Agril Mkt Reforms in Maharastra

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WELCOME

MAHARASHTRA

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SNAPSHOTS OF MAHARASHTRA• FRUIT PRODUCTION – 100 LAKH MT• VEGETABLE PRODUCTION - 45 LAKH MT• COTTON PRODUCTION - 2.6 MILLION BALES

(30 % OF COUNTRY PRODUCTION)• TOPS IN PRODUCTION IN THE COUNTRY FOR

- GRAPE 9.88 LAKHS MT- BANANA 36 LAKHS MT- ORANGE 8.81 LAKHS MT- POMEGRANATE 3.40 LAKHS MT

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MSAMB-

MAHARASHTRA STATE AGRICULTURAL MARKETING

BOARD

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MSAMB� Established in 1984 as statutory Board as per

Maharashtra Agriculture Produce Marketing (Development & Regulations) Act, 1963

� Aim is Coordination & Supervision of APMCs� Promote Export Marketing from the State� Grant subvention and loans to APMCs� Undertake applied research in Modern Agricultural

Marketing Systems� Extension work in Agricultural Marketing� State level Planning for Development of APMC’s� Promote setting up of Regulated Markets� Promote development of Hi-tech Agro Projects � Provide soft loan to APMCs for infrastructure

development

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ADMINISTRATION

• HEAD QUARTERS– APMC SECTION– ADMINISTRATION– PROJECT DIVISION– EXPORT DIVISION– COMPUTER

SECTION– FARM SECTION– ESTABLISHMENT

DIVISION

• DIVISIONAL OFFICES– PUNE DIVISION– NASIK DIVISION– KOKAN DIVISION– AURANGABAD

DIVISION– NAGPUR DIVISION– AMRAVATI DIVISION– LATUR DIVISION

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3500 NosRural Haats

Un-regulated Markets3198 Lakhs MTArrivals of produce in

APMCs2

904 NosTotal

612 NosSub Market Yards

292 NosMain Market Yards

Regulated Markets –APMCs

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EXISTING MARKETING INFRASRTUCTURE

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MSAMB SCHEMES• LOANS TO APMCs FOR DEVELOPMENTAL WORKS LIKE

Land Purchase/Land acquisition, Internal Roads, Road Asphalting,Drinking water facility, Auction platforms, Auction sheds, Auction halls, Compound wall, Gate and watchman cabin etc

10 %Interim Loan for Commercial Complex

8 %Loan for Land Purchase/Land acquisition, Internal Roads, Road Asphalting, Drinking water facility, Auction platforms, Auction sheds, Auction halls, Compound wall, Gate and watchman cabin etc

6 %Term Loan for APMCs in Tribal and Kokan Region

6 %Agriculture Produce Pledge Loan Scheme

5 %Shetkari Bazar

Interest RatePurpose of Loan

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MSAMB SCHEMES� Agriculture Produce Pledge Loan Scheme

At 6% Rate of Interest for a period of 180 days� Grain Cleaning & Handling System - Rs. 2.00 Lakh per Unit

to APMC� Cold storage in APMC / Co-operative sector. Rs.2.50 Lakh

for 100 MT capacity Cold Storage� Hamal Bhavan in APMC

Rs. 2.00 Lakh per Unit as grant� Shetkari Bazar

Rs. 10 Lakh as soft loan At 5% Rate of Interest� Projection TV - 33% subsidy to the APMCs having income

more than, Rs.1 Crore and 50% to the APMCs having income less than, Rs.1 Crore.

