Maharashtra Cooperative Development Corporation Limited

(A Government of Maharashtra Undertaking)

Maharashtra Cooperative Development Corporation Limited, Pune

(A Government of Maharashtra Undertaking)

Departments


Vision

  • To provide agri inputs viz. fertilizers, pesticides and seeds to the primary agriculture cooperative credit societies (PACS) and Farmer producer companies (FPC).
  • To provide agri inputs at reasonable price.

Mission

  • To implement “Prime Minister Kisan samruddhi Kendra” in 12,000 primary agriculture cooperative cedit societies (PACS).
  • To improve soil texture, reduce expenditure on fertilizers, to create publicity regarding use of drones for spraying Nano Urea and Nano DAP, to increase efficiency of fertilizers and saving of time.
  • To provide publicity and guidance for the use of fertilizers on the basis of soil test reports.

Scheme Information

        The farmers need the fertilizer for undertaking the activity of farming. Previously, purchase sale cooperative federations and primary agriculture cooperative credit societies used to provide the fertilizers to the farmers. However, due to a majority of purchase sale cooperative federations facing difficulties, the sale of fertilizers from them became negligible. Further, PACs also faced problems, as a result, farmers faced difficulties in obtaining the fertilizers. In the recent past, farmer producer companies have been established in a big way. However, very few of such FPCs are financially sound. Similarly, very few PACs are financially sound . Hence, Corporation has adopted the policy of providing agri inputs viz. fertilizers, pesticides and seeds to the PACs and FPCs. Accordingly, the Corporation has started agri input branch in June 2020 to provide fertilizers to PACs and FPCs. Corporation has obtained the licence of State Distributor for the sale of fertilizer from RCF, IFFCO, KRIBHCO, COROMANDAL, Deepak Fertilizer, Arti Fertilizer. Corporation has adopted the policy of undertaking such business on cash and carry basis for the PACs and FPCs. Regional Managers have been appointed at the regional level for the same. Regional manager gives publicity and creates awareness amongst PACs and FPCs regarding the business of fertilizers.

        The Regional manager provides the details of the availability of railway rake of fertilizer producing companies to the PACs and FPCs within each district of their division. The PACs and FPCs place their orders of purchase of fertilizers with the requisite cost to the Corporation which is forwarded by the Corporation to the concerned companies. The supply of fertilizers is carried out by the companies directly to the concerned PACs and FPCs. The Corporation has taken a policy of ensuring that the PACs and FPCs generate profits out of the business of sale of fertilizers by them for their member farmers.This has resulted in an additional avenue of revenue generation in such PACs and FPCs.

        The Corporation provides various grades of fertilizers viz. Urea, DAP, Complex,10:26:26, 12:32:16,20:20:0:13, Sulphate,15:15:15 etc. Corporation further provides vrious water soluble, fertilizers viz. nano urea, nano DAP,12:61:0, 19:19:19, 0:52:34, 0:0:50 etc.

        The PACs and FPCs who are interested in undertaking the business of fertilizers are required to obtain the necessary licence for it and the Corporation provides the necessary guidance for seeking the same. Further, it also provides the Mobile Fertilizer Management System (MFMS) which is required for the said activity.

        The Corporation performed the business of Rs. 37 cr and Rs. 31 cr for the years 2021-22 and 2022- 23 respectively on account of sale of fertilizers. It is an appeal to the PACs and FPCs within the State to undertake the business of fertilizers for the benefit of its member farmers.


Service

  • To provide support and guidance to the primary agriculture cooperative credit societies and Farmer producer companies regarding obtaining the licence as ‘Distributor’ for the sale of fertilizers, pesticide and seeds.
  • To provide timely supply of fertilizers at reasonable rates from the various fertilizer producing companies to the primary agriculture cooperative credit societies and farmer producer companies.

Achievements

  • Corporation has been recognised as “State Distributor” for fertilizer producing companies viz. RCF, IFFCO, KRIBHCO, COROMANDAL, Deepak Fertilizer.
  • Fertilizer business commenced in 650 PACS and FPCs with the help of the Corporation.


