College of RBI June 2013

Transcript College of RBI June 2013

Developing Agricultural Value Chains & Commercialization of Agriculture Marketing in India Maharashtra Experience

Ramesh Shingte

Nodal Officer Project Implementation Unit- Agri. Mktg

Agriculture in Maharashtra

 First State to adopt Dry Land Farming Technology  Pioneer in Horticulture Development through EGS  2 nd 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

Geographical Area Population Total Cultivable land Per Capita Income Gross Cultivated Area Gross Irrigated Area

Maharashtra

307713 Sq. Km 100 Million 30.76 Million Ha.

Rs. 41,331/ 225.57 Lakh Ha.

39.58 Lakh Ha.

% with Country

9.36% 9.43% 16.85% National Average Rs. 33,131/ 11.83% 5.15% 4

Agriculture in Maharashtra (Contd.)

Food Grain Oilseeds Pulses Cotton Sugarcane Sugar Fruits Vegetables

Production (Million MTs)

10.93

0.61

2.03

3.08

26.98

9.10

11.04

6.45

% with Country

5.12

3.59

13.57

22.21

11.37

32.12

17.40

5.13

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  Total area : 13.32 Lakh ha.

: 15.74 Lakh ha.

 Number of villages  Productive area  Production  Number of growers  Expenditure  Gross annual turnover  Man days generated : 39,411 : 9.14 lakh ha. : 103.2 lakh MT : 17.51 lakhs : Rs. 1,234 Crores : Rs. 6,300 Crores : 3,300 lakh 7

Export of Fresh Fruits and Vegetables from Maharashtra

Sr.

1 2 3 4 Crop Grape Mango Onion Vegetables % share of export in India 98 65 90 68

Maharashtra is leading state in export of fresh fruit & vegetables

Farmers Organizations / NGOs

Grape Growers Association 11. Vegetable Growers Association 2.

Mango Growers Association 3.

Pomegranate Growers Asso.

Banana Growers Association 5.

Sapota Growers Association 6.

Orange Growers Association 7.

Sweet Orange Growers Association 8.

Kagzi Lime Growers Asso.

Guava Growers Association 10. Aonla, Fig, Custard-apple Growers Association 12. Flower Growers Association 13. WIFA (Western India Floriculturist Association) 14. Medicinal & Aromatic Plants Growers Association 15. Associations for Organic Spices cultivation 16. Nursery Owners 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.

No.

1 2 3

Crop

Grape Mango Pomegranate

EUREPPGAP Certified Farms

2000 200 50 10

Q 1: What are issues in Agricultural Production?

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?

Issues in Agricultural Marketing

 Too many intermediaries  Lack of professionalism  Unhygienic conditions  Post harvest losses (around 20%)  Lack of Pvt. Sector participation  Increased Marketing Expenses  Inadequate transparency in auctioning  Lack of standardization and gradation  Low bargaining power of farmers 

W h a t i s t h e r e s u l t ?

 Lack of facilities - grading, packing, cold storage, processing  Market Information & Intelligence

Results

Distress sale Low share of producer in  Long and fragmented value chain (perishables) consumer rupee 14

Q 2: What are issues in Agricultural Processing?

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.

Measures?

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

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.

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.

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.

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.

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.

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.

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.

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.

Activities carried out by M.S.A.M.B.

in Marketing & Risk Management

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.

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 Loan disbursed – 60 – Rs. 35 Cr. Every year.

N o

AEZ

Alphonso mango

AEZs in Maharashtra

Districts

Thane, Raigad, Ratnagiri, Sindhudurg

Implementation Agency

MSAMB Kesar Mango Pomegranate Onion Mandarins Banana Grapes & Grape Wine Floriculture Aurangabad, Jalna, Beed, Latur, Ahmednagar, Nasik MSAMB Nasik, Ahmednagar, Pune, Solapur, Sangli, Latur, Osmanabad MSAMB Nasik, Pune, Jalgaon, Ahmednagar, Satara,Solapur MSAMB Nagpur, Amravati MSAMB MSAMB Jalgaon, Dhule, Nandurbar, Parbhani, Hingoli, Nanded, Buldana, Wardha Pune, Nasik, Sangli, Satara, Ahmednagar, Solapur Pune, Nasik, Sangli MIDC 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.

Export Facility Centers under AEZ

Location Nachne Dist: Ratnagiri

Commodity Project Cost (lakhs)

Capacity

Precooling Coldstorage/St orage Ripening Chamber Handling Grading Packing Line Alphonso Mango 220.82

5 MTs/ Batch 25 MTs/day 5 MTs/Batch 1.5 MTs/Hr

Jamsande Tal: Deogad Dist: Sindhudurg

Alphonso Mango 208.22

5 MTs/ Batch 25 MTs/day 5 MTs/Batch 1.5 MTs/Hr

Jalana Dist: Jalana

Kesar Mango 230.00

5 MTs/ Batch 50 MTs/day 5 MTs/Batch 1.5 MTs/Hr

Indapur Dist: Pune

Agril. produce 389.00

- Storage (500 MTs) - 10 MTs/Hr --

Baramati Dist: Pune

Pomegranate 238 5 MTs/ Batch 50 MTs/day 1.5 MTs/Hr 38

Location

Commodity

Export Facility Centers under AEZ

Raver Dist: Jalgaon

Banana

Basamatnagar Dist: Hingoli

Banana

Karanja Dist: Wardha

Mandarins

Latur Dist: latur

Pomegranate & Kesar mango Project Cost (lakhs)

Capacity

Precooling Coldstorage Ripening Chamber Handling Grading Packing Line 400 5 MTs/ Batch 25 MTs/day 25 MTs/Batch 2 MTs/Hr 400 5 MTs/ Batch 25 MTs/day 25 MTs/Batch 2 MTs/Hr 470 5 MTs/ Batch 25 MTs/day - 2 MTs/Hr 333 5 Mts/Batch 50 MTs/Day 5 MTs/Batch 5 MTs/Hr 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.

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.

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.

Market Led Extension – N.I.P.H.T.

(Horticulture Training Center)

 State-of-art Practical Training Centre set up with the help of FMO The Netherlands & PTC Netherlands   Equipped with : Classrooms, Demonstration Halls, Library, Hostel, Restaurant, Glass/Poly Houses, Meteorological Station  First of its kind in India & 2nd in Asia. 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

1 2 3 4 5 6

Creation of Growers’ Apex Cooperative Societies

Sr. No.

Name of the Organization

Mahagrapes Mahamango Mahabanana Mahaanar Mahaorange Mahacashew

Commodity

Grapes Mango Banana Pomegranate Mandarins Cashew

Date of Establishment

Jan. 1991 Mar. 1991 Jan. 2002 Aug. 2005 Mar. 2008 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.

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