GOVERNMENT SCHEMES AND POLICIES IN

MARKETING AGRICULTURAL PRODUCE IN

INDIA

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OUTLINE

Schemes offered by Ministry of Agriculture, Government of India

Schemes offered by Ministry of food Processing Industries,

Government of India

Schemes offered by APEDA

Schemes for post harvest management for horticultural

produce

Schemes Of National Co-operative Development Corporation

Schemes offered by commodity boards

Market research schemes

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 Schemes of Ministry Of Agriculture,
Government of India
Scheme for Development of Agricultural Marketing Infrastructure ,
Grading and Standardization

Reform linked investment scheme : To encourage rapid devt. of

infrastructure projects in agricultural and allied sectors including dairy ,
meat , fisheries and minor forest produce.

Investment subsidy :25% of the capital cost up to Rs 50 lakh on each

project providing direct service delivery to producers/ farming
community in Post harvest mgmt./Mktg. of their produce.

In case of North Eastern states , hilly and tribal areas and to SC/ST
entrepreneurs and their co-operatives investment subsidy shall be
33.33% of the capital cost up to Rs 60 lakh.

No upper ceiling on subsidy in respect of infrastructure projects of state

agencies.

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Beneficiaries and infrastructure development

Applicable only in such states/ Union territories , which undertake reforms

in APMC act.
Promoters contribution in project cost to be decided by financing bank with
minimum bank loan of 50% in general cases and 46.67 % in hilly areas etc.
Infrastructure development
Market user common facilities like market yards , platforms for loading , assembling
and auctioning of the produce , weighing and mechanical handling equipments etc.
Functional infrastructure for assembling , grading ,standardization , quality
certification ,labeling, packaging , value addition facilities
Infrastructure for direct marketing from producers to consumers /processing units/
bulk buyers
Infrastructure for E-trading , market extension and market oriented production
planning.
Mobile infrastructure for post harvest operations viz. grading , packaging , quality
testing etc. (excluding transport equipment).

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Central Sector Scheme - Agmark Grading and Standardisation

Objectives of the scheme

Promotion of Grading and Standardisation of agricultural and allied

commodities under Agricultural Produce (Grading & Marking) Act, 1937.

Eligibility
Parties desirous to grade their commodities under Agmark have to
obtain Certificate of Authorisation.

For the purpose, they should have adequate infrastructure to process

the commodity and access to an approved laboratory for the
determination of quality and safety factors.

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 Butter
Ghee
Vegetable
Oils
Honey
Wheat Atta
Blended
Edible
GroundSpic
es
Vegetable
Oils
Fat
Spread
Cotton

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CENTRAL GOVERNMENTR SCHEME - AGRICULTURAL
MARKETING INFORMATION NETWORK
Objectives
To establish a nationwide information network for speedy collection and
dissemination of market data for its efficient and timely utilization;

To ensure flow of regular and reliable data to the producers, traders and
consumers to derive maximum advantage out of their sales and
purchases, and to increase efficiency in marketing by effective
improvement in the existing market information system.
Pattern of assistance :
100% grant by Ministry of Agriculture, Government of India.
Eligibility
The eligible markets are identified in consultation with State
Governments based on their volume handled and commercial
importance in commodity flow of the Region/ State.

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1.Schemes For Development of Infrastructure:
Objectives
Establishment of common infrastructure facilities by APEDA or any
other Government or Public Sector agency like Airport Authority of India
or Port Trust etc.
Scales Of Assistance For 10th Plan On Continuation Basis :
100% grant-in-aid

A)Assistance for purchase of specialized transport units for

animal products, horticulture and floriculture sector.
Financial Assistance :
25% of the cost subject to a ceiling of Rs.2.50 lakhs per beneficiary.

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 B)Assistance to exporters/ producers/ growers/
Cooperative organization and federations for
horticulture and floriculture sector for

1.Mechanisation of harvest operation of the produce :

25% of the cost subject to a ceiling of Rs.5.00 lakhs per
beneficiary

2.Setting up of sheds for intermediate storage and

grading/storage/cleaning operation of produce :
25% of the cost of equipment subject to a ceiling of Rs.5.00 lakhs per
beneficiary

3.a)Setting up of mechanized handling facilities including

sorting, grading, washing, waxing, ripening, packaging &
palletisation etc
25% of the cost of equipment subject to a ceiling of Rs.10.00 lakhs per
beneficiary

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b)Setting up of pre cooling facilities etc. with proper air
handling system/ cold storage for storing the produce

25% of the cost of equipment subject to a ceiling of Rs.10.00 lakhs per

beneficiary .

c) Providing facilities for preshipment treatment such as

fumigation, X-ray screening, hot water dip treatment, Water
softening Plant .