Shri. Ramesh Shingte
State Co-ordinator (Agri. Input & Training)
Mo. 9420696773


Mr. Sunil Shelar
Software Assistant
Mo. 9404515537



Vision

  • Quality work and best service
  • Transforming society through innovative education

Mission

  • Structure of quality training for individual, community based organization development.
  • To increase the value addition of agricultural produce and increase the source of income of the farmers.
  • Creating opportunities for entrepreneurship and skill development in rural areas.
  • Strengthening and employment generation of cooperative societies, farmer producer companies, self-help groups.
  • Guidance on planning, financing and export growth for cooperative processing industries.

Associated Training Partner

    There was a major revolution in agricultural production in the country in the 20th century. However, in the 21st century, recognizing the need to add value to agricultural produce, grow the agro-processing industry and create a marketing chain for agricultural produce, a separate training department has been established by the Corporation in January 2019.

    Through this department, for entities viz cooperative societies, farmer producer companies, Women self-help groups, more than 250 training programmes on various topics including high-tech agriculture have been organized, wherein, around 15,000 farmers have been trained in the last five years. The following organizations have associated themselves with the Corporation:-

  • National Bank for Agriculture and Rural Development (NABARD), Pune
  • Project on Climate Resilient on Agriculture (Pocra), Mumbai
  • Agricultural Technology Management Agency (ATMA)
  • Jaljeevan Mission, Madhya Pradesh, Bhopal
  • Maharashtra Agribusiness Network Project (MAGNET), Pune
  • National Beekeeping Board, Delhi
  • Prime Minister Formalisation of Micro Food Processing Enterprises (PMFME) Scheme
  • Groundwater Development Authority, Pune
  • Chhatrapati Shahu Maharaj Research, Training and Human Development Institute (Sarathi), Pune
  • Precision Farming Development Center, Mahatma Phule Agriculture University, Rahuri
  • Buldhana Urban Co-operative Bank, Buldhana
  • Three multistate cooperatives on agricultural exports, organic farming, seeds sector
  • MANAGE Hyderabad
  • Around 135 NGOs

    Three to five days residential trainings have been organized in the State.



Purpose of Training

  • Value addition of agricultural produce and provide an additional source of income for farmers.
  • Creating opportunities for entrepreneurship and skill development in rural areas.
  • To strengthen the economy and create employment for cooperatives, farmer producer companies, and self-help groups.
  • MCDC provides finance in the form of loans and investments to cooperative processing industries, and provides guidance on increasing the export of agricultural produce.


Training Topics

  • Shadenet and Polyhouse
  • Nursery Technology
  • Commercial hydroponics farming
  • Turmeric & Ginger production technology
  • Modern dairy business
  • Training for Directors and CEO of farmer producer company
  • Agri-Business start up Training Programmes
  • Agri-tourism, fisheries, Good agricultural practices for fruit and vegetable production
  • Post-harvest technology of agricultural produce
  • Intensive farming
  • Dehydration of fruits and vegetables
  • Micro food processing industries, beekeeping, opportunities in import and export
  • Housing co-operative societies, co-operative banks, multipurpose co-operative societies etc.


Ratings

  • Certificate of appreciation from the Agriculture Department for being the institute that provides the largest number of trainings in the state under the Prime Minister's Micro Food Processing Scheme in a planned manner.
  • MCDC has been recognized by the Government as a State Level Apex Training Institute under the Department of Cooperation, Marketing and Textiles, Government of Maharashtra.
  • Recognized as a State-level training institute by the Department of Agriculture, Government of Maharashtra.
  • Center of Excellence (CoE) under Maharashtra Agri Business Network Project (MAGNET)
  • MCDC has been awarded affiliation of central government sponsored agriculture skill council of india (ASCI)
  • MCDC is an authorised institute for NABARD Sponsored programmes as Producers Organization Promoting Institute (POPI) and Resource Support Agency (RSA)

Training Fee Structure

MCDC has tie-ups with a total of 45 Krishi Vigyan Kendras (KVKs) in the State regarding various facilities for training programmes.

