PROJECT REPORT ON

Agribusiness and Agriclinic

SUBMITTED BY Amruta Navghare : 06

eMBA Banking & Insurance ACADEMIC YEAR: 2010 2012 SUBMITTED TO MUMBAI EDUCATIONAL TRUST

MET League of Colleges | Mumbai Educational Trust MET Complex, Bandra Reclamation, Bandra (West), Mumbai - 400 050,

Maharashtra, India ACKNOWLEDGEMENT

With great pleasure I am presenting this report on Agribusiness and Agriclinic I am highly grateful to Professor Shukla Sir for giving me the opportunity and guidance to work on this project.

Thanking you,

Emerging Challenges in Agriculture Sector Significant growth in agriculture is pre-requisite for engineering countrys economy on fast tract. Support to agri-based and expanding export market besides ensuring national food security needs focus in agricultural growth. The combined effect of an unabated population growth, improved family income, increasing industrial needs and rising export requirement has been causing drastic changes in the demand pattern for agricultural commodities in the liberalized era. The problem is compounded by the fact that the farm holdings in the country are shrinking in size, production costs are rising, and the resource drain from the farm sector is mounting in recent decades. The projected production must emanate from improved resource productivity. Since, the output of new technology gradually slowed down and rather, for more than two decades no new break-through technologies have been offered. Substantial yield gaps still exist in major crops with the available technology. Research indicates that the available technologies have not been adopted effectively and efficiently, further more notable unevenness and distortions were observed wherever adopted. Additionally, the main global forces of change that are affecting or are likely to affect the existing structure, mandate and practices of national agricultural extension systems are globalisation and market liberalization; privatization; commercialization and Agribusiness; democratization and participation; environment concerns; information technology break through; sustainable development; Eco technology and genetic engineering; market led extension; diversification and value addition integrated, multidisciplinary and holistic development. It is true that the growth in the agriculture sector is not the sole responsibility of the extension service. Many other factors including policy interventions, price incentives , institutional support and market facilities also play a significant role. Since agricultural production is entirely in the hands of the farmers, the extension service has the central role in informing, motivating and educating the farmers about the available technological, managerial and market opportunities and enable them to improve their farm productivity and income. In order to address the key constraints faced by extension system and to meet the emerging challenges the Innovations in Technology Dissemination component of National Agricultural Technology Project (NATP) was implemented in seven states in the country through four project districts in each state. Agricultural Technology Management Agency (ATMA) approach and the impact were documented by an independent agency, the Indian Institute of Management (IIM), Lucknow. It revealed that there is a remarkable achievement of institutional and operational reforms in addition to the significant project impact. Thus, with the backdrop of changes and keeping in view the futuristic needs, direction and vision, Extension Reforms was initiated in 252 districts all over the country during the X th five-year plan based on the NATP experiences.

Extension reforms was a major intervention in overhauling the extension system for making it farmer driven and farmer accountable through process and institutional reforms mechanism in the form of Agricultural Technology Management Agency (ATMA) at district level. It operationalises the extension reforms with focus on reforming public sector extension, Decentralized decision making, Farming systems approach, Bottom-up planning, Group approach in Extension, Promoting private sector, Augmenting media & information technology, Mainstreaming gender and Capacity building of various stakeholders. Commitment to promote public-private partnership in agricultural extension management is demonstrated by reserving minimum 10 percent of the funds. Similarly, considering the need for gender concerns to be mainstreamed in agricultural extension, minimum 30% of resources on programs and activities are earmarked for women farmers. ATMA promotes an active participation of farmers / farmer groups, NGOs, Krishi Vigyan Kendras, Panchayati Raj Institutions and other stakeholders operating at district level and below. In addition to Support to State Extension Programmes for Extension Reforms, the Department of Agriculture & Cooperation (DAC) has initiated number of schemes to revitalize the agricultural extension system in the country, duly incorporating the elements needed for reforms. These Schemes are Mass Media Support to Agricultural Extension utilizing infrastructure of Doordarshan and All India Radio; Kisan Call Centres for providing agricultural information through toll free telephone lines; Establishment of AgriClinics and Agri-Business Centres by providing self-employment opportunities for professionally qualified agricultural graduates facilitating delivery of value added extension services and finally Extension support to central institutions.