25% of the cost of equipment subject to a ceiling of Rs.10.00 lakhs per

beneficiary

d) Setting up of integrated post harvest-handling system

(pack houses / green houses with any two or more of the
above facilities)
25% of the cost subject to a ceiling of Rs.25 lakhs per beneficiary

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e) Setting up of vapor heat treatment, electronic beam
processing or irradiation facilities

50% of the cost subject to a ceiling of Rs.25 lakhs per beneficiary

f) Assistance for setting up of environment control system

e.g. pollution control, effluent treatment etc.

25% of the cost subject to a ceiling of Rs.25 lakhs per beneficiary

g) Setting up of specialized storage facilites such as high

humidity cold storage deep freezers, controlled
atmosphere (CA) or modified atmosphere (MA) storage
etc.
25% of the cost subject to a ceiling of Rs.10 lakhs per beneficiary

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Schemes for Market Development :
A) Activity for development of packaging standards and
design.
i) APEDAs internal scheme for development work through
involvement of institutions / organization in India and abroad
with the cost sharing with exporters and / or organizations
involved in the export promotion.
Maximum amount in case of sharing with exporters/
organization is Rs.5 lakhs.

ii) Assistance to exporters for use of packaging material as

per standards and specifications developed or adopted by
APEDA. 30% subject to ceiling of Rs.1.50 lakhs per
beneficiary.

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B) i) Development and dissemination of market information
data base on products, infrastructure, markets and pre-
feasibility surveys / study etc.
100% to be implemented by APEDA.

ii) Assistance to exporters, growers organizations, trade

associations for conducting surveys, feasibility studies
etc.
50% of the total cost subject to ceiling of Rs.2.00 lakhs per
beneficiary.

iii) Assistance to Semi Government, State Government,

Public Sector Undertakings for Conducting surveys,
feasibility studies etc.
50% of the project cost subject to ceiling of Rs.10 lakhs per
beneficiary.

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C) i) Supply of material samples, product literature, development of
web site advertisement etc, for publicity and market promotion for
fairs / events organised / sponsored by APEDA -100% of the cost

ii) Publicity & promotion through preparation of product literature,

Publicity material, advertisement, film etc by APEDA - 100% of
the cost.

iii) Brand publicity through advertisement etc. -40% of the cost

subject to a ceiling of Rs. 1 lakh per beneficiary.

iv) Export promotion by APEDA undertaking activities like buyer-

seller meet product promotion, exchange of delegations,
participation in Exhibitions / Fairs / events etc. - 100% of the cost.

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Schemes for Quality Development :
A)
i)Assistance to exporters, producers, trade associations, public
institutions etc. for setting up / strengthening laboratories - 50% of the
total cost subject to a ceiling of Rs.5 lakhs per beneficiary.

ii) Assistance to exporters & producers for installing quality

management, quality assurance and quality control system such as
ISO series, HACCP, TQM etc. including consultancy, quality
improvement and certification for these - 50% of the cost subject to a
ceiling of Rs.2 lakhs per beneficiary for each system
iii) Activities related to standardization and quality control such as
preparation of quality assurance manuals, guidelines, documents
standards, upgradation and recognition of labs for export testing,
certifying exporters as Premium Quality Exporters etc. pesticide
management program, national and international standardization
activities - 100% internal scheme of APEDA.

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iv) Upgradation and recognition of labs for export testing
For upgradation up to 50% of cost for private labs and up to 100% of
the cost for Central / State Government / University laboratories
subject to a maximum of Rs.50 lakhs.

Testing of water, soil residues of pesticide, veterinary drugs,

hormones, toxins, contaminants in agricultural produce / products.

50% of the cost of tests subject to a ceiling of Rs.2000 per sample.

Payment shall be made direct to laboratories and not to individual

exporter.

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FINANCIAL ASSISTANCE APPLICATION

An Integrated System for Export Promotion and Support Schemes viz.,

1. Financial Assistance Scheme (FAS)
2. Market Development Assistance Scheme (MDA)
3. Transport Assistance (Air/Sea)
that are managed and run by APEDA.This system provides the facility for
the exporter to apply for Financial Assistance online and also at any point
of time can check the status of already submitted application(s).
To avail this facility the exporter need to logon with the USER ID and
PASSWORD along with APEDA Registration No. already provided by
APEDA for online applications.
An Application Tracking Number (ATN) will be generated, along with an
Acknowledgement on successful submission of application.
Exporter should print this acknowledgement and attach as covering sheet
along with other documents on submission to the appropriate APEDA
office.