The duration of training and fees are as follows:

Sr.no Period Fees including GST (Rs.)
1 One day Rs.1500/- (Non-Residential)
Rs.2000/- (Residential)
2 Three days Rs.7080/- (Residential)
3 Five days Rs.10,030/- (Residential)

The training fees Include: Training material, Certificate, Tea, Snacks, Meals, Residence and field visits.




Shri. Digambar Sable
Department Head (Training)
Mo. 9423006928


Shri. Hemant Jagtap
Senior Training officer
Mo. 8275371082


Shri. Mayur Pawar
Training Officer
Mo. 8308320360




Jalsamruddhi Machinery Interest Subvention Scheme

Scheme Name :- Jalsamruddhi Machinery Interest Subvention Scheme

Department Name:- Soil and Water Conservation Department

Government decision :- Date 2 January 2018.

Purpose :- The government has implemented the “Jalsamruddhi Machinery Interest Subvention Scheme” to carry out Jalyukt Shivar Abhiyan/ Soil and Water conservation works through educated unemployed youths / Farmer Production Unions / Registered Farmer Groups/Unemployed Cooperative Societies in the state.

Beneficiary Criteria :-

  • Educated Unemployed
  • Farmer Producer Company
  • Cooperative Societies of the unemployed
  • Registered farming groups
  • Multi Purpose Co-operative Societies


Nature of Benefit

Interest subvention will be given on the maximum loan amount Rs. 17.60 lakh taken under the scheme. Maximum interest subvention amount allowed under the scheme is Rs. 5.90 lakh for the period of five years. Interest subvention will not be allowed above the loan amount Rs. 17.60 lakh by the government.


Implementation Process

  • Maharashtra Cooperative Development Corporation, Pune has been appointed as the Nodal Agency for implementing the scheme.
  • This scheme is being implemented at the district level through the District Deputy Registrar and Cooperative Societies.
  • Under the scheme, the government is paying the interest on loans provided by financial institutions to beneficiaries to purchase mining equipment.
  • The maximum interest amount paid by the government will be Rs. 5.90 lakhs and the said amount is being transferred to the beneficiaries who have repaid the loan amount regularly in equal installments of a maximum of Rs. 9833/- over a period of 5 years.
  • A total of 318 beneficiaries were selected under the Jalsamruddhi Machinery Interest Subsidy Scheme in the years 2018-19 and 2019-20.

Current Progress Report

Under the Jalsamruddhi Machinery Interest Subvention Scheme, an amount of Rs. 13.07 crore has been disbursed to 318 beneficiaries in the state from the year 2018-19 to 2023-24. The details are as follows.

Sr.no Year Grant Disbursed Rs.
1 2018-19 91,54,523/-
2 2019-20 2,18,98,091/-
3 2020-21 94,79,012/-
4 2021-22 4,90,17,505/-
5 2022-23 2,05,85,227/-
6 2023-24 2,05,82,942/-
Total 13,07,17,300/-


Shri. Yogesh Pawar
Chief Accountant
Mo. 8805553911



Introduction :-
The Co-operative movement has played a major role in the economic progress of Maharashtra. In the last few years, it has been observed that the process of registration of new co-operative societies and the initiation of new projects of these societies has been very slow. In the backdrop of globalization, privatization and liberalization, it is necessary to implement some projects through cooperatives, considering their objectives and the need to meet the challenges of the times so that farmer members/economically weaker sections can have cost effective and direct transactions with consumers.

The process of empowering 5000 various Primary Agricultural Cooperative Societies under Atal Mahapanan Vikas Abhiyan in the State has been going on since 2016. Apart from primary agricultural cooperative society (PACS), marketing, processing, service and other types of cooperatives also need to implement business oriented projects. As mentioned in "Vision 2030" and taking into account the objectives set in the Central Government's Strategy for New India @75 regarding the agricultural sector, it is necessary to start a new scheme for the cooperative societies in the State to generate direct and indirect employment by implementing the business/projects of the cooperative societies.

