Agriculture Uks Chauhan

37
8/14/2019 Agriculture Uks Chauhan http://slidepdf.com/reader/full/agriculture-uks-chauhan 1/37 PPP NODAL OFFICERS’ WORKSHOP STATUS IN THE DEPARTMENT OF AGRICULTURE & COOPERATION MINISTRY OF AGRICULTURE U.K.S. Chauhan Joint Secretary (Agricultural Marketing) & Agricultural Marketing Adviser 20.09.2007

Transcript of Agriculture Uks Chauhan

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PPP NODAL OFFICERS’ WORKSHOP

STATUS IN THE 

DEPARTMENT OF AGRICULTURE & COOPERATION 

MINISTRY OF AGRICULTURE 

U.K.S. Chauhan

Joint Secretary (Agricultural Marketing) &Agricultural Marketing Adviser

20.09.2007

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Contents

• Salient Features - PPP Cell: Origins and Envisaged Role -Existing Means of Support to PPP Cell 

• Potential Areas for Private/ PPP Ventures in Agriculture

• PPP in Extension Services

• PPP in Seed Sector 

• Encouragement to PPP through Market Reforms - Provisions of 

Model APMC Act 

• Programmatic Initiatives based on Reforms – New Schemes,

Modern Terminal Markets, Agri-Marts etc.

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Salient Features

• Large investment required in service and marketing infrastructure inagriculture and allied sector 

• Ministry of Agriculture has adopted various mechanisms to promotePPPs in key areas

• Private partners include corporate sector, NGOs, SHGs,

cooperatives and individuals

• Ministry’s support includes equity participation, venture capitalassistance, subsidy for capital investment, providing access to database etc.

• Private involvement includes investment in infrastructure, delivery of services, providing inputs etc.

• No project taken up by MoA under VGF Scheme of MoF.

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PPP Cell: Origins and Envisaged Role

• PPP Cell in the Department of Agriculture & Cooperation has beenset up in the National Institute of Agricultural Marketing (NIAM),Jaipur 

• Mandate of PPP Cell is not clearly defined and needs to bereviewed

• Various Divisions of the Department consult NIAM in relevantmatters while formulating policies and projects

• PPP activities have been mainly promoted in the Department in –

 – Agricultural Extension Services

 – Production of seed

 – Agricultural Marketing

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Existing Means of Support to PPP Cell 

• Budgetary support exists under various Schemes of the Departmenthaving scope of PPP activities

• NIAM has not been provided with any staff or funds for managingPPP Cell

• NIAM has capability to generate its own resources for running thePPP Cell

• NIAM has a professionally qualified faculty headed by a JointSecretary level Director General

• Inter-Ministerial or Inter-Divisional coordination is managed by theAgricultural Marketing Division in DAC.

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Potential Areas for Private/ PPP Ventures

§ Primary Value Addition Centres/ Aggregation Centres for clusters of 

4-6 villages

§ Mandi modernization in PPP mode

§ Outsourcing mandi operations for professional management

§ Cold chain for perishables all along the value chain

§ Manufacturers/ Processors/ Exporters/ Retail suppliers may

participate in contract farming/ buy-back arrangements

§ Food safety & Quality Control Testing, Grading & Certification

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Potential Areas for Private/ PPP Ventures

§ Modern Terminal Markets near urban centre with back-end

Collection Centres

§ Direct Markets / District Marts/ Agri-Marts/ Agri-Clinic & Agri-

Business Centres

§ Specialized Commodity markets

§ NHM clusters as green corridors

§ Bulk storage infrastructure with bulk handling

§ Perishable Cargo Centres for export

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Potential Areas for Private/ PPP Ventures

§ Dairy sector infrastructure

§ Livestock, meat, fish market infrastructure

§Modern slaughter houses/abattoirs

§ Food processing infrastructure

§ Private extension/ Marketing intelligence/ Farm Schools

§ Rural internet service centers for agri-marketing services/

e- trading

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PPP in Extension Services• Under Extension Reforms Scheme, non-governmental agencies are

involved through extension work plans prepared by ATMAs and approvedby IDWG at State level

• 10% allocation on recurring activities under the Scheme at District level isused through non-government sector

• Partnering is generally through ATMAs set up in the Districts (alreadyfunctioning in 326 Districts) – to be expanded to all Districts in near future)

• Non-governmental agencies include SHGs/ FOs, NGOs, corporates, agri-entrepreneurs, input suppliers etc.

• PPP activities involve conduct of frontline demonstration, field trials, farmschools, training programmes, exhibitions and fairs, technologydissemination etc.

