College of RBI June 2013

Report
Developing Agricultural Value Chains
&
Commercialization of Agriculture
Marketing in India
Maharashtra Experience
Ramesh Shingte
Nodal Officer
Project Implementation Unit- Agri. Mktg
Maharashtra Agricultural Competitiveness Project , PUNE1
2
Agriculture in Maharashtra
 First State to adopt Dry Land Farming Technology
 Pioneer in Horticulture Development through EGS
 2nd largest producer of fruits in India (95 lakhs MT/annum)
 Leading producer of grapes, pomegranate and orange
 Second highest producer of banana and sugarcane
 Highest producer of coarse cereals and cotton
3
Agriculture in Maharashtra (Contd.)
Particulars
Maharashtra
% with Country
Geographical Area
307713 Sq. Km
9.36%
100 Million
9.43%
30.76 Million Ha.
16.85%
Rs. 41,331/-
National Average
Rs. 33,131/-
Gross Cultivated Area
225.57 Lakh Ha.
11.83%
Gross Irrigated Area
39.58 Lakh Ha.
5.15%
Population
Total Cultivable land
Per Capita Income
4
Agriculture in Maharashtra (Contd.)
Production
(Million MTs)
10.93
% with Country
Oilseeds
0.61
3.59
Pulses
2.03
13.57
Cotton
3.08
22.21
Sugarcane
26.98
11.37
Sugar
9.10
32.12
Fruits
11.04
17.40
Vegetables
6.45
5.13
Food Grain
5.12
5
Maharashtra’s Strengths in Horticulture
 Diverse agro-climatic conditions
 Strong research support – Four agricultural universities
 National Research Centers for:
 Grapes - Pune, Citrus - Nagpur, Onion & Garlic – Rajgurunagar (Dist.Pune),
and, Pomegranate - Solapur
 Strong co-operative network
 Proximity to international airport & sea port provide the logistic
advantages
 Strong crop based farmers organizations
 Innovative farmers
6
Status of fruit crops in Maharashtra
 Area before 1990
: 2.42 Lakh ha.
 New plantations
: 13.32 Lakh ha.
 Total area
: 15.74 Lakh ha.
 Number of villages
: 39,411
 Productive area
: 9.14 lakh ha.
 Production
: 103.2 lakh MT
 Number of growers
: 17.51 lakhs
 Expenditure
: Rs. 1,234 Crores
 Gross annual turnover
: Rs. 6,300 Crores
 Man days generated
: 3,300 lakh
7
Export of Fresh Fruits and Vegetables from
Maharashtra
Sr.
Crop
% share of export
in India
1
Grape
98
2
Mango
65
3
Onion
90
4
Vegetables
68
Maharashtra is leading state in export of fresh fruit & vegetables
8
Farmers Organizations / NGOs
1. Grape Growers Association
11. Vegetable Growers Association
2. Mango Growers Association
12. Flower Growers Association
3. Pomegranate Growers Asso.
13. WIFA (Western India Floriculturist
4. Banana Growers Association
5. Sapota Growers Association
6. Orange Growers Association
7. Sweet Orange Growers
Association
8. Kagzi Lime Growers Asso.
Association)
14. Medicinal & Aromatic Plants
Growers Association
15. Associations for Organic Spices
cultivation
16. Nursery Owners Association
9. Guava Growers Association
10. Aonla, Fig, Custard-apple
Growers Association
9
Status of GAP in Maharashtra
 GAP integrates the application of new production
system such as IPM, ICM & INM for commercial
production of agricultural products
 Quality certification in agriculture
Sr.
Crop
No.
EUREPPGAP
Certified Farms
1
Grape
2000
2
Mango
200
3
Pomegranate
50
10
Q 1: What are issues in
Agricultural Production?
11
Issues in Agricultural Production
 Small land holdings
 Subdivision and fragmentation of land
 Presence of % of small and marginal farmer
 Only 35 % of area under irrigation
 Heavy dependence on rainfall
 Low farm mechanization
 Low adoption of technology
W h a t i s t h e r e s u l t ?
• Results
- Low productivity
- Low shelf life
12
Q 2: What are issues in
Agricultural Marketing?
13
Issues in Agricultural Marketing
 Too many intermediaries
 Post harvest losses (around 20%)
 Lack of professionalism
 Lack of Pvt. Sector participation
 Unhygienic conditions
 Increased Marketing Expenses
 Inadequate transparency in
 Low bargaining power of farmers
auctioning
W h a t i s t h e r e s u l t ?
 Lack of standardization and
gradation
 Lack of facilities - grading,
Results
packing, cold storage, processing
- Distress
 Market Information & Intelligence
- Low share of producer in
 Long and fragmented value chain
consumer rupee
(perishables)
sale
14
Q 2: What are issues in
Agricultural Processing?
15
Issues in Agricultural Processing
• Only 2% of perishables processed
• Lack of private sector participation
• Weak backward linkages
• Un-assured forward linkages
• Absence of contract farming
W h a t i s t h e r e s u l t ?
Results
- No value addition / Very little VA.
- Self life not increased / Very low SL.
16
Measures?
17
Measures for Improving Agri. Marketing
 Providing Transparent Auction System
 Providing better Infrastructural Facilities
 Providing Risk Mitigation measures
 Providing Alternative Marketing Channels
 Warehouse Receipt Programme
 Market Information & Intelligence
18
Externally Aided Projects
•
Maharashtra Agricultural Competitiveness Project (MACP)
•
Convergence of Agricultural Interventions in Maharashtra (CAIM)
•
Agribusiness Infrastructure Development Investment Program (AIDIP)
Amendments in Agricultural Marketing Act
• Private Markets
• Farmer Consumer Market
• Direct Marketing
• Special Commodity Market
• Single License System
• APMC Secretary Panel
• Planning for Infrastructure Development
19
Maharashtra Agricultural Competitiveness
Project (MACP)
 World Bank funded
 Objective – to increase productivity, profitability and market
access and make farmer competitive
 Agriculture, AHD and Agriculture Marketing – line Depts.
 Interventions - Extension measures by Agriculture & AHD
Strengthening existing markets providing alternative marketing
channels by Agri. Marketing
 Period – 6 yrs
 Outlay – Rs. 703.00 Crores
20
Convergence of Agricultural Interventions
in Maharashtra (CAIM)
 International Fund for Agricultural Development (IFAD) aided
 Objective: To improve household incomes from diversified
farming and from off-farm activities
 Coverage: 1200 villages from suicide prone districts (Akola,
Amravati, Buldhana, Washim, Yawatmal & Wardha)
 Interventions: Institutional Partnership Development &
Capacity Building , Sustainable Agriculture & Mktg. Linkages,
SHG & CMRC Development , Micro-Enterprises & SMEs
 Period : 8 yrs
 Outlay: Rs. 593 Crores
21
Agribusiness Infrastructure Development
Investment Program (AIDIP)
Objectives 
To attract private sector investment for agricultural
infrastructure development.

