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The Government has approved a new central sector scheme for development and strengthening of agricultural marketing infrastructure, grading and standardisation with a financial central outlay of Rs.190 crore. The scheme provides for setting up of new markets, strengthening and modernisation of existing markets and upgradation and modernisation of agmark laboratories of the Department of Agriculture during 2004-05 to 2006-07. The decision was made by the Cabinet Committee on Economic Affairs (CCEA) which met here today.
The scheme will be implemented in those States which amend their Agricultural Produce Marketing Regulation (APMC) Act, wherever required, to allow direct marketing and contract farming and to permit setting up of markets in private and cooperative sectors. There would also be no duplication with the schemes already being implemented by Ministry of Food Processing Industries.
The salient features of the scheme include credit linked back ended subsidy at 25 per cent of the capital cost of the project would be provided for general or commodity specific infrastructure for marketing of agricultural commodities and for strengthening and modernisation of existing agricultural markets, wholesale, rural haats in tribal areas. For North Eastern States, hilly and tribal areas and SC/ST entrepreneurs, the rate of subsidy will be 33.33 per cent. The assistance will be available to individuals, group of farmers/growers/consumers, partnership/proprietary firms, non-government organisations, self-help groups, companies, corporations, cooperatives, cooperative marketing federations, local bodies, agricultural produce market committees and marketing boards in the entire country.
Maximum amount of subsidy shall be restricted to Rs.50 lakh for each project. In the case of North Eastern States, hilly and tribal areas and to entrepreneurs belonging to SC/ST maximum amount of subsidy shall be Rs.60 lakh for each project. In respect of infrastructure projects of State Governments, there will be no upper ceiling on subsidy to be provided under the scheme. Owner’s contribution in the cost of the project will be decided by financing banks with a minimum bank loan of 50 per cent in general cases and 46.67 per cent in hilly areas. Any project availing assistance / subsidy from any other central scheme would not be eligible for assistance under the scheme.
The scheme would provide increased access to small and marginal farmers to agricultural marketing infrastructure for better price realisation and to open greater market opportunities for growth, employment and poverty reduction.
The scheme will be implemented by Directorate of Marketing and Inspection through National Bank for Agriculture and Rural Development (NABARD), National Cooperative Development Corporation (NCDC).
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