The Maharashtra Cooperative Development Corporation, working for the development of cooperatives in Maharashtra, has submitted a draft scheme to the government to promote the professionalism of such cooperatives. Based on that, the State government has launched the "Atal Financial Assistant Scheme for Cooperatives" (G.R dated 02.01.2019) to promote the agricultural and agri complementary industries of cooperatives that are helpful in rural development.


Purpose of the scheme

  1. To promote and implement various innovative businesses/projects related to agriculture and non-agriculture sector through cooperatives.
  2. To create direct and indirect employment.
  3. To add value to farmer’s agricultural produce through primary and secondary processing.
  4. To encourage cooperatives to increase farmers profit from agricultural production and to increase farmers income.
  5. Encouraging cooperatives to start industries that have potential for agriculture and allied industries in the global market.
  6. The educated youth of the State, especially in the rural areas connected with the agricultural sector through co-operatives to be utilised to create services, business and industries related to local needs.
  7. To empower the economically weaker sections by encouraging them to start agricultural business through the initiatives of co-operatives, including primary processing. storage of agricultural produce, secondary processing, transportation of agricultural produce, supply of agricultural inputs, supply of clean water and other innovative post-harvest activities.

Details of Financial Distribution

At least 50% of the amount to be distributed in each district will be disbursed for agricultural projects and the remaining amount will be disbursed for innovative non-agricultural projects.

  • Maximum limit of project cost of Co-operative Societies - Rs. 20 lakhs
  • Naxal affected - Gadchiroli, Chandrapur and Gondia for these three districts maximum project cost for seeking grants - Rs. 40 lakhs

Own fund: 12.50%
Loan: 12.50 %
Grant: 75%
Loan Interest rate: 8 %
Loan term: 5 Years
Overall provision for scheme: Rs. 490 Cr
Penalty Interest (for default): 2%


Proposals Approval Procedure

A. State Level Committee -
Chairman - Hon. Minister of Cooperation
Other members - Hon. Cooperation Commissioner, Hon. Agriculture Commissioner, Hon. Director of marketing, Hon. managing Director, Maharashtra State Agriculture Marketing Board, Director ATMA, Chartered Accountant (CA), Non- official Member - 06 (from each revenue department) and Managing Director, MCDC, Pune (Member Secretary)

B. District Level Committee –
Chairman - District Deputy Registrar, Cooperative Society
Other members - Deputy Director Agriculture, Project Director ATMA, General Manager, District Industries centre, Chartered Accountant, Non- official Member – 04


Current Status (Overall Approved Proposals)

No of proposals approved by State level committee: 1871
Total project cost: Rs. 381 Cr.
Own funds: Rs. 81 Cr.
Loan amount: Rs. 43 Cr.
Grant: Rs. 257 Cr.
Total Loan and Grant: Rs. 300 Cr.


Type-wise Summary of Approved Projects

  1. Fruit and vegetable hygiene and sorting center: 95
  2. Warehouse: 312
  3. Secondary Processing Unit: 301
  4. Transportation Van: 380
  5. Cooperative Retail Shop: 165
  6. Agricultural Goods Packaging: 90
  7. Jute Bag: 146
  8. Water ATM: 70
  9. Agricultural allied project: 164
  10. Non Agricultural innovative Project: 148

Total: 1871


Loan Proposals Received (Year 2019-20)

1. Total proposals: 529
2. Project cost: Rs. 112 Cr.
3. Own fund: Rs. 22 Cr.
4. Loan amount: Rs. 13 Cr.
5. Grant: Rs. 77 Cr.
6. Total Loan and Grant: Rs. 90 Cr.