Basic agricultural infrastructures as per needs of farmers,
traders and entrepreneurs.

Farmers capacity building and formation of farmers
groups and producer Companies .

Crop diversification.

Value addition for perishable crop
22
Project Components –
1. Establishment of Integrated Value Chain (IVCs) on PPP
basis, Hub – Spoke model
2. Strengthening and establishing of IVC backward linkage
under JFPR
3. Institutional Development and Program management
Financing Plan – (Multi-tranche Financing Facility )
ADB - $ 85 million (32 %), GoM - $ 21 million (8 %) and
Private Investors - $ 159 million (60 %)
Establishment of Integrated Value Chains (IVCs) –

In 1st Tranche – Nashik & Aurangabad – Amrawati IVCs

Rest of Maharashtra – 15- 20 IVCs will be established in
next 6-7 years.
The project is expected to complete by year 2017
23
Amendments in Maharashtra Agricultural
Produce Marketing (Dev. & Reg.) Act 1963
 Private markets
 Farmer – Consumer markets
 Direct Marketing
 Special commodity markets
 Regional / Divisional APMC
 Single license system
 Cadre for the secretaries of APMC
 Contract Farming.
24
Private Markets
 Individuals, Co-op. Societies, companies can establish
Private Market
 License will be required
 Collection & utilization of market fee for the development of
market
 Facilities like Pre-cooling, Cold storage, Packing centers,
Washing centers, Electronic auction, Immediate payment
etc. to be provided by private market operators.
 Private Market license issued – 23
 Turnover 2012-13 – Rs. 2058.00 Cr.
25
Farmer Consumer Market
 Direct selling of Agricultural produce from farmer to
consumers.
 Farmer & Consumer both will be benefited as middlemen
are deleted.
 Minimum facilities to be created.
 License from Director Marketing is necessary.
 Operators can charge necessary service charges.
26
Direct Marketing
 License from Director of Marketing, Maharashtra State
 License holder can purchase Agricultural produce from
farmer at village level.
 Market fee to be paid to APMC
 Pressure on APMCs will reduce
 Income of APMC will increase
 Direct Marketing license issued – 78
 Turnover 2012-13 – Rs. 915.11 Cr.
27
Special Commodity Market
 Modern facilities for the Sale, Purchase, Store, Grading,
Packing of Agricultural produce will be created.
 Infrastructure development & can avail the subsidy facilities
of State / Central Govt.
 Onion, Potato, Orange, Banana etc. Govt. can establish
Special Commodity Market.
 Special Commodity Markets to be established by State
Govt. only.
28
Regional / Divisional APMC
 Regional – Arrival of agricultural produce from more than
one Tahasil.
 Divisional – Arrival of agricultural produce from more than
one District.
 Govt. can declare the APMC as Regional / Divisional.
 Representatives of Farmers, Hamals, Merchants, Traders,
Local Authorities, MSAMB, Govt. on APMC Board of
Director.
29
Single License System
 License holder can purchase agricultural produce from more
than one APMC area.
 Traders can purchase agricultural produce in a whole state
 Time & Money of traders will be saved.
 Transparency in License issuing system.
 Single License issued - 28
30
APMC Secretary Panel
 For the efficient & commercial operations of APMC
 Working Secretaries & Highly Qualified Professional /
Personals will be included in the Panel.
 Recruitment of Secretary from Panel.
 Control etc. are the rights of APMC.
 Panel to be maintained by the MSAMB.
31
Contract Farming
 Contract Farming Sponsor shall apply for registration in
FORM “G” to SDAO.
 Registration fee is Rupees 500.
 SDAO to dispose of application within 60 days.
 Prohibition for creation of right, title, interest or ownership
in the land under Contract Farming Agreement.
 Prohibition for sale of land under contract farming
agreement by sponsor.
 Total area under Contract farming 1.00 Lakh Ha.
32
Activities carried out by M.S.A.M.B.
in Marketing & Risk Management
33
SCIENTIFIC ONION STORAGE INFRASTRUCTURE
 Construction cost -
Rs. 6000/- per MTs
 Subsidy for - 5, 10, 15, 20, 25 & 50 MTs
 Subsidy Amount - Rs. 1500/- per MTs or 25% Construction
cost whichever less.
