agri export zones’
TRANSCRIPT
PREFACE
Agriculture sector accounts for almost quarter of the Indian Gross Domestic
Product. This sector has a very high importance in the life of the common Indian
citizen as almost two third of the population depends on agriculture and related
activities. India is number 1 in gross arable lands, 11% of global arable land
being in India. India is number 1 milk and fruits producer and number 2 in
production of vegetables. But India accounts for less than 2% of global
agricultural export. The main reason for such a low export performance is lack of
adequate planning and lack of infrastructure.
To develop export oriented farming and processing of agricultural products the
government has come with a concept of ‘Agri Export Zones’. Agri Export Zones
tends towards integrated approach to agricultural exports. The AEZ’s try to
strengthen vertical linkages by taking market oriented approach. Farmers,
Processors & Exporters try to work in synergy in AEZ’s to get benefits of vertical
linkages. The concept of contract farming is also emphasized in AEZ’s. To exploit
horizontal linkages across farmers, processors and exporters AEZ’s are
providing ‘Shared Facilities’ to these people. Shared facilities like cold storages
and packing houses give opportunity to small farmers and processors to use
such advance facilities with affordable charges. Centralized Training centers and
R&D facilities will also benefit small farmers and processors to a great extent.
In this project I have made a humble attempt to understand the concept of AEZ,
its benefit to agriculture sector and response of exporters and processors about
the benefits of AEZs with a live case study.
CONCEPT OF AGRI EXPORT ZONE
Setting up of AEZ is a very important step towards providing state of art
infrastructure for the export of agricultural production. AEZ's take product
specific, approach for identifying potential products in the clusters for exports.
AEZ's takes care of total supply chain of identified product from sourcing of
desired quality raw material to final export.
There are various difficulties encountered at each stage in the process of
sourcing to final export. Some of the major difficulties encountered are given
below.
Availability of good quality produce/product in the required quantity.
Wastage due to lack of proper packaging.
Lack of market information, both supply side and demand side.
Inability of local players to meet international quality standards.
Unavailability of credit at right time at reasonable rate of interest.
Unavailability of proper storage and transportation facilities.
In addition there are many procedural difficulties due to presence of many food
and agro related laws.
AEZ's try to solve all these difficulties by integrating various institutions involved
in trade, legislation and for support.
The two basic principles which are at the center of concept of AEZ are;
Identification of Potential product for export in a particular geographical
area.
The good quality products which are having bulk production in a particular
geographical area are identified. Example in Karnataka AEZ is established in the
regions where Gherkins are available in quantity. Similarly AEZ are set in
Uttaranchal for flowers, in Maharashtra for grapes and in UP for Mangoes.
Research and development to produce internationally competitive
products.
Special emphasis is given for R&D at each level from sourcing to export. Soil
research and farm development for production of high quality raw material;
Innovation in packaging materials to increase shelf life; development or
procurement of proper technology for processing and marketing research are
some important areas of research.
OBJECTIVE OF AEZ
“In a fast changing international trade environment, with a view to
providing remunerative returns to the farming community in a sustained
manner, efforts will be made to provide improved access to the produce /
products of the Agriculture and Allied sectors in the international market
by setting up of Agri Export Zones.”
Here one thing should be made clear that AEZ is not a Special Economic Zone.
It is not a specific plot of 20 acres or 100 acres with a custom notified boundary.
AEZ status is given to particular area like district and all the activities carried out
in that area come under AEZ. Four districts Thane, Raigad, Ratnagiri and
Sindudurg come under AEZ for Mangoes. Any processor, exporter, farmer in
these district who are engaged in export of Mango or products made from
Mangoes will get benefit from AEZ. Produce other than Mango will not get
benefits of AEZ in these districts. The produce/products are also sold in domestic
tariff area.
RESEARCH METHODOLOGY
Problem Definition
Study viability of use of shared facilities in Agri export zones.
Objective of the Study
1. To evaluate the effectiveness of Agri export zones in strengthening the
supply chain of food for exportation.
2. Studied other benefits from the Agri export zone to farmers processors
and exporters.
Scope of the studies
This study of supply chain of food is restricted to Agri export zones. The impact
of the shared facilities provided by this special commercial area on the supply
chain of food will be studied.