Loan Proposals Received (After MOKA Tapasani)

1. Total proposals: 428
2. Project cost: Rs. 84 Cr.
3. Own fund: Rs. 13 Cr.
4. Loan amount: Rs. 10 Cr.
5. Grant: Rs. 61 Cr.
6. Total Loan and Grant: Rs. 71 Cr.



Details regarding approval of the scheme

Government Resolutions / Decisions :-

  1. Government Resolution No.S.1018/Q.No.126/18-S, dated 02 January 2019 was approved by the government till the year 2019-2020.
  2. Government Resolution No.1118/Q.No.143/18-S, dated 26 February 2019 the government approved the disbursement of Rs. 80.00 Cr. Funds.
  3. Government Resolution No. FY-2020/Q.No.65/Arth-3, dated 04 May 2020 The funds were returned to the government.
  4. Government Resolution No. meeting-1222/Q.No.199/18-S, dated 23 January 2023 to approve the extension of the said scheme from the year 2020-21 to 2022-23 with retrospective effect and extension to the year 2023-24.
  5. Government Resolution No. supplements -0223/Q.No.35/18-S, dated 31 March 2023 disbursement of loans and grants to 428 societies and disbursement of 2% administrative cost to the Corporation the total is being Rs.72.42 Cr.
  6. Government Decision No. Sankirna-0224/P.No.49/18-S, dated 24th June, 2024 regarding extension of this scheme for the year 2024-25.

Current Disbursement Status

  • As per Government Resolution dated 31 March 2023 funds available: Rs. 72.42 Cr.
  • Loan proposals of 321 societies out of 428 have been received and further action is underway.
  • Loan amount of Rs. 3.64 Cr. disbursed to 185 out of 321 societies.
  • Grant amount of Rs. 13.75 Cr. disbursed to 120 out of 185 societies.



Shri. Dhananjay Doifode
State Co-ordinator (ATAL Scheme)
Mo. 9850658125




Information

Maharashtra Coopeartive Development Corporation started Agri Business Growth Cell to implement various schemes for Co-operatives, Farmer Producer Companies and Farmers groups, in the state for starting Agribusiness and also to provide services at reasonable rates.

Registration of Farmer Producer Companies

  • Registration of Farmer Producer Companies at minimum cost to farmers.
  • The Corporation has empaneled 135 Chartered Accountants and Company Secretaries for the same.

Preparation of project report

  • To prepare bankable proposals of Agriculture and allied business for Cooperative Societies, Farmer Producer Companies / Organizations and Women Self Help Groups for SMART, POCRA, MAGNET projects, PMFME, Equity Grant and Government schemes.
  • Reasonable service charges.

Services

  • Issuance of necessary licenses for various Agribusinesses.
  • Guidance on Branding, Packing and Labeling.
  • Guidelines for financial linkages.
  • Market linkages with Traders, Processors and Exporters.
  • Guidance for participation in National, International exhibitions.

Registration of a Farmer Producer Company

Providing handholding support to FPOs for SMART, MAGNET and POCRA projects, AIF, PMFME and other project for setting up infrastructure.


Documents required for registration of FPC

  1. PAN card and Aadhaar card of a total of 10 directors.
  2. Details of date of birth of directors.
  3. Mobile number and e-mail ID of directors.
  4. For address Light Bill or Index 02 of any one director.
  5. Bank statement first page and current month's transacted bank statement of all directors.
  6. Farmers certificate issued by Taluka Agriculture Officer in prescribed format.
  7. Details of academic qualifications.
  8. 3 passport-sized photographs.

Registration fees is Rs. 35,400 / - (approx).


Dr. Bhaskar Patil
Marketing Manager
Mo. 9423004796


Shri. Abhay Sarvdnya
Account Assistant
Mo. 9422875083




Central Sector Scheme (CSS) - Formation and Promotion of 10,000 FPOs

Government of India announced scheme for Formation and Promotion of 10000 Farmers Producer Companies / Organizations for the total expenditure of Rs.6866 crores.