 Total Capacity Created - 7.00 Lac MTs
 Farmer beneficiaries – 28516
 Subsidy given Rs. 72.44 Cr.
34
Agriculture Pledge Loan Scheme
 Scheme started: Year 1990-91
 Crops covered: Tur, Mug, Udad, Safflower,
Paddy, Soya bean, Chana, Sunflower, Jawar,
Bajara, Wheat, Maize, Cashew, Seeds, Raisins,
Turmeric etc.
 Rate of Interest : 6-8%
 Period of 180 days
 APMC involved – 60
 Loan disbursed – Rs. 35 Cr. Every year.
35
AEZs in Maharashtra
N
o
AEZ
Districts
Implementation
Agency
Alphonso mango
Thane, Raigad, Ratnagiri, Sindhudurg
MSAMB
Kesar Mango
Aurangabad, Jalna, Beed, Latur, Ahmednagar, Nasik
MSAMB
Pomegranate
Nasik, Ahmednagar, Pune, Solapur, Sangli, Latur,
Osmanabad
MSAMB
Onion
Nasik, Pune, Jalgaon, Ahmednagar, Satara,Solapur
MSAMB
Mandarins
Nagpur, Amravati
MSAMB
Banana
Jalgaon, Dhule, Nandurbar, Parbhani, Hingoli,
Nanded, Buldana, Wardha
MSAMB
Grapes & Grape Wine
Pune, Nasik, Sangli, Satara, Ahmednagar, Solapur
MIDC
Floriculture
Pune, Nasik, Sangli
MIDC
36
Training & Demonstration Programs
(Market Led Extension)
 MSAMB with help from State Agriculture Department
and Agriculture Universities regularly carry out
training programs for farmers in “Quality Production,
Post Harvest Handling & Marketing Aspects”.
 Total No. of Farmers Trained – 56,000.
37
Export Facility Centers under AEZ
Location
Nachne
Dist:
Ratnagiri
Jamsande
Tal: Deogad
Dist:
Sindhudurg
Jalana
Dist: Jalana
Indapur
Dist: Pune
Baramati
Dist: Pune
Commodity
Alphonso
Mango
Alphonso
Mango
Kesar Mango
Agril. produce
Pomegranate
Project Cost
(lakhs)
220.82
208.22
230.00
389.00
238
5 MTs/ Batch
5 MTs/ Batch
5 MTs/ Batch
--
5 MTs/ Batch
Coldstorage/St 25 MTs/day
orage
25 MTs/day
50 MTs/day
Storage (500
MTs)
50 MTs/day
Ripening
Chamber
5 MTs/Batch
5 MTs/Batch
5 MTs/Batch
--
--
Handling
Grading
Packing Line
1.5 MTs/Hr
1.5 MTs/Hr
1.5 MTs/Hr
10 MTs/Hr
1.5 MTs/Hr
Capacity
Precooling
38
Export Facility Centers under AEZ
Location
Raver
Dist: Jalgaon
Basamatnagar
Dist: Hingoli
Karanja
Dist: Wardha
Latur
Dist: latur
Commodity
Banana
Banana
Mandarins
Pomegranate &
Kesar mango
Project Cost
(lakhs)
400
400
470
333
Precooling
5 MTs/ Batch
5 MTs/ Batch
5 MTs/ Batch
5 Mts/Batch
Coldstorage
25 MTs/day
25 MTs/day
25 MTs/day
50 MTs/Day
Ripening
Chamber
25 MTs/Batch
25 MTs/Batch
--
5 MTs/Batch
Handling
Grading Packing
Line
2 MTs/Hr
2 MTs/Hr
2 MTs/Hr
5 MTs/Hr
Capacity
39
Vapor Heat Treatment Plant
Location : Exporters Building, Vashi, New Mumbai
Facilities available :
 VHT Machine - Imported from Japan
 Pre-cooling
 Cold Storage
 Grading & Packing Line
 APEDA Certified Pack House Facilities
Establishment of another VHT machine in the near future.40
Mango Export to Japan
 Market opened in June-2006
 Participated in Mango Promotion Program, Japan
 High Value market
 Exported around 25 MTs+ mangoes after processing in VHT.
 Occurrences of residues in mangoes (Chloro-pyriphos)
 Successful Trials for use of Thermo-col boxes
41
Planning for Infrastructure Development
 Erection of Irradiation Facility Centre at Vashi, Navi
Mumbai is in progress
 Promotion of export of Agril. produce to US &
Europe.
 Planning to develop Quarantine and Phyto-sanitary
facilities for promoting export of fresh fruits and
vegetables.
42
Quality Consciousness
 Guidance to the Growers for GLOBALGAP Certification.
- 63 Alphonso mango growers, 76 Kesar Mango grower, 53
Pomegranate growers received the certificate.
 Announced 50% subsidy for certification (Mango &
Pomegranate)
 Undertaking Awareness Programme for the growers to
understand the need of changing scenario w.r.t. WTO, Food
Safety etc.
 MSAMB giving 50% subsidy to farmers.
43
Market Led Extension – N.I.P.H.T.
(Horticulture Training Center)
 State-of-art Practical Training Centre set up with the help of FMOThe Netherlands & PTC Netherlands
 First of its kind in India & 2nd in Asia.
 Equipped with : Classrooms, Demonstration Halls, Library, Hostel,
Restaurant, Glass/Poly Houses, Meteorological Station
 Soil & Water Testing Laboratory.
 Fully Computerized Controlled to Low Cost Poly-houses (Total 12)
 Total No of Trainees Trained - 17000
44
Market Intelligence