The impact of AEZ on procurement, processing & distribution will be studied. And
other benefits to farmers, processors and exporter from Agri export zone will also
be studied.
Benefits of the Study
The study will give a clear picture of the benefits of making investments in Agri
Export zones.
Research Design
The research has been divided in two main parts
1. Collection of data through primary & secondary sources.
2. Analysis of the data and interpretation of the findings to come at
conclusions.
For collection of secondary data the information will be collected from various
government agencies like APEDA, Ministry of food processing, Confederation of
Indian Food Trade & Industry etc. Non government agencies like journals, news
papers and web sites of institution like Rabo bank will also be used to collect
secondary data.
Primary data will be collected by direct interviews of people working in units in
Agri export zones and the exporters in the Agri export zones.
Null Hypothesis of the Study
The Agri Export Zones will not make any significant change in the supply chain of
food and food products for purpose of exportation.
The researcher will try to reject this null hypothesis by proving that AEZ will make
a significant change in supply chain of food for exportation.
Alternate Hypothesis of the Study
The Agri Export Zones will make a significant change in the supply chain of food
and food products for purpose of exportation.
Limitations
The study will be conducted in Maharashtra state alone, with one Agri export
zone.
PROVIDING SOLUTIONS THROUGH AGRI EXPORT ZONE
Availability of good quality produce/product in the required quantity:
AEZ try to solve this problem by making arrangements of three party contract
farming agreements. The three parties are farmers, processors and bank. Detail
of this concept is dealt later. The arrangement for duty free importation of good
quality seeds, fertilizers and pesticides is also made. Training is provided to the
farmers by various agriculture support agencies for growing required crop and for
maintaining desired quality.
Wastage due to lack of proper packaging:
The AEZ provide shared facility of packing house. All the farmer, processors or
exporters can sort, grade and pack the products in this shared facility. Shared
facility provides this service at a reasonable cost thus making it viable for small
user use of such facility. The support agency IIP will also help in developing
innovative packaging at low cost or to increase shelf life.
Lack of market information, both supply side and demand side:
Various institution and agencies like APEDA will provide trade statistics and
market potential data.
Government will also provide monetary help to the exporters from "Market
Access Initiative Fund" as approved by the concerned agency.
Information about crop related problem will be provided by various agencies.
Information generated by disease forecasting system will be of great help to
farmers.
Inability of local exporters to meet international quality standards:
AEZ will require conformance to Codex quality standards for export of the food
products. To achieve this quality availability of high quality input will be made
through domestic production or through imports. Importation of capital goods at
concessional rate of duty is allowed. The nodal agency for AEZ will appoint
private or government institution to check the quality at every stage. These
agencies will provide system for better sanitation and hygiene. Funds are
available for this under common quality improvement program (CQIP).
Unavailability of credit at right time at reasonable rate of interest:
Bank will provide credits to farmers, processors and exporters at concessional
rate of interest (10.5%). NABARD in turn will provide these banks the credited
amount at 7% interest.
Unavailability of proper storage and transportation facilities:
AEZ are providing shared facility of cold storage. This facility will help farmers,
processors and exporters to reduce wastage and increase usable life of the
products. The economies in AEZ will also enable private parties to provide
refrigerated transport facilities. Apeda is giving some financial assistance for the
purchase of refrigerated vans to private parties.
In addition to above benefits AEZ will provide duty free fuel for generation of
power when power cost is more than 10% of the product cost.
PARTNERSHIP OF VARIOUS STAKE HOLDERS
All the above solution will be provided through creating a partnership relation
between various business, legal and support institutions. Various agencies and
their roles are given below.
Agency Assistance Provided
APEDA Market study and market development. Provides import and
export data. It is a nodal agency for AEZ
Dept. of Food
Processing
Industry
Support for contract farming. Equity participation in
processing units and post harvest centers. Various
schemes for benefits of farmers, processors and exporters.
National
Horticulture board
Provide assistance in research and development. It also
provide subsidy for infrastructure in AEZ.
Ministry of
Commerce
Scheme like EPCG for importation of capital goods. Duty
free importation of inputs. Provide market access funds.
NCDC Assistance for development of infrastructure.
Indian Institute of
Packaging
Development of packaging material to increase shelf life
and to maintain product quality.
