per ISO 5708 guidelines
Benefits of bulk cooling of milk at the site of production

•      Longer collecting intervals reduce costs
•      Flexibility in Milk Delivery & Pick-up time
•      Handling of cans eliminated
•      Simplified & cheaper handling
•      Improved & more stable milk quality
•      Will include small & remote producers
•      Reliable & systematic collection
•      Maintenance of good hygienic conditions
•      Reduction in collection costs

Planning a community milking center

•      Location – It is important that the site selected for establishing a community
       milk centre should be centrally located so that the cow traveling from the
       furthest home in the village should not have to walk more than ½ a Km.

•      The site should in a clean, hygienic and quite place with adequate
       drainage

•      Site should be spacious enough to accommodate cow traffic (animals
       coming into and leaving the CMC).

•      Only Healthy animals screened for all contagious disease especially
       mastitis should be permitted to be machine milked.

•      The milking schedule for animals should be well planned so that animals are
       not standing outside the CMC for too long.

•      Clean potable water connection and rubber hose for udder washing
       cleaning of milking cans and the milking cluster.

•      The milking machine operator and CMC supervisor should be carefully
       selected and trained prior to commissioning of the CMC

•      If there is an existing shed it should be modified as per guide lines of our
       technician after site visit.

•      Feed racks and partitions should be installed so as the keep the animals in
       good position while machine milking

•      Sufficient water storage facility should be stored in an overhead tank at
       the CMC
       It is proposed to establish Community Milking Centres at 350 locations in
       Maharashtra. This number is not very big considering the total number of DCS
       collecting more than 2500 liters of milk per day. The SHGs of the milk producers
       will also be formed in the area of operation of DCS selected. These SHGs will be
       linked to DCS undertaking the project of community milking, so that members of
       SHG are also benefited. There are more than 1000 DCS in the State collecting
       more than 2500 liters per day. The cost of establishing one Community Milking
       Centre will be around 15 lakhs. Thus total investment required to start 350
       Community Milking Centres in Maharashtra works out to be Rs.5250 lakhs. Out of
       this it is proposed that 10% of the cost will be shared by the SHGs / Associations
       of SHGs/ DCS from their own resources. It is proposed to avail the assistance of
       25% i.e. Rs. 1312.75 lakh from Government of India under Additional Central
       Assistance Program. and the rest may be provided by World Bank under MACP.
       Thus the World Bank assistance under the programme works out to be Rs.3412.75
       lakh over the project implementation period. Cost estimates of Community Milking
       Centers proposed are shown in table 26.

       Table – 26 : Cost Estimates of putting up Community Milking Centres

        Sr. Activity      Physical Unit     Total   Contribution     GoI     / World
        no.               Target   Cost     Cost    by       SHG     GoM       Bank
                                                    Associations/    25%       Assistance
                                                    DCS       and              65%
                                                    Dairy Coop.
                                                    Federations
                                                    (10%)
        1    Community 350           15     5250    525              1312.25    3412.75
             Milking
             Centres


4.11          SUB-COMPONENT 11: FEASIBILITY STUDY OF THE PROPOSED MILK
              MARKETING BOARD (Dairy Department)
       For monitoring all the activities of Training, Research and Development,
       Advertisement and domestic marketing etc., one central body is proposed to be
       formed called as MAHARASHTRA MILK MARKETING BOARD (MMMB) which will
       work as an autonomous body. The Maharashtra Milk Marketing board will be
       registered as a Company, the shares of which shall be available to all the bodies
       engaged in milk production, distribution, processing etc. This will include
       Government, Milk Co-operative Societies, Taluka, district and State federations of
       these co-operative societies and private dairy owners. This Board shall be
       dedicated to all the modern technologies in the field of Marketing/Processing and
       Export of Milk and Milk Products. This Board shall be run purely on professional
       line. On the lines of       Gujarat Co-op Milk Marketing Federation, National Egg
       Co- Ordination Committee or World Trade Center it will provide information &
       market requirements of domestic as well as international market to the producers. It
       will help in finding out international requirements & arrange meetings of sellers &
       buyers. As AMUL has developed its market under one Brand for all Dairy co-
       operatives of Gujarat, this Board shall develop Brand for Maharashtra. It is
       proposed to establish MMMB at Pune in the premises of Govt Milk Scheme or
       Katraj Dairy. The MMMB shall require land, buildings, vehicles, staff, competitive
       marketing systems & market research arrangements. It is expected that this Board
       will help the Dairy co-operatives and farmers in getting good returns of their
       produce. The milk cooperatives of the farmers would welcome the idea. It would
       not mean adding one more tire in marketing of milk and milk products, as the
       Primary Dairy Cooperative Federation in Private Dairy Industry would be directly
       linked to this Board. However, before taking final decision in the matter, detail
       feasibility study for establishing such board, it’s structure and organizational setup,
       likely constraints in its working and the advantages such board will bring to Dairy
       farmers, would be carried out by engaging expert consultants. The provision of Rs.
       50 lakhs is proposed to be availed from World Bank under MACP for this
       purpose, as Department may not be able to find out resources for such study.


4.12   SUB-COMPONENT 12: FACILITIES AND INFRASTRUCTURE FOR SUPPLY OF
       FINGERLINGS FOR IMPROVING QUALITY PRODUCTION OF FISH:
       Right now there are about 42 fish seed farms in the state for production & supply
       of fish seed to the fisheries co-operatives / individual fish farmers who have there
       own source of stocking of seed, which is basic requirement in Inland fisheries sector.
       Besides total number of 192 tanks with more than 200 ha. water spread each and
       with the total water spread of 1.86 Lakh ha. There are 2065 water tanks with less
       than 200 ha. water spread each has the total water spread of 1,01,800 ha. in
       Maharashtra. Thus the total water spread of all irrigation tanks (Total 2257) total
       water spread is of 2,87,000 ha. There tanks are given to Fisheries Department by
       State Government for fisheries development. This leaves tremendous potential for
       development of Inland fisheries. These tanks are auctioned by the fisheries
       department, for fish catch and the fisheries cooperative societies are given
       preference.
       The clients for fish fingerlings are thus the (i) Fisheries cooperatives, (ii) Fish farmers
       growing fish in fields (iii) Farm bands or farm tanks in which farmers are growing
       fish.
       Requirement of Fingerlings:
The fisheries department has established the requirement of fingerlings per year
as 6000 lakh whereas the state has the capacity to produce only 2000 lakh
fingerlings per year and 1000 lakh fingerlings are imported from other states.
Thus there is a gap of 3000 lakh fingerlings per year. Because of inadequate
availability of the fingerlings not only the production can not be increased but the
quality production of fish also hampers.
At present, production of inland fish is 1.5 lakh tonnes and marine fish is 4.0 lakh
tonnes. National Development Council has recommended the growth rate of 6% in
fish production and targeted the production of 8.0 lakh MT of fish in Maharashtra,
by 2011. Supply of good quality, disease free, good variety fingerlings to the
producers will make this possible, with quality production of fish.
It has therefore been proposed to develop infrastructure and provide facilities and
technology for growing of fingerlings of best quality by the fish producer SHgs.
These SHGs will be provided financial and technical support to the produce
fingerlings. These will be function as fish seed nurseries. In such SHGs these may
be exclusive fingerlings producers or fingerlings and fish producers as members.
The farmers having farm tanks and who are interested in this business will be
selected, and they will be organized in to SHGs. The fishermen and farmers in the
neighborhood of selected small irrigation tanks with less than 200 ha. water
spread will also be organized in to SHGs. These selected small irrigation tanks will
be reserved only for the purpose of production of fingerlings.
Initially it is proposed to select 100 irrigation tanks and 50000 farmers who have
farm tanks. Each SHG will be 20 members. For each irrigation tank, about 10
SHGs will be organized (Total membership of 20,000). Thus there will be 1000
SHGs for irrigation tanks and 250 SHGs of farm tank owners.
Association of these SHGs will be organized having 20 to 25 SHGs in one
Association. These associations will be at the district level and will be linked to
ATMA.
The members of SHGs, Chairman of SHGs, Management of Associations will be
trained by extension staff of ATMA and line departments and the fingerlings
production and distribution (sale) of same will be carried out under the supervision
of SHG / Association/ ATMA.
Wherever, the cooperatives are active and are in profit they would also be
involved in this program and in that case, these societies can function as distribution
centers of fingerlings to their members, for production of fish.
As the production of fingerlings and fish has been successful in the part, this project
will be successful.
The structure and function of the organizations involved in this programe would
look as shown below.
       Fishermen       Production of      Farmers                    Fisheries Coops.
                       Fingerlings        with farm
                                          Tanks                       (Sale of fingerlings
                                                                      And inputs)
                                                      Training & Tech. Inputs & supervision
            SHGs                        SHGs

                                                      Training & Tech. Inputs & supervision
               District Level          Associations          ATMA


                                Federation / Company
                State Level


       Cost estimate of the Infrastructure proposed and cost of training, extension,
       marketing of fingerlings is shown in following table.
       Table – 27 : Cost Estimates of Creating Infrastructure for production of
       fingerlings
                                                                    (Rs. In Lakh)


       Sr. Name                    Physical Unit             Total Cost    GoI        World
       No.                         Target / Cost                                      Bank
                                   Unit
       1.    Establishment of fish    20      10                200           40         160
             seed farm
             a) Hatchery /Nursery
             b) Rearing Unit         200       4                800          160         640
             Total                                              100          200         800

       Note : Fingerlings production per unit will be about 50 lakh and total production of
       fingerlings planned is 10 crore. Realization of fish within 1 year is expected to be
       around 60% i.e. 6 crore fish of around 1 kg each, which can fetch value of Rs.
       1500 Crore.
       All these activities will be income generating and self sustaining wherever
       necessary private entrepreneurs will be involved for operation and management
       of infrastructure.

4.13   SUB-COMPONENT 13: PRIVATE CATTLE MARKET CUM SMALL ANIMAL
       ABATTOIRS. (Animal Husbandry Department)


       To induce the clean and hygienic meat concept in the domestic market and to
provide fair price to the livestock owners this scheme is proposed. The scheme
includes grading and air tight packing unit which will provide high keeping value
and hygienic meat in domestic market and the same is proposed for export also.
This will provide handsome price to the livestock owners and will take care of
public health.
To provide fair price to cattle and to provide fair price to livestock owners 15
private cattle markets are proposed. The cattle market and the abattoir are
proposed in the single campus. Price fixation on the basis of milk production is
proposed to eliminate the middle man and to give fair price to the livestock
owners.
For sheep and goat sector when purchases are made for mutton purpose then the
criteria of pricing on the basis of live weight is proposed to give competitive price
to the livestock owner. The veterinary aid, registration of high yielding milch
animals and sell of animals on the basis of auction are the value added concepts in
this regard. Details of the investment proposed in private cattle markets are shown
in table 28.
Table – 28 : Details of One Private Cattle Market and Small Animal Abattoir:
 SN                               Items                            Amount Rs
                                                                   in Lakh
 1. Land –25 acres @ Rs 5 lakh per acre                                 125.00
 2. Administrative Building &Vet (Aid room) milking room,                25.00
      Computer room (5000 Sq. ft. @ Rs. 500/Sq.ft.)
 3.   Cattle Shed-10 (50 animal capacity) of 2500 sq. ft.                      10.00
      area @ Rs.400/ Sq. ft.
 4.   Dormitory –2, with toilet & DC (1000 sq. ft. @ Rs. 500/Sq.ft.)           10.00
 5    Cattle feed input shops four in number @ Rs. 3.5 lakhs/shop              10.00
 6    Compound, drainage water supply internal road & light.                   20.00
 7    Auction platform with shed 5000 Sq. ft. @ Rs. 400/Sq.ft.                20.00
 8    Building for Abattoir along with plant and machinery for the           100.00
      capacity of 500 animals /day
 9    Mech. Grading and Air tight packing unit & mechanized and              120.00
      advanced tannery.
      Total                                                                  440.00



Ten such markets are proposed at the 10 locations and an allocation of Rs. 4.40
Crore is proposed for this activity.
 SN   Name                         Unit    Total      Private   GoI       World Bank
                            Nos.   cost    cost      Entrepre   Grant     Assistance
                                                                25%       50%
                                                      -neurs
 1    Private Cattle         10     440     4400       1100      1100        2200
                Market And Small
                Animal Abattoirs
                Total               10     440    4400       1100      1100        2200


       Justification :
       In the light of marketing Reforms introduced in the State, Private livestock markets
       would be permitted. These markets will become the alternative platform available
       to the farmers to sell their animals. This will enable the producers to get better
       price.


