1. Developing Agricultural Value Chains &
Commercialization of Agriculture Marketing in India
Maharashtra Experience
Ramesh Shingte
Nodal Officer
Project Implementation Unit- Agri. Mktg
Maharashtra Agricultural Competitiveness Project , PUNE

3. Agriculture in Maharashtra
First State to adopt Dry Land Farming Technology
Pioneer in Horticulture Development through EGS
2nd 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

4. Agriculture in Maharashtra (Contd.)
Particulars
Maharashtra
% with Country
Geographical Area
Sq. Km
9.36%
Population
100 Million
9.43%
Total Cultivable land
30.76 Million Ha.
16.85%
Per Capita Income
Rs. 41,331/-
National Average Rs. 33,131/-
Gross Cultivated Area
Lakh Ha.
11.83%
Gross Irrigated Area
39.58 Lakh Ha.
5.15%

5. Agriculture in Maharashtra (Contd.)
Production
(Million MTs)
% with Country
Food Grain
10.93
5.12
Oilseeds
0.61
3.59
Pulses
2.03
13.57
Cotton
3.08
22.21
Sugarcane
26.98
11.37
Sugar
9.10
32.12
Fruits
11.04
17.40
Vegetables
6.45
5.13 5 5

6. 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

7. Status of fruit crops in Maharashtra
Area before 1990 : 2.42 Lakh ha.
New plantations : Lakh ha.
Total area : Lakh ha.
Number of villages : 39,411
Productive area : 9.14 lakh ha.
Production : lakh MT
Number of growers : lakhs
Expenditure : Rs. 1,234 Crores
Gross annual turnover : Rs. 6,300 Crores
Man days generated : 3,300 lakh 7

8. Export of Fresh Fruits and Vegetables from Maharashtra
Sr.
Crop
% share of export
in India 1
Grape 98 2
Mango 65 3
Onion 90 4
Vegetables 68
Maharashtra is leading state in export of fresh fruit & vegetables 8

9. Farmers Organizations / NGOs
Grape Growers Association
Vegetable Growers Association
Mango Growers Association
Flower Growers Association
Pomegranate Growers Asso.
WIFA (Western India Floriculturist Association)
Banana Growers Association
Medicinal & Aromatic Plants Growers Association
Sapota Growers Association
Orange Growers Association
Associations for Organic Spices cultivation
Sweet Orange Growers Association
Nursery Owners Association
Kagzi Lime Growers Asso.
Guava Growers Association
Aonla, Fig, Custard-apple Growers Association 9

10. 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.
Crop
EUREPPGAP
Certified Farms 1
Grape
2000 2
Mango
200 3
Pomegranate 50

11. Q 1: What are issues in Agricultural Production?

12. 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
What is the result?
Results
Low productivity
Low shelf life

13. Q 2: What are issues in Agricultural Marketing?

14. Issues in Agricultural Marketing
Too many intermediaries
Post harvest losses (around 20%)
Lack of professionalism
Lack of Pvt. Sector participation
Unhygienic conditions
Increased Marketing Expenses
Inadequate transparency in auctioning
Low bargaining power of farmers
What is the result?
Lack of standardization and gradation
Results
Lack of facilities - grading, packing, cold storage, processing
Distress sale
Low share of producer in consumer rupee
Market Information & Intelligence
Long and fragmented value chain (perishables)

15. Q 2: What are issues in Agricultural Processing?

16. 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
What is the result?
Results
- No value addition / Very little VA.
- Self life not increased / Very low SL.

17. Measures?

18. 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

19. 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

20. 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 Crores

21. 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

22. 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

23. 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 – IVCs will be established in next 6-7 years.
The project is expected to complete by year 2017

24. Amendments in Maharashtra Agricultural Produce Marketing (Dev. & Reg
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.

25. 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 – Rs Cr.

26. 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.

27. 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 – Rs Cr.

28. 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.

29. 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.

30. 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

31. 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.

32. Registration fee is Rupees 500.
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.

33. Activities carried out by M.S.A.M.B. in Marketing & Risk Management

34. 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 Lac MTs
Farmer beneficiaries – 28516
Subsidy given Rs Cr.

35. Agriculture Pledge Loan Scheme
Scheme started: Year
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 – 60
Loan disbursed – Rs. 35 Cr. Every year.

36. Implementation Agency
AEZs in Maharashtra No
AEZ
Districts
Implementation Agency
Alphonso mango
Thane, Raigad, Ratnagiri, Sindhudurg
MSAMB
Kesar Mango
Aurangabad, Jalna, Beed, Latur, Ahmednagar, Nasik
Pomegranate
Nasik, Ahmednagar, Pune, Solapur, Sangli, Latur, Osmanabad
Onion
Nasik, Pune, Jalgaon, Ahmednagar, Satara,Solapur
Mandarins
Nagpur, Amravati
Banana
Jalgaon, Dhule, Nandurbar, Parbhani, Hingoli, Nanded, Buldana, Wardha
Grapes & Grape Wine
Pune, Nasik, Sangli, Satara, Ahmednagar, Solapur
MIDC
Floriculture
Pune, Nasik, Sangli

37. 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.

38. Export Facility Centers under AEZ
Location
Nachne
Dist: Ratnagiri
Jamsande Tal: Deogad Dist: Sindhudurg
Jalana
Dist: Jalana
Indapur
Dist: Pune
Baramati
Commodity
Alphonso Mango
Kesar Mango
Agril. produce
Pomegranate
Project Cost (lakhs)
220.82
208.22
230.00
389.00
238
Capacity
Precooling
5 MTs/ Batch --
Coldstorage/Storage
25 MTs/day
50 MTs/day
Storage (500 MTs)
Ripening Chamber
5 MTs/Batch
Handling
Grading Packing Line
1.5 MTs/Hr
10 MTs/Hr

39. Export Facility Centers under AEZ
Location
Raver
Dist: Jalgaon
Basamatnagar
Dist: Hingoli
Karanja
Dist: Wardha
Latur
Dist: latur
Commodity
Banana
Mandarins
Pomegranate & Kesar mango
Project Cost (lakhs)
400
470
333
Capacity
Precooling
5 MTs/ Batch
5 Mts/Batch
Coldstorage
25 MTs/day
50 MTs/Day
Ripening Chamber
25 MTs/Batch --
5 MTs/Batch
Handling
Grading Packing Line
2 MTs/Hr
5 MTs/Hr

40. 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.

41. 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

42. 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.

43. 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.

44. 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
First of its kind in India & 2nd in Asia.
Equipped with : Classrooms, Demonstration Halls, Library, Hostel, Restaurant, Glass/Poly Houses, Meteorological Station
Soil & Water Testing Laboratory.
Fully Computerized Controlled to Low Cost Poly-houses (Total 12)
Total No of Trainees Trained

45. 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 1,00,000+ members)
“MARKNET” - Computerized 291 main markets & 54 sub markets and connected through internet with MSAMB’s portal (
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

46. Creation of Growers’ Apex Cooperative Societies
Sr. No.
Name of the Organization
Commodity
Date of Establishment 1
Mahagrapes
Grapes
Jan. 1991 2
Mahamango
Mango
Mar. 1991 3
Mahabanana
Banana
Jan. 2002 4
Mahaanar
Pomegranate
Aug. 2005 5
Mahaorange
Mandarins
Mar. 2008 6
Mahacashew
Cashew
Sept. 2010

47. 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.

48. 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

49. Thanks!