NETWORK OF AGRI-CLINICS & AGRI-BUSINESS CENTRES

AGRICULTURE GRADUATES IN THE SERVICE OF FARMERS

SCHEME FRAMEWORK
(A Presentation)

DEMAND DIMENSION
To accelerate diffusion of agricultural technology there is need for:

Supplementing the efforts of Govt. extension system to accelerate the process of technology transfer in agriculture. Supplementary sources of input supply and services, for which, by and large, farmer presently depends upon public sector agencies. This Scheme would lead to:
Multi-sourced extension services. support services on Input supply and competitive basis.

EXTENSION & TECHNICAL SUPPORT SYSTEMS TO BE SUPPLMENTED

Govt. is not equipped for rendering location specific specialized crop-wise advice.
Field level staff neither exclusively available for extension work nor adequately qualified and trained. Public sector input supply agencies (e.g. SSCs, AICs, etc.) not able to cope with the needs of fast transforming and accelerated pace of agricultural production.

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EXTENSION & TECHNICAL SUPPORT SYSTEMS TO BE SUPPLMENTED (Contd.)

Specialized Agri services (e.g. soil & input testing,

maintenance & repairs, Seed / Agro-processing, Agricultural Insurance, Technology Information, post harvest management etc.)

also need supplementing as the present infrastructure for providing these services, both from the State Govts. side, & the private sector, is grossly inadequate. These gaps can entrepreneurs. be filled by qualified private

SUPPLY DIMENSION

The out-turn of graduates in Agriculture and allied subjects per year is around 11,900.

The intake in Post Graduate programmes is 5500, leaving about 6400 Graduates of which about 2000 are able to find employment both in the Govt. & in the Private Sector.

SUPPLY DIMENSION(Contd.) Thus a reservoir of around 9,900 graduates every year is available for supporting agricultural production process if viable business opportunities are afforded to them. Therefore, there is a need for giving incentives to such graduates to undertake, on viable basis, agri-business ventures to meet the felt needs of technical and extension services support to the farming community.

ACCEPTABILITY SURVEY
Survey organized by ICAR. Opinion survey of farmers and agricultural graduates conducted by : SAUs, Pantnagar, Akola and Pusa (Bihar) National Academy of Management, Hyderabad. Agricultural Research

* *

SURVEY FEED BACK FROM FROM FARMERS (As Clients) Proposed net-work welcomed especially by * Progressive Farmers * Large/Medium Farmers Willing to pay on the basis of quality of service Most desired services:

* Water and soil quality testing

* Custom hiring * Livestock health cover

* Extension consultancy services.

SURVEY FEED BACK

from AGRICULTURAL GRADUATES (As Service Providers)

Response to proposed net-work positive

They desire Intensive training in : Entrepreneurial skills. Business management. Financial & Accountancy aspects. Many willing to pay for such training.

FRAMEWORK OF THE SCHEME

Extension of equal opportunities to all eligible agricultural graduates to undertake economically viable ventures in identified areas through a net-work of AGRI-CLINICS and AGRI-BUSINESS CENTRES in which the applicant graduate would be stake holders. The scheme will provide opportunities for self employment to agricultural graduates (in agriculture & allied activities) The scheme will promote investment in agriculture and allied activities and create the support services required by the farmers and help in the absorption of productivity enhancing technologies in their areas of operation.

FRAMEWORK OF THE SCHEME(Contd.) The NABARD through its system will facilitate bank credit for this purpose on priority sector lending terms. Govt. of India has envisaged extending credit linked back ended subsidies for identified ventures to make the activity viable and self sustaining. The subsidy of 25% which was built in with the scheme is presently under consideration. Funding of the scheme will be according to clearly outlined procedures.

PROGRAMME DIMENSION
To begin with, a programme of supporting 5,000 ventures per year with investment in the range of Rs. 2 to 10 lakhs per venture (average investment around Rs.5 lakhs). Group venture ceiling Rs.50 lakhs for a group of five, in which one could be a non-agriculture graduate, with qualifications or experience in business development & management.

ACTIVITY AREAS
Agri Clinics and Agri business ventures could provide specialised agri services in the following areas: Soil and water quality cum inputs testing laboratories (with advanced analytical equipments, some including Atomic Absorption Spectrophotometers etc.); Crop Protection Services, including Pest surveillance, diagnostic and control services(with culture rooms, autoclaves, microscopes, ELISA Kits etc. for detection of Plant Pathogens including viruses, fungi, bacteria, nematodes, and insect pests) Micro-propagation including through Plant Tissue Culture Labs and Hardening Units

ACTIVITY AREAS(contd.) Maintenance, repairs and custom hiring of agricultural implements and machinery including micro irrigation systems (sprinkler and drip); Seed Processing Units;

Setting up of Vermiculture units, production of biofertilizers, bio-pesticides, & other bio-control agents;
Setting up of Apiaries (bee-keeping) and honey & bee products processing units; Provision of Extension Consultancy Services; Facilitation and agency of agricultural insurance services;

ACTIVITY AREAS(contd.) Hatcheries and production of fish fingerlings for aquaculture; Provision of livestock health cover, setting up of veterinary dispensaries & services including frozen semen banks and liquid nitrogen supply; Setting up of Information Technology Kiosks in rural areas for access to various agriculture related portals; Feed Processing and testing units; Value Addition Centres;

Setting up of Cool Chain from the farm level onwards including small Rural Cold Storage Units.

ACTIVITY AREAS(contd.) Post Harvest Management Centres for sorting, grading, standardization, storage and packaging; Setting up of Metallic/Non-Metallic Storage Structures (Group Activity).

