KHARIF CONFERENCE 3RD APRIL 2007

1. INSTITUTIONAL MECHANISM FOR IMPLEMENTATION AND MONITORING OF HORTICULTURE DEVELOPMENT ON A GENUINELY AREA BASED APPROACH KHARIF CONFERENCE 3RD APRIL 2007 S.K. PATTANAYAK

2. NATIONAL HORTICULTURE MISSION • To promote holistic development of horticulture by enhancing horticulture production, ensuring nutritional security, providing income to farm households and employment generation. • Adoption of a genuinely area based approach by confining to 262 districts of the country based on agro-climatic suitability and the production potential of the identified crops. • Genuinely area based approach means ‘adoption of cluster with forward and backward linkages.’ • “Horticulture Development Plan” for each district prepared annually in consultation with participating States and domain experts/subject matter specialists. • Horticulture Development Plan ensures an end-to-end approach covering production of planting material, area expansion, infusion of technology, post harvest management and marketing. The plan also provides linkages with scientific organizations for human resource development and knowledge dissemination.

3. Illustrative Example of Cluster (Aonla Cluster in Western Region) Dhule Gondia Gadchiroli Nandurbar Buldhana Chandrapur Alwar Jodhpur Jaipur Karauli Ajmer Madhopur Tonk Barmer Baran Jalor Kota Jhalawar Chittor Banaswara Rajasthan Banaskantha Sabarkantha Gujarat Mehsana Maharashtra Anand Bhavnagar Rajasthan Gujarat Maharashtra

4. AONLA CLUSTERS IN INDIA

5. APPROVED CLUSTERS IN TAMIL NADU Mango, Spices, Flower Floriculture Cashew Mango, Banana, Aonla, Spices, Flower, Aromatics Cashew Shivgangai AEZ 7 Pack house 40 Reefer Van 10 Strengthening Markets 40 Electronic Auction Centre 3 Banana, Aonla, Aromatics

6. CLUSTER APPROACH ENVISAGES CONVERGENCE WITH ONGOING PROGRAMMES OF OTHER MINISTRIES/DEPARTMENTS • Min of Rural Development has written to all the States to provide road connectivity in NHM Clusters for linking with markets under PMGSY. • Min of Rural Developmenthas initiated steps to dovetail their existing programmes in NHM clusters. • MFPI has initiated dialogue to operationalize food processing units in NHM clusters. • States need to dovetail NHM activities with other ongoing programmes of the Government for synergistic effect.

7. IMPLEMENTATION AND MONITORING MECHANISM

8. Mission Structure General Council Agriculture Minister- Chairperson Ministers/ Secretaries of concerned Ministries/ Experts/ Representatives of Growers /Processors/CII/FICCI –Members Mission Director-Member Secretary Executive Committee Secretary (A&C)- Chairperson Secretaries of concerned Ministries/ Experts/ Representatives of Growers /Processors/CII /FICCI –Members Mission Director- Member Secretary NATIONAL Advisory Committees for Functional area / important crops Mission Secretariat Horticulture Division TECHNICAL SUPPORT GROUP (TSG) STATE HORTICULTURE MISSION (Preferably a Registered Society) STATE* Executive Committee APC/ Secretary - Chairperson Secretaries of concerned Departments/ Experts/ Growers’ representatives/ State level cooperatives/ Central Nominees/ Representatives of National Mission Processors –Members Director (Horti.) - Member Secretary District Mission Committee CEO Zila Parishad/ DRDA-Chairman Growers’ Group/ SHGs/ District level cooperatives- Members DHO/ DAO- Member Secretary DISTRICT* * The above structure is indicative. The institutional arrangement at the state level and below state level would be flexible and the state will have the flexibility to adopt an appropriate model viz cooperative federations in the pattern of NDDB, incorporated companies (with cooperatives for procurement, joint sector for processing and corporates for marketing) or orient existing institutions to carry out the tasks of the Mission.

9. For Effective Implementation • The State Horticulture Mission needs to meet on a regular basis every month, review the performance, identify the gaps and shortfalls and initiate immediate remedial measures. • Similarly, the District level Mission Committee should meet at least once in a month for effective implementation of the Mission programmes. They should identify beneficiaries, ensure proper planning of the development programmes and adopt an end-to-end approach by coordinating with other line departments and agencies. • They must maintain a reliable horticulture database and beneficiary profiles at the village /panchayat level.

10. Planting Material Area Expansion Rejuvenation Market Mission Interventions PHM Protected Cultivation HRD Water resource Development Pollination Support Organic Farming INM/IPM

11. KEY TO ENHANCED PRODUCTON • Increase in production through area expansion. • Increase in production through productivity improvement. • Ensuring supply of quality planting material. • Introduction of improved cultivars. • Rejuvenation of old and senile orchards. • Introduction of micro-propagated plants. • High density plantations. • Infusion of latest technologies – drip and sprinkler irrigation, greenhouse, poly-house, shade-net etc. • Bridging knowledge gaps through technology transfer, demonstration and human resource development.