4.14   SUB-COMPONENT 14: STRENGTHENING OF EXISTING CATTLE MARKETS OF
       APMCs (Animal Husbandry Department)
       As the scheme itself indicates the concept of competitive marketing the existing
       cattle market strengthening is proposed. The concept of pricing of animals on the
       basis of milk production and an open auction basis are the value added
       components which will give livestock owners a fair price. In sheep and goat pricing
       on the basis of live weight is proposed which will give reasonable price to the
       livestock owners and will keep away the middleman. Cost for strengthening one
       cattle market works out to be Rs 125 lakhs. Total 20 selected cattle markets are
       proposed in the State with the investment of Rs 2500 lakhs. There are 137 cattle
       markets in the state out of which 20 are proposed initially. On successful
       implementation of the same the other markets will also be modernized.
       Cost of the building, shed, dormitory, computerized data of high yielding milch
       animals, Display boards and auction platforms along with veterinary aid are
       included in the cost as under. Investment required for strengthening existing cattle
       markets of APMCs are shown in table 29.
       Table - 29 : Cost of the infrastructure required for strengthening existing cattle
              markets
        SN       Item                                                Amount Rs. in lakh
        1        Cattle Shed- 800 Sq. ft. for 40 animals For                         36.40
                 500 animals : 13 sheds @ Rs. 350/ Sq. ft.
        2        Loading unloading platform                                           2.00
        3        Water trough 6 nos.                                                  3.00
        4        Administrative building with veterinary                             15.00
                 dispensary, office computer room 2500 Sq. ft.
        5        Auction platform 15m x 8 m x 2 nos                                   6.50
        6        Dormitory for farmers 5000 sq. ft.                                  18.00
        7        Compound wall                                                        9.00
        8        Roads with watchman cabin.                                          19.00
        9      Street light and electricity                                          10.00
        10     Waste treatment L.S.                                                   2.00
        11     Godown                                                                 4.00
               Total                                                                124.90



        SN   Name                Nos. Unit          Total     PMC’s        GoI      World
                                      cost          cost      Contri-     Grant     Bank
                                                              bution      25%       Assis-
                                                               25%                  tance
                                                                                    50%
        1    Strengthening        20          125    2500      625        625       1250
             Of Existing
             Cattle Markets
             Of APMCs
             Total                20          125    2500      625        625        1250

       These markets will get 25 % subsidy on the project cost from Government of India
       which works out to be Rs 625 lakhs. The markets will become viable to repay loan.


4.15   SUB-COMPONENT 15: ESTABLISHMENT OF POULTRY DRESSING PLANTS
       (Animal Husbandry Department)
       Majority of the poultry & Poultry products are daily transported to the metros and
       to the district places. A large number of poultry birds are daily transported live to
       the metros and district places. These birds are then slaughtered in metros or at
       district places which is creating a large amount of biological waste which is
       hazardous to the public health. If poultry dressing plants are established then it
       will provide hygienic chicken meat to the consumers which will have fair price and
       will also take care of public health. This will also help to set better value of the
       produce to the poultry farmers.
       Total 5 poultry dressing plants are proposed in the State as pilots. These units will
       be put up by the Joint venture of poultry farmers and private investors and will be
       operated and managed by the private entrepreneur.
       Following are the financial estimates of one unit
       Poultry/birds dressing plants having Capacity – 300 birds per hour or 2200 birds
       per day or 3 M.T. capacity per day, the cost of the same is shown in table 30.

       Table - 30 : Cost of the investment for poultry dressing plant.
        SN Item                                        Amount in Rs Lakhs
        1     Cost of the dressing plant                                30.00
        2     Crushing & boiler unit                                    12.00
        3     Redening unit                                             22.00
        4     Insulated Vans                                          20.00
        5     Land &building and infrastructure                       66.00
              Total                                                   150.00

       The reddening units will use and recirculate the biological waste for cattle feed.
       This biological waste is having 47% of protein so it is very useful and value added
       product for cattle feed. These reddening units will generate income to the tune of
       22 lakhs per year. Thus within 7 to 8 years, these plants will be free from any
       loan and will be financially self sufficient. For 5 units total cost works out Rs.750
       lakhs of which poultry farmers and private investors will bear 25% and 75% is
       proposed from World bank under MACP.


        SN   Name          Nos.    Unit cost Total          Poultry farmers       World Bank
                                   Rs.    in cost Rs.         and private           75%
                                   lakhs     in lakhs
                                                               investors
                                                           contribution 25 %
        1    Poultry         5       150          750            187.25              562.75
             Dressing
             Plant
             Total           5       150          750            187.25              562.75


4.16    SUB-COMPONENT 16: ESTABLISHING GRAMIN SUVIDHA KENDRA (GSK) AS
        INFORMATION AND INPUT SUPPLY CENTRES.

       Government of India, Department of Technology has recently floated the proposal
       of starting common service centres to harness the potential of technology for
       extending services in rural areas. Almost similar scheme is adopted by Multi
       Commodity Exchange (MCX), commodity exchange established under the forward
       markets commission of India and started “Gramin Suvidha Kendra” on pilot scale in
       Jalgaon and Amraoti districts of Maharashtra. The scheme has been implemented
       successfully in one Taluka of Jalgaon district viz. Jalgaon taluka and one in Amraoti
       district viz Dhamangaon taluka.

       In launching the program of ‘Gramin Suvidha Kendra’, MCX has joined hands with
       India Post and a unique strategic alliance, called GSK has been evolved. The
       taluka level post offices are supporting as information and service hubs and village
       level branch post offices as dissemination points of information and services. The
       services being provided through this model include agri- advisory, market and
       price information, quality agri inputs, warehousing and loan facility.
       MCX has established linkages with big players like National Bulk Handling
       Corporation (NBHC), DCM Shriram Company Ltd. and Syngenta Ltd. NBHC has tie
       up with leading Banks in the country like Bank of India, HDFC Bank, IDBI Bank,
       State Bank of India etc. NBHC has established a network of 273 warehouses
       across 15 states in the country and it has been rendering the services of
       warehouses to the beneficiaries.
       Gramin Suvidha Kendra aims to supplement the systems failures around rural
       farmers by trying to develop alternate processes for him to access the services.
       Currently GSK provides farmers with facilities such as expert advice on farming
       problems, better warehousing, quality testing, finance against warehouse receipts,
       MCX spot and future prices for their produce. MCX supplies Computer terminals,
       with internet, fax facility, webcam and price ticker. Blackboards are also supplied
       to the village level post office so that market information is displayed.

       To ensure that the project does not suffer from Top down approach, initially for 6
       months of the implementation, the sensitization program is undertaken by holding
       farmers meetings in project areas. At the same time to keep the farmers involved
       in the program the information about spot and future market prices and
       agricultural technology is provided to them. For making the information on
       Agriculture Technology available to farmers the help of experts from Agriculture
       Universities is taken. Besides one Agriculture coordinator is placed by MCX at
       Taluka level.

       This model has achieved fairly good amount of success in Jalgaon and
       Dhamangoan talukas and it is proposed to be expanded to whole of Jalgaon
       District and whole of Amraoti District by starting 17 centres in Jalgaon and 25
       centres in Amraoti under the MACP project.

       On successful implementation of the program in these 2 districts it can be extended
       to the whole state even by inviting other players viz other commodity exchanges
       and other service providers in the field of warehousing, finance, agro technology
       etc.

       For starting one centre the estimated cost is Rs.4.18 lkhs in first year and Rs. 2.41
       in the II year. However, the unit starts receiving resources through registration agri
       input services from the first year itself. Therefore actual financial support required
       to set up one GSK is Rs.2.75 lakh. Thus for 42 centres total support of this
       component will be Rs.114.24 lakh. It is proposed that 25% of the cost may be
       borne by the service provider and 75% (Rs.85.86 lakh) may come as loan under
       the MACP from World Bank.

       The provision of financed assistance will have to be made during the first year of
       the project itself.



4.17   SUB COMPONENT 17: ACCREDITED GODOWN DEVELOPMENT OF PACS
       The Primary Agricultural Credit Cooperative Societies (PACS) are mainly involved
       in supply of crop finance and other agricultural loans to their members. These
       societies also undertake activities like supply of inputs, consumer articles to their
       members. These societies are therefore also called as Agriculture multipurpose
       credit societies.
       The number of Primary Agricultural Credit Cooperative Societies in Maharashtra is
       21162 and most of these societies have constructed godowns under the program
       of National Grid of Rural Godowns (NGRG) which was a Government of India’s
       program. This program was taken up about 20 years ago and most of these
       godowns require repairs. Government of India, under the program of “ Additional
       Central Assistance” will give some amount of grant for this activity. It is proposed
       to take up repairs of 10000 under MACP. Roughly, average cost of repairing one
       godown will be Rs One lakh and thus total investment required to repair 10000
       godowns is Rs 10000.oo lakh. It is proposed to meet this cost by 25 % contribution
       by beneficiary PACS, 25 % grant from GoI and 50 % loan from World Bank.
       These godowns after repairs will become source of income to these societies. The
       farmers will keep their food grains in these godowns and can avail advance from
       the PAC against the pledged produce as warehouse receipt. The farmers will get
       better price of their produce and food grains will be scientifically stored, thus it
       will reduce damage of produce in storage.

       Necessary training will be provided to the managers of these godowns by ATMA.
       The cost of training will be borne by the PAC concerned as it would be negligible.

4.18   SUB COMPONENT 17: I.T. CONNECTIVITY OF COMMODITY EXCHANGES TO
             PACS:

       The PACS which are proposed to be covered under the program of repairs of
       godowns and use of the said godowns as warehouses, will also be covered under
       this program. Thus 10,000 PACS will be connected to Commodity Exchanges by
       providing computers and connectivity to these PACS. The Commodity Exchanges
       will provide information regarding prices of different commodities and the buyers
       listed with them. The electronic marketing of agricultural produce will be possible
       at the level of PACS. The connectivity will be used for dissemination of technology
       relating to Agriculture, Horticulture, Animal Husbandry, Dairy, Fisheries, Marketing
       etc. The members of PACS will be able to avail this information which will benefit
       them. The cost of establishing connectivity at one PAC will be about Rs. 1.00 lakh.
       Thus total investment for this activity will be Rs. 10,000 lakh, of which 25% will be
       borne by Commodity Exchanges; 25% is expected as grant from Government of
       India under “Additional; Central Assistance” and 50% i.e. Rs. 5000 Lakh will come
as loan from World Bank. Such an activity will resulting better prices of produce
to the farmers, additional income to PAC and business to the private sector.