Retail marketing outlets for processed agri-products;

Rural marketing dealerships of farm inputs & outputs; Other activities like Mushroom production, Dairy Farming, etc. too may be undertaken. Any combination of two or more of the above viable activities alongwith any other economically viable activity selected by the Graduates, which is acceptable to the Bank.

PROJECT PROFILES
The prospective candidates will have access to model project profiles (schemes) in his area of interest at the headquarters of his district (with DAO/PAO/DD/JD and DDOs of NABARD, LBO etc).
Model Project Profiles (schemes) in each of the identified areas will enable the entrepreneurs to prepare their own Techno-Economic Feasibility Reports of the schemes for being projected to the banks for financing. SFAC would undertake the publicity of the scheme, and would also publish the model project reports.

TRAINING
Selected candidates will be put through training and orientation course of upto 3 months duration, comprising of : Skill improvement. Entrepreneurship and business management. Agricultural development problems of his area. For such training, centres all over the agricultural universities and other institutions have been identified by SFAC. and NIAM have already drawn up curriculum. country in educational MANAGE, the model

TECHNO ECONOMIC FEASIBILITY REPORTS

On completion of training, each candidate will submit a detailed TEF report to the bank concerned for getting the needed credit support sanctioned. After appraisal and acceptance of their report the venture will be considered by the bank for funding.

FUNDING SCHEME
(GENERAL CATEGORY)

Both individual and group/joint ventures will be supported 25 percent credit linked capital subsidy would be extended by DAC through NABARD

NABARD will also extend margin money assistance upto 5% of project cost
Subsidy(when approved) would be back-ended and to be kept in Subsidy Reserve Fund Account beneficiary-wise Subsidy Ceiling as proposed : For individual venture Rs.2.50 lakhs For group / joint venture upto : Rs.12.50 lakhs for a group of five applicants

FUNDING SCHEME (GENERAL CATEGORY)(Contd.)

Minimum 10 percent would be participants own contribution. In case he cannot meet this from his own sources, soft loan assistance upto 5% of project cost (margin money) would be made by NABARD through financing banks.
Balance (65 percent) to be funded by Institutional Finance organisations in the district on priority sector lending terms, on the strength of group/personal guarantees and hypothecation of assets created The financing bank to lend upto 85% of project / scheme cost initially to put the venture on ground

FUNDING SCHEME(GENERAL CATEGORY)(Contd.) Repayment in up to seven years in equated annual instalments with an initial moratorium of 1 to 2 years. Subsidy to be taken into consideration while working out equated monthly / quarterly / other suitable loan repayment instalments. Rate of Interest - As determined by RBI/NABARD from time to time

FUNDING SCHEME (SPECIAL CATEGORY)

In backwards, hilly and tribal areas (including NE States) and in case of Women, Scheduled Caste and Scheduled Tribe agriculture graduates : Capital subsidy 33 percent (Ceiling Rs.3.33 lakhs)
5% Margin Money from NABARD

Own contribution Not less than 5 percent

Capital Subsidy to be back ended and maintained as Subsidy Reserve Fund Account beneficiary-wise.

FUNDING SCHEME (SPECIAL CATEGORY)(Contd.)

Balance 62 percent to be funded by Bank/Institutional Finance organisations in the district on priority sector lending terms, on the strength of group/personal guarantee and hypothecation of assets. Bank to lend upto 90% of scheme cost initially and adjust the subsidy SRF Account. Repayment upto seven years in equated annual instalments, with an initial moratorium of 1 to 2 years.

ROLE OF DAC
To implement the Programme as a Central Sector Scheme. Monitor its progress on a quarterly basis; Getting Concurrent Evaluation conducted through Consultants to be appointed by SFAC.

ROLE OF SFAC
Will be scheme implementation agency.

To insert advertisements, press notes for wide spread awareness of the scheme and to invite applications Collaborate with the identified Consultants in activity identification and preparation of model project profiles. Guide the identified Consultants in preparation of detailed scheme.

ROLE OF SFAC (contd.)

Preparing curricula/modules, for training courses, identifying training centres in consultation with ICAR, & other concerned institutions Preparing model project profiles; Concurrent monitoring & evaluation (discernible impact);. Guide the identified Consultants in preparing training programmes/modules and identification of training faculty & training centres. Concurrent performance monitoring of the financial health of the Individual ventures

ROLE OF NABARD
Coordinate the preparation of Model Project Profiles. Extending line of credit Extend margin money assistance to selected ventures Preparing detailed institutions. guidelines for loaning

Arranging quick disbursal of credit through its district offices. Monitoring out-go from the line of credit and disbursal of subsidy. Submission of status report every quarter.

ROLE OF LOANING INSTITUTIONS

Screening applications Appraisal of Proposals and Extension of credit and margin money along with subsidy, as per Programme guidelines Monitoring the progress of ventures Submission of periodic reports to NABARD for availing line of credit

CURRENT STATUS
Certain

reservations have been expressed by Planning Commission regarding the subsidy component.

The training and publicity components of the Scheme have already been approved for 2001-2002. Leaving aside the subsidy component for the time being, NABARD has announced the Banking/Refinance Scheme.

Agri-Clinic & Agri- Business Scheme of NABARD

Name of the Scheme : Refinance Scheme for Financing Setting up of Agriclinics and Agri-Business Centres By Agriculture Graduates
Date of Announcement : 23.7.2001 * The Scheme has been formulated by NABARD after consulting GOI, Ministry of Agriculture and select banks.
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THANKS