Banks As per guidelines of NABARD banks can provide credit at
interest rate of 10.5% under refinance scheme.
Horticulture
Departments
Services in the form of surveillance of crop conditions.
Training of farmers and processors.
Universities and
Research Centers
Various researches like soil research and processing
technology research.
Revenue Dept. Speedy acquisition of land for processing units and for
infrastructure. Facilitates registration of contracts between
farmers, processors & bank.
Dept. of Sales Tax Sale tax Exemption for inputs for AEZ.
Electricity Boards Provide uninterrupted power supply. Easy clearance of
application for connection.
State Agriculture
support agencies.
( MSMDB in
Maharashtra)
Identify farmers and entrepreneurs to work in AEZ.
Implement promotion activities given by various agencies.
Promote contract farming through training of farmers. Look
at day to day work & progress of AEZ.
CONTRACT FARMING
Contract Farming of different types is already in practice for certain commercial
crops like sugarcane, coffee, tea, cotton, etc., and vegetables and grains. There
are a number of success stories on contract farming such as Pepsico India in
respect of potato, tomato, groundnut and chili in Punjab, Safflower in MP, Oil
Palm in AP, seed production contracts for hybrids seed companies etc., which
helped the growers to realize better returns for their produce. Amul and NDDB for
milk procurement, sugarcane coops in Maharashtra, etc., are some more
success stories of contract farming.
The main features of contract farming are that selected crops are grown by
farmers under a buy back arrangement with an agency engaged in trading or
processing. In India, small farmers are generally capital starved and cannot make
major investment in land improvement and modern inputs. Contract farming is
encouraged under these situations because production of small farms can be
more successfully organized through this mode.
ADVANTAGES OF CONTRACT FARMING
1. It envisages that the farmers enter into a forward contract with the Processor /
Exporter to supply the produce at a pre-determined price, quantity and
quality and the buying company also provides necessary inputs and
technology to the farmers so as to ensure a steady supply of quality produce
for processing / exporting.
2. It helps the small farmers to participate in the production of high value crops
like fruits, vegetables, etc., and benefit from market led growth.
3. While in some cases of contract farming, the farmer assumes the production
related risk and transfers price risk to the company, under certain conditions,
even the produce risk is taken care of by the company.
4. Risk of non-availability of raw material is reduced with assured quality supply
from the farmers.
5. Small and marginal farmers may no longer be competitive without access to
modern technologies and support. Contract farming provides this support to
these farmers.
ADVANTAGES OF FINANCING UNDER CONTRACT FARMING FOR
BANKERS
Direct link between the farmer and processor / exporter would provide
relatively easy access to market for the farmer. This reduces the cost of
supervision in dealing with such accounts.
The chances of post harvest losses of Agri. / Horticulture produce would
be much less. This will reduce the risk for the banks on account of various
technical reasons which normally affect the production/ cultivation of crop/
commodity concerned.
Contract farming result in realization of remunerative prices by the farmers
for their produce. The farmer will be able to get a better surplus which may
help the banks in not only realizing their loan in time but also augmenting
their resources by way of deposits made with them by the same farmers.
“AEZ: A PACK OF BENEFITS”
Here various benefits provided by AEZ are listed in brief.
a) Fiscal incentives
Offer from Central Government
Benefit of sourcing capital goods at concessional rate of duty (5%) under the
EPCG scheme even for service providers with an enhanced obligation.
Duty free fuel for running DG sets.
Offer from State Government
Exemption of sales tax and other taxes/duties, if any, on all inputs used for
export of fresh and processed products from AEZ.
b) Financial Package
Offer from Central Government
Assistance under different schemes from central Government agencies as
listed above in the table.
Financial assistance for activities that include
o Productivity enhancement
o Micro irrigation
o Improvement in product quality through R&D
o Pre and post harvest training and extension services
o Maintaining cool chain
o Development of international level packaging material
o Market development
o Freight assistance for selected products and transport assistance
for selected regions
o Credit from banks to farmers at concessional rate for purchase of
inputs, at par with packaging credit to exporters.
Offer from State Government
Available financial assistance scheme of states.
c) Legal Benefits
Amendments and state statutes to give benefits to entrepreneurs e.g.
removal of market cess.
d) Administrative Benefits
Availability of administrative machinery like staff for
extension services. Involvement of officials for control and monitoring of
AEZ activities, web based online Activity Tracking System through
wwww.apeda.com.
