MNREGS, soft loans to help build 22k agri markets

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 its key rural initiatives spelt out in the Union budget 2018-2019.

These new markets, essentially village ‘haats’, will serve as aggregation points and increase the number of selling points for farmers to bring their produce with minimal rules. The aim is to provide an alternative to the rigged farm-to-fork supply chains that affect farmers’ profit.

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

A part of fund will also be used to modernise the middlemencontrolled agricultural produce market committees. The new markets are expected to be kept out of this system.

“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 ministry, and the establishment of a mixed funding pattern. Part of the fund will be from MNREGS provisions. As per initial projections, each market will need ₹20 lakh, with half of the amount coming as soft loans to panchayats. Markets with some facilities already built, the loan will be ₹ 7.5 lakh. The remaining will come from 17 components of central sector schemes.

NEW DELHI: A PART OF FUND WILL BE USED TO MODERNISE MARKET COMMITTEES THAT ARE CONTROLLED BY THE MIDDLEMEN