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Government Of Assam Department of Agriculture & Horticulture Directorate of Horticulture & Food Processing

Horticulture Market Infrastructure

Schematic benefits for Creation of Market Infrastructure under Mission for Integrated Development in Horticulture (MIDH)

Main objectives of providing assistance under this component are (a) to encourage investments from private and cooperative sectors in the development of marketing infrastructure for horticulture commodities (b) strengthen existing horticulture markets including wholesale and rural markets; (c) focus on promotion of grading, standardization and quality certification of horticulture produce at farm/market level to enable farmers to realize better price; and (d) create general awareness among farmers, consumers, entrepreneurs and market functionaries on market related agricultural practices.

Assistance under the Scheme will be provided as credit linked back ended subsidy for setting up wholesale markets, rural markets/apni mandis and retail markets. In case of Terminal markets, assistance will be provided in accordance with approved norms, for which guidelines have been issued separately,and available on the NHM website. Assistance will also be provided for setting up static / mobile vending cart/platform with cool chamber. Assistance will also be extended for setting up functional infrastructure as credit linked back ended subsidy.

Assistance for setting up markets will only be given to those States/UTs which have amended their State Agricultural Produce Marketing Committee (APMC) Act and have also notified the amended rules there under to implement the provisions for:

  • Setting up of new markets in private and cooperative sector;
  • Direct marketing (sourcing of horticulture produce directly from growers by wholesalers/ bulk retailers/ processors/ exporters/ end users). (If trade transaction of horticulture perishables takes place outside the market-yard, no market fee should be levied)
  • Doing away with requirement of having a premise within the market yard for grant of license.
  • Contract farming and.
  • Waiver of market fee on perishable horticulture produce.

Assistance will be available to individuals, Group of farmers/growers/consumers, Partnership/ Proprietary firms, Self Help Groups (SHGs), Farmers Producer Organization (FPOs),Companies, Corporations, Cooperatives, Cooperative Marketing Federations, Local bodies, Agricultural Produce Market Committees (APMC) & Marketing Boards and State Governments. Projects submitted by only those APMCs will be considered for assistance, which do not levy market cess on horticulture produce.

Cost of land involved in infrastructure projects will be restricted to 15 percent of project cost in rural areas and 25 percent in urban areas. The entrepreneur will not alienate land during period of loan for any purpose other than the purpose for which project is sanctioned. A separate undertaking from entrepreneur is required to be included in this regard in the DPR. Size of project will be determined on basis of economic viability and Commercial considerations.

Quality control/analysis lab has been included under the Mission wherein assistance will be provided for setting up quality control labs having necessary infrastructure and manpower facility to check quality of horticultural produce vis-à-vis international standards (Annexure V of MIDH Guideline).

In the case of bamboo, assistance will be extended for setting up Bamboo Bazaars, Bamboo wholesale retail markets near villages and retail outlets as per norms indicated in Annexure VI of MIDH Guidelines.

Establishment of Marketing Infrastructure for horticultural produce in Govt./Private/ Cooperative sector

Sl No.ComponentCost Norms Pattern of Assistance
1Terminal marketsRs. 150.00 crore/25% to 40% (limited to Rs.50.00 crore) as Public-Private Partnership mode through competitive bidding, in accordance with operational guidelines issued separately.
2Wholesale marketsRs.100.00 crore/Credit linked back-ended subsidy @ 25% of the capital cost of project in general areas and 33.33% in case of Hilly & Scheduled areas, per beneficiary.
3Rural Markets/Apni mandies/DirectRs. 25.00 lakhCredit linked back-ended subsidy @ 40% of the capital cost of project in general areas and 55% in case of Hilly & Scheduled areas, per beneficiary.
4Retail Markets / outlets (environmentallyRs. 15.00 lakh/unitCredit linked back-ended subsidy @ 35% of the capital cost of project in general areas and 50% in case of Hilly & Scheduled areas, per beneficiary.
5Static/Mobile Vending cart/ platform withRs. 30,000/ unit50% of total cost.
cool chamber
6Functional Infrastructure for:
 i) Collection, sorting/ grading, packingRs.15.00 lakhCredit linked back-ended subsidy @ 40% of the capital cost of project in general areas and 55 % in case of Hilly & Scheduled areas, per beneficiary.
units etc.
7ii) Quality control/ analysis labRs. 200.00 lakh100% of the total cost to public sector and 50% of cost to private sector as credit linked back ended subsidy.
8Gravity operated rope way in hilly areasRs. 15.00 lakh/kmCredit linked back-ended subsidy @ 50% of capital costs in Hilly areas.