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Back Ground note for Speaker Research Initiative (SRI) Workshops being Conducted for Members of Parliament during Winter Session 2017 of Parliament

Organic farming Infrastructure Support

Government is promoting organic farming across the country through various

schemes viz. National Mission for Sustainable Agriculture (NMSA), Paramparagat

Krishi Vikas Yojana (PKVY), Rashtriya Krishi Vikas Yojana (RKVY) and Mission for

Integrated Development of Horticulture (MIDH), Network Project on Organic

Farming under ICAR etc.

A. Paramparagat Krishi Vikas Yojana (PKVY).

The Parampragat Krishi Vikas Yojana (PKVY) is the first comprehensive

scheme launched by the Central Government as a centrally sponsored

programme (CSP), where the Central and state Govts. share the funding in

varying ratio. It is 100% in UT, 90:10 in North-Eastern and Hilly States and 60:40

in case of other States. The scheme is implemented by the State Governments. It

is implemented on a cluster basis of 20 hectare each. The farmer within the cluster

is given financial assistance upto a maximum of 1 ha and the limit of assistance is

Rs.50,000 per ha during the conversion period of 3 years. The target is to promote

10,000 clusters covering 2 lakh ha over the period of 3 years, 2015-16 to 2017-18.

2. Objectives

i) To promote eco- friendly concept of cultivation reducing the dependency

on agro-chemicals and fertilizers.

ii) To optimally utilize the locally available natural resources for input

production.

iii) To promote use of local indigenous traditional techniques for management

of plant nutrition and plant protection.

iv) To develop 10,000 organic clusters of 50 acres each.

v) To develop potential markets for organic products.

3. Components of the scheme

Under PKVY Organic farming is promoted through cluster approach and Participatory Guarantee System (PGS) of certification. The financial assistance is provided to clusters on different sub components for mobilization of farmers, organic seeds, to harvest biological nitrogen etc. It includes different components as given below:

i) Mobilization of farmers: training of farmers and exposure visit by farmers.

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ii) Quality control: soil sample analysis, process documentation, inspection of

fields of cluster members, residue analysis, certification charges and

administrative expenses for certification.

iii) Conversion practices: transition from current practices to organic farming,

which includes procurement of organic inputs, organic seeds and

traditional organic input production units and biological nitrogen harvest

planting etc.

iv) Integrated manure management: procurement of Liquid Bio fertilizer

consortia/Bio pesticides, Neem cake, Phosphate Rich Organic Manure

and Vermi-compost.

v) Custom hiring centre charges: to hire agricultural implements as per Sub

Mission on Agricultural Mechanization (SMAM) guidelines.

vi) Labelling, Branding, Packaging & Transport assistance.

vii) Marketing through organic fairs.

4. Budget Estimate 2015-16, 2016-17 & 2017-18

5. Achievements/Progress:

The Annual Action Plans of 29 States and 1 Union Territory have been

approved with total out lay for Rs. 496.62 crore to develop 7208 clusters, out

which the central share is Rs.300 crore against this a sum of Rs.226.19 crore

has been released to the States/UT till 31.03.2016.

BE for the 2016-17 is Rs.297crore and Revised Estimate Rs 165.96 crore. Total

expenditure in 2016-17 is Rs 152.89 (Including released to State). Amount

released to the 21 State is Rs 152.19 crore in 2016-17.

0

50

100

150

200

250

300

350

2012-13 2013-14 2014-15 2015-16 2016-17 2017-18

Budget Estimate (PKVY)

Rs in Crore

300 297

350

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During 2017-18 total Rs 142.90 crore has been released to the states till date

(Including fund released for 2753 new clusters) and 10000 clusters have been

sanction to the States.

6. Clusters in Annual Action Plan under PKVY:

Against the Plan target of 10000 clusters, 10000 clusters have been sanction to the States

and UTs upto 31.10.2017.