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Development of Commercial Horticulture through
Production and Post-Harvest Management
i) Production Related
ii) PHM/ Processing related
Production related components: - Credit linked projects relating to
establishment of hi-tech commercial production units involving any of
the following items are eligible for assistance under this component :-

Schemes of National Horticultural

i) High quality commercial horticulture crops
Board
II) Indigenous crops / produce, herbs, spices
iii) Aromatic & Medicinal Plant
iv) Seed & Nursery
v) Bio-Technology, micro-biology, bio-chemistry, bio-diversity & tissue
culture
vi) Protected cultivators
vii) Bio-pesticides

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viii)Organic fertilizers, organic foods, bio-dynamic farming,
vermi-compost

ix) Establishment of Hort. Health clinics / laboratories

x) Hydroponics, Aeroponics

xi) Beekeeping and its products

xii) Mushrooms and its products

xiii) Nuts and its products

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Pattern of Assistance

Credit linked back-ended subsidy @ 20% of the total project

cost limited to Rs 25 lakh per project in general area and
Rs 30.00 lakh in NE Region, Hilly and Scheduled areas.

However, for capital intensive and high value crops under

protected cultivation and open air cultivation of date palm,
olive and saffron subsidy will be @ 25% of project cost with
ceiling of Rs.50 lakh (33% of project cost with ceiling of
Rs.60 lakh for scheduled and hilly areas).

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i)Washing, drying, sorting, grading, waxing, packing, palletizing,
freezing units etc.
ii)Pre-cooling units / Cool Stores
iii)Reefer Van / Containers
iv)Specialized Transport Vehicle
v) Retail outlets
vi) Auction platform
vii) Ripening / curing chamber
viii) Market yards / rope ways
ix) Irradiation / Vapour Heat Treatment unit

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x) Primary processing of products (fermentation, extraction,
distillation, juice vending, pulping, dressing, cutting, chopping,
dehydration etc.
xi) Natural colour and dyes extraction
xii)xii) Essential oils, perfumery and cosmetics out of horticulture
products
xiii) Products out of horticulture waste
xiv)Horticulture ancillary industry for promoting indigenous
manufacturing of horticulture related farm tools & machineries,
equipments, plastics containers, packaging etc.
xv)Adoption of Quality Assurance Systems (HACCP, TQM, ISO,
Euro-GAP etc.)
xvi)Plastic Crates and Bins, Cartons, Aseptic Packaging and Nets.

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Pattern of Assistance :

Credit linked back-ended subsidy @ 40% of the total project

cost limited to Rs 50 lakh per project in general area and @
55% of project cost limited to Rs 60.00 lakh in Hilly and
Scheduled areas. pattern of assistance for plastic crates will
be 50% of the total cost.

The subsidy to be released to the leading Financial Institution

on the completion of project as in the case of cold storage
projects approved by the Government

For projects in the cooperative sector funded by NCDC, the

subsidy would be through NCDC .

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Components: -

Credit linked projects relating to Cold Storages including Controlled

Atmosphere (CA) and Modified Atmosphere (MA) Stores, pre-cooling
units, other Storages for onion, etc., their modernization are eligible for
assistance under this component.

Pattern of Assistance:

The assistance will be as credit linked back-ended subsidy @ 40% of

the capital cost of project in general areas and 55% in case of Hilly &
Scheduled Areas for a maximum storage capacity of 5000 MT per
project for item (i)to (iv) below: -

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General conditions for cold storage projects

i) Multi-chamber cold storages with mezzanine floors of RCC

and or wooden structure for products not requiring precooling,
temperature range 0C plus to 16C or above with fin-coil
cooling system, with control system for humidity (RH 80% to
95% in general and 65%-70% for onion & garlic or appropriate
level for seed storage etc) and appropriate handling of stored
commodity with safety system against accidents of fire,
leakage of refrigerant etc.