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� Onion Storage Structure Scheme . Rs 300 per MT storage capacity constructed

� Export Subsidy for Onion Rs. 10000/- per 40 ft. Container Rs. 25000/- for 100 M.T. by country craftRs. 50000/- for 200 M.T. by country craftRs. 20000/- per 40 ft. Container for Europe

� Freight Subsidy – 10% of the freight for various fruits exported by reefer container

ONION INFRASTRUCTURE AND EXPORT SUPPORT SCHEMES

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� Development /Strengthening of Agricultural Marketing Infrastructure – GoI Scheme

� Rural Godown or warehouses� Common facilities center for exports� Terminal Market facility

� Technology Mission On Cotton

� Agri Export Zone

� Trial Export

SCHEME PROMOTION BY MSAMB

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FACILITIES CREATED BY MSAMBMANGO HANDLING

Export facility Centers at:� Deogad for Alphonso Mango

� Ratnagiri for Alphonso Mango

� Jalana for Kesar Mango

� Mahamango, Kudal

VAPOR HEAT TREATMENT PLANTLocation : Exporters Building, Vashi, New Mumbai

Facilities available : Vapor Heat Treatment Machine

(Imported from Japan)Pre-coolingCold StorageGrading & Packing LineAPEDA Certified Pack House Facilities

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EXPORT FACILITY CENTRE FOR ONION

Automatic Grading & Packing Unit for Onion at Indapur Dist: Pune

MSAMB is working as a Canalizing Agency for Onion Export

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MAJOR ACTIVITIESExport -2006-2007

� Export of Kesar mangoes to Japan� Export of Kesar mangoes to HongKong� Export of Pomegranate to HongKong.

2005-2006� Export of Kesar Mangoes to China through Hong Kong� Export of Onion to Philippines, Dubai.� Export of Mandarins & Banana to UAE

2004 - 2005� Export of Banana to UAE� Export of mandarins to Holland� Export of Pomegranate to UAE.

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PROJECTS UNDER IMPLEMENTATION

• Export Facility Center for Grapes & Pomegranate at Baramati, Dist: Pune.

• Cold Storage with allied Facilities for Fish, Fruit & Vegetable at Indapur, Dist: Pune.

• Cold Storage with allied facilities for Grapes & Pomegranate at Latur, Dist: Latur.

• Export Facility Center for Banana at Savada, Tal:Raver, Dist: Jalgaon.

• Export Facility Center for Banana at Vasmat, Dist: Hingoli.

• Export Facility Center for Orange at Karanja (Ghadage), Tal: Ashti, Dist: Wardha.

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AMENDMENTS MADE IN AGRICULTURAL MARKETING ACT

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AMENDMENTS MADE IN AGRICULTURAL MARKETING ACT

• Previously the philosophy of the Marketing Act was ‘Regulation of Marketing’ but now the concept of ‘Development’ to meet the need of the day

• Maharashtra Agricultural Produce Marketing (Development & Regulation) Act 1963Development and regulationPrivate marketsFarmer – Consumer marketsDirect MarketingSpecial commodity marketsRegional / Divisional APMCSingle license systemCadre for the secretaries of APMCContract Farming

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AMENDMENTS (contd)…• PRIVATE MARKETS -

- Any person, Partnership Firm, Co-op Society, NGO or Company can establish a Private Market

- Private markets will have infrastructure like Cold Storage, Pre-cooling, Packing Centers, Washing Centers, Electronic Auctions, and make immediate Payments.

• FARMER – CONSUMER MARKETS –- Any person, Partnership Firm, Co-op Society, NGO or Company can establish a Farmer Consumer Market. - Transactions to take place directly between farmers & consumers in the Farmer Consumer Market.

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AMENDMENTS (contd)…• DIRECT MARKETING -

- Any person, Partnership Firm, Co-op Society, NGO or Company can obtain a license for direct marketing in one or

more than one market area. - There will be a boost to processing units, export business and

retail chain operating businesses due to this provision

• SPECIAL COMMODITY MARKETS- Government may declare certain markets as Special Commodity Markets on basis of arrivals, turnover, geographical area. Eg. Special Markets for Onion, Potato, Oranges, Bananas & Flowers. - Special Commodity Markets to have modern infrastructure & storage facilities as per the needs of that particular agricultural produce.

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AMENDMENTS (contd)…• SINGLE LICENCE SYSTEM

- A trader desiring to operate in more than one market area may obtain a license.

- A trader can do business in more than one district or in the whole state under this license.