Statewise Cluster Under PKVY for the Year 2015-16 to 2017-18

0

3330 2814

814

7186

2000

814

0

1000

2000

3000

4000

5000

6000

7000

8000

year 2015-16 2016-17 2017-18

Figure 2: Clusters in annual action plan under PKVY (Target and achievements in numbers)

Series1

Series2

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Fund release for the year 2015-16, 2016-17 & 2017-18 under PKVY scheme

7. Certification mechanism under PKVY

In order to promote domestic organic market growth and also to enable small

and marginal farmer to have easy access to organic certification, a decentralized

organic farming certification system called Participatory Guarantee System India

(PGS-India) is being implemented by the Department of Agriculture and

Cooperation, Ministry of Agriculture, Government of India. It is cost effective,

farmer- friendly and hassle-free. It is outside the framework of third party system

of certification, which is a pre-requisite to enter export market of organic produce.

In PGS-India certification the organic products are certified by farmers groups

themselves. Thus, there will be no financial burden on the farmers for expenditure

on certification.

It is a quality assurance initiative that is locally relevant with active

participation of stakeholders including producers/farmers, traders and consumers

in certification system. This group certification system is supported by

Paramparagat Krishi Vikas Yojana (PKVY) scheme. It is in a way supports

domestic demand for organic produce and trains the farmers in document

management and adherence to other requirements of certification process and

prepares him to opt for third party certification, if he wishes to go for export.

Software Portal -PGS INDIA

Participatory Guarantee System is a process of certifying organic products

which ensures agriculture production process in accordance with the standards

laid down for organic products and that desired quality has been maintained. This

is exhibited in the form of documented logo or a statement.

0 0 0

226.19

152.19 142.9

0

50

100

150

200

250

2012-13 2013-14 2014-15 2015-16 2016-17 2017-18

Figure 1:Release (Rs in crore)

Release (Rs in crore)

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For online operation of this certification system a web portal:

http://www.pgsindia-ncof.gov.in has been created. This web portal has online

facility for

(i) Registration

(ii) Approval

(iii) Documentation

(iv) Record of inspection and

(v) Certification.

It will promote transparency in certification process. It will lead to creation of a

database of (i) Organic producers and (ii) area under PGS certification with due

traceability.

The updated status of PGS India is as under:

Nos of Regional Council registered - 572 nos Nos of Local Groups registered - 6635 nos Nos of farmers online registered/benefitted - 240205 nos(approx.) The State implementing agency-Either Agriculture Deptt. / Horticulture

Deptt.

http://www.pgsindia-ncof.gov.in/http://www.pgsindia-ncof.gov.in/

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B. Project on Model Organic Cluster Demonstration and Model Organic

Farm under PKVY scheme.

Considering the existing potential of organic farming and the future demand

for organic produce, the Government is promoting organic farming across the

country through the Paramparagat Krishi Vikas Yojana (PKVY), under National

Mission of Sustainable Agriculture (NMSA). This is a centrally sponsored scheme

being implemented by the states governments through a cluster approach along

with Participatory Guarantee System (PGS) of certification. At present, under this

scheme there is no direct involvement of Indian Council of Agricultural Research

(ICAR), State Agricultural Universities (SAUs), Central Agricultural Universities

(CAUs), Krishi Vigyan Kendra (KVK), National Centre for Organic Farming (NCOF)

& Regional Centres for Organic Farming (RCOFs) which have good knowledge of

organic farming technologies and have availability of large number of field farms &

infrastructure. Accordingly the guidelines have been framed.

Model Organic Cluster Demonstrations: -To promote organic farming among

the rural youth, farmers and consumers, there is a need to organize/conduct

organic cluster demonstrations under the active supervision of the

Experts/Scientists/Subject Matter Specialist (SMS) of the ICAR Institutions, State

Agricultural Universities (SAUs), Central Agricultural Universities (CAUs), Krishi

Vigyan Kendras (KVKs), Farmers Producers Organizations (FPOs),PGS-RCs

registered with NITI Aayog and other Public Sector Organizations of DAC & FW.

This programme will serve as a vehicle through which the latest technologies of

organic farming approved under Paramparagat Krishi Vikas Yojana (PKVY)

scheme can be disseminated among various stakeholders.

Objectives:

To organize/conduct Model organic cluster demonstrations at farmers field

across the country.

To boost/promote organic farming among rural

youth/farmers/consumers/traders.

To disseminate the latest technologies of organic farming in one or more

clusters approved under Paramparagat Krishi Vikas Yojana (PKVY)

scheme.

To utilize the services of well qualified experts of ICAR

Institutions/SAUs/CAUs/KVKs and other public sector organizations.