   SUMMARY OF FUNDS ALLOCATION UNDER COMPONENT NO 1:
                    EXPANDING MARKET INFRASTRUCTURE AND
                INCREASING FARMERS ACCESS TO THE MARKET
                                                                       (Rs. In Lakh)
 No      Activity                         Total      Farmers/     GoI / GOM    World
                                        Estimated     Private                  Bank
                                           Cost       Contri-
                                                      bution
 4.1     AGRIMARTS
 4.1.1   AGRIMARTs VFPK Model            6125.00       150.00       2781.25     3193.75
         (50)
 4.1.2   Agriculture Marketing           8775.00       852.50       4387.50     3535.00
         Coops. AGRIMARTS (50)
 4.1.3   Rural Haats –                   2600.00       260.00        585.00     1755.00
         AGRIMARTS ( 50)
 4.1.4   Fish Agrimatrs (marine 5,       4990.00       500.00       1750.00     2740.00
         Inland 5) (10)
 4.1.5   Milk Agrimarts (20)             3360.00       336.00        840.00     2184.00
 4.2     Market Intelligence
         (a) Private Participation in      433.44        67.97        18.71      346.76
         dissemination of market
         information- Dissemination
         of information through SMS
         (b) Development of                500.00         0.00       125.00      375.00
         Software for training to
         farmers
 4.3     Strengthening of existing       6750.00      1687.50       1687.50     3375.00
         APMCs
 4.3.1   Training of Committee             880.00         0.00       220.00      660.00
             members and staff of
             APMCs(6000 Employees
             and 5000 Committee
             members)
 No      Activity                            Total    Farmers/    GoI / GOM       World
                                        Estimated       Private                   Bank
                                              Cost      Contri-
                                                        bution
 4.4     ABDF (MSAMB, MITCON)              770.00          0.00        0.00      770.00

 4.5     Onion Storage Structure         2400.00         0.00        600.00     1800.00
 4.6     Onion Grading Units and          800.00       200.00        200.00      400.00
         Pack house
 4.7     Pledge Loan Scheme              8000.00         0.00       4000.00     4000.00
 4.8     Cold Chain Development          1875.00       468.75        468.75      937.50
         (Reefer Vans)
 4.9     Maharashtra Agriculture         2300.00          0.00       450.00     1850.00
         Quality Standards Bureau
 4.10    Clean Milk Production :         5250.00       525.00       1312.25     3412.75
         Community Milking
4.11   Feasibility Study for setting      50.00       0.00       0.00      50.00
       up of Milk Marketing Board
4.12   Facilities And Infrastructure    1000.00       0.00    200.00     800.00
       for supply of fingerlings for
       improving quality
       production of fish
4.13   Private Cattle Market            4400.00   1100.00    1100.00    2200.00
4.14   Strengthening of Existing        2500.00    625.00     625.00    1250.00
       Cattle markets APMCs
4.15   Poultry Dressing Plant            750.00    187.25        0.00    562.75
4.16   Gramin Suvidha Kendra             114.24      28.38       0.00      85.86
4.17   Accredited Godown               10000.00   2500.00    2500.00    5000.00
       Development of PACS
       (10,000 Godowns)
4.18   IT Connectivity of              10000.00   2500.00    2500.00    5000.00
       Commodity Exchanges to
       PACS (10,000 PACS)
       Total                           84622.68   11988.35   26350.96   46283.37
                                     CHAPTER - V:

                PREPARATION OF DISTRICT AGRICULTURAL PRODUCTION
                  AND MARKETING STRATEGY AND CAPACITY BUILDING


5.1   MAKING EXTENSION SYSTEM MORE FUNCTIONAL:
      Mainstreaming of ATMA and Improve its Market Focus:
      The agricultural extension system has been revamped on the lines of ATMA
      concept. The ATMA concept is based on decentralization of integrated programme
      planning, proactive farmer participation in planning, implementation of extension
      programmes, field level collaboration among line departments and promotion of
      public private partnership in agricultural service delivery. The revamped extension
      system initiated in four districts under world bank supported NATP has been
      extended to all 33 districts of the state .The Agriculture Extension system is
      proposed to be strengthened so that there will be improvement in productivity and
      improvement in quality of production. To give focused attention to marketing, the
      scope of strategic research and extension plan would be enlarged to District
      Agricultural Production and Marketing Strategy (DAPMS).
      The preparation and implementation of DAPMS would be central to the new
      extension approach, to better utilize the public funding under various line
      departments. The specific gaps in implementation of DAPMS would be identified
      and addressed under the project.


•     Mainstreaming of ATMA and Improve its Market Focus:

      During mid 1990 the Govt of India and World Bank explored 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 called “Agricultural Technology Management Agency or
      ATMA” was introduced at the district level to integrate extension programmes
      across the line departments, link research and extension activities and de-centralize
      decision making through bottom-up planning procedures. The concept envisaged
      involvement of farmers and private sector in planning and implementation of
      extension programme at block and district level.
      The Agriculture Technology Management Agency (ATMA) is an autonomous
      organization registered under the Societies Registration Act of 1860 that has
      considerable operational flexibility. It can receive and dispense Govt. funds, enter
      into contracts, maintain revolving funds, collect fees and charge for services. It
      operates under the direction and guidance of Governing Board (GB) that
determines programme priorities and assesses programme impacts. .At the block
level Block Technology Team (BTT) and Farmers Advisory Committee                (FAC)
working in tandem to develop comprehensive extension programme called Block
Action Plan (BAC) i.e. consistence with farmer needs. This Block Action Plan is
revived and approved by ATMA for funding. A key element in this new bottom up
extension planning strategy is formation of FAC in each block. The heads of farmer
interest group (FIG) are elected to serve on FAC .The FAC revives and approves
annual BAP prepared by BTT before submission to ATMA for funding


The implementation of ATMA concept pre-supposes developing Strategic Research
and Extension Plan (SREP) for the district. The SREP is then implemented using
market driven extension approach. The market driven extension system to be
successful has to assess the market potential for different high value crops /
product, look for more promising crops / or products suited to agro climatic
conditions of the district and diversify into different high value crops / product
suitable for different FIG .


The Govt. of Maharashtra already initiated actions to implement the ATMA model
in all 33 districts of the state. The project initiated under World Bank Project
“National Agriculture Technology Project” (NATP) in 1998 with 4 districts namely
Ahmedngar (1998-99) ,Amrawati,(1999-2000), Aurangabad (2000-01) and
Ratanagiri (2001-02). It has been extended to 16 districts in 2005-06 under the
Central Government scheme named as Extension Reform Scheme. The remaining 17
districts have been directed to adopt ATMA model developing SREP’s in 2006-07
under World Bank Assisted        Project Maharashtra Water Sector Improvement
Project(MWSIP) .Thus the ground work for implementing de-centralize extension
through ATMA has been done. The implementation experience has brought out
certain inadequacies which will need to be addressed to make extension more
effective.


The co-ordination of the functionaries and programmes at block and district level is
not being effected to the extent desired .This affects, the preparation of BAP and
district plan. As a result, the FIG does not get enough support, for formation of
bankable projects. Full assessment of market potential for different high value
crops and product is still not in place .Also the assessment of growing nontraditional
crops in the agro climatic conditions of the district is not adequately addressed .The
organization of Farmers Interest Group and their training needs to be emphasized
          culminating into developing projects. The districts are implementing ATMA model
          without the staff, provided initially under NATP .Thus there is immediate need to
          provide minimum technical support staff and impart training to the officers and
          staff across all line departments at district and block level. The training should
          cover not only the concept of ATMA, but the nitty-gritty of successful
          implementation of extension programme for rural employment and income
          enhancement of farmers.


          The outlay envisaged for five year project period to address the inadequacies is
          shown in Table 31.


Table – 31 : Estimates of Costs of Mainstreaming of ATMA.


                                      Physical
                                                      Cost norm            Expected contribution from
                   item                Target
                                                    (Rs. In Lakhs)                (Rs in lakh)
    Sr.                              (Number)
    No                                                                               World
                                                                       GoI/ GoM      Bank          Total
                                                                                     share
1         Training to the          1 training per   0.50 Lakhs per         4.20        12.30        16.50
          officers of line         district(33)     dist. for 5 days
          department                                training
2         Training to BTT          1 training per   0.25 Lakhs per        22.06         66.19       88.25
                                   Block(353)       block for 5
                                                    days training
3         Baseline survey to       1 training per   15.00 lakh per       123.75       371.25       495.00
          access market            district 33      dist.
          potential and
          promising
          crops/products
4         Contractual services     1 expert and     5.40 per dist        222.75       668.25       891.00
          of market led            1 computer       per year
          extension experts        operator per
          and support staff        dist.
5         Establishment of FIAC    1 per dist (17   1.30 Lakhs per         5.52         16.58       22.10
                                   MWSIP dist.)     dist.
6         Formation          and    15 FIG per      0.05 lakh per         31.88         95.62      127.50
          training of FIG          block     (170   FIG
                                   blocks      17
                                   MWSIP dist.)
          TOTAL                                                         410.16      1230.19     1640.35
5.2   PREPARATION OF DISTRICT AGRICULTURAL PRODUCTION & MARKETING
      STRATEGY (DAPMS)

      The ATMA has brought together researchers, extension workers, farmers and other
      stake holders to conduct diagnostic surveys and prepared Strategic Research and
      Extension Plan (SREP) for all 33 districts in the state. In order to improve the market
      focus, District Agricultural Production and Marketing Strategies (DAPMS) will be
      prepared for all these districts under the project. Based on DAPMS, each ATMA
      will be responsible for ensuring the effectiveness of co-ordination and management
      of technology dissemination activities and market led extension within the district.
      The District Agricultural Production and Marketing Strategies will provide an
      important mechanism to address the needs of local community and integrate them
      well into the “Bottom up Philosophy of the Project”. The components of DAPMS will
      include
      •   Cataloguing of district resources i.e. existing crops of the products, animal
          husbandry, dairy, fisheries and other specific resources (irrigation, processing,
          production skills, local cultivars ,micro-climatic advantages) agricultural
          initiatives offering long term potential,
      •   Identification of key marketing constraints in the areas,
      •   Identification of existing and potential marketing opportunities.

      The major steps in the preparation of DAPMS will be
      •   Drawing up the scope and objectives of DAPMS, particularly with respect to
          marketing
      •   Formation and preliminary training of one or two teams to conduct pilot
          DAPMS
      •   Conducting write up and presentation of pilot DAPMS to project management
      •   Capitalization of lessons learnt
      •   Creation of DAPMS report outline, processed and training course for DAPMS
          team members.
      •   Training of DAPMS teams before they start DAPMS in their own districts.


