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GOVERNMENT SCHEMES AND POLICIES IN MARKETING AGRICULTURAL PRODUCE IN INDIA

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OUTLINE

Schemes offered by Ministry of Agriculture, Government of India Schemes offered by Ministry of food Processing Industries, Government of India Schemes offered by APEDA Schemes for post harvest management for horticultural produce Schemes Of National Co-operative Development Corporation Schemes offered by commodity boards Market research schemes

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Schemes of Ministry Of Agriculture, Government of India


Scheme for Development of Agricultural Marketing Infrastructure , Grading and Standardization

Reform linked investment scheme : To encourage rapid devt. of infrastructure projects in agricultural and allied sectors including dairy , meat , fisheries and minor forest produce. Investment subsidy :25% of the capital cost up to Rs 50 lakh on each project providing direct service delivery to producers/ farming community in Post harvest mgmt./Mktg. of their produce. In case of North Eastern states , hilly and tribal areas and to SC/ST entrepreneurs and their co-operatives investment subsidy shall be 33.33% of the capital cost up to Rs 60 lakh.

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Central Sector Scheme - Agmark Grading and Standardisation

Objectives of the scheme


Promotion of Grading and Standardisation of agricultural and allied commodities under Agricultural Produce (Grading & Marking) Act, 1937.

Eligibility
Parties desirous to grade their commodities under Agmark have to obtain Certificate of Authorisation.

For the purpose, they should have adequate infrastructure to process the commodity and access to an approved laboratory for the determination of quality and safety factors.

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Butter Ghee Vegetable Oils Honey Wheat Atta Blended Edible GroundSpices Vegetable Oils Fat Spread Cotton

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CENTRAL GOVERNMENTR SCHEME - AGRICULTURAL MARKETING INFORMATION NETWORK


Objectives
To establish a nationwide information network for speedy collection and dissemination of market data for its efficient and timely utilization; To ensure flow of regular and reliable data to the producers, traders and consumers to derive maximum advantage out of their sales and purchases, and to increase efficiency in marketing by effective improvement in the existing market information system.

Pattern of assistance :
100% grant by Ministry of Agriculture, Government of India.

Eligibility
The eligible markets are identified in consultation with State Governments based on their volume handled and commercial importance in commodity flow of the Region/ State.

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1.Schemes For Development of Infrastructure:


Objectives
Establishment of common infrastructure facilities by APEDA or any other Government or Public Sector agency like Airport Authority of India or Port Trust etc.

Scales Of Assistance For 10th Plan On Continuation Basis :


100% grant-in-aid

A)Assistance for purchase of specialized transport units for animal products, horticulture and floriculture sector.
Financial Assistance :
25% of the cost subject to a ceiling of Rs.2.50 lakhs per beneficiary.

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B)Assistance to exporters/ producers/ growers/ Cooperative organization and federations for horticulture and floriculture sector for 1.Mechanisation of harvest operation of the produce :
25% of the cost subject to a ceiling of Rs.5.00 lakhs per beneficiary

2.Setting up of sheds for intermediate storage grading/storage/cleaning operation of produce :

and

25% of the cost of equipment subject to a ceiling of Rs.5.00 lakhs per beneficiary

3.a)Setting up of mechanized handling facilities including sorting, grading, washing, waxing, ripening, packaging & palletisation etc
25% of the cost of equipment subject to a ceiling of Rs.10.00 lakhs per beneficiary

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b) Setting up of pre cooling facilities etc. with proper air

handling system/ cold storage for storing the produce


25% of the cost of equipment subject to a ceiling of Rs.10.00 lakhs per beneficiary .

c) Providing facilities for preshipment treatment such as fumigation, X-ray screening, hot water dip treatment, Water softening Plant .
25% of the cost of equipment subject to a ceiling of Rs.10.00 lakhs per beneficiary

d) Setting up of integrated post harvest-handling system (pack houses / green houses with any two or more of the above facilities)
25% of the cost subject to a ceiling of Rs.25 lakhs per beneficiary

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e)

Setting up of vapor heat treatment, electronic beam processing or irradiation facilities


50% of the cost subject to a ceiling of Rs.25 lakhs per beneficiary

f) Assistance for setting up of environment control system e.g.

pollution control, effluent treatment etc.