• CONTRACT FARMING- A written agreement as to sale-purchase of agriculture produce

between the producer & sponsor. - The farmer will not be deprived of his right to the title of the land

under any circumstances. - Agriculture Produce to be directly delivered form farm yards under contract farming. - Contract Farming agreements will make available flow of specific quality and quantity produce throughout the year to processors and exporters

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BENEFITS DUE TO AGRICULTURAL MARKETING REFORMS

• More options Markets available to the farmers to sell their produce.

• Farmer will obtain fair & better returns due to competition in the markets.

• Development in the Management of the present Markets. • Generation of Employment due to increase in processing

units, export business & retail chain operators. • Improvement in the yield & quality of agriculture

produces. • Infrastructure Development. • Stability in the prices of agriculture produce. • Farmers & Consumers will benefit financially due to

eradication of middlemen & overheads.

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OPPORTUNITIES FOR PUBLIC PRIVATE PARTICIPATION

(PPP)IN MAHARASHTRA

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TERMINAL MARKETS

• State has proposed the setting up of a terminal market for fruits and vegetables in the private or

joint sector at- Mumbai - Nasik - Nagpur.

• The key objective of terminal market is to ensure a more transparent, efficient and modern marketing system

for perishable fruits and vegetables with few or no middle men so that farmers /growers /producers can receive more

remunerative prices for their produce• The project is in primary stage • Maharashtra State Agricultural Marketing Board is Nodal Agency for the Mumbai and Nasik Terminal Market.

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TERMINAL MARKETS- BENEFITS• Terminal market eliminates or largely reduces the need for middlemen and assures better

prices to farmers.

• The Collection Centers run by farmers or jointly with private sector will add value to the

farmer’s produce

• It has potential to generate additional employment in rural areas.

• The interests of the consumer in the city is well served since he gets fresh produce of

improved quality in clean and graded form directly from farmer /farms without too

much handling.

• Removal of waste at the farm level itself or at Collection Centers will straight away

reduce pollution in cities.

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TERMINAL MARKET – MUMBAI• Main features of the market

• Central auction• Transit section • Wholesale block (156 big and 170 small shops)• Exports facility block (28 shops and common pay & use infrastructure) • Sites for Cash & Carry stores• Social infrastructure (1000 flats, Hotel Club, parks etc.)• 10 sites for cold storage and ripening chambers • 6 sites for processing units • Administrative block• Build up area for banks, grocery shops, input stores, transport companies,

repair workshops, petrol pump • Laboratory and R&D centre • Post office, police post, fire services, parking for trucks and cars,

information center, rest rooms for farmers and drivers

• Off-market site infrastructure• Collection centres (15 nos. at different locations) • Extension services • Cash & carry stores in city areas

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TERMINAL MARKET – MUMBAI• Location - 3 kms. from Kalyan on Nashik-Kalyan Road

• Area - 92 acres aprox.

• Major sourcing areas - Thane, Nasik, Pune, Sangli, Valsad, Ahmednagar, Dhule, Jalgaon and other major production belts of the country

• Handling capacity - 1.1 million MT per annum

• Expected throughput - 3500 MT/day during peak

• Particulars Of Investment (Rs. Crores) Market infrastructure 95.00 Cold chain & ripening facilities 24.00 Fruits & vegetable processing units 50.00 Housing and social infrastructure 15.00 Hotel 10.00 Miscellaneous 6.00 Total 200.00

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TERMINAL MARKET – NASIK

• Location - Near Nasik

• Area - 100 acre out of which 35 acres in Istphase

• Handling capacity - 11 lakhs MT per annum

• Expected throughput - 1500 MT/day during peak• Under National Horticulture Mission during 2005-06 & 2006-

07, the development of Wholesale /Terminal market at Igatpuri, Nasik, at a cost of Rs 60 Crores with a total financial outlay of Rs 15 Crores is proposed. The

outlay proposed for year 2005-06 is Rs. 5 Crores

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TERMINAL MARKET – NASIK• Modern Infrastructure in the Market

1. Central Electronic Auction2. Mechanized Handling with Pre-cooling units.3. Wholesale block cum Godowns (75 big shops)4. Four Electronic Grading Lines with State-of-Art Facility for Exports 5. Pack-house Facilities6. Color Vision System Quality Station7. 5000 MT Cold Storage and 6 Ripening chambers for Banana / Mango of