Upfront association with Agriculture Universities and Research Institution
for research activities.
Immediate power connection from SEBs and need based power supply to
post harvest facilities, packhouses and processing units. Immediate
permission will be granted to the units to generate their own electricity
without any minimum charges and above all, a visible commitment form
Central & State Government to provide all possible support.
Improvement of road network in AEZ by the state
government.
e) Focus on important issues
Facilitation comes through focus on issues like tariff and non-tariff barriers
in the importing countries domestic laws and regulations which inhibit free
flow of exports.
f) Socio Economic Benefits
Development of state economy
Generate employment
Improve product quality
Reduction in cost of product
Assistance for development of infrastructure
Extra foreign exchange earning
Accelerate the exports growth
We have seen above how AEZ is trying to improve overall growth of agro export
by being a complete business package. But there is always some difference in
what we want to do and what is actually happening. For this purpose I have done
a case study on the shared facilities provided by “Maharashtra State Agricultural
Marketing Board” in Vashi to promote export of fruits and vegetables.
POTENTIAL OF AEZ TO IMPROVE EXPORTS
Gherkins in Bangalore
Year 1999-2000 2-3 years of
setting AEZ
5 years of setting
AEZ
Export in M.T 35242 300000 750000
Lychie in Ramnagar, Uttaranchal
Year 1999-2000 2-3 years of
setting AEZ
5 years of setting
AEZ
Exports M.T N.A 500 1000
Pineapple in Jalpaiguri, West Bengal
Year 1999-2000 2-3 years of
setting AEZ
5 years of setting
AEZ
Export M.T N.A 5500 15000
Onion in Maharashtra
Year 1999-2000 2-3 years of
setting AEZ
5 years of setting
AEZ
Export M.T N.A 7000 additional 20000 additional.
Thus from above figures we have seen that AEZ can increase export to a great
extent. Further rate of growth of exports is also very high. Now we will see
various benefits of AEZ in brief.
CASE STUDY OF SHARED FACILITIES PROVIDED BY MSAMB IN
VASHI
State government agency “Maharashtra State Agricultural Marketing Board”
(MSAMB) in cooperation with Central government agency “Agricultural &
Processed Food Export Development Authority” (APEDA) has set up shared
facilities in sector 19, APMC vegetable market, Vashi under AEZ for Mangoes.
The shared facilities consist of:
Pre cooling chamber
Capacity Cost of Facility Usage charge * Area
25 tons ** 0.6 Rs/Kg for 6 hrs 400 sq. feet
1 Rs/Kg for 12 hrs
* Minimum require quantity 1 ton
Cold storage
Capacity Cost of Facility Usage charge* Area
25 tons ** 0.15 Rs/Kg for 24 hrs 400 sq. feet
* Minimum require quantity 16 ton
** Cost of both the facility taken together is 80 lacs rupees.
The facilities are procured from “Loyds”.
Grading Machine
Capacity Cost of Facility Usage Charge Area
1 ton per hour 15 lacs 1 Rs/Kg 600 sq. feet
Grading machine is a unit which takes Mangoes at one side. Various operations
like washing by spray of water, cleaning by brush, drying by sponge are done by
machine. Then the mangoes enter a weighing machine where mangoes are
graded by weight. That is how grading take place.
Packing house
Space of about 600 sq. feet is provided for packaging of material. If exporter use
grading machine he gets this area free of cost for packaging purpose. Packing is
done manually.
Vapor Heat Treatment System (VHTS)
VHTS is a facility required by the exporter in case the importing country has
some norm for presence of impurity in the form of harmful insects and residual
chemicals. VHTS uses hot water and steam to remove such impurities. It
operates in three and half hour batch.
Capacity Cost of Facility Usage Charge Area
1.5 tons per batch 400 lacs 3 Rs/Kg 200 sq. feet
These facilities are available to the exports after payment of usage charges as
fixed by MSAMB. The exporters are using these facilities to benefit themselves.
The survey of exporters was carried out to know the use of these facilities to
them. These exporters were also interviewed at the same time about their
knowledge of AEZ.