25% of the cost subject to a ceiling of Rs.25 lakhs per beneficiary
a)

Setting up of specialized storage facilites such as high humidity cold storage deep freezers, controlled atmosphere (CA) or modified atmosphere (MA) storage etc.
25% of the cost subject to a ceiling of Rs.10 lakhs per beneficiary

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Schemes for Market Development :

A)

Activity for development of packaging standards and design.


i) APEDAs internal scheme for development work through involvement of institutions / organization in India and abroad with the cost sharing with exporters and / or organizations involved in the export promotion. Maximum amount in case of sharing with exporters/ organization is Rs.5 lakhs. ii) Assistance to exporters for use of packaging material as per standards and specifications developed or adopted by APEDA. 30% subject to ceiling of Rs.1.50 lakhs per beneficiary.

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B) i) Development and dissemination of market information

data base on products, infrastructure, markets and prefeasibility surveys / study etc.
100% to be implemented by APEDA.

ii) Assistance to exporters, growers organizations, trade associations for conducting surveys, feasibility studies etc.
50% of the total cost subject to ceiling of Rs.2.00 lakhs per beneficiary.

iii) Assistance to Semi Government, State Government, Public Sector Undertakings for Conducting surveys, feasibility studies etc.
50% of the project cost subject to ceiling of Rs.10 lakhs per beneficiary.

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Schemes for Quality Development :


A) i)Assistance to exporters, producers, trade associations, public institutions etc. for setting up / strengthening laboratories - 50% of the total cost subject to a ceiling of Rs.5 lakhs per beneficiary. ii) Assistance to exporters & producers for installing quality management, quality assurance and quality control system such as ISO series, HACCP, TQM etc. including consultancy, quality improvement and certification for these - 50% of the cost subject to a ceiling of Rs.2 lakhs per beneficiary for each system iii) Activities related to standardization and quality control such as preparation of quality assurance manuals, guidelines, documents standards, upgradation and recognition of labs for export testing, certifying exporters as Premium Quality Exporters etc. pesticide management program, national and international standardization activities - 100% internal scheme of APEDA.

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FINANCIAL ASSISTANCE APPLICATION


An Integrated System for Export Promotion and Support Schemes viz., 1. Financial Assistance Scheme (FAS) 2. Market Development Assistance Scheme (MDA) 3. Transport Assistance (Air/Sea) that are managed and run by APEDA.This system provides the facility for the exporter to apply for Financial Assistance online and also at any point of time can check the status of already submitted application(s). To avail this facility the exporter need to logon with the USER ID and PASSWORD along with APEDA Registration No. already provided by APEDA for online applications. An Application Tracking Number (ATN) will be generated, along with an Acknowledgement on successful submission of application. Exporter should print this acknowledgement and attach as covering sheet along with other documents on submission to the appropriate APEDA office.

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Development of Commercial Horticulture Production and Post-Harvest Management i) Production Related ii) PHM/ Processing related

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Production related components: - Credit linked projects relating to establishment of hi-tech commercial production units involving any of the following items are eligible for assistance under this component :of National Horticultural i) High quality Schemes commercial horticulture crops Board/ produce, herbs, spices II) Indigenous crops iii) Aromatic & Medicinal Plant iv) Seed & Nursery v) Bio-Technology, micro-biology, bio-chemistry, bio-diversity & tissue culture vi) Protected cultivators vii) Bio-pesticides

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viii)Organic fertilizers, organic foods, bio-dynamic farming, vermi-compost ix) Establishment of Hort. Health clinics / laboratories x) Hydroponics, Aeroponics xi) Beekeeping and its products xii) Mushrooms and its products xiii) Nuts and its products

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Pattern of Assistance Credit linked back-ended subsidy @ 20% of the total project cost limited to Rs 25 lakh per project in general area and Rs 30.00 lakh in NE Region, Hilly and Scheduled areas. However, for capital intensive and high value crops under protected cultivation and open air cultivation of date palm, olive and saffron subsidy will be @ 25% of project cost with ceiling of Rs.50 lakh (33% of project cost with ceiling of Rs.60 lakh for scheduled and hilly areas).

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i)Washing, drying, sorting, grading, waxing, packing, palletizing, freezing units etc. ii)Pre-cooling units / Cool Stores iii)Reefer Van / Containers iv)Specialized Transport Vehicle v) Retail outlets vi) Auction platform vii) Ripening / curing chamber viii) Market yards / rope ways ix) Irradiation / Vapour Heat Treatment unit

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x) Primary processing of products (fermentation, extraction, distillation, juice vending, pulping, dressing, cutting, chopping, dehydration etc. i) Natural colour and dyes extraction ii) xii) Essential oils, perfumery and cosmetics out of horticulture products iii) Products out of horticulture waste iv) Horticulture ancillary industry for promoting indigenous manufacturing of horticulture related farm tools & machineries, equipments, plastics containers, packaging etc. v) Adoption of Quality Assurance Systems (HACCP, TQM, ISO, Euro-GAP etc.) vi) Plastic Crates and Bins, Cartons, Aseptic Packaging and Nets.

