Hindustan Times (Lucknow)

Govt to use MNREGS, soft loans to build 22k agri mkts

- Zia Haq zai.haq@htlive.com ▪

NEW DELHI: The government will use a mixed funding pattern involving the Mahatma Gandhi National Rural Employment Guarantee Scheme (MNREGS) and subsidised loans to develop 22,000 agricultur­al markets as part of its strategy to fulfil one of the key rural initiative­s spelt out in the Union budget.

These new markets, essentiall­y village ‘haats’, will serve as aggregatio­n points and increase the number of selling points where farmers can bring their produce with minimal rules. The aim is to provide an alternativ­e to

THE NEW MARKETS ARE EXPECTED TO BE KEPT OUTSIDE THE APMC SYSTEM IN A BID TO LIBERALISE FARM TRADE

rigged farm-to-fork supply chains that drive down farmers’ profits.

HT had reported on March 12 that the agricultur­e ministry and the finance ministry-administer­ed National Bank for Agricultur­e and Rural Developmen­t (Nabard) have both pitched proposals with differing approaches to set up these markets. While Nabard proposed loans at subsidised interest to panchayats and sought ₹360 crore for the purpose, the agricultur­e ministry wanted to utilise money available under existing schemes to partially fund the project.

A part of the fund will also be used to modernise the middlemen-controlled agricultur­al produce market committees (APMCs). The new markets are expected to be kept outside the APMC system in a bid to liberalise farm trade.

“There are no difference­s. We will now send a revised proposal that will take a convergenc­e approach,” M Thangaraj, the agricultur­e ministry’s joint agricultur­al marketing advisor, said.

The “convergenc­e” approach provides for the merger of proposals touted by both Nabard and the agricultur­e ministry, and the establishm­ent of a mixed funding pattern. Part of the funds will be drawn from MNREGS provisions.

According to initial projection­s, each market will need ₹20 lakh. In most of these, half the amount will come as soft loans to panchayats. In markets where some facilities have already been built, the loan amount will be ₹ 7.5 lakh.

The remaining funding will come from 17 different components of central sector schemes.

Ahead of the 2019 general elections, the Narendra Modi government is seeking to address widespread farm distress caused by a recent decline in agricultur­al commodity prices. The proposed markets are a part of the efforts for which the latest budget has created a ₹2,000-crore agri-market infrastruc­ture fund.

The Dalwai committee formed to suggest measures to double farm incomes has proposed “placing agricultur­al marketing under the Concurrent List (in the Seventh Schedule of the Constituti­on)”. This will enable both the Centre and states to legislate on the subject, which currently falls squarely in the states’ domain.

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