25 MT each 8. State of Art Testing/Certification Lab & R&D center to meet International

SPS standards9. NCDEX Platform for Electronic Trading10. Provision for Food Processing Unit, Hotel and Social Infrastructure in

phase-II

• Off-market site Infrastructure 1. 20 Collection centers providing facilities2. Sale outlets in ten major cities of India for “Nasik Fresh” Brand 3. Cash & Carry stores (in city areas on Franchise basis)

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TERMINAL MARKET – NASIK• Investment Profile

1. Share Capital (29.43%) - Rs. 1764.93 lakhs2. Subsidy (23.54%) - Rs. 1411.44 lakhs3. Term Loan (47.03%) - Rs. 2820.00 lakhsTotal - Rs. 5996.37 lakhs

• Turnover - Everyday 3 truck loads of fruits and vegetables received by each sale centers. - On an average the markets will operate for 300 days in a

year. - Total quantity handled by each sale center - 8100 MTs. - All the 10 sale centers will handled 8100 MTs of Fruits and Vegetables annually. - The Annual turnover of the all sale centers would be worth Rs.64.80 Crores

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TERMINAL MARKET – NAGPUR• Location - Optional Sites: (Order of Preference)

(i) Near Cargo Hub - Khapree(ii) Vadhnana-next to Jindal Logistic Park(iii) Kondhali on Amravati High Way(iv) Kalkohi Hingana(Project Developed on Near Cargo Hub-Khapree Site basis)

• Area Proposed 100 acre out of which 35 acres in I phase of the said project.

• Major sourcing areas 25 Collection Centre at Kalmeshwar, Mauda, Savner, Katol, Kamathi, Hingna, Umred, Parshvni, Narkhed, Bhivapur, Kuhi etc. etc.

• Handling capacityTerminal Market 750MT / day and 2.40 lac MT / year.Per Collection Centre–30 MT/day and 9600MT/ year

• Expected peak throughput for Terminal Market 800 MT/ day

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TERMINAL MARKET – NAGPUR• Modern Infrastructure in the Market

1. Central Electronic Auction - Two Halls of 50 Seat each.2. Mechanized Handling with three Pre-cooling units.3. Wholesale block cum Godowns (50 big shops)4. One Electronic Grading-Sorting-Waxing Line for Oranges with State-of-

Art Facility 5. Shrink Wrap Packaging Unit AND Pack-house Facilities6. Color Vision System Quality Station7. 2000 MT Cold Storage. 3 Ripening chambers for Banana/Mango of 15

MT each8. State of Art Testing/Certification Lab R&D center to meet International

SPS standards.9. Commodity Exchange Platform for Spot Electronic Trading.10. Environmental Infrastructure-ETP/STP, Gen Set.11. Provision for Food Processing Unit, Hotel and Social Infrastructure in

phase-II

• Off-market site Infrastructure1. 25 Collection centers providing facilities2. Sale outlets in ten major cities of India on Franchise Basis

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TERMINAL MARKET – NAGPUR• Investment Profile

1.Share Capital Rs.1485.11 lakhs2.Subsidy Rs.1324.00 lakhs3.Term Loan Rs. 2645.00 lakhs

Total Rs.5454.11 lakhs

• Turnover- Everyday 5 truck loads (9 MTs) of fruits and vegetables will be

dispatched from each collection center to sale centers.

- On an average the market will operate for 250 days in a year.

- Total quantity handled each sale center would be 11250 MTs.

- All the 10 sale centers will handled 112500 MTs of Fruits and Vegetables annually.

- The Annual turnover of the sale center would be worth Rs.78.75 Crores

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AGRI EXPORT ZONES IN MAHARASHTRA

• Agri Export Zone (AEZ) have been set up to boost exports of fruits and vegetables in the State

• Of the nine AEZs proposed, the GoI /APEDA has approved 8 AEZs.

