agricultural marketing schemes and policies

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 and
grading/storage/cleaning operation of produce :
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
beneficiary
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b) Setting up of pre cooling facilities etc. with proper air
handling system/ cold storage for storing the produce
beneficiary .
c) Providing facilities for preshipment treatment such as
fumigation, X-ray screening, hot water dip treatment, Water
softening Plant .
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
f) Assistance for setting up of environment control system e.g.
pollution control, effluent treatment etc.
a) Setting up of specialized storage facilites such as high
humidity cold storage deep freezers, controlled
atmosphere (CA) or modified atmosphere (MA) storage
etc.
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Schemes for Market Development :
A) Activity for development of packaging standards and
design.
i) APEDA’s 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 pre-feasibility
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 through
Production and Post-Harvest Management
i) Production Related
ii) PHM/ Processing related
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 :-
Schemes of National Horticultural
Board
i) High quality commercial horticulture crops
II) Indigenous crops / produce, herbs, spices
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.
Grant-in-aid
All other Implementing
Agencies
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
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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
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.
Grant-in-aid
Agencies
33% subject to a
maximum of Rs. 3 lakhs
for General Areas and
50% subject to a
for Difficult Areas
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
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
Agencies
33% subject to a
for General Areas and
50% subject to a
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% APEDA’s 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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