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DEVELOPMENT / STRENGTHENING OF AGRICULTURAL MARKETING INFRASTRUCTURE

DEVELOPMENT / STRENGTHENING OF AGRICULTURAL MARKETING INFRASTRUCTURE. PROJECTIONS OF AGRIUCLUTRAL PRODUCTION (Million Tonnes). Need For Reforms. To Make Indian Agriculture Competitive and Market-driven.

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DEVELOPMENT / STRENGTHENING OF AGRICULTURAL MARKETING INFRASTRUCTURE

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  1. DEVELOPMENT / STRENGTHENING OF AGRICULTURAL MARKETING INFRASTRUCTURE

  2. PROJECTIONS OF AGRIUCLUTRAL PRODUCTION (Million Tonnes)

  3. Need For Reforms • To Make Indian Agriculture Competitive and Market-driven. • To Support Development of a Highly Competitive Agri-Business Structure in the Country • To Meet Emerging Challenges Posed by Liberalization of Trade Under the Aegis of WTO

  4. Reform Initiatives undertaken • Model APMC Act Formulated to Promote • Competitive Agriculture Markets in Private and Cooperative Sectors • Direct Marketing and • Contract Farming Arrangements • New Law to Introduce Negotiable Warehousing Receipt System Being Formulated

  5. Reform Initiatives Undertaken • EC Act Amended to Remove Controls on Movement, Storage and Marketing of Agricultural Commodities Including Licensing System • FC (Regulation) Act Amended to Allow Futures Trading in Agricultural Commodities and Setting up of Commodity Exchanges

  6. Reforms Initiatives Undertaken • ‘Empowered Sub-Committee’ of ‘NDC’ constituted for Removal of Barriers to Internal Trade (including Fiscal ) • ‘Integrated Food Law’ to bring convergence of several laws including PFA Act for accelerated growth of agro-processing industry

  7. Reforms Initiatives Undertaken • ‘Rs. 50,000 crores Fund’ set up to make available investment credit for Agriculture Infrastructure at 7.5 to 8.5 per cent interest rates, about 2 percent below PLR • Scheme Formulated to attract the Investment Fund for Market Infrastructure Development Projects in Agriculture and Allied sectors (Dairy, Poultry, Fisheries etc)

  8. Components of Infrastructure Projects • Market user common facilities like market yards, Platforms for loading/ assembling and auctioning of the produce etc. • Functional infrastructure for grading, standardization and quality certification, labeling, packaging, value addition facilities (without changing the product form)

  9. Components of Infrastructure Projects • Infrastructure for Direct marketing from producers to consumers/ processing units/ bulk buyers etc • Infrastructure for supporting contract farming arrangements between processing/ trading units and farm producers • Infrastructure for E-Trading, market intelligence, extension and market oriented production planning.

  10. Persons Eligible • Assistance to Individuals, Farmers, Consumers, NGOs, APMC, Corporations, Cooperatives and Marketing Boards in the Entire Country. • State Projects Assisted by NABARD for Modernization of Existing Markets Would Also Be Eligible Subject to Concerned States Undertaking Reforms in APMC Act

  11. HRD Components • HRD Program for Promotion of Grading, Standardization and Quality Certification of Agricultural Produce at the Farm/market Level • A Prerequisite for Promotion of Direct Marketing, Pledge Financing, Introduction of Negotiable Warehousing Receipt System and Futures Trading in Agricultural Commodities

  12. HRD Components • HRD Program for the Storage and Infrastructure Projects Entrepreneurs • To Promote Comprehensive Marketing Services Including Facility of • Grading and Quality Certification • Warehousing and Bulk Marketing • Issue of Negotiable Receipts and • Linkage to Commodity Exchanges.

  13. Role of State Governments • Deregulation of Areas Where New Markets Will Be Set up • Allocation of Land to Set up Markets and Collection Centers • Fast Approval From Authorities, Provision of Services Like Electricity, Water, Sewage Etc.

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