• Out of this MSAMB is Nodal Agency for 6 AEZs

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4th July 2005Jalgaon, Dhule, Nandurbar, Buldhana, Parbhani, Hingoli, Wardha ,Nanded

Banana6

4th July 2005Nagpur, AmravatiOrange5

9th June 2003Solapur, Nasik, Sangli, Ahmednagar, Pune, Satara, Latur, Osmanabad

Pomegranate

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16th Jan 2003Nasik, Ahmednagar, Pune, Satara, Solapur, Jalgaon

Onion3

11th April 2002Aurangabad, Jalna, Beed, Ahmednagar, Latur

Kesar Mango

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12th Feb 2002Thane Raigarh Ratnagiri Sindhudurg

Alphonso Mango

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Date of MoU signedDistricts CoveredAEZS. N.

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AEZ Alphonso Mango• MoU signed – 12 th Feb 2002• Location- Thane Raigarh Ratnagiri Sindhudurg Districts• Total expected Investment – Rs.3512 Lakhs• No. of Training Organised- 69• No. of Farmers trained -3747• Infrastructure Development by MSAMB

- Export facility Center at Deogadh- Export facility Center at Ratnagiri

• Additional Export of 44700 MT of Alphonso is expected over a 7 years period of implementation

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AEZ Kesar Mango• MoU signed – 11th April 2002• Location- Aurangabad, Jalna, Beed, Ahmednagar, Latur

districts• Total expected Investment – Rs.1855 lakhs• No. of trainings organised -126• No. of Farmer trained -7836• Infrastructure Development by MSAMB

- Export Facility Center at Jalna• Additional Export of 12600 MT of Kesar mango expected

over a 7 years period of implementation

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AEZ – Onion• MoU signed – 16th January 2003• Location – Nasik ,Ahmednagar, Pune, Satara,

Solapur,Jalgaon Districts• Total expected Investment – Rs.3224 lakhs• No. of trainings organised -121• No. of Farmer trained -7890• Infrastructure Development by MSAMB

- Export Facility Center at Indapur• Additional Export of 59000 MT of fresh onion is expected

over a 5 years period of implementation• Additional Export of 16775 MT of processed onion products

expected over a 5 years period of implementation

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AEZ - Pomegranate• MoU signed – 9th June 2003• Location –Solapur, Nasik Ahmednagar, Pune, Sangli,

Satara, Latur, Osmanabad Districts• Total expected Investment – Rs.6146 Lakhs• No. of trainings organised -107• No. of Farmer trained -7189• Infrastructure Development by MSAMB

- Export Facility Center at Baramati (under construction phase)

- Export facility center at Latur (under process)• Additional Export of 48000 MT of Pomegranate is

expected over a 5 years period of implementation

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AEZ – Orange• MoU signed – 4 th July 2005• Location – Nagpur and Amravati Districts• Total expected Investment – Rs. 2796 lakhs• No. of trainings organised – 31 • No. of Farmers trained – 2145

• Infrastructure Development by MSAMB• - Export facility Center at Karanja Dist. Ashti (under

process)• Additional Export of 31200 MT of orange is expected

over a 5 years period of implementation

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AGRI EXPORT ZONES MAHARASHTRA

AEZ – Banana• MoU signed – 4th July, 2005• Location – Jalgaon, Dhule, Nandurbar, Buldhana,

Parbhani, Hingoli, Wardha, Nanded Districts• Total expected Investment – Rs.1028 lakhs• No. of trainings organised – 18• No. of Farmers trained – 1005• Infrastructure Development by MSAMB

Export facility Center at Savada, Dist – JalgaonExport facility Center at Vasamat Dist. Hingoli

(both are under process)• Additional Export of 24350 MT of Banana is expected

over a 5 years period of implementation.