Minimum of two chambers, Standard insulation material, with

civil structure, insulations and cooling system as per
prescribed Standards - @ Rs 6,000 per MT

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ii) Multi-chamber and Multi-Product cold storage for whole range of
horticulture produce but without pre-cooling system (temperature range
from -2C or lower to +16C plus (with temperature, humidity and CO2
control (RH= 80% to 95% for F &V in general and 65%-70% for onion &
garlic or appropriate level for seed storage etc), fin-coil cooling system and
energy saving devices for peak and lean load period, heat exchanger with
CO2 control system, appropriate technology for control of microorganism /
dust mite and mechanical handling of stored commodity such as racks,
pallets & forklift / stacker (as per site conditions); bags/ bins and crates/
CFB boxes and also safety devices against accident.
(a)With civil structure/ pre-fabricated engg. Structure, insulation, cooling
system etc as per prescribed standards excluding cold storage with
mezzanine floors @ Rs 7000/- per M
(b)(b) With civil structure/ pre-fabricated engg. structure, insulation, cooling
system etc. as per prescribed standards (excluding cold storage with
mezzanine floors) and having on-farm or off-farm pack house facility of
washing/ de-sapping (as per requirement), drying, sorting, grading,
waxing, packing etc and pre-cooling @Rs 8000/- per MT.

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iii) Modernization of Cold Storages

a)Up gradation of thermal insulation

b)Up gradation of cooling system, refrigeration, air flow, electric

installation, handling devices, safety devices etc.
Project based @ maximum 1000/MT for
(i) and up to Rs. 2000/MT for
(ii) above
Benefit of (i) and (ii) above may go together for complete
modernization.
iv) CA Storages (@ Rs 32,000 per MT)
v) Credit components as means of finance of the project should be
term loan from banking or non banking financial institutions and
should be at least 15% more than the admissible rate of subsidy.

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vi) Only such projects under this component shall be eligible to get
financial assistance as per revised norms, which meet prescribed
minimum technical standards; this shall be ascertained as per
implementation protocols prescribed in this regard.

vii) Rack, pallets and design-appropriate system for mechanized

handling are incorporated in above type designs.\

viii) In respect of projects, which have addition of components or

technically recommended different combinations of components of
pre-cooling, pack house etc, the normative cost shall be worked
out by the Committee of the Board
ix) NHB assistance is available only when notified latest technical
standards and protocol for the purpose by the Ministry of
Agriculture are followed by the beneficiary.

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Components
i)Introduction of New Technology

ii) Visit of progressive farmers

iii)Promotional and Extension Activities

iv)Technical knowhow from India/Abroad

v)Technology Awareness

vi)Organising/participation in seminars/symposia/exhibitions

vii)Udyan Pandit

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viii) Publicity and Films

x) Awareness for technology up gradation and markets

xi) Honorarium to scientists for effective transfer of technology.

xii) Accreditation and Rating of Horticulture Nurseriesxii) Mother

Plant Nurseries for pedigreed planting material for fruit crops

xiii) Assistance for Common Facilities in Horticulture Parks/ Agri

Export Zones etc.

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Pattern of Assistance

a)Introduction of new technologies shall be carried out by

NHB by in-house efforts.
b)Committee constituted by the Board may designate any
organization as Partner Institution for this purpose and
provide grants up to 100% of the cost of project. Quantum
of grants for partner institution shall be restricted as
follows:-
c)Upper ceiling of Rs. 10.00 lakh in case of projects falling
under Category (A)

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d) Upper ceiling of Rs 25.00 lakh for projects falling under Category
(B), (C) & (D)

e) State Agricultural/Horti. Universities, National Premier Institutes,

State Deptt. of Horticulture/Agriculture, PSUs and other State
agencies shall generally be the Partner Institution for transfer and
demonstration of proven technology on commercial scale and
R&D efforts on specific issues.

f) NHB can avail the services of experts if required for project

evaluation for sanctioning such projects.

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ii) Visit of progressive farmers
Pattern of Assistance
Assistance shall be limited to to & fro rail fare of Sleeper Class
by Indian Railways or Second Class Cabin in Shipping Service
equivalent to shipping service of Government Organisation for A &
N and Lakshdweep people, in addition to boarding charges @ Rs.
150/- per day, per farmer. However, farmers from TMNE States (NE
& Hilly Areas) shall be considered for air journey from air port near
their place of residence limited to airport located in NE States
including Sikkim and in Himalayan states

(III) Promotional and Extension Activities

Components
i.To organize demonstrations of modern scientific techniques /
technologies, package of production and PHM practices at suitable
locations / areas by the NHB
ii.To organize demonstrations of improved / high yielding varieties
of fruits, vegetables, flowers, ornamental plants etc, by NHB