      In each district, the ATMA team will take responsibility for the preparation of a
      DAPMS based on information collected using participatory methodologies including
      a Participatory Rural appraisal (PRA) and GAP analysis process. DAPMs would be
      the basis for developing and annual programme for adaptive research and
      extension activities in each district. The preparation of DAPMS involves training of
      staff team, collection and analysis of data, preparation of write up, field visits,
      testing of plan etc. Elaborate planning and scheduling of activities is required
      towards compilation of plan in each district. District team will be required to be
      trained in preparation of DAPMS by MANAGE. Each DAPMS is projected to cost Rs
      10 lakh thus the total cost of the 33 DAPMS would be Rs 330 lakh which will be
      required in the 1st year of implementation of project. 25% of this cost may be
      funded by the Government of India and balance 75% by World Bank.
5.3   IMPLEMENTATION             OF   DISTRICT    AGRICULTURE        PRODUCTION         AND
      MARKETING STRATEGY (DAPMS):

      A) Training of officers
      The project will succeed if, the officers involved in implementation are well
      equipped in knowledge and skills expected of them. This holds good for officers at
      managerial level as well as the field extension functionaries. The concept,
      methodology and the nitty-gritty of project implementation must be imbibed by the
      staff at all levels .This will come about through the process of continuous training.
      The project involves reorientation of the existing production oriented extension to
      the market led extension , integration of extension services across all line
      departments, effective implementation of ATMA concept ,preparation of district
      agricultural marketing and strategic plan, block action plan, preparation of
      bankable projects for manufacture/marketing of agriculture products, market
      information, market intelligence quality standards, GAP,HACCP, organic
      production, certification ,Agri-Mart, post harvest management, WTO ,import-
      export etc.

      i) Training of Master trainers-
      The officers and field staff of all agri -related line departments are not fully
      conversant, the latest information in these areas of knowledge. Considering the
      importance of the information for successful project implementation it is absolutely
      essential to put in place the continuing training system. This will involve creation of
      the cadre of master trainers, to train the trainers, who in tern will train the field
      extension functionaries. The field extension functionaries will pass on the knowledge
      to the farmers through FIG or individually.
      Master trainers numbering 360 in the state are proposed to be trained at
      MANAGE and/ or SAMETI in the aforesaid areas relevant to the project. They will
      be trained by hiring services of experts on contractual basis for a period of 2
      weeks. The master trainers to be created would be drawn from class I /class II
      cadres of line departments, KVK, research institutions within the district. The areas
      of interest for further training and training to the trainers will be identified and the
      responsibility to act as master trainer will be enjoined . The creation of master
      trainers through 2 week training would cost Rs. 36 lakh which expected to come
      from World Bank.


      ii) Training of trainers
      A role of trainers in the scheme of continuous training in the concept and project
      implementation is crucial. The trainers trained by master trainers would act as
      effective link between master trainers and the field extension functionaries. The
      cadre of trainers will be created drawing interested persons from agri related line
departments, KVK’s research institutes located within district .After getting trained
from the master trainers, the trainers would be identified with the areas of
specialization and their responsibility would be enjoined
The trainers envisaged in the scheme of training would be trained for one week at
RAMETIs. The officers numbering 1050 would be trained to carry forward the
training to field extension functionaries. The training of trainers would cost Rs
52.50 lakh which would be contributed by World Bank.


iii) Training of Village Extension Workers
The training of field extension functionaries particularly the Agriculture supervisors
and Agriculture Assistants is very important to reach the project concept to the
farmers. The project will succeed only when the farmers are motivated to adopt
market led production, imbibed knowledge and scheme required for effective
marketing of their produce. This will be possible only if the village extension
workers are made technologically competent. The acquisition and up gradation of
the knowledge of village extension worker therefore cannot be over emphasized
.The village extension workers drawn from various agri related line departments
would be trained in the aforesaid areas of market led extension at agri policlinics,
FIAC,KVK etc. They will be trained by the identified trainers for a period of 3
days. The training programme of Village Extension Workers of line departments
would be covered in a span of 2 years costing Rs 225 lakh .The training cost come
as assistance from World Bank in project.

iv) Training of officers in case studies
A number of successful Agri-Business models emerge not only in the state but also
outside the state. These success stories could be replicated in our situation with or
without modification. The economic analysis of such success stories must precede the
adoption of model. The officers placed as extension managers should be able to
undertake case studies scientifically. The selected officers in these districts are
proposed to be trained by the experts in the field for a period of 1 week. It is
proposed to train 150 officers during the period of 2 years at specialize
institutes like IIM, NIAM, MANAGE etc. which would cost Rs 15 lakh. This
component of funding will be shared by World Bank. The officers from all the line
departments would be covered.


B) Farmers training:
i) Master Farmers of Agri-Mart
Since establishment of AGRIMARTs is an essential and naval component of project,
it is necessary that the promoters of AGRIMARTs viz. master farmers of SHG are
trained in the concept, and successful operation of Agri-Marts. They would also
need to be trained in business organization, company law, accounts, audit, banking
etc. since they have to organize AGRIMARTs on professional lines for the benefit of
producer farmers. Each Agri-Mart would have 50 master farmers who would need
training for 7 days. The training of master farmer would be completed in first year
of the project at KVK. The experts from private sector would be hired for training
the master farmers. The total training cost for training master farmers of 125
AGRIMARTs would be Rs 100 lakh which would be shared by World Bank.
Masters farmers from all the AGRIMARTs proposed will be covered.


ii) Training of Management Agency of Agri-Mart
  Essential services for smooth operation of AGRIMARTs on daily basis will be
provided by the management agencies which could be small and medium
enterprises in private sector or a growers association or marketing federation or
an experienced NGO. The services include providing drinking water, toilet
facilities, maintenance of farmer’s residential accommodation, weighment, loading
unloading, maintenance of cold storage, godowns, arranging display of rates,
computerization of Market rates, dissemination of marketing information,
maintenance of civil and electrical installations, etc. These services could be
provided by the management agency at a charge for a specific period. The
executive committee of Agri-Mart would decide the agency for the aforesaid
services. The agency will have to provide theses services at competitive rate
ensuring the highest efficiency. The agency so fixed would need to be trained
initially at an identified training institute for 3 days drawing 5 persons from a
management agency of each Agri-Mart. The cost of training 625 persons from 125
AGRIMARTs would be Rs 5 lakh. Which would come as financial assistance from
World Bank

iii) Training of Farmers Interest Groups (FIG)
The ATMA model of extension was introduced in phases in the state. While four
districts viz Ratanagiri, Ahmedngar, Aurangabad and Amrawati were covered
under NATP starting from 1998, the 16 districts were brought under the fold of
ATMA by the year 2005-06. The concept of FIG at block level as envisaged in
ATMA is yet to take roots in those 16 districts .The Farmer Interest Group
organized in these districts would need to be trained in quality standards, post
harvest technologies, market information, marketing techniques etc. The training
would be of 3 days duration. The cost of training 1000 FIG would be Rs 150.00
lakh which would be contributed by World Bank.

C) Strengthening Faculty development programme of VANAMATI & RAMETI
VANAMATI and RAMETI being apex training institutions in the state Faculties from
these institutes are involved in imparting training to the Master Trainers. Therefore
training to these faculties in the context of market-led extension, mainstreaming of
ATMA, formulation of DAPMS, block action plan, market information/market
intelligence, quality standards, GAP, HACCP, WTO, organic production and
certification, concept and operation of Agri-Mart, Post Harvest Management,
packaging, food safety etc is a must. These institutions being the main source of
knowledge for project implementation it is necessary to provide required training
material like publications, graph charts, panels etc. to these institutions. Ten officers
from these institutions will be trained for one month costing Rs 2.5 lakh. A lump
sump grant of Rs 7 lakh for VANAMATI and Rs 2 lakh each for 7 RAMETIs for
training material support would be provided under the project. Thus the total cost
of faculty development and technical support to VANAMATI and RAMETI would be
Rs 23.50 lakh which would come as financial assistance from World Bank.


D) Exposure visit by officers
i) Training Abroad

The success of project will increase with the introduction of new concepts and
methodology in the areas of market-led production, project formulation, quality
standards, packaging standards, market information dissemination etc. A number
of countries in Asia and Europe have introduced newer models in this field. The
updated information in this is a must for implementation of the project .The Higher
Level officers charged with the responsibility of project information would need to
be exposed to the newer area of knowledge outside the country. The exposure of
these officers by way of training abroad would be quite useful. Five officers from
different line departments per year would be deputed for short term training
abroad under the project. The training cost of Rs 1.60 lakh would be for a period
of 2 weeks which will cover to and fro air fair, visit cost and incidentals. The total
cost of 25 officers’ exposure visits would be Rs.40 lakh which would be shared by
World Bank


ii) Outside the state

The study and adoption of methodology and cases of successful market-lad
extension, Agri-Business models would go a long way in successful implementation
of the project. It is therefore necessary to arrange exposure visits of officers of
various line departments working for ATMA outside the state. The periodic
exposure visits by these officers outside the state would be arranged under this
project. It is proposed to arrange exposure visit for 100 officers within 5 years.
These exposure visits will normally bear 10 days duration. The cost of exposure
visits will cover to and fro travel, visit cost, accommodation, incidentals etc. The
total cost of Rs 50 lakh would come from assistance by way of World Bank


E) Exposure visits by Farmers
  i) Within state
The ultimate beneficiary of the project is farmer. The project therefore aims at
building capacity of farmers to take the benefit of changed economic climate and
competitiveness in agri market being created through this project. The interested
Farmers should therefore get an opportunity to learn and adopt successful Agri-
Businesses marketing strategies within the state being adopted by the individuals
and institutions. It is proposed to arrange exposure visits for 1000 farmers per
year for a period of 5 days each. The visit would include travel, accommodation
and incidentals @ Rs 250 per day per farmer. The total cost for five years project
period would be Rs 62.50 lakh which would come as financial assistance from
world Bank


ii) Outside state
The exposure visit by farmer outside the state would serve the purpose of the
project and capacity building of farmers. The exposure visits for farmers outside
the state are proposed to get the first time knowledge of successful Agri-Business
by the farmers .It is proposed to arrange exposure visits by 50 farmers per year.
Each visit will be of 10 days duration Costing Rs 6.25 lakh for 5 years project
period. The total cost of Rs. 31.25 Lakh project component would come by way of
assistance from World Bank.


F) Demonstrations
i) Good Agricultural Practices (GAP)
The high quality and healthy food become more important and consumers have
concern about control of food production and demand information along the food
chain. Good agricultural practices (GAP) is based on the Principals of risk
prevention, risk analysis, sustainable agriculture by means of Integrated Pest
Management (IPM) and Integrated Crop Management (ICM), using existing
technologies for the continuous improvement of farming systems. The GAP is the
utmost important for protection of consumer health. It requires ensuring safety
throughout the food chain, Eurep Gap has now been accepted world over in many
developed countries and it has been recognized as GLOBAL GAP. It is therefore
in the interest of farmer’s particularly growing fruits having export potential like
mangoes, grapes, pomegranate, banana, oranges, cashew, strawberries, etc.
Moreover such certification will make the farmers aware of quality production and
may be once India Gap standards are developed and accepted by Government
of India, the farmers would readily accept the same to their own advantage and
advantage to the consumer.
About 2000 grape gardens, 200 mango gardens and 50 pomegranate gardens
have undergone Eurepgap certification in Maharashtra. .Mango, Grape,
Pomegranate, Banana, Orange are fruit crops in the state which have export
potential in Europe. The certification has resulted into lowering the plant protection
expenses incurred by the farmer, besides export of quality produce. Farmers have
to spend extra amount to the extent of Rs 1 lakh per farmer for the infrastructure,
documentation, safety measures, testing and certification fees .The National
      Horticulture Mission provides for subsidy on these components to the extent of
      75%. There is a need to bring more area under good agriculture practices in the
      wake of growing food safety awareness amongst the consumer. Farmers
      undergoing GAP certification will need to be supported financially to cover
      certification charges @ Rs 25000/- per farmer, of about 8000 farmers will be
      covered under the certification process entailing financial assistance of Rs 2000
      lakh for five years.


      ii) Demonstration on Organic Farming
      The concept of biological production to agricultural production is being
      emphasized as opposed to conventional farming in view of the financial benefits
      to producers .The switch over from mainstream farming to organic farming carries
      certain risk initially. The farmers will need to be motivated .The certified organic
      agriculture produce fetches premium price in the market .It is necessary to bring
      more and more farmer groups under organic certification process .An area in a
      cluster of about 50 hectares is an ideal unit for certification .The nongovernmental
      organizations (NGO) have been identified as service providers by Govt. of India .
      The services of such identified service providers will be used to promote the groups
      for undergoing organic certification. The service providers will need to be given
      financial assistance for group formation, training of farmers, internal control system
      (ICS) ,field visits and certification fees. The provision to cover these expenses exists
      under NHM as far as horticulture crops are concerned. It is necessary to extend
      similar assistance to service provider for non horticulture crops .Assistance @ Rs
      2.25 lakh per group for three years ( period required for certification) is
      necessary. About 1000 ha area (2 groups) would be brought under certification
      process every year entailing an assistance of Rs 45 lakh .Thus the assistance for
      five years period would be Rs 225 lakh. It is proposed to avail 75% of the budget
      from World Bank (Rs.168.75 Lakh) and balance from Government of India.