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INVESTMENT PROFILE IN AEZs

Tissue Culture Lab – Rs 210 lakhs

Pack house & Reefer Truck - Rs 218 lakhs

Rs 1028 lakhsBanana

Pack house & Reefer Truck - Rs 171 lakhs

Total - Rs 171 lakhs

Rs 2796 lakhsOrange

Processing Units – Rs 1950 lakhs

Pack house - Rs 250 lakhs


Rs 6146 lakhsPomegranate


Pack house & cold storage - Rs 300 lakhs


Rs 3224 lakhsOnion


Pack house & - Rs 49 lakhs


Rs 1855 lakhsKesar Mango


Pack house - Rs 120 lakhs


Rs 3512 lakhsAlphonso Mango

EXPECTED INVESTMENT FROM PRIVATE SECTORS

TOTAL EXPECTED INVESTMENT

AEZ

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APNI MANDIES/ HAATS/DIRECT MARKETING

• Minimum basic infrastructure in haats are - sheds, auction/sale platforms, proper

flooring, - drainage, provision for drinking water,

- internal roads, electricity etc.• Provision under National Horticulture Mission

- Construction of 400 haats in the State over the next 2 years is Rs. 60 crores.

- During 2005-06 & 2006-07, a total financial outlay of Rs 1500 Lakhs is proposed.

• Nodal Agency for implementation will be the Nagar Palika (Municipal body) of the concerned city/village.

• Private Sectors may approach to Nodal Agency and National Horticulture Mission

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RURAL GODOWNS• State Ware Housing Corporation and Central Ware Housing

Corporation and the APMCs have set up fairly large capacities (estimated at 40 lakh MT)

• There is still large scope for more storages.

• The Government of Maharashtra has named the MSAMB as the nodal agency for promoting godowns under the GraminBhandaran Yojana.

• The total fund requirement for setting up 20 lakhs MT storage capacity Godowns is estimated at Rs. 40000 Lakhs.

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COLD CHAIN• To reduce post harvest losses substantially and

supply quality produce for consumers, both domestic and international, a comprehensive cold chain is suggested in the State. Keeping in view the expected market surplus of fruits and vegetables by 2007 and available cold storage capacity, the Task Force recommends creation of an additional capacity of 56.50 lakhs tons during 10th plan.

• The cost for setting up supply chain including construction of cold storage, reefer vans, zero energy chambers, modifications of existing cold storage etc. is Rs 20800 lakhs.

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PERISHABLE AIR CARGO HANDLING COMPLEX

• Air cargo center- an important link in the export of fresh fruits and vegetables out of India.

• At Air cargo center value addition takes place through -washing, sorting, grading, packaging, as needed pre-cooling and cold storage to enhance shelf life.

• Attached to this center SPS and Residue Testing centers are proposed.

• Thus all these functions are proposed in a Perishable Cargo Handling Complex.

• Such Perishable Cargo Handling Complexes are proposed to set at Terminal Markets at Mumbai, Nagpur and Pune.

• In all the Perishable Cargo Handling Complexes are expected to cost around Rs 4800 lakhs

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CONTRACT FARMING• Successful examples of Contract Farming can be seen in

various parts of Maharashtra. 1. Wine producers contracts with various grape growing farmers on

a large extent. 2. Pepsico Company contracts with potato growing farmers in Pune

& Nasik districts. 3. Venkatesh Hatcheries does contract farming in poultry business

in Pune & Nagar districts. 4. The Sugarcane Growers enter into contracts with the Sugar

Factories to sell there sugarcane & obtain seeds, fertilizers & technology from the sugar factories.

• In Maharashtra, there is a large scope to enter into contract farming agreements..

• Due to contract farming there will defiantly be benefits to the farmers, processors, exporters & retail chain operators of Maharashtra.

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The proposed investment in creating Marketing Infrastructures inMaharashtra is summarized as below.

SUMMARY

• Thus there is an opportunity to invest Rs 971 Crores to establish the above marketing Infrastructures.

• As much investment is expected from Private Sectors

97179.00Total

4800.00Perishable Air Cargo Handling Complex6

20800.00Cold Chain 5

40000.00Rural Godowns4

1500.00Apni Mandies / Haats / Direct Marketing3

4083.00Investments in Agri Export Zones2

25996.00Terminal Market at Mumbai and Nasik1

Total CostRs in Lakhs

ParticularsSN

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LET US JOIN HANDS TOGETHER AND

REACH OUR GOALS

INVESTORS

MAHARASHTRA

THANK YOU

Agril Mkt Reforms in Maharastra

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