• Farm schools are hosted by achiever farmers or others who are providedservice charges @ 10% of the total cost.

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PPP in Seed Sector 

• New Scheme launched during X Plan to provide assistance for seed

production in private sector 

• Credit-linked back-ended investment subsidy @ 25% is provided up toRs.10 lakh per unit on seed infrastructure development

• Private companies, individuals, SHGs and seed cooperatives are eligiblefor subsidy

• Seed infrastructure includes cleaning, grading, processing, treatment,packaging, storage and testing facilities

• 94 Private projects have been approved for a capacity of 1.83 lakh tonesof seed by 31st July, 2007

• Under National Food Security Mission for Wheat, Rice and Pulses,assistance cap is proposed to be increased to Rs. 25 lakhs

• Private sector is also proposed to be made eligible for seed distributionsubsidy at par with public sector agencies.

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Encouragement to PPP through Market Reforms

Provisions of Model APMC Act 

§ PPP in management & extension activities/ Promotion of e-trading

§ Encouraging professional management in APMCs

§ Provisions for Contract Farming

§ Establishment of Private markets/ Farmer-consumer markets/Direct marketing

§ Setting up of State Marketing Extension Cells/ State AgriculturalProduce Standards Bureaus.

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Status of APMC Act AmendmentsReportedly no Amendment Needed –

• Tamil Nadu ?

Partially Amended –

• Haryana (Only Contract Farming) &

• NCT of Delhi (Only Direct Marketing)

Amendment Bills under activefinalization –

• Jharkhand, Uttarakhand, West Bengal,

NCT of Delhi & Puducherry

Remaining States –

• Haryana, J&K, Meghalaya & Mizoram

States/ UTs with no APMC Act –

• Bihar (repealed w.e.f. 01.09.2007),Kerala, Manipur and UTs of Andaman& Nicobar Islands, Dadra & NagarHaveli, Daman & Diu & Lakshadweep

States/ UTs having amended Acts –

1. Andhra Pradesh

2. Arunachal Pradesh

3. Assam

4. Chhattisgarh

5. Goa

6. Gujarat

7. Himachal Pradesh

8. Karnataka

9. Madhya Pradesh

10. Maharashtra

11. Nagaland

12. Orissa

13. Punjab/ UT of Chandigarh ?

14. Rajasthan

15. Sikkim

16. Tripura &

17. Uttar Pradesh ??

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PPP in Management Activities

Set up and promote public private partnership inmanagement of the Agricultural Markets

States which have adopted the suggested provision:

• H.P., Karnataka, Nagaland, Sikkim

States which have not adopted it:

• A.P., Arunachal Pradesh, Assam, Chhattisgarh, Gujarat,

M.P., Maharashtra, Orissa, Punjab, Rajasthan, T.N.,Tripura, Uttar Pradesh, UT of Chandigarh

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PPP in Market Extension Activities

To promote Public-Private Partnership in

Extension activities of Market Committee

States which have adopted the suggested provision:

• A.P., H.P., Karnataka, Nagaland, Sikkim

States which have not adopted it:

• Arunachal Pradesh, Assam, Chhattisgarh, Gujarat, M.P.,

Maharashtra, Orissa, Punjab/ UT of Chandigarh,Rajasthan, T.N., Tripura, Uttar Pradesh

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E-trading 

To promote and encourage e-trading, market committee mayestablish regulatory system, create infrastructure and

undertake other activities and steps needed thereto

States which have adopted the suggested provision:

• Gujarat, H.P., Karnataka, Nagaland, Punjab, Sikkim, Uttar 

Pradesh, UT of Chandigarh

States which have not adopted it:

• A.P., Arunachal Pradesh, Assam, Chhattisgarh, M.P.,Maharashtra, Orissa, Rajasthan, T.N., Tripura

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Private Market / Direct Marketing 

Establishment of private market yard anddirect purchase from farmers

States which have adopted the suggested provision:

• A.P., Arunachal Pradesh, Assam, Gujarat, H.P.,

Karnataka, M.P.(can be done under the bye-laws),Maharashtra, Nagaland, Orissa (excluding for paddy/

rice), Punjab & UT of Chandigarh (not for direct

purchase), Rajasthan, Sikkim, Tripura, Uttar Pradesh

States which have not adopted it:

• Chhattisgarh, T.N.

