SMART Presentation

1. SMART Presentation

2. Table of Contents 1. Maharashtra: An Overview 2. • Community Based Organizations • State of Maharashtra's Agribusiness and Rural Transformation Project • (SMART) 3.

3. Maharashtra: An Overview • Agriculture Profile • Agri Strengths and Agri-marketing Infrastructure • Agri-Marketing Regulatory Reforms • Procurement Channels

4. Horticulture Overview of Maharashtra Strengths of Maharashtra #1in area and production of POMEGRANATESin India • The state is the one of largest exporter of Seedless Grapes, Pomegranate, Oranges, Banana, tomato and Onion • Alphonso mango accounts for 75% of India’s export in mangoes • Export of fresh fruits and vegetables from Maharashtra account for 40% of the total export of F&V from the country. • Export of processed food industry from Maharashtra accounts for 50% of the total exports from the country. • The state houses more than 3200 MSME and more than 100 large scale food processing industries. • Diverse agro climatic condition and various soil types add strength to State Horticulture Sector in terms of seasonality and types of produce. • Progressive and informative farmers with keenness to adopt new technologies, relatively high average land holding. #1in area and production of GRAPES in India #1in area and production of ONIONSin India #1in area and #3 inproduction of ORANGESin India #3inproduction of BANANAS in India #7in production of TOMATOESin India The lack of processing, storage and inefficient supply chain result in wastages (mainly in form off value losses) estimated at 30-35%, in the case of fruits and vegetables. Source: Central Statistics Office, MOSPI, MOFPI, DAHD&F, DIPP, RBI, Oxford Economics

5. Maharashtra – Leader in Agricultural Produce

6. Institutional Agri-Marketing Infrastructure Agri – Marketing Regulatory Reforms of Maharashtra Agri-Marketing Infrastructure Agri-Marketing Regulatory Reforms • 300 APMCs, MSWC Godowns (800 Nos and 1 Million MT storage capacity) & 20 Export Facility Centers established by MSAMB. • 32 Private Markets- As an alternate markets for farmers with infrastructure • Vapour Heat Treatment Facility Center, Vashi - Mumbai- To control fruit fly. • Irradiation Facility Center, Vashi, Mumbai- For exporting Mangoes to USA • Hot water Immersion Treatment, Goregaon, Mumbai- For exporting mangoes to EU • Irradiation Facility Center, Lasalgaon, Nashik- For exporting Onions. • Modified Maharashtra Agricultural Produce Marketing (Development and Regulation) Act. • Ends compulsion on farmers to sale only in APMCs • Delisted fruits, vegetables from APMC ambit. • Maharashtra promoting 'free and fair agriculture trade • Removal of distance restrictions from the existing regulated wholesale market and the location of future private markets. • Sourcing opportunities for private players through the following: Dedicated Institutions • 4 State Agriculture universities & 44 Krishi VigyanKendras(KVK). • MSAMB as Nodal Agency for Agri Export Zone. • National Institute of Post Harvest Technology- NIPHT at Pune- Unique institute and 2nd in Asia to provide post harvest technology practical training. • VANAMATI, Nagpur- Apex training institute of State. • National Research Station- Grapes- Pune • National Research Station- Pomegranate, Solapur. • Central Institute of Cotton Research, Nagpur. • Central Institute of Research on Cotton Technology, Mumbai and Nagpur. • Central Citrus Research Institute, Nagpur. • Directorate on Onion and Garlic Research, Pune • Directorate of Floricultural Research, Pune. • National Institute of Abiotic Stress Management, Baramati, Pune. Single License Direct Marketing License Private Markets E-auction in APMCs Farmer Producer Companies

7. Procurement Channels for Industry Commodities Sourcing Channels Alternate Conventional Own Procurement Centre DML APMCs Tie-Up with Farmers (CBOs) Private Markets Single Market Arhatiyas Tie-up for Aggregation Traders CBOs ( FPCs, CLFs, PACs) Tie-up collection Centre Tie-up with Farmers

8. Community Based Organisations • Community Based Organisation: Introduction • Farmer Producer Company • Cluster Level Federation • Primary Agriculture Co-operatives

9. Community Based Organisations: Introduction Community Based Organisations include Farmer Producer Organisations (FPCs), Cluster Level Federation (CLFs) and Primary Agricultural Credit Societies (PACs).

