!

Indian Agriculture suffered from Technological,

Financial &Economic isolation

Green Revolution largely solved the problem of

Technological isolation

Key Strategy to overcome

Financial &Economic isolation is

SUPPORTING
AGRI MARKET INFRASTRUCTURE
 NABARD SUPPORT TO
AGRI-MARKETING INFRASTRUCTURE
Refinance for Rural Godowns and market yards, Cold Storages,
Refrigerated vans, Farm mechanization equipments like combine
harvesters, threshers, driers, Agro-processing units. Created 172
lakh MT storage capacity with refinance support of Rs 909 crores
Co-financing
Rural Infrastructure Development Fund (RIDF) supports
market yards, godowns, apni mandi, rural haats, cold storages &
other marketing infrastructure. As on March 06, extended support of
Rs 90.39 crore for 517 projects
Dispensing Subsidy of GOI’s Capital Investment Subsidy Schemes
Promotional support
Developmental initiatives 3
GoI’s Credit linked Subsidy Schemes

Scheme for development/ strengthening of

Agricultural Marketing Infrastructure,
grading and standardisation

Capital Investment Subsidy Scheme for

construction of Rural Godowns

Capital Investment Subsidy Scheme for

construction of cold storages.
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Eligible beneficiaries

Individuals, Group of farmers/ growers/consumers,

Partnership/ Proprietary firms, Non-Government
Organizations (NGOs), Self Help Groups (SHGs),
Companies, Corporations, Cooperatives, Cooperative
Marketing Federations, Local Bodies, Agricultural
Produce Market Committees (APMCs) & Marketing
Boards in the country.

Eligible financial institutions

Scheduled banks, Regional Rural Banks, State

Cooperative Banks, State Cooperative Agricultural and
Rural Development Banks, Primary (Urban)
Cooperative Banks, etc.
 Subsidy

Subsidy @ 25% with an upper ceiling of

Rs.50.00 lakh – for General category

Subsidy @ 33.33% with an upper ceiling of

Rs.60.00 lakh – for NE States, Hilly Tribal
areas, SC/ ST beneficiaries and their co-
operatives
 Release of subsidy
Advance subsidy:
After sanctioning of bank loan and
disbursement of first instalment
NABARD RO sanctions the advance subsidy
Final subsidy
After the project is completed
Joint Inspection Committee (JIC) comprising
officials of DMI, NABARD and financing bank
visits the unit
Final subsidy is sanctioned/ released on the
recommendations of JIC
 Progress under Govt.Schemes
Schemes No. of Units Bank Loan Capacity
(Rs.crore) [ Lakh MT]

Agri Marketing 598 76.80 -

Infrastrucutre Scheme

Rural Godown 9526 1340 134.97

Cold Storage 1128 899 51.14

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 Promotional support
• Rural haats : NABARD has sanctioned grant of Rs. 63.60 lakhs in 12 states
through Gram Panchayats

• Rural Mart Scheme with grant assistance of Rs. 1.45 lakh for district level and
Rs.0.90 lakh for sub district level for setting up of Marketing Outlets "Rural Marts"
to facilitate marketing linkages for the artisan-handicraft and agro based products
through setting up of a retail outlet

• Financing Rythu Mithra Groups: During 2005-06, 12,468 RMGs were

extended loan amount of Rs.131.77 crore by 20 commercial banks, 16 RRBs and 9
DCCBs participating in the project launched by NABARD.

• Equity participation in National level Commodity Exchanges : NCDEX

( Rs 4.39 crore ) and MCX (Rs 1.25 crore) to strengthen the marketing infrastructure
 Development initiatives
-
As part of its development initiatives and to facilitate
- the enhanced credit flow for agri marketing sector,
NABARD has brought out model schemes

•Cold storage (5000 MT)

•Onion storage (25 MT)
•Grain Godown (50MT, 100MT, 250MT, 500MT, 1000 MT, 5000MT &
10,000MT)
•Market Yard (Market arrivals of 20,000MT & 50,000 MT)

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 Future outlook
Encourage private-public partnership

Would support establishment of terminal markets

Would like to forge meaningful partnership with

corporates

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