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(IV) Experts Services from India/Abroad
Experts from India / abroad may be engaged by NHB for implementation of
the components of the scheme of Technology Development and Transfer
(a) Experts Services from Abroad
i) Criteria for selection of experts would be based on technology needs of
horticulture sector
ii)Services of Expert (s) would be permitted on individual project basis for
a period not exceeding 15 days per year for first two years only
iii) Selection of Experts would be done by a Committee of NHB
Pattern of Assistance :
Expenditure on experts services for travel and per diem shall be in
accordance with the Government of Indias approved rates.
(b) Experts from India
Experts from India as consultants may be engaged as per provisions of
standing orders in this regard issued by the Government of India. Selection
of experts will be as per technology needs of horticulture sector including
production, plant protection, post harvest management, storage, cold chain
infrastructure, handling, marketing and exports etc.

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(V) Technology Awareness
Under this component, extension related events shall be
organized with field demonstration of technology and
evaluation of extension effort

Pattern of Assistance

Up to Rs.50,000/- per event including cost of organizing

field trials of technology on participating farmers fields and
carrying out programme evaluation, preparation of
programme evaluation report and its submission to NHB
by the Organizer. Committee of NHB will approve
proposals under this component.

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(VI) Organization/Participation in Seminars/Workshops/Exhibition, etc.
for promotion of Horticulture

Pattern of Assistance

i) The financial assistance would be limited up to Rs.3.00 lakh for

organizing State Level event, up to Rs. 5.00 lakh for organizing National
level event and up to Rs.10.00 lakh per event for International participation
(3-5 days).

ii) In case of short duration (1-2 days) seminars, financial assistance

would be limited to:
Rs.1.00 lakh per event for State Level event,
Rs. 2.00 lakh for National level event and
Rs 3.00 lakh for International event (for organizations/participation of
international event within India).

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(VII) Udyan Pandit Competitions

i) For organizing such competition, the State Deptt. of

Horticulture/Agriculture is required to submit detailed proposal
II) NHB can also organize such events at national level.
III) NHB assistance shall be limited to Rs.1.50 lakh per event.

(VIII) Publicity
(a) Publications
i)Brochures and other publicity material for media (news papers/
magazines/ audio/ video) meant for farmers and other
beneficiaries to be prepared/published directly for NHB in
English/Hindi.
ii)NHBs news letters.
iii)In house publications of NHB.
iv)Publication of horticulture related books by NHB

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(b) Patterns of Assistance
i) For items (i), (ii) & (iii), the work would be handled either by
NHB or awarded to the specialized outside agencies empanelled
by NHB for printing, formatting, designing and art-work.

ii) For item iv, assistance would be provided by NHB subject to a

ceiling up to Rs. 1.00 lakh per beneficiary/ organization. However,
assistance from NHB shall be duly acknowledged on the front /
last page of the publication.

(c) Films : For preparation of fresh video films, detailed script

would be submitted to NHB with objectives of audio/ Visual &
estimated cost details, name of the producers empanelled with
DAVP/DAC, expected time of completion, etc.;
Pattern of Assistance- 100% cost to be borne by NHB

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(IX)Awareness of technology up-gradation, production development,
product promotion and market intelligence
(X)Honorarium to Scientists for effective transfer of Technology

Implementation and pattern of assistance.

a)Scientists/Experts facilitating effective transfer of technology as per the

details of schemes covered under Development of High quality
commercial Horticulture and Transfer of Technology, shall be eligible for
honorarium provided they are engaged by NHB for in-house effort of
transfer of technology and have not been paid any other fee / emolument
etc for the same services.

b)Grant up to Rs 20,000/- per expert for a group comprising of maximum 5

experts per project would be provided with a ceiling of Rs 1.00 lakh per
project.

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 X)Accreditation and Rating of Horticulture Nurseries
Implementation and pattern of assistance

Accreditation system will be based on rating in a scale of single star to five

star with appropriate weightage on production system, nursery
management practices and quality of planting material produced.

(XII) Mother Plant Nurseries for high pedigree planting material for
fruit crops

(XIII) Assistance for common facilities in Horticulture Parks/ Agri

Export Zones etc

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Objectives

i) To generate information on wholesale prices, arrivals and trends

in various markets of the country for important fruits, vegetables
& flowers etc and also on retail prices for increased number of
selected markets.
ii) To analyze the trends of arrivals, prices and other related
factors of the selected fruit and vegetables such as stock in
storage, crop stand etc and generate Market Intelligence
Reports
iii) To establish a nation-wide communication network for speedy
collection and dissemination of market information data for its
efficient and timely utilization.

