Developing Marketing Infrastructure in GrAMs from AMIF Fund Directorate Of Marketing & Inspection

Budget 2018-19 Announcement Develop and upgrade existing 22,000 rural haats into Gramin Agricultural Markets ( GrAMs) Physical infrastructure to be strengthened using MGNREGS and other Government Schemes PMGSY(Phase-III) to be used for strengthening road linkages from inhabitations to GrAMs Setting up of Agri –Market Infrastructure Fund with a corpus of Rs. 2000 crore- Develop and upgrade agricultural marketing infrastructure in GrAMs Strengthening 585 APMC markets GrAMs to be integrated with e-NAM portal GrAMs to be outside the APMC Act regulation

Agricultural Market Scenario in Country Avg. area served by a regulated market - 496 sqkm. Avg. area served by one market (Regulated+Rural Haats) - 112 sqkm Recommended by National Commission for Farmers (2006) -80 sq.km.

Rural Haats Survey of Rural Haats Survey of Rural Haats A. Ownership DAC&FW is undertaking survey through Directorate of Marketing & Inspection(DMI) to ascertain location, status of infrastructure, commodities traded & marketing operations etc. So far 11,876 Rural Haats surveyed with following results Survey of Rural Haats A. Ownership 1. Local Bodies -70% 2. Others. (Private, Agri./ Mktg.Board etc)- 30% B. Periodicity 1. Weekly -69% 2. Daily - 11% 3. Others - 20% C. Type of Market 1. Retail only -72 % 2. Both wholesale & Retail -24% 3. Wholesale -4% D. Existing Facilities 1. Toilet - 3% 2. Godown )- 4% 3. Weighing Scale - 12% 4. Platform - 15% 5. Internal Road -15% Rural Haats

Agriculture Market Infrastructure Fund ( AMIF) Scheme Guidelines of AMIF circulated to States after approval. NABARD to set up AMIF of Rs.2000 crore for development of Marketing Infrastructure in 10,000 GrAMs and 585 APMC markets through subsidized loan to States/UTs Private run Haats may avail subsidy assistance under back ended bank credit-linked AMI Scheme of DAC&FW. Basic Infrastructure in GrAMs will be developed by States/UTs through MGNREGS and connectivity through PMGSY-III Loan will be disbursed for a period of 7 years including grace period of 2 years . Interest Rate to State will be i.e; ( Current market borrowing rate by NABARD plus 0.6% handling charges by NABARD minus fixed interest subvention of 3% by DAC&FW). States will submit Detailed Project Report(DPRs) to DAC & FW for Screening Committee scrutiny, which will recommend to NABARD. In turn, NABARD will carry out due diligence before loan sanction to States Loan is demand driven. Nodal Agencies of States/UTs to be responsible for loan disbursement and Utilization Certificate Monitoring mechanism in Directorate of Marketing & Inspection(DMI).

Indicative list of marketing infrastructure for GrAMs . Proposed List of Marketing Infrastructure for GrAMs under AMIF Fund (DAC&FW) List of Basic/Supporting Facilities/Infrastructure from MGNREGS (MoRD) 1. Cleaning, sorting grading, washing, waxing, processing, packaging, pack house as required (i)Open raised, covered platform (ii)Toilets (separate for women & men) (iii)Drinking water facility (iv) Drains (v)Brick soiling in the moving space (vi)Garbage pits at corner (vii) Office block (viii) Storage (small size) (ix) Drinking water facility for cattle (x)Boundary wall/fencing with two gates (xi)Parking space 2. Low energy cool chamber / Deep Freezer / Storage facility/Mini Reefer Vans/Solar powered Cold Storage, Freezer etc 3. IT infrastructure for integrating with e-NAM and for market information including electronic ticker board/ market information announcement system. 4.Electronic weighing scales/normal weighing scales 5. Other Infrastructure such as value additions machines like Mini Dal Mill / Mini Rice Huller / Mini Millet processing unit/ Mini Oil Expeller/De-shelling/ Decorticator including solar powered ones etc. 6. Bagging and stitching machines and facilities 7. States will have full flexibilty for any other infrastructure required for GrAMs including for forward & backward linkages

Diagrammatic depiction of Routing of Proposal & Flow of Fund in case of GrAMs - Consolidated DPR from Districts level Authority States Screening Committee of DAC & FW for scrutiny and recommendation NABARD for sanction through due diligence fund DPRs GrAMs fund Routing of proposal and flow of fund DPRs fund DPRs

Diagrammatic depiction of Routing of Proposal & Flow of Fund in case of APMC Markets - Mandi Board/ Director Mktg. States Screening Committee of DAC & FW for scrutiny and recommendation NABARD for sanction through due diligence Consolidated DPRs fund APMCs fund Routing of proposal and flow of fund DPRs fund DPRs

List of Marketing & Auxiliary Infrastructure for APMC Markets under AMIF 1. Common Auction system and drying platform/drying equipment 2. Scientific warehouses including material handling and testing equipment. 3. Ripening Chamber/ Cold Storages/ Pack houses/ Deep Freezer/ Reefer vans etc including solar powered and zero energy 4. Cleaning, grading, washing, waxing, packaging and primary processing. 5. Electronic and normal weighing scale/ weigh bridge. 6. Computer & IT equipments and connectivity/POS devices for e-trading and market information system 7. Assaying equipment and assaying Laboratory. 8. Price display board (Electronic/ Non-electronic) and / or Public announcement system 9. Mini Dal Mil/Oil Mil/ Mini Rice Huller/Flour mill/De-shelling/ Decorticator / Mini oil expeller and refining facility/Cotton ginning / Mini millet processing unit, etc 10. States will have full flexibility in deciding any other infrastructure required

Physical and Financial Outlay . Assistance- States while forwarding DPR to DAC&FW are to ensure that at least 40% of the total investment is made towards development of marketing infrastructure in GrAMs Minimum assistance of Rs. 8.0 lakh & upto 25 lakh per GrAM and maximum upto 2.05 crore per APMC market can be availed by States/UTs depending on requirements

Action for States Identify rural haats and APMC markets for development Coordinate development of haats simultaneously - Basic infrastructure from MGNREGS and Marketing infrastructure from AMIF Nominate nodal department and nodal officer for coordination Prepare DPR and forward DAC&FW for assistance under AMIF After Loan Fund sanction, States to sign MOA.

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