SURVEY OF EXPORTERS TO TEST THE EFFECTIVENESS OF
SHARED FACILITIES
The exporters were interviewed with a structured questionnaire the copy of which
is given in the appendix with the list of exporters.
The facilities are provided for exporter under Agri export zone for mangoes so
only exporters exporting mango or mango products were surveyed. The duration
of each interview was around half hour. Most of the question was dichotomous.
The exporters who were not aware about agri export zones were made aware
during the course of interview and then asked question about benefits of such
policies.
Thirteen exporters were surveyed as identified by the researcher, the exporters
who were potential exporters of mangoes.
The findings of the research are as under:
Awareness About Agri Export Zone
6 out of 13 exporters were not aware that four districts Thane, Raigad, Ratnagiri
and Sindudurg are under AEZ for mangoes. So we see that almost half of the
exporters surveyed are not aware about AEZ.
1234567
Nu
mb
er
of
Ex
po
rte
rs
Aware Not Aware
Awareness
Awareness about AEZ
Awareness About Facilities In Vashi
All 13 respondents are aware about facilities provided in Vashi, i.e. 100%
respondents are aware of facilities in Vashi.
Trial Of Facilities
Pre Cooling: 8 out of 13 respondents tried this facility. So we see 61% exporters
surveyed are has tried this facility.
Cold Storage: 8 out of 13 respondents tried this facility. So we see 61%
exporters surveyed are has tried this facility.
Similarly grading house and packing area are also tried by 8 exporters.
Vapor Heat Treatment System: None of the exporter ever used this facility.
Current Usage Of Facility
3 out of 13 exporters are currently using Pre cooling, cold storage i.e. 13%.
3 out of 13 exporters are currently using Grading and Packing area i.e. 13%.
No one is using VHT unit.
Reasons For Not Using Facilities
The exporters who have never tried the given facilities
5 exporters who have never tried cold storage and pre cooling either have
their own facility or they never use any cold storage, pre cooling.
Most exporters use hand grading in their own premise.
VHT is require only for export to US and Japan which is currently banned.
The exporters who tried but do not use now
They stopped using cold storage and pre cooling due to following reasons.
o Improper maintenance of the facility spoils the quality of the food
preserved.
o Attitude of staff is not cooperative
o Charges are high.
Although they tried the provided grading unit but most of them still stick to
hand grading.
Overall Utility Of Facility
To confirm whether the facilities are effective or not researcher asked about the
utility of given facility to exporters. Whether it is needed or not needed.
Surprisingly 12 out of 13 exporters responded that, all such facilities are
important especially for small exporters.
0
5
10
15
No
. o
f E
xp
ort
ers
Required Not Required
Effectiveness of facilities
Here the answer to the research problem can be given. Although only 3 out of 13
exporters are using the facilities of cold storage and pre cooling the facilities are
very essential and help exporters. Same 3 exporters are using grading and
packing units but 12 out of 13 exporters feel that such facility is required. VHT
system is not useful today as it is used only in case of export to US and Japan so
its utility can only be realized only after ban from US and Japan is removed. So
we cannot comment on it further.
For rest of the facility we can say that their shared usage is desirable and also
viable.
As per MSAMB respondent on and average 10 tons capacity of pre cooling out of
25 tons and 15 tons capacity of cold storage out of 25 tons is utilized. This is
satisfactory performance as seen by them.
SUPPLY CHAIN OF FOOD PRODUCTS FOR EXPORT AND
EFFECT OF AEZ
Above we have seen that the only half the exporters are aware about concept of
AEZ and their benefits. After they were made aware about the concept of AEZ
they were asked if such AEZ are implemented properly whether they will improve
the supply chain for exports. All 100% respondent said that if all the institutions,
farmers, processors and exporters are properly integrated the supply chain will
definitely improve. If same shared facility as discussed above are made available
near farms the quality will improve, cycle time will reduce, wastage will reduce
and proper supply of material will be maintained.
Thus here we reject the null hypothesis:
The Agri Export Zones will not make any significant change in the supply chain of
food and food product for purpose of exportation.
And we accept the alternate hypothesis:
The Agri Export Zones will make a significant change in the supply chain of food
and food products for purpose of exportation.
IMPROVEMENT OF EXPORTS
The question was asked to exporters, in which area they think they will benefit
from AEZ. The responses from various exporters were on the same lines.