CONCEPT / DEFINITION Agri-Clinics: Agri-Clinics are envisaged to provide expert advice and services to farmers on various technologies including soil health, cropping practices, plant protection, crop insurance, post harvest technology and clinical services for animals, feed and fodder management, prices of various crops in the market etc. which would enhance productivity of crops/animals and ensure increased income to farmers. Agri-Business Centres: Agri-Business Centres are commercial units of agri-ventures established by trained agriculture professionals. Such ventures may include maintenance and custom hiring of farm equipment, sale of inputs and other services in agriculture and allied areas, including post harvest management and market linkages for income generation and entrepreneurship development.
The Agri-Clinics and Agri-Business Centres Scheme was launched in 2002 with the objective of better farming by every farmer and to supplement public extension by providing services of unemployed agricultural graduates by imparting training in entrepreneurship development and agri-business. With the experience of more than four years in implementation, certain constraints have come to the surface, which are detailed below: Major Constraints Lack of awareness about the scheme Non cooperation from the banks in promoting agri-ventures Lack of seriousness and attention bestowed on the program by the training institutes Poor handholding support by the training institutes Absence of dedicated nodal officers at the training institute level for coordinating the scheme Inadequate funds for training and handholding activities Lack of support from state governments in implementation of the scheme. Absence of participation of Agri-business companies in implementation of the scheme Unattractive credit package for the agri-preneurs for starting agri-ventures

Complicated procedures for obtaining license for sale of inputs.

Strategies Create awareness about the scheme through electronic media, print media, ATMAs, Banks and Agricultural Universities. Adequate fund may be provided for the scheme for advertisement and publicity. Continue the scheme with credit-linked subsidy to complement the public extension system. Fund allocation for training and handholding may be increased. Active involvement of ATMA, SAUs, Banks, Agri-business companies and state departments in handholding activities may be strengthened. Operational guidelines are enclosed. The upper ceiling limit of credit may be removed. Full interest subsidy should continue to be provided for the first two years. The certificate obtained under the scheme by agri-preneurs may defacto be treated as license to sell the inputs. Involve Agri-preneurs in extension delivery of the Government extension programme

Centrally sponsored scheme of Agri-Clinic and Agri-Business centres was launched by Govt.of India in April 2002. The Scheme is implemented by National Institute of Agricultural Extension Management (MANAGE) in association with National Bank for Agriculture and Rural Development (NABARD).

ELIGIBILITY CRITERIA FOR CANDIDATES

The scheme is open to following categories of candidates: 1. Graduates in agriculture and allied subjects from SAUs/ Central Agricultural Universities/ Universities recognized by ICAR/ UGC. Degree in Agriculture and allied subjects offered by other agencies are also considered subject to approval of Department of Agriculture & Cooperation, Government of India on recommendation of the State Government. 2. Diploma (with at least 50% marks)/Post Graduate Diploma holders in Agriculture and allied subjects from State Agricultural Universities , State Agriculture and Allied Departments and State Department of Technical Education. Diploma in Agriculture and allied subjects offered by other agencies are also considered subject to approval of Department of Agriculture & Cooperation, Government of India on recommendation of the State Government. 3. Biological Science Graduates with Post Graduation in Agriculture & allied subjects. 4. Degree courses recognized by UGC having more than 60 percent of the course content in Agriculture and allied subjects. 5. Diploma/Post-graduate Diploma courses with more than 60 percent ofcourse content in Agriculture and allied subjects, after B.Sc. with Biological Sciences, from recognized colleges and universities. 6. Agriculture related courses at Intermediate (i.e. plus two) level, with at least 55% marks. The scheme covers full financial support for training and handholding, provision of loan and credit linked back ended composite subsidy as per the details given in the following section.
TRAINING AND HAND HOLDING

National Institute of Agricultural Extension Management (MANAGE) will be responsible for providing training to eligible candidates, through Nodal Training Institutes (NTIs) and motivating them for setting up of Agri- Clinics and Agri-Business Centres.