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Consumer/ Farmer Market 

Establishment of consumer/ Farmer market

States which have adopted the suggested provision:

• Arunachal Pradesh, Assam, Gujarat, H.P., Karnataka,

Maharashtra, M.P.(can be done under the bye-laws),Nagaland, Punjab (only enabling provision) Rajasthan,

Sikkim, Tripura, Uttar Pradesh, UT of Chandigarh (only

enabling provision)

States which have not adopted it:

• A.P. (?), Chhattisgarh, Orissa, T.N. (being set up under 

Executive Orders)

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Programmatic Initiatives based on Reforms

• Reform-linked central assistance to encourage public/ private investment for

development of marketing infrastructure, common facilities for aggregation & valueaddition of produce and grading/ packaging/ quality certification facilities

• Scheme to set up modern terminal markets under NHM for perishable agriculturalproduce with suitable backward & forward linkages

World Bank assisted MACP (5-6 States) and ADB Study for Agri-businessDevelopment Project (2 States)

• Development of post-harvest/ cold chain infrastructure, CA storage facilities,refrigerated transportation by road/ rail, perishable cargo centres at air & sea portsunder NHM

• Expansion of scientific storage facilities in rural areas (Rural Godown Scheme)

• Marketing Information System (AGMARKNET) to facilitate market intelligenceservices and market led extension to encourage demand-driven quality production

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Reform-linked Scheme for 

Development of Agricultural Marketing InfrastructureAgricultural Marketing Infrastructure Projects

§ Infrastructure for Collection, Grading, Packaging, Wholesaling, E-trading, MarketOriented Extension, Production Planning etc., including mobile infrastructure(excluding transportation facilities);

§ Infrastructure for Direct Marketing to Consumers/ Processing Units and forSupporting Contract Farming Arrangements between Processing/ Trading Unitsand Farm Producers

Rate of Subsidy

 – 25 % of Capital cost of Project – 33.33 % for N-E States, hilly & tribal areas and SC/ST & their cooperatives

Maximum amount of subsidy

 – Rs.50 lakh for each project. – Rs.60 lakh in case of NE States, hilly and tribal areas and SC/ST cooperatives – No cap on subsidy to State Agencies

Achievements:

• 2077 Projects sanctioned subsidy through NABARD & 62 through NCDC.

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Construction of Rural Godowns

Credit-Linked Assistance:

§ Launched w.e.f. 1.4.2001 for creation scientific storage facilities to reduce post-harvest losses, prevent distress sale, facilitate credit etc.

§ Subsidy linked to Institutional Credit and available to all Rural GodownProjects of above 50 MT Capacity.

§ For cooperatives subsidy available for renovation of godowns also.

Rate of subsidy:§ 25% of Capital Cost of Project with a ceiling of Rs.37.50 lakh

§ In NE States/ Hilly Areas and for SC/ST, Subsidy is @ 33.33% with a ceiling ofRs. 50.00 lakh

§ For Individuals other than farmers & Companies/ Corporations, subsidy is 15%with a ceiling of Rs. 22.50 lakh

§ Implemented by DMI and subsidy routed through NABARD/ NCDC (for

cooperatives)

Achievements:

§ 15263 Rural Godown projects sanctioned subsidy as on 31.7.07 including12333 by NABARD and 1271 (new) & 1659 (renovation) by NCDC

§ 186.51 lakh tonnes of capacity generated through these projects.

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Concept of Modern Terminal Market Concept of Modern Terminal Market 

q Hub-and-Spoke Format: Terminal Market (the hub) to be linked to

number of Collection Centres (the spokes) which would beconveniently located at key production centres to allow easy access to

farmers & provide advisory services to them.

q To provide state-of-art facilities for grading, transportation, storage,

domestic marketing & export at both the hub and collection centres.

q To facilitate aggregation, value addition, integrated cold chain, direct

marketing, transparency in trading & improved price realisation by

farmers

q PE bidding for  min. govt. equity support to be awarded work - up to

49% of government equity participation, including State’s contribution

q Mainly to cover perishable commodities (could handle non-perishables

up to 15% & non - F&V perishables also up to 15%).

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Collection Centre

Modern Terminal Market

Producers/ Farmers andtheir Associations

Infrastructure:Washing, grading, sorting, weighment,transport to TM

Services:Collection & Aggregation of produce,Settlement of payment, advisory on inputs,

prices, quality, multi-modal transport

Infrastructure:Packhouse,Quality TestingFacility,Palletisation

Services:Transport (incl.cool chain),Settlement of Payments,Banking, Marketinformation

Electronic Auction

Banking Institution

Storage:Cold Storage,Temperaturecontrolledwarehouse,RipeningChamber

Processor Exporter Wholesaler/ Trader/Retail chainoperator

Direct Selling

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Expected Outcome of MTMs

Farmer’s share is expected to increase to 50 to70% of the consumer price.