5.4   Piloting Risk Management Mechanism

      For piloting Risk Management Mechanism various important parameters like
      economics of cultivation, marketing extension, innovative training, marketing
      intelligence, experimental learning would have to be considered. This has to be
      done over a reasonably long period. Which will reflect on pattern of production,
      pattern of arrivals and prices, price fluctuations etc. and relation between different
      functions. Therefore following interventions are suggested -
      i) Data collection of Horticulture crop
      Horticulture crops covering fruits, vegetables, flowers, spices, medicinal and
      aromatic plants are considered high value crops .The fresh and processed products
      of these crops have tremendous market potential. Maharashtra with 9 agro climatic
      zones is capable of producing vide varieties of tropical and subtropical fruit crops.
The state has registered a growth of 10% in horticulture production over the last
five years. The EGS linked horticulture development programme initiated in 1990
and National Horticulture Mission launched in 2005-06 have contributed
significantly to area and production enhancement of horticulture. The horticulture
sector in the state is expected to register a growth rate of 6% during With five
year plan.
The data base of horticulture crops and products particularly relating to area from
production and productivity is weak .The mechanism for collection and updating of
data suffers from weaknesses in terms of manpower and methodology. The
collection and updating of data on continuous basis is vital not only for production
planning but also for business development and risk coverage through insurance
products. The matter of immediate importance is to provide additional field staff
on contract basis to collect the data regarding area, production and productivity
of horticultural crops. The existing centrally sponsored scheme of crop estimation
survey on fruits and vegetables cover 8 fruit crops ( Orange, Sweet lime, Coconut,
Areca nut, Cashew nut ,Mango, Grapes and Banana) and 2 vegetable crops
( Onion ,Tomato) Additional support to this scheme in terms of manpower and
methodology is needed at the ground level. A provision of Rs 10.00 lakh per
district per year totaling 1650 lakh for five year period could be required .This
will be shared by GOI and World Bank equally.


ii) Organization of workshop on Grape Insurance / Publicity

Agriculture Insurance Company of India Ltd. is GOI insurance company working
mainly on field crop insurance. It has developed a weather based insurance
product for grapes in Nasik district. Before formally launching this product mass
scale awareness is required among the farmers and field extension functionaries.
Work shops and training programmes will be conducted in four talukas of Nasik
district. An outlay of Rs 10.00 lakh will be required for organizing workshops and
training programmes by way of assistance from World Bank.

iii) Insurance Product development for Horticulture crops

The present national agriculture insurance scheme covers mainly cereals, pulses and
oilseed crops. The Agriculture Insurance Company of India operates this centrally
sponsored scheme through various yield based insurance products. The AIC has
developed these products mainly because the yield data regarding these crops is
available even at circle level. The mechanism to collect and update these data is in
place .This is not the case with horticulture crops. The alternative available for
horticulture crops is to have weather based insurance product developed .The AIC
has developed weather based insurance product for grapes and mango on pilot
basis. These are being tested.
The development of weather based insurance product require data                  on
temperature, humidity ,wind speed and rainfall across the season .The weather
stations to record the observations on these parameters in sufficient numbers are
required. At present about 400 weather stations are available in the state
established mainly by the Department of Metrology, The National collateral
management services Ltd. has established a few weather stations particularly in the
grape growing area. The present number of weather stations is inadequate;
consequently the weather data is insufficient for development of weather based
insurance products by the insurance companies. Generally a weather station
represents the area of about 10 to 15 square kilometers which may be acceptable
to the insured farmers.



Weather based insurance products are required in following crops
1) Fruit crops- Pomegranate, Orange, Sweet Lime, Guava, Lemon, Sapota,
   Cashew Nut, Fig, Ber, Custard Apple, Anola, Jamun, Tamarind , Coconut ,
   Strawberry And Banana
2) Vegetable crops- Potato, Tomato, Onion, Pea, Green house crops-Capsicum
3) Flower crop- Roses ,Gladiolus , Green house crops Gerbera, Carnation and
   Roses
4) Spices-   Chilli, Turmeric, Garlic, Ginger
Each weather station would cost about Rs 7.00 lakh. About 200 weather stations
will be established in the areas growing aforesaid horticulture crops. The weather
stations will be established by the ATMA. An outlay of Rs 1400 lakh will be
required. The data collection will be done by hiring services on contractual basis,
which will cost about 400 lakh for a period of five years. The total expenditure of
Rs.1800 lakh will be shared equally by GOI and World Bank. The insurance
product development for these crops would cost about Rs 120.00 lakh. The
financial assistance for product development would come from World Bank.


iv) Operation of weather stations established in Grape growing areas
The APEDA has sanctioned capital expenditure of Rs 300 lakh for establishment of
60 weather stations in grape growing areas of the state. The data generated on
different weather parameters would be used for forecasting incidence of diseases
and pests. The software for disease forecasting based on weather data have been
developed. The activity is going to be of immense importance for quality
production of grapes in the state. The GOI project, however does not cover, the
expenses on operating the weather stations.
An outlay of Rs 170.00 lakh is required as operating expenditure for 5 years
which will cover contractual services of technical man power, local transport etc.
       The World Bank will provide the financial assistance towards the operating cost for
       five year under the project.


5.4.1 Case studies

       A number of successful examples of Agri-Business emerge in the country. These
       relate to efficient supply chain, value chain, credit etc.
       The successful cases in these spheres would need to be analyzed and propagated
       in the state for benefit of FIG. The consultants in this field would be asked to carry
       out the economic analysis of cases from time to time. The consultancy charges for
       the case studies are provided in the project. The cases and consultancy charges
       would be decided at state level by the PIU. A provision of Rs 50.00 lakh is
       proposed for 5 case studies over a period of 5 years which would be contributed
       by World Bank.


5.4.2 Information support activities
       An information support in Agri-Business would be developed and linked to the
       website of state agriculture department      www.agri.mah.nic.in   .The content development
       and updating on post harvest management, Agri-Business is proposed to be done
       through outsourcing from experts in the private sector. An outlay of Rs 50 lakh is
       proposed under the component to be shared by World Bank.

5.5    STRENGTHENING         OF     STATE     HORTICULTURE            PROCESSING        TRAINING
       INSTITUTE, AURANGABAD.
       At present State Department of Agriculture has a Horticulture Processing and
       canning Training Institute in Aurangabad established in the year 1987. The main
       objective of the institute is to train small scale entrepreneurs in processing and
       preservation techniques. So far 28247 entrepreneurs are trained by the institute. It
       helps in employment generation in rural and urban areas. Training imparted is at
       very low cost. The response to this training programme is very good especially
       from women entrepreneurs. The institute at present suffers from inadequate
       physical infrastructure. In order to develop commercial entrepreneurship in rural
       area, this training institute needs to be strengthened in respect of infrastructure and
       manpower.

       The estimated cost of      strengthening this institute is 80 lakh. The component wise
       breakup is shown in table 32.

       Table – 32 : Investment Required For The Strengthening of State Horticulture
       Processing Training Institute, Aurangabad.
                                                                       Estimated cost
        Sr. No.                    Component
                                                                        (Rs in lakh)
           1      Office Building                                          38.00
           2      Processing Laboratory                                     4.50
           3      Training Hall                                             4.00
                  Equipment for canning of fruit and
           4                                                                5.50
                  vegetable
           5      Hostel                                                   28.00
                  Total                                                    80.00

      The Government of India may give 25% of the assistance from National
      Horticulture Board and 75% is proposed to be availed from World Bank.

5.6   STRENGTHENING OF HORTICULTURE TRAINING INSTITUTE, TALEGAON
      DABHADE, DISTRICT – PUNE AND ITS DEVELOPMENT AS CENTRE OF
      EXCELLENCE AS POST HARVEST MANAGEMENT INSTITUTE.

      India has always been an agri-oriented country, with a surplus in food grain
      production due to the wide adaptation of new emerging technologies and methods
      in production. The economic growth and high-income elasticity for fruits, flowers,
      and vegetables will result in their greater demand.

      Understanding the need for a foolproof technology in the present context of acute
      water scarcity, degraded soils, and fierce market competition, the technology of
      protected cultivation of horticultural crops serves a unique opportunity to the Indian
      farmers.

      Thus the need of awareness coupled with training on technical and marketing
      aspects has led to establishment of a full fledged Training Institute, namely the
      Horticulture Training Center focusing on specialized trainings in this field thereby
      encouraging entrepreneurship in agriculture. To overcome this slow stride and
      rejuvenate the protected cultivation industry, an international standard advanced
      practical training center was established in the year 2002 by the Maharashtra
      State Agricultural Marketing Board (MSAMB) under the umbrella of National
      Institute of Post Harvest Technology (NIPHT). This center caters to all the technical
      needs of the protected cultivation industry and horticulture in general, engaged in
      cultivation of flower, vegetable, and fruit crops. This center was named as the
      NIPHT’s Horticulture Training Center (HTC), and is the first and only scientific
      institute imparting practical training on protected cultivation.
      The Center has been setup in financial and technical collaboration with the
      Netherlands Development Finance Company (FMO), a Govt. of Netherlands
enterprise and the Practical Training Center Plus (PTC+) of the Netherlands
(formerly IPC), respectively. The total project cost is estimated at Rs. 12.00 crores,
of which FMO has given a grant-in-aid to the tune of Rs. 3.84 crores, with the rest
of the project funding from MSAMB and other sources. The PTC+, a leading
international training institute, is engaged in operational guidance of the training
center, and providing technical advice and teaching support.

INFRASTRUCTURE AT HTC
HTC is spread out on a picturesque 50-acre campus with landscaped gardens and
elegant buildings. Our stimulating campus and its soothing environment provides an
ideal setting for an enriching and a rewarding experience. The state of the art
facilities at the center are: Classrooms & Demonstration Halls, Greenhouses,
Library, Meteorological Station, Utility Building, Soil and Water Testing
Laboratory, Plant Tissue Culture Laboratory, Hostels & Dinning, Auditorium & VIP
Guesthouse.

COURSES OFFERED
One Week (5 days) residential practical training courses are offered to the
farmers, officers and entrepreneurs in the following areas:
a) Quality production of floriculture crops and vegetables
under green house conditions.
b) Post Harvest handling and marketing of horticulture
produce.
c) Other courses on related subjects like organic farming,
tissue culture etc. are also conducted.
The full fledged training programs at the Horticulture
Training Center (HTC) have commenced from October
2003, on regular basis. As of July 2007, the training
programs conducted at HTC are shown in table 33.