MCDC has been appointed as a “Cluster Based Business Organization” (CBBO) by NABARD and National Cooperative Development Corporation (NCDC) to implement this scheme in the State. Total 26 FPCs through NABARD and 5 FPOs through NCDC has been alloted to MCDC. A total of 31 Farmer Producer Companies have been established in 11 districts of Satara, Parbhani, Nagpur, Solapur, Kolhapur, Yavatmal, Raigad, Ratnagiri, Sindhudurg, Bhandara and Chandrapur through the MCDC. Under the guidance of the MCDC and with the cooperation of the District Development Manager of NABARD and the District Deputy Registrar of Co-operative Societies, the project implementation is underway.

Providing training to Board of Directors / Chief Executive Officers, Member Farmers etc. of companies / organisation, making available Agricultural Inputs (fertilizers, insectisides, seeds) to the members at reasonable price, conducting study tours in the State and outside the State, training and guidance on Marketing of Agril produce, improved varieties, modern technology, warehousing etc.is being organised by MCDC. In addition to this MCDC is assisting the companies to findout new markets, processors, exporters to market the agril produce of member farmers of the FPO/FPC to fetch better price for their agricultural produce.

Under this scheme Rs. 15 lakh grant equity is available to Farmer Producer Companies/organizations. MCDC is giving guidance and follow-up to Farmer Producer Companies / Organisations to avail grant equity. Further under this scheme training and study tours are organized for the Board of Directors and Chief Executive Officers of the companies. MCDC has appointed experts in various fields for effecive implementation of scheme and to guide FPCs and FPOs for giving maximum benefits to their member farmers with commercial angle.

The Corporation is expected to implement the project effectively, ensuring that the farmer producer companies operate professionally and provide benefit to their member farmers.

The following experts have been designated at head office for the implementation of this project:
1. Dr. Bhaskar Patil - Agri Marketing
2. Mr. Balwant Dhumal - Crop Husbandry
3. Mr. Sadiq Maneri - Social Mobilization
4. Mrs. Monali Navsakar - MIS
5. Mr. Abhay Sarvagya - Account



Dr. Bhaskar Patil
Marketing Manager
Mo. 9423004796


Shri. Sadik Maneri
Regional Manager
Mo. 8600987807




Scheme Information (NABARD POPI)

NABARD has sanctioned a project for Maharashtra Cooperative Development Corporation, to form, promote, train and hand hold a total of 30 Farmer Producer Companies in the first and second phase. In 2019, five companies were alloted in five districts and in 2020, 25 additional companies were alloted by NABARD for a period of 3 years. At the district level,the companies were formed with the help of NABARD's District Development Manager and District Deputy Registrar of Co-operative Societies.

Upon the satisfactory performance of the companies in the first three years, there is a provision in the project to get an extension for the next two years. A Project Monitoring and Implementation Committee has been constituted under the Chairmanship of District Development Manager of NABARD to monitor and evaluate the project. District Superintending Agriculture Officer, Project Director, ATMA, District Deputy Registrar, Cooperative Societies, Head, Agril. Science Centre, Lead Bank Manager, Directors of Farmer Producer Company and representative of Maharashtra Cooperative Development Corporation are the members of the said Committee.

Under the project, companies are receiving Rs.11.44 lakh per company in the initial three years for Registration, CEO salary, preparation of Business Development Plan, Board of Directors training, CEO training, awareness programs for members and incentive to POPI. POPI has to complete the effective training and work of the Farmer Producer Companies in 8 phases (36 months). MCDC has appointed District wise, Farmer Producer Company wise Co-ordinators to coordinate the activities of Farmer Producer Companies established under POPI.

MCDC is working and providing guidance to companies to obtain licenses for Agricultural Input business, e-NAM registration, registration on online platform, Direct Marketing License, Agriculture Produce Market Committee trading license, market linkages with private companies/exporters/processing companies for supply of their agriculture produce, taking advantage of SMART, MAGNET and POCRA projects, connecting F. P. O.s with Consumer Cooperatives, taking advantage of various Government schemes, preparing Business Development Plan etc.