MSAMB has entered into MoU with REUTERS (UK based) for dissemination of
Market rates, Weather forecast, Pesticide & Fertilizer application guidance
through SMS via mobile phones (REUTERS has enrolled @ 1,00,000+ members)

“MARKNET” - Computerized 291 main markets & 54 sub markets and connected
through internet with MSAMB’s portal (www.msamb.com).

Installation of projection TV systems at 69 APMCs in the state for dissemination
of arrival, prices and agricultural information.

MSAMB has signed MOU with NOKIA to disseminate Market Rates, Weather,
Forecast & Other Agril. information.

Ticker Boards with NCDEX assistance – 106 APMCs

Display Boards – In 140 APMCs
45
Creation of Growers’ Apex
Cooperative Societies
Sr. No.
Name of the Organization
Commodity
Date of
Establishment
1
Mahagrapes
Grapes
Jan. 1991
2
Mahamango
Mango
Mar. 1991
3
Mahabanana
Banana
Jan. 2002
4
Mahaanar
Pomegranate
Aug. 2005
5
Mahaorange
Mandarins
Mar. 2008
6
Mahacashew
Cashew
Sept. 2010
46
Fruit Festival Scheme
 To reduce the intermediaries.
 Availability of commodities to consumers at reasonable price
 Better returns to farmers
 Assistance of Rs. 1000/- per stall & Rs. 10,000/- for
advertisement in Corporation areas.
 Assistance of Rs. 700/- per stall & Rs. 5000/- for
advertisement in other cities / towns.
47
Other Activities undertaken by MSAMB
 Chanalising Agency for Onion Export since 1999.
 Nodal Agency for setting up of Terminal Markets
(Mumbai, Nashik, Nagpur)
 Initiated the process to set up:
 Modern Markets at Aurangabad & Basamatnagar on BOT thru’ PPP
 Modern Markets at 20 different locations
 Computerised Auction System in 100 APMCs
 Provides subsidy for:
 Cost of sea freight for export of onion to Europe.
 Purchase of Crates by farmers.
 Global GAP certification
48
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