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Pattern of Assistance :

Credit linked back-ended subsidy @ 40% of the total project cost limited to Rs 50 lakh per project in general area and @ 55% of project cost limited to Rs 60.00 lakh in Hilly and Scheduled areas. pattern of assistance for plastic crates will be 50% of the total cost.
The subsidy to be released to the leading Financial Institution on the completion of project as in the case of cold storage projects approved by the Government For projects in the cooperative sector funded by NCDC, the subsidy would be through NCDC .

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Components: Credit linked projects relating to Cold Storages including Controlled Atmosphere (CA) and Modified Atmosphere (MA) Stores, pre-cooling units, other Storages for onion, etc., their modernization are eligible for assistance under this component. Pattern of Assistance: The assistance will be as credit linked back-ended subsidy @ 40% of the capital cost of project in general areas and 55% in case of Hilly & Scheduled Areas for a maximum storage capacity of 5000 MT per project for item (i)to (iv) below: -

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Objectives
i) To generate information on wholesale prices, arrivals and trends in various markets of the country for important fruits, vegetables & flowers etc and also on retail prices for increased number of selected markets. ii) To analyze the trends of arrivals, prices and other related factors of the selected fruit and vegetables such as stock in storage, crop stand etc and generate Market Intelligence Reports iii) To establish a nation-wide communication network for speedy collection and dissemination of market information data for its efficient and timely utilization.

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iv)To prepare farmers advisory and issue the same for the benefit of producer farmers especially by making use of statistics so generated and collected for optimizing returns to the producers v) To collect and disseminate information on international prices prevailing in potential foreign markets vi) To collect and compile horticulture database and strengthen existing system of Crop Estimation Survey-Fruits & Vegetables (CES-F&V) as far as possible

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Coverage of markets by NHB shall be increased from present 36 fruits and vegetables markets to 100 markets. This would be done by outsourcing existing marketing/professional agencies/ unemployed Agriculture graduates or recognized/ established brokers in Mandi etc. at a fixed monthly remuneration (including transport) per month as decided by the Board plus actual expenses on transmission of information to NHB (fax, internet and telephone).
The NHB would identify these markets in consultation with concerned State Govts. An exclusive cell shall be set up at NHB, Gurgaon for on-line receipt, data entry, analysis, dissemination and web-site management. The work relating to this proposed MIS cell shall also be undertaken by outsourcing services of selected professional agency.

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Under this component, specialized studies and surveys shall be carried and study / survey reports shall be brought out for use by targeted beneficiaries. In addition, technical laboratories shall be set up or cause to be set up and also provide technical services including advisory and consultancy services. This shall be done by NHB with or without services of outsourced experts.

Components
i) Review the present situation of horticulture development in particular area/ State ii) Identify constraints in horticulture development and suggest remedial measures iii)Develop short term and long term strategies for systematic development of horticulture, iv) Develop primary/secondary data of various aspects on horticulture, v) Provide consultancy services, expert services & establishing labs etc. in pursuance thereof,

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vi) Conduct technical scrutiny and certification of cold chain infrastructure as per implementation protocol for Technical Standards for cold storages etc. I) Preparing reports relating to export competitiveness in the area of fresh horticulture produce, II) Any other component of expert services provided by NHB addressing to identified needs of the sector Pattern of Assistance for above components 100% cost of the study shall be borne by the Board.

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Post harvest operations

Strengthening of share capital base of fruit and vegetable cooperatives. Under this scheme, assistance up to Rs.10 lakhs is provided for increasing the capital base of the beneficiary cooperative societies for improving their marketing operations.
Margin money assistance for raising working capital . Assistance is provided to enable raising working capital from Banks for increasing business operations. This assistance is available to State Federations, District Level Federations and Commodity Marketing Societies. Assistance for purchase of transport vehicles . The Corporation provides assistance to the beneficiary societies for purchase of transport vehicles for moving stocks from growing areas to consuming centers.

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Construction of packing and grading sheds and godowns

Assistance is provided to cooperatives at the primary level, as well as mandi level, for construction of go down and sheds.
Construction of Cold Storages & Ice Plants.
Assistance to the cooperatives for the establishment of new cold storages and also for expansion/modernisation of the existing units as well as for setting up of ice plant

Creation of marketing infrastructure including retailing


Assistance is provided to create marketing infrastructure including that for retailing.