Table – 33 : Number of Trainings Programs conducted and
number of persons trained at HTC.
                          Nos. of Training Program
 Training Programs                                 Total Nos. of Trainees
                          Conducted
 One week                 234                            5040
 Three Day                18                             340
 Two Day                  22                             1176
 One Day                   58                              3667
 Onsite Corporate          02                              215
 One Month                 05                              125

 Total                     339                             10533


The present capacity of the Institute is 50 participants per batch, looking to the
training halls and hostel accommodation. It is proposed to at least double this
capacity by adding two lecture halls, hostels for 50 participants and one
conference hall. It is also proposed to strengthen library, by adding books on the
subject of international standard. The laboratory and office is also proposed to be
strengthened. This will enable HTC to expand training courses to farmers on various
horticultural crops including fruit crops, in the field of Post Harvest handling and
marketing of the produce so that large number of farmers could be covered.
The cost estimates for creating this infrastructure works out to be of Rs.197.50 lakh
as shown in table 34.
Table – 34 : Cost Estimates of Strengthening of Horticultural Training Center-

Sr.            Component            Physical      Size      Unit Cost    Total Cost
No.                                Target/Unit   Sq. Ft.      (Rs.)        (Rs. in
                                                                            lakh)
1.       Training Halls              2 Nos.      7000            600       42.00
2.       Hostel                    50 Students   10000           600       60.00
3.       Conference Hall           200 Persons   10000           600       60.00
4.       Laboratory                              1000            600        6.00
5.       Strengthening of Office
         i) Computers                                       Lump sum        4.00
         ii) Xerox                                          Lump sum        2.50
         iii) Furniture                                     Lump sum        3.00
6.       Laboratory                                         Lump sum       10.00
         Equipments
7.       Library Books                                     LS for 1000     10.00
                                                              books
         TOTAL                                   28000                     197.50
8.       Guest Faculty – 10 Nos. on Contract     0.40 x 10 x 12 x 5        240.00
         for 5 years
         GRAND TOTAL                                                       437.50

Besides, the proposal to create additional infrastructure as suggested above, 10
experts in various fields will be engaged for the period of five years on contract
basis. The cost on this account works out to be Rs. 0.40 lakh x 10 x12 x 5 = Rs.
240.00 lakh. Thus it is proposed to strengthen the HTC with the estimated
      expenditure of Rs. 437.50 lakh, of which 75% may be provided by World Bank
      and the balance by Government of India from NHB.
      There is need to develop this institute as centre of Excellence in the field of
      management of post harvest technology considering large number of post harvest
      technology facilities being developed in the state. Total provision of Rs. 20.00 Cr.
      is proposed for this of which MSAMB will share (25%) Rs. 5.00 Cr., Government of
      India will give (25%) Rs. 5.00 Cr. and World Bank assistance of 50% i.e. Rs. 10
      Cr. is expected.

5.7   STRENGTHENING OF GROWERS ASSOCIATIONS

      The growers association have vital role to play in the transfer of knowledge,
      quality production, input supply, marketing and promoting value added products.
      Over the years some of the growers association like Maharashtra Grape Growers
      Association have performed exceedingly well in organising grape growers
      ,promoting high quality production of grape, raisins, export and also processing of
      grapes into quality branded wines. The high level of technical knowledge amongst
      grape farmers 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 an growers association can empower
      the member farmer to get linked to international markets. The growers association
      of this kind can become an effective link between Government and the farmers.
      Through these links it is much easier and effective in reaching messages /advisories
      to the farmers for their betterment.
      The National Horticulture Board is engaged in promoting growers association at
      National level. It has assisted 17 growers associations so far. Of the 17
      associations Maharashtra represents 7 growers associations in a big way. It is
      necessary to promote and strengthen at least 10 growers associations (
      Vegetables ,Mango, Pomegranate, Banana, Flowers, Sweet lime ,Strawberry,
      Guava, Lemon, Anola ) . The growers association will need assistance for
      registration .Also they will need financial assistance for office infrastructure, rent,
      exposure visits, training and workshop. The assistance of this kind is provided by
      the NHB for associations at National level. The associations listed above will play a
      vital role in the farm economy of the state. These associations will have major role
      to play in establishing and running Agri-Marts. The project will assist 10 growers
      associations for one year with total financial assistance of Rs 160.00 lakh .
       The growers associations will then be able to organise their own commodity
      exhibitions annually. Each commodity exhibition is estimated to cost Rs 5.00 lakh to
      be financed by member farmers / input suppliers, National Horticulture Board
      and the contribution from world Bank. An outlay to cover 20 major commodity
      exhibitions in a year is proposed for period of 5 years as under.
                                                                            ( Rs in lakh)
       Private            NHM             World Bank                     Total
       50.00              25.00            425.00                       500.00



5.8    Market Research / market Study
       In order to enable farmers to take long term decisions regarding diversification of
       production, enterprise mix etc, information about markets is a must. This includes
       analysis of size of market, its growth, product information, consumer preferences,
       contacts for traders, input suppliers etc. The market intelligence of this type will be
       needed for important agri-horti commodities within and outside state.           This is
       sought to be achieved with the help of specialized agencies in the private sector.
       The market study will initially concentrate on the commodities like paddy,
       soyabean, cotton, Kharip Sorghum, Pulses ,Rabbi Sorghum ,mango, grape,
       pomegranate, Banana, sweet lime, orange ,onion and vegetables. An outlay of Rs
       70 lakh is projected for the project period which is proposed to availed from
       World Bank (75%) and Government of India (25%).



5.9    Agriculture TV Channel – Feasibility Study
       A TV channel devoted to improving agriculture productivity and marketing is a
       need of the hour. At present there is no TV channel to carry this vital information
       to the farmers. An exclusive TV channel for the farmers will improve the knowledge
       base of farmers and empower them to bring about improvement in their
       productivity and    effective marketing . A TV channel in Marathi is therefore
       proposed with public- private partnership. A feasibility study to set up a T.V
       channel would decide necessity and feasibility of such TV channel. A study of this
       kind would be carried out through a professional agency for which provision of Rs
       20 lakh is proposed.


5.10   MARKET LED EXTENSION FOR CAPACITY BUILDING (MSAMB)


       The Maharashtra State Agricultural Marketing Board (MSAMB) is already
       conducting short duration Training Programmes for the small and marginal farmers
       at Horticulture training Center under National Institute of Post Harvest Technology,
       Talegaon Dabhade, District-Pune. These programs are for promotion, quality
       improvement, post harvest handling, marketing of flowers and vegetables grown
       mainly in green houses. Besides this, training to the farmers for the Godowns
       management, Pledge loan scheme etc under the Rural Godown Scheme of the
       Government of India and also training is imparted to farmers in the areas of Agri
       Export Zones for improving productivity and quality of produce. These
       programmes are presently funded by Department of Agriculture, Government of
       India, NIAM, and from own funds of the MSAMB. However, looking to the vast
       number of farmers to be trained, the programmes need to be intensified and
       required to be taken on continuous basis. One programme of three days covering
       1000 farmers per year per district is proposed during the project period. Around
       20 programmes per year per district are planned. Each such programme costs
       about Rs 50000/- Thus the total cost per year per District will be Rs. 10 lakh & for
       33 districts it will be Rs. 330 lakh per year. Thus for 5 years total fund requirement
       is Rs. 1650 Lakh. 25% of this may be provided by State Government and 75%
       may come from World Bank.

                   Activity               No of Training        Unit Cost       Total Cost
                                         Programme in 5        (Rs in Lakh)    (Rs in Lakh)
                                              years
        Training in 33 districts (20          3300                 0.50            1650
        programmes per year per
        district)
        Total                                                                      1650


5.11   TRAINING, RESEARCH & DEVELOPMENT CENTER (Dairy Department)

       It is necessary to train the milk producer to produce milk hygienically at minimum
       production cost. Milk producer have little knowledge of clean milk production &
       advance dairy farming. It is necessary to establish an advanced well equipped
       infrastructure like laboratory, library, hostel, training hall etc.
       These centers will conduct research & transfer the knowledge to milk producers, &
       also give training to 2000 trainers & 50 master trainers. There is also provision for
       study/exposure visits of the producers & officials for which provision of Rs. 115
       lakh is made for 5 years project period.
       25% of the funds will be mobilized by the dairy co-operative federations and
       25% from GoM as share capital to DCS and 50% may be provided by the World
       Bank as assistance. These 4 training centres will be established by the Taluka,
       District and state federation of Dairy Cooperatives. The details of the cost of
       these training centres and World Bank assistance required is shown in following
       table 35.
         Table – 35 : Cost Estimates for Training Centers of Dairy Department.
                                                                                (Rs. in Lakh)

                                                                               Total Cost
                                           Size                   Cost per
       Sr. No.         Component                    Cost Rs.                     for 4
                                           Sq.ft.                  Centre
                                                                                Centres
         1.      Lecture Hall for 50
                                           500        500           2.5           10
                 Persons
         2.      Hostel for 50 students
                                           5000       500           25           100
         3.      Library Building 1 No.
                                           1000       500            5            20
         4.      Laboratory building 1
                                           1000       500            5            20
                 No.
         5.      Office building 1 No.
                                           2000       500           10            40
         6.      Strengthening of Office

                 i) Computers                          LS           15            60
                 ii) Furniture                         LS            2             8
         7       Laboratory Equipments                 LS            2             8
         8       Library Books                         LS            4            16
         9       Training of Trainers
                                           2000                     0.05         100
                 (2000)
         10      Training of Master
                                            50                      0.10           5
                 Trainers
         11      Exposure visits and
                                            50                      0.20          10
                 study tours.
                 Total                                                            207

5.12      TRAINING AND EXTENSION (Fisheries Department)
         Skills upgradation is an important component of any production & market oriented
         activity. It assumes more importance when the inherent technical skills / capacity of
         the intended beneficiary are low & it can be an important attribute of success or
         failure of the activity. The objectives of development of fisheries can be adversely
         affected if the technical skills of fishermen are inadequate. Therefore to meet this
         important requirement the project envisages training to fishermen. It includes
         training to the fishermen / private pisciculturists in various aspects as per their
         needs in modern techniques. It includes work shops, farmers’ meet, training in seed
         production, fish handling & processing, preservation & marketing etc. This
         programme includes training to the trainers. The total outlay proposed for the
         training & extension programme is Rs.50 lakh, of which 25% (12.50 lakh) may be
         funded by GoM and 75% (37.50 lakh) by the World Bank as shown in Table 36.
Table – 36 : Estimates of Cost for Training and Extension by Fisheries
      Development.
                                                                     (Rs. in Lakh)
                                            No. of
 Sr.                                                      Unit
                    Activity                 Units                    Total Cost
 No.                                                      Cost
                                           Proposed
 1      Training to fishermen                2000          0.01          20.00
 2      Trainer’s training                    200          0.05          10.00
 3      Awareness program                     100          0.05           5.00
 4      Training for seed production /        200         0.025           5.00
        rearing/breeding
 5      Training for fish processing /       200          0.025          5.00
        preservation/marketing
 6)     Training for service providers &     200          0.025          5.00
        resource management/
        extension
            Total                                                        50.00

        In this manner various programs suggested under this project, will built up
the strength, capacity and competitiveness of the producers which is the main
object of MACP.
              SUMMARY OF FUNDS ALLOCATION UNDER COMPONENT NO 2:

                PREPARATION OF DISTRICT AGRICULTURAL PRODUCTION
                AND MARKETING STRATEGIES AND CAPACITY BUILDING

                                                                      (Rs. In Lakh)
No.                                            Total Farmer     GoI /      World
                                          Estimated        /    GoM         Bank
                  Activity                      Cost Private
                                                     Contri-
                                                      bution
 5.1 Mainstreaming of ATMA                 1640.35      0.00   410.16   1230.19
     Preparation of District
 5.2 Agricultural production &              330.00     0.00     82.50    247.50
     Marketing Strategies (DAPMS)
     Implementation of District
 5.3 Agriculture Production and
     Marketing Strategy (DAPMS
      A) Training of officers
      i) Training of Master trainers         36.00               0.00     36.00
      ii) Training of Trainers               52.50               0.00     52.50
      iii) Training of Village
                                            225.00     0.00      0.00    225.00
      extension workers
      iv) Training of officers in case
                                             15.00     0.00      0.00     15.00
      studies
      B) Farmers Training
      i) Master Farmers of Agri-Mart        100.00     0.00      0.00    100.00
      ii) Training of Management
                                              5.00     0.00      0.00       5.00
      Agency of Agri-Mart
      iii) Training of Farmers Interest
                                            150.00     0.00     0.00     150.00
      Groups (FIG)
      C) Strengthening Faculty
      development programme of               23.50     0.00      0.00     23.50
      VANAMATI & RAMETI
      D) Exposure visit by officers
      i) Training Abroad                     40.00     0.00      0.00     40.00
      ii) Outside the state                  50.00     0.00      0.00     50.00
      E) Exposure visit by farmers
      i) Within state                        62.50     0.00      0.00     62.50
      ii) Outside the state                  31.25     0.00      0.00     31.25
      F) Demonstrations
      i) Good Agricultural Practices       2000.00     0.00     0.00    2000.00
      ii) Organic Farming                   225.00     0.00     56.25    168.75
                                                         Farmer
                                                   Total       /
                                                                     GoI /     World
No.     Activity                              Estimated Private
                                                                     GoM       Bank
                                                    Cost Contri-
                                                          bution
        Pilot Risk Management
5.4
        Mechanism
        i) Data collection of Horticulture
                                               1650.00     0.00     825.00    825.00
        crop
        ii) Organization of workshop on
                                                 10.00     0.00      0.00      10.00
        Grape Insurance/Publicity
        iii) Insurance Product
        Development for Horticulture            120.00     0.00      0.00     120.00
        crop
        iv) Establishing weather stations      1400.00     0.00     700.00    700.00

        v) Data collection of five years        400.00     0.00     200.00    200.00
      iv) Operation of weather
      stations established in Grape             170.00     0.00       0.00    170.00
      growing areas
5.4.1 Case Studies                               50.00     0.00       0.00     50.00
      I) Information support
5.4.2                                            50.00     0.00       0.00     50.00
      activities to Agribusiness
      J) Strengthening of State
5.5   Horticulture Processing                    80.00     0.00      20.00     60.00
      Training Institute, Aurangabad
      Strengthening of Horticulture
      Training Institute of Talegaon         a) 437.50              109.37    327.13
5.6                                                        0.00
      Dabhade and developing it as           b) 2000.00            1000.00   1000.00
      Centre of Excellence in PHT
      a) Strengthening of Growers
  5.7                                           500.00    50.00      25.00    425.00
      Association
      b) Commodity Exhibitions by
                                                500.00    50.00      25.00    425.00
      Growers Associations
      Market Research and Market
  5.8                                            70.00     0.00      17.50     52.50
      Study
  5.9 Agriculture T.V. Channel                   20.00     0.00       0.00     20.00
      Market Led Extension for
 5.10 capacity Building (Training by           1650.00     0.00     412.25   1237.75
      MSAMB in AEZ)
      Training, Research and
 5.11                                           207.00                        103.50
      Development Centre (Dairy)                          51.75      51.75
      Training and Extension
 5.12                                            50.00                   37.50
      (Fisheries)                                        0.00   12.50
      Total                                   14350.60 151.75 3947.28 10251.57
                                    CHAPTER - VI

          POLICY & ORGANIZATIONAL FRAMEWORK FOR IMPLEMENTATION AND
                                 MONITORING:

6.1   POLICY & ORGANIZATIONAL FRAMEWORK:
      For the effective implementation and monitoring of MACP in the state, the specific
      arrangements at different levels are suggested.
      There would be Steering Committee at the state level Chaired by the Chief
      Secretary of the Maharashtra State. All the Secretaries of the Line Departments
      concerned with the project would be the members of the Steering Committee. This
      Committee will take policy decisions and also will provide policy support in the
      implementation of this project.
      The policy decisions taken by the Steering Committee will be implemented under
      the overall guidance and directions of the Governing Council which would be
      chaired by the Principal Secretary (Co-operation and Marketing). All the
      Secretaries of the Line Departments will be the members of the Governing Council
      also. The implementation and Monitoring work will be done by the Governing
      Council through the Nodal Agency.
      The Maharashtra State Agricultural Marketing Board, Pune has been identified as
      the Nodal Agency for the coordination between the line departments and
      implementation of the project. The functions, organization and achievements of
      MSAMB are highlighted below.


6.2   THE MAHARASHTRA STATE AGRICULTURAL MARKETING BOARD (MSAMB) –
      NODAL AGENCY FOR MACP

      MSAMB is the statutory Board created as per the provisions of section 39(J) of the
      Maharashtra Agriculture Produce Marketing (Development and Regulation), Act
      1963.
      It’s main functions as listed in the Act are :
      •   To co-ordinate the functions of the Market Committees including programmes
          undertaken by such market Committees for the development of markets and
          market areas;
      •   To undertake state level planning of the development of agricultural produce
          markets;
      •   To maintain and administer the Agricultural Marketing Development Fund;
      •   To give advice to Market Committees in general or in any Market Committee in
          particular with a view to ensuring improvement on the functioning thereof;
      •   To supervise and guide Market Committee in a preparation of plans and
          estimates of construction programme undertaken by Market Committee;
•   To make necessary arrangements for propaganda and publicity on matters
    relating to marketing of agricultural produce;
•   To grant subventions or loans to Market Committees for the purpose of this
    Acton such terms and conditions as it may determine;
•   To arrange or organize seminars, workshops or exhibitions on subject relating
    to agricultural marketing;
•   To arrange for training to the members as well as to the employees of the
    Market Committee;
•   To do such other things as may be general interest relating to marketing of
    agricultural produce;
•   To carry out any other function specifically entrusted to it by this Act;
•   To carry out such other functions of like nature as may be entrusted to it by the
    State Government.

The constitution of Board is provided under the Act itself and Hon’ble Minister
incharge of Agricultural Marketing, Government of Maharashtra is the ex officio
Chairman of this Board and Hon’ble Minister of State for Agricultural Marketing,
Government of Maharashtra is ex officio Vice Chairman.
The other members of the MSAMB are :

1. Chairman, Maharashtra State Cooperative Federation of APMCs (There is a
    Cooperative Federation of APMCs in the State)
2. Two non official representatives from each Revenue Division (Total 6 x 2 = 12)
    They are representatives of the APMCs from respective Division
3. Commissioner for Cooperation and Registrar of Cooperative Societies,
    Maharashtra, State, Pune.
4. Commissioner for Agriculture, Maharashtra State.
5. Managing Director, NABARD or his nominee
6. DMI or his nominee
7. Director of Agricultural Marketing, Maharashtra State – Managing Director
    and Member.
MSAMB enjoys full autonomy and it does not require approval for any proposal
from the Government. It does not receive any grant or budgetary funds from the
State Government or Government of India.

Source of Revenue : MSAMB is entitled to get 5% of the Market fees collected by
the APMCS in their market yards every year. The MSAMB gets about Rs. 600 to
Rs.700 lakh every year through this source.

MSAMB has full fledged consultancy division and it provides consultancy to various
Agro Processing Project in co-operative sector. Agri Marketing Projects mainly
from Maharashtra and also some project form outside the State. MSAMB has been
approved by the Government of India as an approved agency for appraisal of
 Agro processing projects in cooperative sector in Maharashtra.        MSAMB gets
 around Rs.100 lakh as consultancy fee every year.

   MSAMB has successfully taken up following innovative interventions for the
   promotion of Agri marketing in Maharashtra.
(i) MSAMB, is the first in the country to establish tie up with California Humi fresh
      for Precooling and cold storage technology of grapes, as early as in 1991.
      More than 40 precooling and cold storages have been set up in Maharashtra
      by grape growers cooperatives with the help of NCDC/NHB etc. This gave
      boost to export of grapes from Maharashtra.
(ii) Various Commodity growers organizations have been developed by MSAMB.
      Maharagrape (1992), Mahamango (1992), Mahabanana (2002) and
      Mahaanar (2005) are the examples. Mahaflora, Mahaorange names have
      been reserved and the work to promote these organizations is in progress
(iii) MSAMB took initiatives and submitted proposals for AEZ for Alphonso Mango,
      Kesar Mango, Onion, Banana, Orange and Pomegranate and these are
      approved by Government of India, MSAMB has been named as Nodal
      agency by Government of Maharashtra for the implementation of these AEZs.
      The AEZs for flowers and AEZ for Grapes are also sanctioned by Government
      of India, and Maharashtra Industries Development Corporation is working as
      Nodal agency for these AEZs.
(iv) MSAMB has established State of the Art post harvest handling facilities for
      Onion at Indapur (Pune) Pomegranate at Baramati, Pune, Alphanso Mango at
      Ratnagiri and Deogarh (Sindhudurg), Kesar Mango at Jalna, and Vapor Heat
      Treatment plant at Washi (New Mumbai). The work of construction of handling
      facilities for Banana at Sawada (Jalgaon), Basmatnagar (Hingoli) and Orange
      at Arvi (Wardha) is in progress.
      Each facility has modern Pack house, mechanical grading machine, precooling
      unit and Cold storages.
      These facilities have been instrumental in boosting export of fruits and
      vegetables from Maharashtra and these also have charged the attitudes of the
      traders & farmers convincing them that proper post harvest handling of
      perishables is necessary so as to reduce post harvest losses and get good price
      of the produce.
(v) MSAMB has promoted National Institute of Post Harvest Technology at
      Talegaon Dabhade, Dist. Pune and its first project “ Horticulture Training
      Centre” of international standard has been developed with the assistance of
      Netherlands Government and with the help of their technology. The cultivation
      of flowers and vegetables under protective cultivation. MSAMB got the
      assistance (Grant) of Rs.380 lakh from Netherlands Government for this
      project. During the last 4 years more than 10,000 farmers are trained in
      Protective cultivation technology at this centre
      (vi)   MSAMB has undertaken training to Farmers in AEZ areas to improve
             productivity and quality production to boost exports. During the last 5 years
             around 20000 farmers have been trained.

        MSAMB is headed by the Managing Director, who is the Director of Agricultural
        Marketing, Maharashtra State, who works as CEO of the organization. He is
        supported by General Manager, Deputy General .Managers, Managers and
        Assistant Managers. There are seven regional offices in the state, which are
        headed by Managers and they have supporting staff.
        The MSAMB has adequate technical and managerial expertise and financial
        soundness to function as Nodal Agency of MACP.

        The Project Director under the Nodal Agency would be responsible for the
        coordination between the line departments and the implementation and monitoring
        of the project. In each of the Line Department involved in the project, there shall be
        Project Implementation Team consisting of 3 to 4 subject matter specialist officers.
        These Teams will be located in the offices of Heads of the Line Departments viz:
        Commissioner Agriculture, Commissioner Animal Husbandry, Commissioner Dairy
        Development, Commissioner Fisheries and Director of Agricultural Marketing. The
        coordination with Planning Department would also be taken care of by the Nodal
        Agency through Project Director with the help of Steering Committee & Governing
        Council.
        The district level coordinating & implementing body for this project would be
        Agriculture Technology Management Agency (ATMA). The ATMA shall be
        responsible for implementation of various activities under the project with the
        support & help from the District Level & Taluka Level officers of various
        departments concerned, SHGs of farmers, Farmers cooperatives, NGOs, Private
        Sector etc.