Dr. Bhaskar Patil
Marketing Manager
Mo. 9423004796


Shri. Sadik Maneri
Regional Manager
Mo. 8600987807




Objective of the Project:

  • Strengthening of institutional arrangements related to agriculture sector with respect to agricultural reforms.
  • Enhancing agribusiness by increasing market linkages.
  • Risk mitigation of agriculture market.
  • Establishment of 11 Project Implementation units in SMART project through various 7 Departments. Among them, Maharashtra Cooperative Development Corporation is representing the cooperation department for SMART project.
  • Establishment of “Project Implementation unit- (PIU-MCDC SMART) at state level for implementation of SMART project in Maharashtra (Project Period 2020 to 2027)
  • In SMART project, under the component of strengthening of a warehouse receipt System creation & alternative markets for members of PACs.
  • Provision of subsidy of 24.40 crores is available for financial development of primary agricultural cooperatives through the project.
  • Repair of godown and construction of new godown as well as cleaning, grading and sorting unit, and fee of collateral management organization through project grant.
  • 60% subsidy from the project and 40% own share of the organization, subsidy up to about Rs.1 crore to each of cooperative society.
  • Training will be given by Collateral Management Company for a period one year to start warehouse receipt business through Primary Agricultural Co-operative Societies.
  • The facilities of warehouse receipt loan, security of farm produce, sales management of agri produce will be available at the village level to the members of primary agricultural cooperatives.
  • In the state, 50 primary agricultural cooperative societies will be supported for repair of godowns and 19 primary agricultural cooperative societies for setting up new godowns, for the successful implementation of concept of warehouse receipt system.

Components Implemented

  • Financial assistance in form of subsidies for infrastructure development.
  • Access to market linkages and collateral management support.
  • Hands-on training for better business operation through warehouse receipts.
  • Enhanced storage capacity and agri-logistics support at village level.



Implementation through Project Implementing Unit, MCDC: Strengthening the Godown Receipt Scheme

Establishing a risk mitigation system is an important factor under SMART projects. At present, there is often no convenient, affordable, and nearby warehousing facility for storing agricultural produce. Therefore, under the SMART project, the objective has been set to provide such a system through primary agricultural cooperatives (PACs). As these co-operatives may lack the technical knowledge of warehouse construction and administrative knowledge of warehouse management, the sub-component "Strengthening of Godown Receipt Scheme" is being implemented for the co-operatives through the Maharashtra Co-operative Development Corporation (MCDC) under the SMART project.

Strengthening and Implementation of Warehouse (Godown Receipt Scheme) / Warehouse Receipt Financing Scheme

This involves the following key activities:

  1. Renovation of self-owned godowns of co-operative societies
  2. Construction of new godowns
  3. Management of warehouses through Internet and other tools (IoT)

Implementation of the above sub-components: Applications are being accepted only from Primary Agricultural Co-operative Societies (PACs) based on eligibility criteria in the state.

C2 Sub-component: Goals and Scope

Under the C2 sub-component of SMART projects, through Maharashtra Cooperative Development Corporation (MCDC) assistance, the aim is to financially empower PACs. Key objectives include:

  • To renovate their own old warehouses at minimum cost.
  • To construct new warehouses or lease warehouses.
  • To implement the Warehouse Receipt Scheme in these warehouses for farm products.
  • To provide financial support for storage (warehouse/warehouse receipt scheme).
  • To assist PACs in setting up warehousing business with the help of a CMA (Collateral Management Agency).
  • To increase the income of cooperatives by providing market access for the stored agricultural products.

Under the Warehouse Receipt Strengthening component, warehouses need to be upgraded, potentially involving expansion across five major scenarios:

  1. Repair of old godowns.
  2. Repairing old godowns and installing cleaning and sorting machines.
  3. Construction of new godowns.
  4. Construction of a new warehouse and installation of cleaning and grading equipment.
  5. Repairing old godowns, constructing new godowns, and installing cleaning and sorting machines.