Training of farmers
Most exporters believe that training of farmer for producing right quality products
is one of the most important benefit they will get. They feel that training and
guidance to farmer for pre harvest crop maintenance and post harvest quality
maintenance are very important for their business.
Cold chain from farmer to exporter
Establishment of cold chain from farmer to exporter is very important. The
product must enter pre cooling within 8 hrs from time of harvest. So it is very
important that cold chain should start at farm level. It generally take more than
12 hrs for a product to reach Mumbai. After reaching Mumbai if product is
stored in cold storage, effectiveness of cooling reduces to a significant extent.
So there should be sufficient cold storage space near farms and refrigerated
vans should be available at affordable rate to bring these products to Mumbai.
Contract farming
Contract farming is currently prevailing between exporters and farmers but to
small extent. Exporters believe that contract farming can be increased to a
great extent with the help of institutions in AEZ. Some exporters have showed
their willingness to pay 10% premium to farmers above market price if they are
ready to enter contract for supply of particular quality and quantity of products.
Increased export to Europe US & Japan
Export for Europe US and Japan need certain quality standards. As said by
the exporters AEZ will help in maintaining these standards.
Market Reach
With the help of agencies like Apeda the exporter feel that they will be able to
get better market reach.
Sahara Air Cargo Complex
The case of facilities in Vashi has been studied here. Similar facilities are built
at Air Cargo Complex in Andheri. Exporters feel that they will benefit from
these facilities to maintain cool chain upto the point where cargo is loaded.
MAJOR DEMAND FROM EXPORTERS
To the surprise of researcher the most important demand from exporters
was training and development of farmers.
Few exporters feel that shared facilities at farm level where chain starts is
more important than at air cargo complex where it ends.
Some exporters have reported that material handling facilities at Air Cargo
Complex is poor and there is an immediate need to improve that.
Almost all the exporters were very much concerned about Air Freight
Charges which they believe are obnoxiously high. This lead to reduction in
cost competitiveness of Indian products abroad. As suggested by them the
exporters need subsidy in Air Freight of Rs. 7 per Kg. for Gulf, Rs. 15 per
Kg. for Europe and Rs. 20 per Kg. for Canada.
Some exporter demanded removal of excise duty of 1% which is levied on
them. Half percent by Apeda and half per cent by ICAR.
The perishable are generally not insurable and in case insurable premium is
very high. Exporters demanded introduction of proper insurance policy for
perishables. They also said that the coverage should be given by Export
Credit Guarantee Corporation.
Excise duty of 16% is levied on packaging material the benefits of DEPB
should be given to them and total 16% duty should be refunded contrary to
2% given at present.
Above demands have two most important aspect reduction in transaction
cost and reduction in cost of other inputs like packaging material.
PROCESSOR
To get better understanding of Agri Export Zone a researcher conducted a
interview of one of the processors in Ratnagiri. As per his response processors
are not getting any benefits like shared facility, research or quality assistance
currently. But he was very optimistic about times to come. He feels that AEZ
will give various benefits to processors which are required to increase the
competitiveness of their products in international market. He currently get his
research done at CFTRI Mysore, he say research facility if provided in Kokan
will benefit him very much.
Questionnaire for the processor is given in appendix.
OVERALL SCENARIO OF AEZ FOR MANGOES IN FOUR
DISTRICTS
There will be significant increase in the export of Alphonso Mangoes with this
AEZ. Following table give us a fair idea.
Country Quantities in MT
1st year 3rd year 5th year 7th year
EuropeUnited Kingdom 500 500 700 1000Others 500 500 700 1000South East AsiaSingapore 500 1000 2000 4000Hong Kong 2000 3000 5000 7000Japan 200 300 500 1000Middle EastU.A.E. 500 700 1000 2000Saudi Arabia 500 700 1000 1500Other middle east countries 500 700 1000 1500Exploration of new
countriesAustralia 50 100 200 250New Zealand 50 100 200 250Total 5300 7600 12300 19500
Source MSAMB
The table shows a increased benefit through AEZ is around Rs. 78 crores (@ Rs.
40 per Kg.) from seventh year onwards. Better realization in the overseas
markets will result in better remuneration to the farmers.