6.3     PROJECT IMPLEMENTATION UNIT (PIU) :
        A project implementation unit at state level is proposed to be established, drawing
        services of the experts in agri-business on contract in each line department. This
        unit will monitor implementation of the project from time to time and report to the
        Commissioners / Head of Departments. This will act as a link between the state
        nodal agency (MSAMB) and the line departments .This unit will guide, supervise
        and control project implementation and initiate corrective actions as and when
        necessary for effective project implementation. An outlay of Rs 129.80 lakh is
        projected for this component. The Project Implementation Unit (PIU) at state level
        will monitor various activities under the project from time to time and take
        corrective actions for smooth implementation of the project.
        The break up of the proposed outlay is given in table 37.
      Table – 37 : Establishment of Project Implementation Unit (PIU) at state Level
              in each line department.
       Sr.                   Item                        Matrix              Fund
       No                                                                Requirement
                                                                         ( Rs. in lakh)
                                                                           Five Year
        A                 Non-Recurring                Lump sump             10.00
        B                Recurring Expd.
        1     Salary ( contractual Services)
              a) Market-Led Extension expert         1X0.3X12X5              18.00
              b) Agri-Business Expert                1X0.3X12X5             18.00
              c) Computer operator                   1X 0.15X12X5            9.00
        2     Mobility                               3.60X5                   18
        2     Stationary & computer                  1.00X5                  5.00
        3     Communication aids                     0.03X12X5                1.8
        4     Contingency                            10.00X5                 50.00
                           Total A+B                                        129.80

      Thus for five line departments total funding required for PIU at state level would
      be 129.80 X 5 = Rs. 649.00 Lakh. 25% of this may be funded by Government of
      Maharashtra and 75% by World Bank.


6.4   CONCURRENT MONITORING & EVALUATION ( By Line Departments)
      An independent Monitoring & Evaluation Agency will concurrently monitor and
      evaluate project processes, approaches, institutions, quantify output / outcome and
      impacts. The agency will carry out comprehensive impact evaluation at various
      stages of the project. A Provision to cover expenditure on this account is projected
      at Rs 100.00 lakh for five year period for one line department. Thus for 5 line
      departments total requirement of funds under this component will be Rs. 500.00
      Lakh.   Out of this 25% will be shared by Government of India and 75% is
      proposed to be met from World Bank assistance.


6.5   BUSINESS DEVELOPMENT MANAGER FOR AGRIMARTS:

      It has been proposed to establish 180 AGRIMARTS under this project. Besides
      providing additional platform for the farmers to sell their produce, the various
      services of supply of inputs, value addition, market led extension, will be attended
      to by these AGRIMARTS. These AGRIMARTS will have to be run professionally
      and efficiently. The ownership of the infrastructure in AGRIMARTS will be owned
      by the promoters of the AGRIMARTS but the same would be managed and
      operated by outsourcing the same to entrepreneurs.
The AGRIMARTS are going to be linked to Retail chain operators, Processors and
Exporters and also to Terminal Markets as forward linkages.               Various
manufacturers and technology providers link Agricultural Universities, KVKS,
various training institutions, ABDF identified for this project etc. as backward
linkage.
Constant dialogue between AGRIMARTS and there institutions will have to be
maintained. It is therefore felt absolutely necessary to have Business Development
Manager for AGRIMARTS. The Business Development Manager will be located in
Nodal Agency MSAMB and will work as per the guidelines and directions these
would be given by the Governing Council to the Nodal Agency regarding the
implementation of this project. The Business Development Manager at the state
level will be required in the following specialized areas;
   1. Agriculture, Crop Husbandry and Horticulture.
   2. Dairy Development.
   3. Fisheries Development.
   4. Animal Husbandry.
   5. Agriculture Marketing.
One expert in each of these areas having management background and sufficient
experience would be identified and taken up as Business Development Managers
for AGRIMARTS with MSAMB. The services of Business Development Managers will
be on contract for a period of initial period 3 years. Once the business
development is achieved, the services of Business Development Manager may not
be required. The managements of AGRIMARTS would be able to continue
expanding there after.
The Business Development Managers will be generally reporting to the Project
Director of Nodal Agency (MSAMB) and shall constantly be in touch with various
developments taking place in marketing sector. They will analyze the market
trends regarding prices, arrivals etc. and will submit to Project Director/ Nodal
Agency.
This will be necessary for the development of business of AGRIMARTS as proposed
in the project.
The cost of the Business Development Managers will be 0.50 X 12 X 5 X3 = Rs. 90
lakh. This is proposed to be available from World Bank.
6.6     MONITORING AND EVALUATION BY NODAL AGENCY :
        The implementation of the project will be constantly monitored by the Nodal
        Agency and also by the Governing Council under the overall directions and
        supervision of the Steering Committee. Periodical meetings of the Governing
        Council and Steering Committee will be held and the progress of the project will
        be reviewed. Difficulties while implementing the project will be sorted out and the
        policy decisions/orders etc by the State Government will be issued if required. The
        quarterly report of the progress would be introduced which shall be provided by
        ATMA and Nodal Agency.
        The Evaluation of the Project would be carried out by an independent Agency like
        NAIM and engaging consultants/experts in the field. On the basis of annual
        evaluation reports, necessary corrective steps in the process of implementation and
        monitoring will be taken by the policy framing and implementation machinery. The
        evaluation will include, use of funds provided, measurements of befits received,
        number of beneficiary covered, level of infrastructure created and used etc. Each
        component of the project will be evaluated keeping in view the proposed
        developments and outlay. For this evaluation study a token provision of Rs. 5 Crore
        is proposed in this Project Report. This amount will be provided to the Nodal
        Agency.

6.7     TOTAL PROJECT COST AND WORLD BANK COMPONENT :

        Total project cost of various component under this project works out to Rs.
        100712.28 lakh of which Rs. 57839.19 lakh is proposed to be availed from
        World Bank under MACP, whereas Government of India and Government of
        Maharashtra is expected to provide Rs. 30732.99 lakh and Rs. 12140.10 lakh will
        be invested by private sector including SHGs of growers /Associations of SHGs
        and Cooperative Societies.

                 SUMMARY OF FUNDS ALLOCATION UNDER COMPONENT NO 3:
                                                                     (Rs. In Lakh)
  No                                            Total Farmer   GoI /      World
                                            Estimate        /  GoM         Bank
                       Activity               d Cost Private
                                                      Contri-
                                                       bution
  6.3    Cost of PIU                         649.00     0.00 162.25     486.75
  6.4    Concurrent Monitoring & Evaluation  500.00     0.00 125.00     375.00
  6.5    Business Development Managers         90.00    0.00  22.50       67.50
         for Agrimarts
  6.6    Monitoring & Evaluation by Nodal    500.00     0.00 125.00     375.00
         Agency
         Total Component 3                  1739.00     0.00 434.75 1304.25

        The matrix of the proposed Implementation and Monitoring Team is shown below.
6.7                          Policy and Organizational framework for
                             Implementation & Monitoring of MACP

                              Steering Committee (State Level)
                                     Chief Secretary (Chairman)



      Prin. Secretary,       Prin. Secretary,                Prin. Secretary,             Prin. Secretary,
      Co-op. & Mktg.           Agriculture        Animal Husbandry, Dairy Dev., Fisheries     Planning
         (Member)               (Member).                       (Member)                     (Member)



                                           Governing Council

                                   Prin. Secretary, Co-op. & Mktg.
                                             (Chairman)
                                              Members


   Prin. Secretary,        Prin. Secretary,                Prin. Secretary,             Prin. Secretary,
   Co-op. & Mktg.            Agriculture.       Animal Husbandry, Dairy Dev., Fisheries     Planning
      (Member)                (Member)                        (Member)                     (Member)




                                                Nodal Agency
                                                 (MSAMB)

                                              Project Director



     PIU *                   PIU*                    PIU*                   PIU*                 PIU*
In the office of        In the office of        In the office of       In the office of     In the office of
Comm. of Agri.        Comm. of Ani Husb.      Comm. of Dairy Dev.    Comm. of Fisheries    Director of Mktg.




                                                   ATMA**


                                                                                        District Level
        SHGs             NGOs                 Farmers Co-ops.     Private Sector
                                                                                   officers of line Depts..




                                                   Farmers
  * PIU-Project Implementation Unit
  ** ATMA-Agriculture Technology Management Agency
                              APPENDIX - 1
                        List of Abbreviations
Abbreviations
ABDF            Agri Business Development Facility
ACP             Annual Credit Plan
AEZ             Agri Export Zone
AGMARKNET       Agricultural Marketing Information Network
AMUL            Anand Milk Union Ltd
APEDA           Agriculture & Processed Food Products Export Development
                Authority
APMC            Agriculture Produce Market Committee
ATM             Any Time Milk
ATMA            Agricultural Technology Management Agency
BARC            Bhabha Atomic Research Centre
CII             Confederation of Indian Industry
DAC             Department of Agriculture and Co-operation
DADMS           District Agricultural Diversification & Marketing Strategies
DASP            District Agriculture Strategy Plan
DCS             Dairy Co-operative Societies
DMI             Director of Marketing and Inspection
DoM             Director of Marketing
EGS             Employment Guarantee Scheme
FFDA            Fish Farmers Development Agency
FFS             Farmers Field School
FIGs            Farmer Interest Groups
FIs             Financial Institutes
GAP             Good Agricultural Practices
GDP             Gross Domestic Product
GOI             Government of India
GOM             Government of Maharashtra
HACCP           Hazard Analysis Critical Control Point
HTC             Horticulture Training Centre
IBRD            International Bank for Rural Development
ICT             Information and Communication Technology
IDA             Indian Dairy Association
IIA             Indian Institute of Agriculture
IPM             Integrated Pest Management
KUS             Krishi Udyojak Sangh
KVKs            Krishi Vigyan Kendra
LLPD            Lakh Litres Per Day
LPD             Liter per day
MACP            Multi-state Agricultural Competitiveness Project
MAHAPIC         Maharashtra Agri Productivity Improvement Campaign
MANAGE          National Institute of Agricultural Extension Management
MATCON     Maharashtra Agro Technology Consultancy Organization
MCX        Multi Commodity Exchange
MIS        Management Information System
MITCON     Maharashtra Industrial Technology Consultancy Organization
MMMB       Maharashtra Milk Marketing Board
MOFPI      Ministry of Food Processing Industry
MSAMB      Maharashtra State Agricultural Marketing Board
MSASB      Maharashtra State Agricultural Quality Standards Bureau
MT         Metric Tonne
MTM        Modern Terminal Market
NAIS       National Agricultural Insurance Scheme
NATP       National Agricultural Technology Project
NCDC       National Co-operative Development Corporation
NCDEX      National Commodity & Derivatives Exchange Limited
NDDB       National Dairy Development Board
NECC       National Egg Co-ordination Committee
NGOs       Non Government Organizations
NHB        National Horticulture Board
NHM        National Horticultural Mission
NHRDF      National Horticultural Research and Development Foundation
NMCE       National Multi Commodity Exchange
PCU        Project Coordination Unit
PFI        Partner Financial Institutions
PHM        Post Harvest Management
PPR        Preliminary Project Report
RAMETI     Regional Agriculture Management & Training Institute
SAU        State Agriculture University
SHG        Self Help Group
SME        Small & Medium Enterprises
SMS        Subject Matter Specialist
SNX NDDB   Safal National Exchange National Dairy Development Board
TRDC       Training Research And Development Cell
VANAMATI   Vasantrao Naik Agriculture Management & Training Institute
WB         World Bank

								
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