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 iv)To prepare farmers advisory and issue the same for the
benefit of producer farmers especially by making use of
statistics so generated and collected for optimizing returns to
the producers

v) To collect and disseminate information on international prices

prevailing in potential foreign markets

vi) To collect and compile horticulture database and strengthen

existing system of Crop Estimation Survey-Fruits &
Vegetables (CES-F&V) as far as possible

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 Coverage of markets by NHB shall be increased from present 36 fruits and
vegetables markets to 100 markets. This would be done by outsourcing
existing marketing/professional agencies/ unemployed Agriculture graduates
or recognized/ established brokers in Mandi etc. at a fixed monthly
remuneration (including transport) per month as decided by the Board
plus actual expenses on transmission of information to NHB (fax, internet and
telephone).

The NHB would identify these markets in consultation with concerned State
Govts. An exclusive cell shall be set up at NHB, Gurgaon for on-line receipt,
data entry, analysis, dissemination and web-site management. The work
relating to this proposed MIS cell shall also be undertaken by outsourcing
services of selected professional agency.

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 Under this component, specialized studies and surveys shall be carried and
study / survey reports shall be brought out for use by targeted beneficiaries.
In addition, technical laboratories shall be set up or cause to be set up and
also provide technical services including advisory and consultancy services.
This shall be done by NHB with or without services of outsourced experts.

Components

i) Review the present situation of horticulture development in particular area/

State
ii) Identify constraints in horticulture development and suggest remedial
measures
iii)Develop short term and long term strategies for systematic development of
horticulture,
iv) Develop primary/secondary data of various aspects on horticulture,
v) Provide consultancy services, expert services & establishing labs etc. in
pursuance thereof,

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vi) Conduct technical scrutiny and certification of cold chain
infrastructure as per implementation protocol for Technical
Standards for cold storages etc.
VII) Preparing reports relating to export competitiveness in the area
of fresh horticulture produce,
VIII) Any other component of expert services provided by NHB
addressing to identified needs of the sector

Pattern of Assistance for above components

100% cost of the study shall be borne by the Board.

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Post harvest operations

Strengthening of share capital base of fruit and vegetable

cooperatives.
Under this scheme, assistance up to Rs.10 lakhs is provided for
increasing the capital base of the beneficiary cooperative societies for
improving their marketing operations.

Margin money assistance for raising working capital .

Assistance is provided to enable raising working capital from Banks for

increasing business operations. This assistance is available to State
Federations, District Level Federations and Commodity Marketing
Societies.
Assistance for purchase of transport vehicles .
The Corporation provides assistance to the beneficiary societies for
purchase of transport vehicles for moving stocks from growing areas to
consuming centers.

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 Construction of packing and grading sheds and godowns

Assistance is provided to cooperatives at the primary level, as

well as mandi level, for construction of go down and sheds.
Construction of Cold Storages & Ice Plants.

Assistance to the cooperatives for the establishment of new cold

storages and also for expansion/modernisation of the existing units as
well as for setting up of ice plant

Creation of marketing infrastructure including retailing

Assistance is provided to create marketing infrastructure including that

for retailing.

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Cold Storage Programme ( NCDC)

Capital Investment Subsidy Scheme for construction

/expansion / modernization of cold storages and storages
for horticulture produce
.
The cost of 5000 MT capacity for new cold storage and expansion of
existing capacity would not exceed to Rs.2.00 crore. Back-Ended
Subsidy @ 25% would not exceed Rs.50.00 lakh per project, including
for the CA/MA Stores and Projects of higher capacity.

However, for the projects in the North-Eastern States @ 33.33%.

However, maximum subsidy admissible would be Rs.60.00 lakhs.

For modernisation and re-habilitation BES @ Rs.1000/ton and for

storage like onions @ Rs.2000/ton capacity created/to be created is
also available under the scheme.

Initially, the amount of subsidy would also be sanctioned as loan to the

State Govt. for which a separate account would be maintained by the
State Govt.

No interest on such loan would be charged by NCDC till the

completion of the unit in stipulated period of 18 months. On
Next
completion, this loan Previous
will be converted into subsidy. End
1. Scheme for Technology upgradation/Establishment/Modernization of
food processing industries

Setting up expansion -modernization of food processing industries covering

all segments viz. fruits & vegetable.
Milk products, meat, poultry, fishery, oil seeds and such other horticultural
sectors leading to value addition and shelf life enhancement including
food flavours and colors. Oleoresins, spices, coconut, mushroom etc.