PRODUCTION ENHANCEMENT
There will be an overall increase in quality and productivity of Alphonso Mangoes
through various interventions proposed in AEZ. Even an increase in productivity
by 2 tons per hectare in the target area of 1 lacs hectare will increase production
by 2 lacs tons. This is around 400 crore Rs. of crop annually as per domestic
wholesale price.
REDUCTION IN LOSSES BY USES OF POST HARVEST INFRASTRUCTURE
The post harvest infrastructure will handle around 50 000 tons of produce
annually. A saving of losses to the tune of even 10% will save around 5000 tons
of produce valuing at Rs. 10 crores per annum.
TECHNOLOGY IMPROVEMENT
The demonstration of better agronomical practices like pre harvest, post harvest
and logistics will bring general awareness and motivation to the farmers of the
area to adopt modern technology and practices.
EMPLOYMENT AND BENEFICIARIES
The project will benefit at least fifty thousand farmers and create direct
employment for about fifteen hundred to two thousand people in
collection/facilitation center and other facilities to be created under AEZ.
The working diagram and other important information are given in the annexure
attached below.
Questionnaire for measuring effectiveness of shared facilities provided by MSAMB and for measuring awareness about AEZ.
Firm: Phone: Contact Person:
1. Are you aware that central govt. in partnership of state govt. has set up Agri Export Zones?YesNo
2. Are you Aware of the facilities available in MSAMB (Marketing Board)?
Pre Cooling Yes No Cold Storage Yes No Packing Area Yes No Grading Unit Yes No Vapor Heat Yes No
Treatment Unit
3. Have you ever used these facilities? Pre Cooling Yes No Cold Storage Yes No Packing Area Yes No Grading Unit Yes No Vapor Heat Yes No
Treatment Unit
4. Are you still using these facilities? Pre Cooling Yes No Cold Storage Yes No Packing Area Yes No Grading Unit Yes No Vapor Heat Yes No
Treatment Unit
5. Please give reason for using these facilities?
6. Please give reason for not using these facilities?
7. Do you feel that AEZ will improve your exports?YesNo
8. In what way do you feel AEZ will improve your exports?
9. What more benefits you desire from AEZ?
QUESTIONNAIRE TO CHECK BENEFITS OF AEZ TO FOOD PROCESSORS
1. Are you aware that Thane, Raigad, Ratnagiri and Sindudurg district are under AEZ for Mangoes?1 Yes2 No
2. Do you use shared facilities available in AEZ?• Cold Storage
1 Yes2 No
Grading & Packaging1 Yes2 No
Research & Development1 Yes2 No
3. Do you get any special benefits for marketing your products?1 Yes2 No
4. If yes then please give details?
5. Are you able to reduce cost due to facilities provided by AEZ?1 Yes2 No
6. Does the infrastructure in AEZ provide some tangible benefits?1 Yes2 No
7. How do you procure your raw material?Directly from farmers ______%From 1st intermediary______%From 2nd intermediary______%
8. Does AEZ help you procure material directly from Farmers?1 Yes2 No
9. Do you get energy at subsidized rate?1 Yes _____% subsidy2 No
10.What benefits you desire from AEZ?
Terms and Conditions of refinance by NABARD :
i. Eligible Institutions All scheduled commercial banksii Extent of Refinance 100% refinance on the eligible amount
of bank loan. iii Rate of Interest on
Refinance7% p.a.
iv Rate of Interest to be charged by banks to the ultimate borrowers
Not exceeding 10.5 % p.a.
v Eligibility Norms Eligibility to draw refinance by banks will be determined as per instructions issued by NABARD from time to time.
vi Mode of Refinance Refinance will be extended under schematic approach- under Automatic Refinance Facility [ARF] as well as schemes with prior sanction depending upon the project outlay and amount of refinance. For availing of refinance under ARF, the outer limit of the project cost would be Rs. 30 lakh and the refinance limit per unit /borrower will be Rs 20 lakh.
vii Security As per RBI normsviii Margin Money As per RBI normsix Repayment period
of refinance to NABARD
The banks will be provided refinance as a term loan for lending under the scheme repayable over a period of 3 years
x Insurance Adequate insurance cover shall be obtained for the entire period of loan as stipulated by RBI from time to time.
xi Others : 1. The banks shall satisfy themselves regarding the economics of the project viz. financial viability, bankability etc.