Varies from 30 to 50%for perishablesdepending on thelocation, season,demand and supplyetc.

Share of thefarmer in theconsumer price

16000 to 20000 farmers under each terminalmarket.

--Beneficiaryfarmers

Length of the chain of commission agents willsubstantially be reduced with an ideal situation ofeliminating the commission agents completely.

prevalentMultipleintermediaries

Farmer is provided with alternative option oftaking his produce to terminal markets.

prevalentMonopoly ofAPMC Markets

Minimum of 20 collection centers nearer to thefarmers field will be set up. The farmer will havealternative options to supply to the supply chains,processing, export of commodities etc.

poorBackward-forwardlinkages

Setting up of cold storage at each market rangingfrom 2000 to 15000 MT capacity

poorCool chaininfrastructure

Transparent auctions through electronic auctionsystemNon-existingTradetransparency

Expected outcomeBaseline statusParameter

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Key Expectations from the Private Enterprise

q Arrange land for TM & CCs – obtain necessary licences, clearances &

approvals

q Provide envisaged infrastructure at the TM and the CC in the ‘hub- and-

spoke format’ 

q Establish backward linkage with growers in the catchments area of the

TM through establishing the collection centers

q Progressively involve farmers and their organizations in the operation

and management of the collection centers

q Facilitate direct supply to processing units, retail chains and exporters, in

addition to auction facility via the collection centers and terminal market.

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Key Expectations from the Private Enterprise

q Provide advisory services to farmers on inputs, prices, quality, multi

modal transport and exports.

q Projects should be designed to handle the required minimum quantity of 

peak throughput (MT/ day) and yearly handling capacity as prescribed.

q Private enterprise at liberty to

q Prepare own business model with regard to Size of market and

Scale of operation

q Set up additional facilities to provide complimentary services

(input supply, processing, consumer goods etc.)

q Collect user charges for the infrastructure and services provided

q PE shall recover market charges from the users and shall also be free to

fix the charges for non-market services but essential services shall be

provided free of charge to users unless otherwise specified.

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Expectations from the State Government 

Regulatory clearances:

q Single license to operate in the entire State/ adjoining States

q Single point levy & collection of market fee

q Autonomy in commercial operations of TM

q Clearance of land use for the TM/ CCs

q Provision of Civic amenities (including drinking water, municipal 

waste disposal, police security, post office etc )

q Statutory clearance from

• Local authority

• Town planning & Urban development

• Revenue department

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Expectations from the State Government 

q Play a pro-active role:

Ø Appointment of a Nodal Officer SLEC of under SHM

• for selection of PE through open/transparent bidding process &

execution of OMDA

• to facilitate securing regulatory compliances

• to remove difficulties in operation of the project

Ø Approval of locations for the TM / CCs

Ø Provision of Government land on long term lease, subject to

availability and suitability

Ø Infrastructure support to TM / CCs

• road connectivity, power and water supply etc.• States free to participate in the equity of Project through-

 – Direct funding

 – Land / infrastructure support

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Role of the Central Government 

q Support the project through participation in its equity capital

q Terms for financing:

q Up to 49% of project equity, including contribution from State

q NHM/ State will have the option to allocate its equity to farmers

organisations actively participating in the business of the project

q NHM to finally approve the bidder on recommendation of SLEC of 

SHM

q Arrange awareness, panel of FIs & technical support to States

through NIAM

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Progress of Terminal Market Scheme in Various States/ UTs

Expected

soon

IL & FS

Infrastructure

Dev. Corp.

Ltd. Selected

Available (50

Acres)

PatnaBihar 4.

Jalandhar 

IdentifiedMuktsar IdentifiedHoshiarpur 

Optional for PE to

arrange land –

Last date for applications was

extended up to

05.09.07

1-7-07IdentifiedLudhianaPunjab3.

--do--10 Acres of land

is available

Indore

Pre-bid

Conference

arranged

25-5-07, 26-5-

07 & 11-6-07

Corrigendumissued on

16.07.07 &

04.08.07

Selected40 Acres of land

is available

BhopalM.P.2.

Four Agencies

short-listed – RFP

Notice issued

20.01.07Yes BankAvailable Near 

Sector 39 (W);

42 Acres of Land

Chandigarh,UT of 

Chandigarh

1.

