Nabard Financing

!

Indian Agriculture suffered from Technological, Financial &Economic isolation Green Revolution largely solved the problem of Technological isolation Key Strategy to overcome Financial &Economic isolation is SUPPORTING AGRI MARKET INFRASTRUCTURE

NABARD SUPPORT TO AGRI-MARKETING INFRASTRUCTURE Refinance for Rural Godowns and market yards, Cold Storages, Refrigerated vans, Farm mechanization equipments like combine harvesters, threshers, driers, Agro-processing units. Created 172 lakh MT storage capacity with refinance support of Rs 909 crores Co-financing Rural Infrastructure Development Fund (RIDF) supports market yards, godowns, apni mandi, rural haats, cold storages & other marketing infrastructure. As on March 06, extended support of Rs 90.39 crore for 517 projects Dispensing Subsidy of GOI’s Capital Investment Subsidy Schemes Promotional support Developmental initiatives

3

GoI’s Credit linked Subsidy Schemes Scheme for development/ strengthening of Agricultural Marketing Infrastructure, grading and standardisation Capital Investment Subsidy Scheme construction of Rural Godowns

for

Capital Investment Subsidy construction of cold storages.

for

Scheme 4

Eligible beneficiaries Individuals, Group of farmers/ growers/consumers, Partnership/ Proprietary firms, Non-Government Organizations (NGOs), Self Help Groups (SHGs), Companies, Corporations, Cooperatives, Cooperative Marketing Federations, Local Bodies, Agricultural Produce Market Committees (APMCs) & Marketing Boards in the country.

Eligible financial institutions Scheduled banks, Regional Rural Banks, State Cooperative Banks, State Cooperative Agricultural and Rural Development Banks, Primary (Urban) Cooperative Banks, etc.

Subsidy Subsidy @ 25% with an upper ceiling of Rs.50.00 lakh – for General category Subsidy @ 33.33% with an upper ceiling of Rs.60.00 lakh – for NE States, Hilly Tribal areas, SC/ ST beneficiaries and their cooperatives

Release of subsidy Advance subsidy: After sanctioning of bank loan and disbursement of first instalment NABARD RO sanctions the advance subsidy Final subsidy After the project is completed Joint Inspection Committee (JIC) comprising officials of DMI, NABARD and financing bank visits the unit Final subsidy is sanctioned/ released on the recommendations of JIC

Progress under Govt.Schemes Schemes

No. of Units

Bank Loan (Rs.crore)

Capacity [ Lakh MT]

Agri Marketing Infrastrucutre Scheme

598

76.80

-

Rural Godown

9526

1340

134.97

Cold Storage

1128

899

51.14

8

Promotional support • Rural haats : NABARD has sanctioned grant of Rs. 63.60 lakhs in 12 states through Gram Panchayats

•

Rural Mart Scheme with grant assistance of Rs. 1.45 lakh for district level and Rs.0.90 lakh for sub district level for setting up of Marketing Outlets "Rural Marts" to facilitate marketing linkages for the artisan-handicraft and agro based products through setting up of a retail outlet

•

Financing Rythu Mithra Groups: During 2005-06, 12,468 RMGs were extended loan amount of Rs.131.77 crore by 20 commercial banks, 16 RRBs and 9 DCCBs participating in the project launched by NABARD.

•

Equity participation in National level Commodity Exchanges : NCDEX ( Rs 4.39 crore ) and MCX (Rs 1.25 crore) to strengthen the marketing infrastructure

Development initiatives As part of its development initiatives and to facilitate - the enhanced credit flow for agri marketing sector, NABARD has brought out model schemes •Cold storage (5000 MT) •Onion storage (25 MT) •Grain Godown (50MT, 100MT, 250MT, 500MT, 1000 MT, 5000MT &

10,000MT)

•Market Yard (Market arrivals of 20,000MT & 50,000 MT) 11

Future outlook Encourage private-public partnership Would support establishment of terminal markets Would like to forge meaningful partnership with corporates 12