In respect of Rice mill, Flour mill & Pulse processing financial assistance
will not be available w.e.f. 01-04-2004

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Objective:
Increase the level of processing, reduction of wastage, value
addition.
Enhance the income of farmers as well as increase exports thereby
resulting in overall economic development .

Eligibility & Pattern of Assistance:

All implementing agencies engaged in setting up or expansion/
modernization of food processing industries covering all segments
would be eligible for financial assistance.
The assistance will be in the form of grant subject to 25% of the
plant & machinery and technical civil works subject to a maximum of
Rs. 50 lakhs in General Areas and 33.33% up to Rs 75 lakhs in
Difficult Areas.

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Scheme for Quality Assurance, Codex Standards and R & D
(a) Scheme for Total Quality Management including HACCP, ISO9000 etc.
Objectives
To motivate the food processing industries for adoption of food safety and
quality assurance mechanisms such as Total Quality Management (TQM)
including ISO-9000, ISO14000, Hazard Analysis and Critical Control
Points (HACCP), Good Manufacturing Practices (GMP), Good Hygienic
Practices (GHP).

To prepare them to face the global competition in International trade in

post WTO.

To enable adherence to a stringent quality in hygiene norms.

To enhance product acceptance by overseas buyers.

To keep Indian industry technologically abreast of international best

practices.

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 Central/State 50% of the total cost of Grant-in-aid
Government the project towards
Organisations, IITs and implementation of Total
Universities. Quality Management
including ISO 9000, ISO
14000, HACCP, GMP
and GHP in general
areas and 75% in
difficult areas. The
absolute ceiling will
remain Rs. 10.00 lakhs
and Rs.15.00 lakhs
respectively.

All other Implementing 33% subject to a Grant-in-aid

Agencies maximum of Rs. 10.00
lakhs for General Areas
and 50% to a maximum
of Rs. 15.00 lakhs for
Difficult Areas

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Objectives

To promote the concept of quality assurance and their adoption.

To create awareness among the food processing industries as well as

consumers about the advantage of Safe and Quality foods through
Generic advertisement, Workshop/Seminars etc.,

To train various stake holders engaged in food business and

preparation of quality assurance training modules/Guides/Manuals,
development of sector specific Codes of Practices such as GMP,
GHP, GAP etc. from farm to fork and their implementation.

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 Central/State 50% of the cost of the Grant-in-aid
Government project subject to
Organisations, IITs and maximum Rs.3.00 lakhs.
Universities. When the Ministry
sponsors such activities
as mentioned in this
component, there would
be no ceiling to financial
assistance and the
amount to be approved
will be decided on case
to case basis with the
approval of Competent
Financial Authority.

All other Implementing 33% subject to a Grant-in-aid

Agencies maximum of Rs. 3 lakhs
for General Areas and
50% subject to a
maximum of Rs. 3 lakhs
for Difficult Areas

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Objectives

To popularise the concept of bar coding system following

National/International Standards and to encourage food processors
to affix bar codes on their processed food packages in order to keep
with the developments in the international markets.

To avoid any non-tariff barriers in future, as bar coding has become

an important requirement in the context of the stringent food safety
standards.

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 Central/State 50% of the Registration Grant-in-aid
Government fees to be paid to EAN
Organisations, IITs and India and 50% of cost of
the capital equipment
Universities. subject to maximum
Rs.3.00 lakhs. The
organisation willing to
avail the financial
assistance for bar
coding, have to get
registered with EAN
India before applying.

All other Implementing 33% subject to a Grant-in-aid

Agencies maximum of Rs. 3 lakhs
for General Areas and
50% subject to a
maximum of Rs. 3 lakhs
for Difficult Areas.

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a) Food Park

25% of the project cost in General Areas and 33.33% in Difficult

areas subject to a maximum of Rs.4 crores for provision of common
facilities like cold storage, food testing and analysis laboratory,
effluent treatment plant, common processing facilities, power, water
supply, etc.
b) Integrated Cold Chain Facilities
25% of the cost of plant and machinery and technical civil works in
General Areas and 33.33% in difficult areas with a common ceiling
of 75 lakhs.
c) Value Added Centre
25% of the cost of plant and machinery and technical civil works for
setting up such centre subject to a ceiling of Rs.50 lakhs in general
areas and 33.33% subject to a maximum of Rs.75 lakhs in difficult
areas.