To organize atleast one organic cluster demonstration in a village and each

institution shall conduct 03 model organic cluster demonstration in

surrounding villages.

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Area of operation:

Organic cluster demonstrations shall be conducted in villages at farmers

field under scheme guidelines.

Maximum 03 Model organic cluster demonstrations shall be allocated to

each organization with a minimum of one cluster in one village in one year.

Organic Area Selection Criteria:

The proposed model demonstration cluster shall be 50 acres or 20 hectare in extent and as contiguous area as possible. Of the total number of farmers in a cluster, a minimum of 65% of the farmer should belong to small & marginal categories. Thus minimum criteria of inclusion should as far as practicable be fulfilled at cluster level and where not possible, it should be satisfied at Mandal/Block/Taluka or District level.

The ceiling of subsidy that a member farmer is eligible shall be a maximum

of one hectare and the total financial assistance eligible for a 50 acre or 20

hectare cluster shall be a maximum of Rs. 10(Ten) lakh for farmer members

and Rs. 4.95 lakh for mobilization and Participatory Guarantee System

(PGS) Certification.

Model Organic Farm:

Several of the Central and State Govt. organizations and other Public

Sector Organizations have their own farms to demonstrate technologies in

various farming practices. Therefore, these institutions shall develop a

model Organic Farm in their premises including production of organic seeds

and dissemination of technologies of organic farming among the farmers

and rural youth. Assistance is available for establishment of various organic

production units i.e. biofertilisers, biopesticides, natural pest control

mechanism units, phosphate rich organic manure (PROM), vermi-

composting units etc.

Objectives of a Model Demonstration Farm:

To demonstrate conversion of conventional land into organic farming

practices in 1 ha parcels.

To National Centre for Organic Farming develop such model organic

farms, each institution shall develop the same upto 3 ha area.

To disseminate the latest technologies of various units of organic

inputs production.

To organize exposure visits of farmers to model farms.

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Area of operation:

Model Organic farm demonstrations shall be conducted at institutions.

Maximum 03Model organic farm demonstrations shall be allocated to

each organization with a minimum of one farm in one institution in one

year.

Implementing Agency:

The Model organic farm shall be organized/conducted/implemented under

the active supervision of experts/scientists/subject matter specialists(SMS) of

Indian Council of Agricultural Research(ICAR) Institutions, State Agricultural

Universities (SAUs), Central Agricultural Universities (CAUs), Krishi Vigyan

Kendras (KVKs), National Seed Corporation (NSC), Small Farmers Agri

Consortium (SFAC), Farmers Producers Organizations, National Centre of

Organic Farming (NCOF), Regional Centre of Organic Farming

(RCOF),Participatory Guarantee System(PGS)-Regional Councils(RCs) registered

with NITI Aayog and other Public Sector Organizations of DAC & FW. A project

demonstration team will be formed by these implementing agencies (IAs) for better

focus & timely implementation.

Guidelines of Model Demonstration Farm:

S. No.

Name of Component Norms of Assistance

1. Establishment of Organic Units

i. Liquid Bio- fertilizers unit @ Rs. 1250/- per ha for 3 years.

ii. Liquid Bio - pesticides unit @ Rs. 1250/- per ha for 3 years.

iii. Natural Pest control mechanism @ Rs. 1250/- per ha for 3 years.

iv. Phosphate Rich Organic Manure unit (PROM)

@ Rs. 2500/- per ha for 3 years.

v. Vermi- compost unit( Size 7X3X1) @ Rs. 5000/- per unit for 3 years.

vi. Organic seed/nursery raising, procurement @ Rs. 1250/- per ha per year (Total Rs. 3750/- for 3 years).

vii. Production units i.e. Panchagavya/Beejamruth/ Jeevamruth etc.

@ Rs. 3750/- per ha per unit for 3 years.

viii. Green Manuring/Biological Nitrogen Harvest Planting

@ Rs. 5000/- per ha for 3 years.

ix. Botanical extracts production units @ Rs. 2500/- per ha for 3 years.