2. The banks shall also ensure that satisfactory arrangements exist / have been made by the company for supply of high quality inputs/raw materials including
technical know how to the contracted farmers at reasonable charge and enter into forward contract with the farmers for procuring the produce of predetermined quality at mutually agreed prices. They should also satisfy about the company's ability to provide required transportation facilities for lifting the produce from the farmer's fields.
3. When financing individual farmers entering into contracting arrangements with processing/export units, banks should enter into tripartite agreement with farmers and processing/export units
i. to ensure supply of inputs, extension service, etc. to farmers by processing /export units,
ii. for purchasing produce from farmers by processing /export units, and
iii. for routing the payment to contracted farmers by the processing/export unit through the bank.
4. All other terms and conditions, banking procedures and lending norms as are normally applicable to project lending and schematic refinance will be applicable mutatis mutandis for financing the activity under the scheme.
Source NABARD
Agri Export Zones in IndiaSr.No.
ProductState
Districts covered
1PineappleWest BengalDarjeeling, Jalpaiguri, Uttar Dinajpur, Kooch Bihar & Howrah
2GherkinsKarnatakaTumkur, Bangalore Urban, Bangalore Rural, Hassan, Kolar, Chitradurg, Dharwad and Bagalkot
3Lychees UttaranchalUdhamsingh Nagar and Nainital
4CutflowersTamil NaduDharamapuri
Grape & Grape WineMaharashtraNasik, Sangli, Pune, Sholapur, Satara and Ahmednagar
5Mango Pulp & Fresh vegetablesAndhra PradeshChitoor (Kuppam Food Park, GD Nellore, Tavanampalle, Bangarupalem, Irala, Pakala, Palamaner, Pootalapattu, Punganur, Rama Kuppam, Shantipuram, V-kota, Gudipalle Mandals)
6PineappleTripuraKumarghat, Manu, Melaghar, Matabari and Kakraban Blocks
7MangoesMaharashtraRatnagiri, Sindhudurg, Raigad, Thane and Aurangabad
8ApplesJammu & KashmirSrinagar, Baramulla, Anantnag, Kupwara, Kathua and Pulwama
9Potatoes, Onions and GarlicMadhya PradeshMalwa, Ujjain, Indore, Dewas, Dhar, Shajapur, Ratlam, Neemach and Mandsaur
10Cabbage, Broccoli, Okra, Peas, Carrot, Baby Corn, Green Chillies, Green Beans, TomatoesPunjabFatehgarh Sahib, Patiala, Sangrur, Ludhiana and Ropar
11PotatoesUttar PradeshAgra, Hathras, Farrukhabad, Kannoj, Meerut, Baghpat and Aligarh
12MangoesUttar PradeshLukhnow, Unnao, Hardoi, Sitapur and Barabanki
13MangoesUttar PradeshSaharanpur, Muzaffarnagar, Binaur, Meerut, Baghpat and Bulandshahar
14PotatoesPunjabSinghpura, Zirakpur, Distt. Patiala and Satellite Centres at Rampura Phul, Muktsar, Ludhiana and Jullundar
15Kesar MangoesMaharashtraApproved on 5.3.2002 Draft Mou sent to State Govt. and APEDA, awaiting their concurrence
16Flowers
MaharashtraApproved on 5.3.2002 Draft Mou sent to State Govt. and APEDA, awaiting their concurrence
17WalnutsJammu & KashmirApproved on 5.3.2002 Draft Mou sent to State Govt. and APEDA, awaiting their concurrence
18LycheeWest BengalApproved on 5.3.2002 Draft Mou sent to State Govt. and APEDA, awaiting their concurrence
19LycheeBiharApproved on 5.3.2002 Draft Mou sent to State Govt. and APEDA, awaiting their concurrence
20MangoAndhra PradeshRanga Reddy, Medak and Mehboobnagar
21Mango and VegetablesGujratAhmedabad, Khaida, Anand, Vadodara, Surat, Navasari, Valsad and Bharuch
22PotatoesWest BengalHoogly, Budhwan, Midnapur, Uday Narayanpur, Howrah
23FlowersUttaranchalDehradun and Pantnagar