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Cold Storage Programme ( NCDC)

Capital Investment Subsidy Scheme for construction /expansion / modernization of cold storages and storages for horticulture produce .
The cost of 5000 MT capacity for new cold storage and expansion of existing capacity would not exceed to Rs.2.00 crore. Back-Ended Subsidy @ 25% would not exceed Rs.50.00 lakh per project, including for the CA/MA Stores and Projects of higher capacity. However, for the projects in the North-Eastern States @ 33.33%. However, maximum subsidy admissible would be Rs.60.00 lakhs. For modernisation and re-habilitation BES @ Rs.1000/ton and for storage like onions @ Rs.2000/ton capacity created/to be created is also available under the scheme. Initially, the amount of subsidy would also be sanctioned as loan to the State Govt. for which a separate account would be maintained by the State Govt.

No interest on such loan would be charged by NCDC till the completion of the unit in stipulated period of 18 months. On completion, this loan will be converted into subsidy.

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1. Scheme for Technology upgradation/Establishment/Modernization of food processing industries Setting up expansion -modernization of food processing industries covering all segments viz. fruits & vegetable. Milk products, meat, poultry, fishery, oil seeds and such other horticultural sectors leading to value addition and shelf life enhancement including food flavours and colors. Oleoresins, spices, coconut, mushroom etc. In respect of Rice mill, Flour mill & Pulse processing financial assistance will not be available w.e.f. 01-04-2004

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Objective:

Increase the level of processing, reduction of wastage, value addition.


Enhance the income of farmers as well as increase exports thereby resulting in overall economic development . Eligibility & Pattern of Assistance: All implementing agencies engaged in setting up or expansion/ modernization of food processing industries covering all segments would be eligible for financial assistance. The assistance will be in the form of grant subject to 25% of the plant & machinery and technical civil works subject to a maximum of Rs. 50 lakhs in General Areas and 33.33% up to Rs 75 lakhs in Difficult Areas.

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Scheme for Quality Assurance, Codex Standards and R & D


(a) Scheme for Total Quality Management including HACCP, ISO9000 etc.
Objectives

To motivate the food processing industries for adoption of food safety and quality assurance mechanisms such as Total Quality Management (TQM) including ISO-9000, ISO14000, Hazard Analysis and Critical Control Points (HACCP), Good Manufacturing Practices (GMP), Good Hygienic Practices (GHP). To prepare them to face the global competition in International trade in post WTO. To enable adherence to a stringent quality in hygiene norms. To enhance product acceptance by overseas buyers. To keep Indian industry technologically abreast of international best practices.

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Central/State Government Organisations, IITs and Universities.

50% of the total cost of the project towards implementation of Total Quality Management including ISO 9000, ISO 14000, HACCP, GMP and GHP in general areas and 75% in difficult areas. The absolute ceiling will remain Rs. 10.00 lakhs and Rs.15.00 lakhs respectively. 33% subject to a maximum of Rs. 10.00 lakhs for General Areas and 50% to a maximum of Rs. 15.00 lakhs for Difficult Areas

Grant-in-aid

All other Implementing Agencies

Grant-in-aid

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Objectives To promote the concept of quality assurance and their adoption. To create awareness among the food processing industries as well as consumers about the advantage of Safe and Quality foods through Generic advertisement, Workshop/Seminars etc., To train various stake holders engaged in food business and preparation of quality assurance training modules/Guides/Manuals, development of sector specific Codes of Practices such as GMP, GHP, GAP etc. from farm to fork and their implementation.

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Central/State Government Organisations, IITs and Universities.

50% of the cost of the project subject to maximum Rs.3.00 lakhs. When the Ministry sponsors such activities as mentioned in this component, there would be no ceiling to financial assistance and the amount to be approved will be decided on case to case basis with the approval of Competent Financial Authority. 33% subject to a maximum of Rs. 3 lakhs for General Areas and 50% subject to a maximum of Rs. 3 lakhs for Difficult Areas

Grant-in-aid

All other Implementing Agencies

Grant-in-aid

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Objectives
To popularise the concept of bar coding system following National/International Standards and to encourage food processors to affix bar codes on their processed food packages in order to keep with the developments in the international markets. To avoid any non-tariff barriers in future, as bar coding has become an important requirement in the context of the stringent food safety standards.

