����������

������ �����������������������������������

����������

������������������������ ��!

Indian Agriculture suffered from Technological, Financial &Economic isolation

Green Revolution largely solved the problem of Technological isolation

Key Strategy to overcome Financial &Economic isolation is

SUPPORTING AGRI MARKET INFRASTRUCTURE

3

NABARD SUPPORT TO AGRI-MARKETING INFRASTRUCTURE� Refinance for Rural Godowns and market yards, Cold Storages,

Refrigerated vans, Farm mechanization equipments like combine harvesters, threshers, driers, Agro-processing units. Created 172 lakh MT storage capacity with refinance support of Rs 909 crores

� Co-financing� Rural Infrastructure Development Fund (RIDF) supports

market yards, godowns, apni mandi, rural haats, cold storages & other marketing infrastructure. As on March 06, extended support of Rs 90.39 crore for 517 projects

� Dispensing Subsidy of GOI’s Capital Investment Subsidy Schemes

� Promotional support� Developmental initiatives

4

GoI’s Credit linked Subsidy Schemes

� Scheme for development/ strengthening of Agricultural Marketing Infrastructure, grading and standardisation

� Capital Investment Subsidy Scheme for construction of Rural Godowns

� Capital Investment Subsidy Scheme for construction of cold storages.

Eligible beneficiaries

Individuals, Group of farmers/ growers/consumers, Partnership/ Proprietary firms, Non-Government Organizations (NGOs), Self Help Groups (SHGs), Companies, Corporations, Cooperatives, Cooperative Marketing Federations, Local Bodies, Agricultural Produce Market Committees (APMCs) & Marketing Boards in the country.

Eligible financial institutions

Scheduled banks, Regional Rural Banks, State Cooperative Banks, State Cooperative Agricultural and Rural Development Banks, Primary (Urban) Cooperative Banks, etc.

Subsidy

� Subsidy @ 25% with an upper ceiling of Rs.50.00 lakh – for General category

� Subsidy @ 33.33% with an upper ceiling ofRs.60.00 lakh – for NE States, Hilly Tribal areas, SC/ ST beneficiaries and their co-operatives

Release of subsidyAdvance subsidy:

�After sanctioning of bank loan and disbursement of first instalment

�NABARD RO sanctions the advance subsidyFinal subsidy

�After the project is completed �Joint Inspection Committee (JIC) comprising

officials of DMI, NABARD and financing bank visits the unit

�Final subsidy is sanctioned/ released on the recommendations of JIC

8

Progress under Govt.Schemes

51.148991128Cold Storage

134.9713409526Rural Godown

-76.80598Agri Marketing Infrastrucutre Scheme

Capacity [ Lakh MT]

Bank Loan(Rs.crore)

No. of UnitsSchemes

������������ �� ���� �������� �

������������������ ����

�������������� �������������

� �������������������������������

������������������ ���������� ��

� �����������������������

� ��������� ��������������������� ����

� �� ����� ����������� �����������

� ���� �������������������������

������ ����

Promotional support

• Rural haats : NABARD has sanctioned grant of Rs. 63.60 lakhs in 12 states through Gram Panchayats

• Rural Mart Scheme with grant assistance of Rs. 1.45 lakh for district level andRs.0.90 lakh for sub district level for setting up of Marketing Outlets "Rural Marts" to facilitate marketing linkages for the artisan-handicraft and agro based products through setting up of a retail outlet

• Financing Rythu Mithra Groups: During 2005-06, 12,468 RMGs were extended loan amount of Rs.131.77 crore by 20 commercial banks, 16 RRBs and 9DCCBs participating in the project launched by NABARD.

• Equity participation in National level Commodity Exchanges : NCDEX ( Rs 4.39 crore ) and MCX (Rs 1.25 crore) to strengthen the marketing infrastructure

11

Development initiatives

As part of its development initiatives and to facilitate the enhanced credit flow for agri marketing sector, NABARD has brought out model schemes

•Cold storage (5000 MT)

•Onion storage (25 MT)

•Grain Godown (50MT, 100MT, 250MT, 500MT, 1000 MT, 5000MT & 10,000MT)

•Market Yard (Market arrivals of 20,000MT & 50,000 MT)

--

12

Future outlook� Encourage private-public partnership

� Would support establishment of terminal markets

� Would like to forge meaningful partnership with corporates