In a bid to provide level playing field to ‘mandis’ against private companies, Gujarat government will provide financial assistance to various Agriculture Produce Marketing Committees (APMC) for upgradation and modernisation of their infrastructure facilities.
The financial assistance will be given under a new scheme for setting up "Farmers Resource Center". A maximum of Rs. 50 lakh of financial assistance will be offered.
The state government aims to offer better infrastructure to farmers when they reach mandis for selling their agriculture produce.
APMCs should have cleaning and washing centers as well as facilities for grading and packaging so that farmers can get handsome returns. The financial assistance would encourage mandis to upgrade their infrastructure facilities, said government sources.
The recent government circular of State Agriculture and Co-operation Department states that the AMPCs will be given financial assistance based on their income.
Under the new scheme, the state government has classified the AMPCs into four categories. All the AMPCs falling under category of 'A' and `B' will be eligible for financial assistance up to 25 per cent of their project cost, while 'C' and 'D' category AMPCs will get 50 per cent and 75 per cent of their project cost respectively. The financial assistance from the state government will not exceed Rs. 50 lakh.
The state government has also offered more assistance to mandis operating in tribal areas of the state. As far as mandis in tribal areas are concerned, 'A' and 'B' category APMCs in tribals areas will get assistance of 50 per cent of the total project cost.
Agriculture produce marketing comittees of 'C' and 'D' category will be eligible for 75 per cent and 90 per cent assistance for upgradation and modernisation of infrastructure facilities.
As part of setting up of 'Farmers Resource Center" under the new scheme, mandis use the financial assistance for creating cleaning and washing centers, grading and packaging facilities as well as mini storage facility. Also, they will have to insure these facilities to get the assistance.
The upgradation and modernisation of infrastructure facilities will help existing APMCs in Gujarat to take on private players, who are entering agriculture marketing in a big way following enactment of Model Act for agriculture.
Bigger APMCs in Ahmedabad, Surat and Vadodara have already taken up upgradation work to compete with private players, said industry players. So far, eight companies, including Reliance Retail have been given licences to enter into agriculture sector.