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Central/State Government Organisations, IITs and Universities.

50% of the Registration fees to be paid to EAN India and 50% of cost of the capital equipment subject to maximum Rs.3.00 lakhs. The organisation willing to avail the financial assistance for bar coding, have to get registered with EAN India before applying.

Grant-in-aid

All other Implementing Agencies

33% subject to a maximum of Rs. 3 lakhs for General Areas and 50% subject to a maximum of Rs. 3 lakhs for Difficult Areas.

Grant-in-aid

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a) Food Park 25% of the project cost in General Areas and 33.33% in Difficult areas subject to a maximum of Rs.4 crores for provision of common facilities like cold storage, food testing and analysis laboratory, effluent treatment plant, common processing facilities, power, water supply, etc. b) Integrated Cold Chain Facilities 25% of the cost of plant and machinery and technical civil works in General Areas and 33.33% in difficult areas with a common ceiling of 75 lakhs. c) Value Added Centre 25% of the cost of plant and machinery and technical civil works for setting up such centre subject to a ceiling of Rs.50 lakhs in general areas and 33.33% subject to a maximum of Rs.75 lakhs in difficult areas.

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d) Irradiation Facilities 25% of the cost of plant and machinery and technical civil works for resetting up of irradiation facilities in General Areas and 33.3% in difficult Areas subject to a maximum of Rs.5 crores. e) Packaging Centre 25% of the total cost of plant and machinery and technical civil work in General Areas and 33.33% in difficult areas subject to maximum of Rs.2 cores for establishing packaging centre independently and in food parks if the packaging centre is not already a part of the common facilities.

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Venture Capital Scheme :


Venture Capital: To promote investments in agri-business projects with the participation of bank a) Equity participation in agri-projects up to 10% of the total project cost, or 26% of the total project equity or Rs.75 lakhs whichever is lower b) In special cases, higher equity possible for projects located in hilly and North Eastern States and in projects recommended by State agencies/ State SFACs. 2.Project Development Facility(PDF) : To provide financial assistance to farmers, Producer Groups, Agripreneurs, Units in Agri-Export Zones, Organizations and Agriculture graduates for the preparation of bankable Detailed Project Reports (DPR).

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3.Eligible Criteria for funding a)Project should be in agriculture or allied sector namely horticulture, floriculture, medicinal and aromatic plants, minor forest produce, organic farming, vermi compost, apiculture, and fisheries. However, poultry and dairy projects will not be covered under the scheme. b)Project should provide assured market to farmers/ producer groups. c)Project should encourage farmers to diversify into high value crops, to increase farm incomes. d) Project should be accepted by banks for grant of term loan.

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Export Promotion Schemes Adoption of High-tech processing Reimbursement of Freight/Courier Charges for sending samples of spices abroad Marketing Development Assistance to Individual Exporters for export promotion activities abroad Packaging Development Export of pepper and value added pepper products

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Technology Up gradation:

Promotion of Indian Brands of Spices and Spice Products in Specified Markets


Export Oriented Processing of Spices in North East/Special Areas

Post Harvest Schemes


Scheme for Improved Cardamom Curing Devices for Small Cardamom Drying Yards Polythene Sheets Bamboo Mats Pepper Threshers Solar Driers for chillies

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Boards for specialized commodities


Tea board Rubber board Coffee Board Coconut Board

Areacanut Board
Coir Board

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MARKET INFORMATION SCHEME (MOA)


Date of start/ duration : March, 2000/ up to March, 2002. Implementation status Till now, 210 nodes have been supplied with computers with the peripherals. Administrative approval for another 500 nodes during 2001-2002 have been accorded. Additional information : National Agricultural Policy has proposed for coverage of another 2000 nodes during the Tenth Plan. Person to be contacted : Agricultural Marketing Adviser to the Govt. of India. Directorate of Marketing & Inspection Head Office, N.H.IV, Faridabad .

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Research Schemes : (Ministry of Agriculture ) 1.Scheme for Estimation of Marketable Surplus and Post-Harvest Losses of Food grains in the country. 1.Scheme for Market Survey, Investigation and Research Grants in the field of Agricultural Marketing

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Schemes for Research and Development:(APEDA)


Assistance to support Research and development for export efforts through R & D organizations in Government sector - 100% APEDAs internal scheme. Assistance to exports, Trade Associations , Cooperative institutions etc. to support relevant research & development for export enhancement through R & D organizations in cooperative/ private sector - Upto 50 % of the total cost of the project subject to a celling of Rs. 10 Lakhs.

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