12. NEW INITIATIVES ----------- TERMINAL MARKET

13. Concept of Terminal market • Hub-and-Spoke Format: Terminal Market (the hub) to be linked to number of collection centres (the spokes). • Collection centres(Spokes) to be conveniently located at key production centres to allow easy access to farmers • Provide state of art facilities for grading, transportation, storage, domestic marketing & export • Commodities to be covered include • Fruits and vegetables, Flowers, aromatics and herbs • Meat & Poultry (only up to 15% of perishables throughput) • Non-perishables (only up to 15% of total market throughput)

14. Terminal Market Infrastructure: Packhouse, Quality Testing Facility, Palletisation Services: Transport (incl. cool chain), Settlement of Payments, Banking, Market information Banking Institution Electronic Auction Processor Exporter Wholesaler/ Trader/ Retail chain operator Storage: Cold Storage, Temperature controlled warehouse, Ripening Chamber Direct Selling Collection Centre Infrastructure: Washing, grading, sorting, weighment, transport to TM Services: Collection & Aggregation of produce, Settlement of payment, advisory on inputs, prices, quality, multi-modal transport Producers/ Farmers and their Associations

15. Expected Outcomes

16. Operational Guidelines • Available at http://agmarknet.nic.in, http://nhm.nic.in & http://agricoop.nic.in • Process of implementation • Role & responsibilities of concerned agencies • Rights & obligations of Nodal Officer • Model Request for Qualification (RFQ) • Model Request for Proposals (RFP) • Min. infrastructure facilities to be provided at TMC and CC • Model Operation Management Development Agreement (OMDA)

17. Present Status of TMs Chandigarh UT: • RFQ invited on 20.01.2007 • Six proposals received from the individuals or consortia of companies like Reliance, Bharat Hotels, NCDEX, DCL Shriram Group, Zoom Developers and R.K. Foodlabs. • RFP will be floated by the 2nd week of April • Financial bids were likely to be opened on 7th June, 07 • Agreement likely to be signed with the selected PE by 6th July, 07. Andhra Pradesh: • Locations - Hyderabad, Tirupati &Vijayawada. Bihar: • At Patnaland available -Consultant being appointed. • State Government to explore out the possibilities of setting up terminal markets at Purnea and Musawapur also.

18. Present Status of TMs (Contd.) Maharashtra: • State Level Terminal Market Operationalization Committee met on 26.03.2007 • Transfer of land for MTM, Mumbai likely to take place soon • Land for Nashik & Nagpur locations to be finalized soon. Madhya Pradesh: • FI appointed – 49 acre land available for Bhopal Terminal Market • Expressions of interest to be invited by the first week of May, 07 • Other locations identified - Indore, Gwalior & Jabalpur Punjab: • Government to consider allotment of land at Ludhiana

19. Present Status of TMs (Contd.) Rajasthan: • Locations identified - Jaipur & Kota and subsequently Jodhpur. • DPRs being developed with the help of NIAM. Tamil Nadu: • Locations identified - Chennai, Madurai & Coimbatore. • A token budget provision of Rs.1 crore made in the State Plan • Land available for MTM Chennai - RFQ to be invited soon. West Bengal: • Locations identified - Siliguri, Rajarhat (Kolkata), Howrah, Kharagpur & Asansol. Gujarat & Orissa: keen on setting up terminal markets.

20. EXPERIENCE OF THE LAST TWO YEARS • Programmes skewed towards area expansion and production oriented activities • Inadequate planning for making available quality planting material for meeting targets of ensuing season • High mortality in new plantations • Practically no attention being paid for second year maintenance of new plantations • Limited attention for development of PHM and market infrastructure • Ineffective planning and monitoring at District level and below

21. POINTS NEEDING ATTENTION OF STATES • Timely submission of Monthly Physical and Financial Progress Report and Utilization Certificate along with Audit Report in respect of NHM and MI scheme. • Area expansion related activities need to be confined to 50% of the total outlay and remaining 50% should be earmarked for development of PHM and market infrastructure. • Mechanism to be put in place to make available quality planting material. The States to make arrangement for publishing the particulars of certified – accredited nurseries for the information of farmers. • The SHM to ensure that assets created such as plant health clinics, tissue/leaf analysis labs, bio control labs etc created out of NHM funds are accessible to farmers at reasonable costs.

22. POINTS NEEDING ATTENTION OF STATES (contd) • States to lay special emphasis on post harvest management through introduction of advanced technology for on farm storage grading and packing of horticulture produce in production clusters. • SHMs to play an active role in introduction of mechanized tools with a view to improve efficiency in horticulture operations. • SHMs have to maintain Asset Register in respect of permanent assets created • SHM should earmark provision in the action plan for setting up of Terminal Markets and submit proposals as early as possible.

23. POINTS NEEDING ATTENTION OF STATES (contd) • SRS being finalized in consultation with NIC for district level MIS will be extended to other States. The State should actively interact with NIC and provide necessary support for development of software and adopt the same within a reasonable time frame. First phase to be operationalised in Maharashtra by June 2007. • State should not delay in release of 15% share under NHM and 10% share under Micro Irrigation. • Wide publicity should be given through electronic and print media for the different schemes under NHM and success stories to be documented.

24. OUTLOOK FOR 2007-08 • Approved outlay for 2007-08 under NHM is Rs.1150.00 crore. • State Governments have been requested to contribute 15% of the outlay during the XI Plan w.e.f 2007-08. • State Governments were requested to submit Horticulture Development Plan (AAP) for 2007-08 by February 2007. • States to submit the action plan under Micro Irrigation by 15th March, 2007. • Scheme of NHM will be reviewed by Secretary (A&C) on 10.04.2007 • Scheme of Micro Irrigation will be reviewed by Secretary (A&C) on 27th April, 2007

25. THANK YOU