Eligibility Criteria for NTIs: Institutes from public and private sector with following credentials are eligible for considering them as Nodal Training Institutes (NTIs) under the Scheme: (i) At least one year experience in organizing training programmes and implementation of Central & State Government Schemes related to agri-entrepreneurship development (ii) Either own or leased (on long-term basis) lodging, boarding and transport facilities for minimum of 35 candidates (iii) Availability of training infrastructure (buildings, teaching aids including PC and LCD Projector, resource persons etc.) (iv) Nodal Officer, with degree in agriculture and allied disciplines and having at least 3 years experience in agri-entrepreneurship development (v) Private firms must have an annual turnover of minimum of Rs. 5 lakh for the last 3 years.

Certificates to successful ventures: Certificates are being issued to trainees by MANAGE after successful completion of two month training. It has been decided that successfully established ventures will a get a certificate recognizing that their enterprise is set up under the Scheme. Such certificates will be issued to ventures after verification and recommendation by PD, ATMA, Programme Coordinator of KVK or Head of nearest Research Station of State Agriculture University/ICAR institute as per the following procedure. On establishing the venture and running it successfully (including provision of extension services) for at least 6 months, the candidates will seek the certificate from MANAGE through respective NTI by submitting the verification report and recommendation to MANAGE as above. Certificates consisting Candidates ID No. and venture details will be issued by MANAGE indicating the date on which verification was conducted.
BANK LOAN & SUBSIDY

1.A Trainee eligible for Rs.10 lakhs (with Margin money and Security) or Rs.5 lakhs (without

Margin money and Security) start up loan to establish Agri-Clinics and Agr-Business Centres can be availed from Banks for individual projects and upto Rs.50 lakhs for group project. 2.Back ended / Credit linked Capital subsidy@25% of the capital cost of the projectfunded through the bank loan would be eligible for general category trainees. The subsidy would be 33.33% in respect of all women, candidates belonging to SC / ST, and other disadvantage sections and those from North Eastern and Hill States. 3.In addition full Interest Subsidy would be eligible for the first two years of the project. The repayment waiver up to six months (grace period) is also available. The repayment schedule varies between five to ten years. Bank interest rate may vary from Bank to Bank and time to time Indicative list of Agri ventures under ACABC scheme

Extension consultancy services Soil and water quality cum inputs testing laboratories 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 plant tissue culture labs and hardening units; Production, maintenance and custom hiring of agricultural implements and machinery including micro irrigation systems; Seed production and processing units; Vermiculture units; Production of bio-fertilizers, bio-pesticides & other bio-control agents; Apiaries (bee-keeping) and honey & bee products processing units; Agricultural insurance services; Agri tourism Agri journalism film production, farm publications and exhibitions; Poultry and fishery hatcheries; Livestock health cover, veterinary dispensaries & services including frozen semen banks and liquid nitrogen supply and artificial insemination; Information technology kiosks; Feed production, marketing and testing units; Value addition centres; Cool chain including cold storage units. Post harvest management centres for sorting, grading, standardization, storage and packaging; Metallic and non-metallic storage structures. Horticulture clinic, nursery, landscaping, floriculture Sericulture; Vegetable production and marketing; Retail marketing outlets for processed agri-products; Production and marketing of farm inputs & outputs;

Contract farming; Crop production and demonstration; Mushroom production; Production, processing and marketing of medicinal and aromatic plants; Production units like dairy, poultry, piggery, fisheries, sheep rearing, goat rearing, emu rearing, rabbit rearing etc.