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d) Irradiation Facilities

25% of the cost of plant and machinery and technical civil works for
resetting up of irradiation facilities in General Areas and 33.3% in difficult
Areas subject to a maximum of Rs.5 crores.

e) Packaging Centre

25% of the total cost of plant and machinery and technical civil work in
General Areas and 33.33% in difficult areas subject to maximum of Rs.2
cores for establishing packaging centre independently and in food parks if
the packaging centre is not already a part of the common facilities.

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Venture Capital Scheme :
Venture Capital:
To promote investments in agri-business projects with the participation of bank
a) Equity participation in agri-projects up to 10% of the total project cost, or 26%
of the total project equity or Rs.75 lakhs whichever is lower

b) In special cases, higher equity possible for projects located in hilly and North
Eastern States and in projects recommended by State agencies/ State SFACs.

2.Project Development Facility(PDF) :

To provide financial assistance to farmers, Producer Groups, Agripreneurs, Units
in Agri-Export Zones, Organizations and Agriculture graduates for the
preparation of bankable Detailed Project Reports (DPR).

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3.Eligible Criteria for funding

a)Project should be in agriculture or allied sector namely

horticulture, floriculture, medicinal and aromatic plants, minor
forest produce, organic farming, vermi compost, apiculture, and
fisheries.
However, poultry and dairy projects will not be covered under
the scheme.

b)Project should provide assured market to farmers/ producer

groups.

c)Project should encourage farmers to diversify into high value

crops, to increase farm incomes.

d) Project should be accepted by banks for grant of term loan.

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Export Promotion Schemes

Adoption of High-tech processing

Reimbursement of Freight/Courier Charges for sending samples of

spices abroad

Marketing Development Assistance to Individual Exporters for export

promotion activities abroad

Packaging Development

Export of pepper and value added pepper products

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Technology Up gradation:
Promotion of Indian Brands of Spices and Spice Products in
Specified Markets
Export Oriented Processing of Spices in North East/Special
Areas
Post Harvest Schemes
Scheme for Improved Cardamom Curing Devices for Small
Cardamom
Drying Yards
Polythene Sheets
Bamboo Mats
Pepper Threshers
Solar Driers for chillies

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Boards for specialized commodities

Tea board

Rubber board

Coffee Board

Coconut Board

Areacanut Board

Coir Board

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 MARKET INFORMATION SCHEME (MOA)

Date of start/ duration :

March, 2000/ up to March, 2002.
Implementation status
Till now, 210 nodes have been supplied with computers with the peripherals.
Administrative approval for another 500 nodes during 2001-2002 have been
accorded.
Additional information :
National Agricultural Policy has proposed for coverage of another 2000
nodes during the Tenth Plan.
Person to be contacted :
Agricultural Marketing Adviser to the Govt. of India.
Directorate of Marketing & Inspection
Head Office, N.H.IV, Faridabad .

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Research Schemes : (Ministry of Agriculture )

3.Scheme for Estimation of Marketable Surplus and Post-Harvest

Losses of Food grains in the country.

4.Scheme for Market Survey, Investigation and Research Grants

in the field of Agricultural Marketing

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Schemes for Research and Development:(APEDA)

Assistance to support Research and development for export efforts through

R & D organizations in Government sector - 100% APEDAs internal
scheme.

Assistance to exports, Trade Associations , Cooperative institutions etc. to

support relevant research & development for export enhancement through R
& D organizations in cooperative/ private sector - Upto 50 % of the total cost
of the project subject to a celling of Rs. 10 Lakhs.

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 What are all the schemes offered by ministry of agriculture?
What is scale of finance for various schemes offered by ministry
of Agriculture?
What are the commodities certified by AGMARK ?
What are the schemes offered by APEDA?
What are the infrastructure development for storing horticultural
produce?
What is bar coding and objective ?
How the spice board promote export for major spices?

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 Department of Agriculture and Co-operation , Ministry of
Agriculture, Govt. of India., New Delhi.
Agricultural & Processed Food Products Export Development
Authority (APEDA), New Delhi.
Ministry of commerce and industries , Govt. of India., New Delhi.
www.nabard.org
www.apeda.gov.in
www.spicesboard.org
M.B. Dastagiri and B. Ganesh Kumar, Innovative Models in
Horticulture Marketing in India, National Centre for Agricultural
Economics and Policy Research , New Delhi .

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