10. Farmer Producer Company 400 Farmer Common Service Centres (FCSC) Land Area: 1000-2000 sq. meter Investment: Rs.18 to 20 Lakhs Equity : Rs.4.5 to 6 Lakhs Grant : Rs.13.5 Lakhs Common Facilities Set-up Profile of FPC • Cereals & Grains • 1. Primary Processing • Cleaning, Grading and Sorting • 2 MT per hour • 2. Storage – 200 to 300 MT • 3. Value Addition – Milling/Seed Processing, Packaging etc. • 4. Other facilities – electronic weighing, moisture meter, computers, farm implements • Fruits & Vegetables • 1. Pack house • Cleaning, Grading, Sorting and Packaging • 3 - 5 MT per hour • 2. Pre-cooling – 100 to 150 MT • 3. Transport – Pick-up Van 2 MT • 4. Other facilities – electronic weighing scale, crates, computers, farm implements • Registered under Companies Act, 2013. • 10-12 Board of Directors • 15-20 PAs/FIGs • 300-500 small and marginal farmers • 8-10 villages within 5 km • Land under production – 1000 to 1200 Acres • Avg. Annual Production: • - Grains & Cereals :2000 MTs • - F&V : 3000 to 4000 MTs • Activities at FCSC • Input Facilitation • Custom Hiring • Job Work / Processing • Aggregation & Sale of Produce • Retailing at Farmers Markets • Status • 2000 FPOs have been created till date, out of which 400 have such facilities • FPC Strengths: • Buyers can save APMC commission -3% • FPC hold DML so buyer can purchase directly from FPC • FPC can supply clean & graded produce • FPC can enter into contract farming with Buyers • FPC has potential Shareholder Capacity

11. FPC Marketable Surplus Fruits & Vegetables Grains & Cereals

12. Cluster Level Federation • Cluster Level Federations - 305 • Village Organizations - 6776 • CBO Architecture • Community Professionals • Number of Members in CLFs • Number of CLFs • Strengthen and Support VOs • Convergence and Entitlements • Strengthening of SHGs • Livelihood support services • Support community professionals • Cluster Level Federation • (12-15 VOs) • CLF Accountant (1 per CLF) • CLF Manager(1 Per CLF) • Bank Sakhi (1 per branch) • Community Auditors (2 Per Cluster) 110 • Self-help Groups – 3.02 lakhs 84 51 • VOs • (15-20 SHGs) • VO Accountant (1 per VO) • Livelihoods : 1 person per 50 Farmers/Producers 17 % • SHGs (10-15 Members • ICRP (1 per 10-15 SHGs)