Date ofpublishingNotice for

Technical &

Financial Bids(RFP)

Date ofpublishingNotice forEOI (RFQ)

Whether FIappointed for

hand-holding, give

name

Whether Govt.Land is

Available or PEto arrange land

IdentifiedLocations

StateSN

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Progress of Terminal Market Scheme in Various States/ UTs

Nagpur 

Tirupati

Visakhapatnam

Expected

soon

Under processLand of APMCJaipur Rajasthan8.

Coimbatore

Madurai

Under 

approval of the

Government

PE to arrange

land

ChennaiTamil Nadu7.

IdentifiedNashik

Expected

soon

Identified (100

acres)

MumbaiMaharashtra6.

Nodal Agency

changed from

AM to Horti.

Deptt. & back

IdentifiedHyderabadAndhra

Pradesh

5.

Date ofpublishingNotice for

Technical &Financial Bids

(RFP)

Date ofpublishingNotice forEOI (RFQ)

Whether FIappointed forhand-holding,

give name

WhetherGovt. Land isAvailable or

PE to arrangeland

IdentifiedLocations

StateSN

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Progress of Terminal Market Scheme in Various States/ UTs

Channapatna

Sambalpur 

NIAM

engaged for 

feasibility

study by Hort.Deptt

IdentifiedBerhampur 

Proposed for 

NDDB

100 acre land

available

Hassan

Hubli

Expected

soon

Bijapur Karnataka9.

Cuttack

Orissa10.

Date of

publishingNotice forTechnical &

Financial Bids(RFP)

Date of

publishingNotice forEOI (RFQ)

Whether FI

appointed forhand-holding, give

name

Whether Govt.

Land isAvailable or PEto arrange land

Identified

Locations

StateS

N

UP & Gujarat have also become recently eligible

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 Agrimart - MACP Model (World Bank)

• Hub and spoke approach - Command area of hub and spoke would be

site specific

• At the hub –

 – Post harvest activities including sorting, grading, packing etc

 – Market facilitation – acting as an aggregator of goods for Mandi,

Processors, organized retailers, Terminal markets etc.

• Activities at the spoke –

 – Agri Input retailing

 – Equipment hiring – Crates, Machinery

 – Market led extension services through ATMA – Financial services facilitation – credit, insurance etc.

• Management –

-- Agri-Marts would be initially operated by a local SME and as the

project matures they may be managed by producer organizations.

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Design of Agri-Mart 

P roduce rG r oups

n Fa rm ers /P r o d u c e r sm ob i l ise d ing r o u p s

Agr i -Ma r t

n V a l u e - a d dse rv ices

n S a l e s a n dm arke t ings u p p o r t

n Produc t ion

and t ra in ingass is tance

Buye r s

n L o c a lm ark e t

n Dis t r ibu to rs

n P r o c e s s o r s

n Su pe rm arke ts

n E x p o r tm ark ets

P roduceVa lue -AddedP roduce

• Inputs

• Capac i t ydeve l opm en t

• Cred i t &I

M arketinform at ion

& M arketS i gna l s

Source: Presentation by World Bank on Agri-Mart

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Ø Crops Directorates (8) [Wheat, Jute,Cotton, Rice, Sugarcane, Millets,Pulses, Tobacco]

Ø Technology Mission on Horticulture

Ø Coconut Development Board

IFFCONetwork

AreaOffice

AreaOffice

Ø Automatic DataDownloading

Ø Data validation

Ø Database updation

Ø Trend Analysis

Ø Monitoring Reports

Ø Commodity profiles forproduction planning

Ø Data Warehouse & DataMining

Ø GIS based NationalAtlas

Kiosk

DMI Hqs.

AGMARKNEThttp://agmarknet.nic.in

AreaOffice

Farmers

>2800Markets

DMI StateOffices(27)

IFFCO

LocalNewspapers

NoticeBoard /ElectronicBoard

RegionalOffice

RegionalOffice

RegionalOffice

IFFCONetwork

CDB

CDBNetwork

Farmers

Call Centres

Agri-clinics

MobileOperators

farmers

State Mkts./Directorates

(50)

Regional Portals(8 alreadyapproved)

FarmingCommunity

Public Access

Mobile

user s

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Agency Expected Benefit

q Mobile Phone Operators Access to millions of subscribers/Kisan Call Centre

q IFFCO/ Co-operatives Access to farmersCommodity Exchanges

q Krishi Vigyan Kendras Market led extension to farmers

q IT Kiosks / Common Harnessing technology to reach ruralService Centres masses

q Doordarshan/ AIR Price dissemination

q Newspapers/ Periodicals Price dissemination

Agencies for Strategic Alliance in Agmarknet

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Thank you (For any further information please contact me at

[email protected])