2. Mobilization of farmers.

i. Meetings and discussions of farmers @ Rs. 200/- per farmer ( Total Rs. 10,000/ - for 3 years)

ii. Exposure visit of farmers @ Rs. 200/- per farmer (Total Rs. 10,000/- for 3 years)

iii Organic Fairs Rs. 1500/- per ha for 3 years

3. Custom hiring centre for agricultural implements

@ Rs. 750/- per ha per year (Total Rs. 2250/- for 3 years)

Total Allocation Rs. 50,000/-

Note: 5% of total amount allocation may be used for labour/land preparation or other

miscellaneous items.

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C. Mission Organic Value Chain Development for North Eastern Region

(MOVCDNER)

Mission Organic Value Chain Development for North Eastern Region

(MOVCDNER) is a new sub-schemes under NMSA through which assistance is provided

for Organic Farming clusters. It is targeted to cover 50,000 ha. Organic area is certified

through third party certification system. The scheme is being implemented in NER states

of Assam, Manipur, Meghalaya, Nagaland, Mizoram, Arunachal Pradesh, Sikkim and

Tripura through State Lead Agencies (SLA).

2. Objectives

To develop crop commodity specific organic value chain and address gaps in

organic crop production, wild crop harvesting, organic livestock management and

processing handling and marketing of organic agricultural products

To facilitate partnerships between farmers and organic businesses (Farmer

Producer Companies) in domestic and export markets

To empower producers with program ownership by organizing them into FIGs with

the final aim to federate into farmer producer organizations/ companies

Develop NER products as brands/labels through brand building and facilitating

stronger marketing access under the ownership of growers organizations/

companies

Creating state specific lead agency (Organic Commodity Board or Organic

Mission) for coordinating, monitoring, supporting and financing the development

and operationalization of entire value chain.

3. Components of the scheme

The assistance is provided for cluster development, on/off farm input production,

supply of seeds/ planting materials, setting up of functional infrastructure, establishment of

integrated processing unit, refrigerated transportation, pre-cooling /cold stores chamber,

branding labelling and packaging, hiring of space, hand holdings, organic certification

through third party, mobilization of farmers/processors etc. Under this scheme, areas of

0.50 lakh ha have been targeted to be covered under organic farming in North Eastern

Region of the country during 2015-16 to 2017-18.

4. Achievements:

Physical and Financial Progress report of MOVCDNER scheme

A) Fund Released:

I. During the year 2015-16 an amount of Rs. 112.11crore has been released.

II. During the year 2016-17 an amount of Rs 47.63crore has been released.

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III. In the current financial year 2017-18 an amount of Rs34.02crore have been

released to five states.

B) Physical progress:

As on 07.11.2017, against target of 50000 ha area, 45863 ha area brought under the

Organic Farming. Against the target of 100 FPCs, 79 FPCs has been achieved, against the

target of 2500 FIGs, 2406 FIGs has been formed, and 44064 farmers are mobilized.

5. Budget Estimate 2015-16, 2016-17& 2017-18

Amount released in 2015-16, 2016-17 and 2017-18 upto29.11. 2017:

0

20

40

60

80

100

120

140

2012-13 2013-14 2014-15 2015-16 2016-17 2017-18

0 0 0

125

100 100

Budget Estimate (MOVCDNER)

Rs in Crore

0

20

40

60

80

100

120

2012-13 2013-14 2014-15 2015-16 2016-17 2017-18

Amount released

112.11

48.68

27.08

Rs. In crore

11

State wise Budget Allocation and Released during 2015-16

State wise Budget Allocation and Released during 2016-17

0

1000

2000

3000

4000

5000

6000

2439

1174

2070

1427 1882

1302

5013

579

2207

804 1293

628 913 779

4216

370

State wise Budget Allocation and Released during 2015-16

Budget Allocation 2015-16 Amount Released 2015-16

Rs.

Rs. in

Lakh

0

500

1000

1500

2000

2500

Budget Allocation 2016-17

Amount Released 2016-17

State wise Budget Allocation and Released during 2016-17

Rs. in lakh

12

State wise Budget Allocation and Released during 2017-18

6. The potential crops commodities identified in the NER for this scheme are as

under:

Structure of OVCDNER

1181.45 1423.47

1788.42

940.71

583.44

1927.75

687.88 491.88 590.73

0

894.21

0 0

963.87

0 245.94

0

500

1000

1500

2000

2500

Arunachal Pradesh

Assam Manipur Meghalaya Mizoram Nagaland Sikkim Tripura Budget Allocation 2017-18 Amount Released 2017-18

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