13. Functioning of Cluster Level Federation SHG SHG SHG SHG SHG SHG VO - CRPs VO - CRPs CLF – CAM/CM

14. CLF Marketable Surplus Fruits & Vegetables Grains & Cereals 14

15. Primary Agricultural Credit Societies (PACs) Short Term Cooperative Credit Structure (STCCS) • There are 21115 registered PACs in Maharashtra • More than 1.25 Cr farmers in the state of Maharashtra are members/ shareholders of the PACs located at village level in rural areas. • All PACs are engaged in credit business i.e. Providing the credit to farmers for crop production and farming related input purchase support. Among these 9253 PACs are in profit with the help of credit as well as other diversified businesses. • 3425 PACS have more than 4033 Godowns to store the shareholders produce with an avg storage capacity of 200 MT & total storage capacity of 6,88,374 MT. • The total 9253 PACs are very active in nature within the state which are doing business activities like Ration shop, Commodities storage, pledge finance, trading of Agri commodities, shopping malls & Galas, Agri Input Supply, Custom hiring facilities etc. • Under Atal MahapananVikasAbhiyan strengthening program of 5000 PACs is initiated by GoM, in this 1800 PACS have started new businesses so far without any government financial support or assistance and brought investment of Rs. 31 Cr in the businesses & Turnover of Rs. 368 Cr. • Facilities provided by PACS: • Agri input facilities in form of cash or kind component • Agriculture inputs on hiring basis/ sale of Agri Inputs • Dtoragefacility at Village level help to value addition of produce • Facilitation in sale of Agri Commodities to bulk buyers • Other needful businesses Businesses Handled by PACS

16. Primary Agricultural Credit Societies Crop Information • More than 1200 MoUs of PACs signed in Maharashtra under Atal Mahapanan Abhiyan for Agri Input & Output sales to PACs • 125 MoUs signed for agrioutput various corporates and 1075 MoUs signed for Agri input supply • AgriOutput based MoUssigned by Corporates with PACs for Pomegranate Supply, Onion Supply, Orange Supply, Vegetables Supply and Tur, Gram, Rice and Jowar Supply • Linkages of primary agriculture cooperatives with existing farmer producer companies who have business units with them like C & G • Supply Fresh Vegetables & Agri Produce in Cooperatives societies in Urban Areas like Mumbai , Pune & Thane • Cleaning & Grading unit- supply of Cleaned & Graded material to Processor and Bulk buyers in Rural Area. • Some of the PACs are involved/ takes part in MSP procurement operation for NAFED with association of KVS

17. Benefits of Sourcing through CBOs • Aggregation of produce • Cost savings on primary processing (at least 10%) • Savings in mandi taxes and commission (F&V - up to 7%, Grains & Cereals – up to 4%) • Cost Efficient Supply Chains reducing transport charges (up to 5%) • Reduction in handling loses • Price Risk Mitigation against rates volatility Quantitative Benefits • Control over Quality of Production • Traceability & Safe Food • Implementation of Sustainable Practices • Sustainable Supply • Market led/Demand led Production • Responsible Sourcing • Minimal Post Harvest Handling Qualitative Benefits

18. State of Maharashtra's Agribusiness and Rural Transformation Project (SMART) • Objectives & Outcomes • Broader Project Framework • Productive Partnerships • Opportunities for CBOs, Start-ups & Corporates

19. Objectives, Outcomes & Project Framework Proposed development objective is to support the development of inclusive and competitive agriculture value chains, focusing on small holder farmers and agri-entrepreneurs in Maharashtra • Broader Project Framework • KPIs are: • Greater capacity of producers to access new and organized markets (including a focus on women) • Increased jobs in agribusiness enterprises • Enhanced market-led services to project beneficiaries (food safety and traceability, market intelligence and information, technologies) • Improved access of commercial credit to project beneficiaries • Strengthened ongoing agricultural systems transformation in the state of Maharashtra • Project beneficiaries include producers, CBOs (SHG federations, FPOs, PACS, agribusiness MSME), other value chain participants • Expanded access to new and organized markets • Enhanced access to higher order services • Agri Business Enterprise Support • Skilling and Capacity Building

20. Productive Partnerships • The project will support developing and partially financing Productive Partnerships (PP), between CBOs and markets, and agri-SMEs and leading firms. • The aim is to develop a long-term sustainable partnerships that will help CBOs and corporates to improve their competitiveness in terms of price, cost, productivity, quality, and sales volume. • Productive Partnerships are expected to provide • Significant benefits to the value chain participants through market-oriented production • Cost-effective supply chain including short food supply chains • Growth opportunity for agri SMEs is selling to large buyers • IFC’s support would be sought in working with the CBOs through its flagship Agribusiness Leadership Program (ALP)

21. Opportunities

22. Thank you