Key Aspects of the Warehouse Receipt Scheme for PACs

1. Renovation of Godowns owned by Co-operative Societies
  • A cluster of godowns will be created under this component with a capacity of around 2000 MT, typically involving facilities within about 4 to 5 km of the main godown.
  • Primary Agricultural Cooperative Societies (PACS) are provided a subsidy of 60% of the project cost (as per architect's estimate and project terms and conditions) from the project for renovation of old godowns.
  • Financial assistance for the purchase of machinery and equipment (such as spiral separators, computers, and weighing scales for cleaning and grading centers, as per capacity requirement) is provided through the SMART project.
  • For PACs clusters achieving a total storage capacity of 2000 MT (often comprising individual PACs with 400-500 MT capacity within a 3 to 5 km radius), a Collateral Management Agency (CMA) is appointed.
  • Collateral Management Services (CMA) will work to implement the Warehouse Receipt Scheme for PACs. Their responsibilities include: management of godowns, provision of godown receipts, providing financial assistance for loan guarantee through banks, protection of goods in godowns, sales of goods, and provision of manpower.
  • For this service, 60% of the annual fee of the Collateral Management Services (CMA Service Provider) is given as a subsidy for one year through the project.
  • After one year, if the services of the CMA are found suitable by the PACs, they can continue through separate contracts, but they will no longer be eligible for project subsidies towards CMA service charges.
2. Construction of new godowns
  • Renovation of godowns in co-operative societies may facilitate the implementation of the godown receipt scheme, potentially leading to an increase in the organization's financial turnover. Based on performance, experience, and qualifications (according to terms and conditions), such organizations can aim to increase their business by constructing a new godown.
  • Accordingly, the project supports the construction of new godowns for organizations that have improved their business by renovating existing godowns and effectively implementing the Warehouse Receipt Scheme.
  • It is planned to construct about 19 new godowns (with a capacity of 1000 MT per godown) to increase the financial income of the concerned organizations.
  • A grant of 60% of the business plan cost (according to the architect's estimate, project terms and conditions, and a project-fixed cost per MT for construction) will be made available from the project for the construction of a new godown.
3. Warehouse management through Internet and other tools (IoT - Internet of Things)

This component aims to digitize the scheme, moving beyond traditional implementation methods.

  • Using IoT technology on a pilot basis to better manage warehouses.
  • It mainly includes the use of modern equipment for warehouse security, such as: CCTV, Alarms, RFID Tags, Wireless Beacons, Door Safety Alarms, Temperature & Motion Sensors, Smoke Detectors, and Software.
  • Using modern software for warehouse management.
  • Achieving better management of the entire supply chain and collection of real-time information due to the integration of said technology in the warehouse management process.
  • In the first phase, it is planned to use IoT technology on a pilot basis in selected warehouses.

Criteria

Mandatory Criteria
  • The organization should be legally registered. Should be audited by an auditor.
  • A primary agricultural cooperative must have at least 250 shareholders.
  • For the sub-project, the organization must have its own premises/own warehouse or premises or rented warehouse on registered tenancy basis of 29 years. from register.
  • The selected site should preferably be along the main road with electricity and water supply facilities.
  • The audit report of the organization should not contain significant accounting objections.
  • The institution should not be in default of any debt.
  • The institution should have at least credit linkage of Rs.100.00 lakhs in one year of the last 5 years in the audit report.
  • Minutes of at least 2 Annual General Meetings (AGM) of the organization should be attached.
  • In order to run the warehouse successfully, the organization should provide complete information (accurate data) related to cropping system in that section, production and productivity of the main crop, marketable surplus of such crop, storage capacity available in that section and potential business that can be obtained for construction of new warehouse. must be taken.


Shri. Prashant Chaskar
Agricultural Mortgage Management Services Specialist,
Project Implementation Unit,
MCDC Pune
Mo. 9970364130