WORLD BANK FUNDED

MAHARASHTRA AGRICULTURAL COMPETITIVENESS PROJECT (MACP)

PROJECT IMPLEMENTATION PLAN (PIP)

GOVERNMENT OF MAHARASHTRA

Date: 20th August, 2010

MAHARASHTRA AGRICULTURAL COMPETITIVENESS PROJECT (MACP) PROJECT IMPLEMENTATION PLAN (PIP) CONTENTS Chapter No. I(i) (ii) (iii) II A.1 A.1.1 A.1.2 A.2 A.3 A.4 B.1 B.1.1 B. 1.2 B. 1.3 B. 1.4 B.2 B.2.1 B 2.2 C. 1 C. 2 C. 3 C. 4 C. 5 C. 6 Component / Subcomponent Introduction Project Development Objectives Project Design Project Components Market Led Agricultural Technology Transfer Institutional Strengthening for Market Led Agricultural Technology Transfer Preparation and Implementation of Production and Marketing Strategies Agri Business Promotion Facility Market Information Services Livestock Support Services Promoting Alternative Markets Product Aggregation and sale through Producers Association Warehouse Receipts Development Rural Haat Markets Introducing E-Marketing Platforms Modernizing Existing Markets Modernizing Wholesale Markets Upgrading Livestock Yards Project Coordination Unit and Project Implementation Units Environmental & Social Management Procurement Financial Management Monitoring and Evaluation Governance and Accountability Arrangements List of Abbreviations *** 16 20 26 41 55 74 85 87 101 111 122 126 127 147 154 160 169 179 191 197 215 Page No. 3 6 8

Component A : Intensification and Diversification of Market Led Production

Component B: Improving Farmer Access to Markets

Component C: Project Management

I. (i) INTRODUCTION
1. The Maharashtra State is spread over an area of 3.07 Lakh Sq. km. The total population of the State is 10.3 Crore (estimated 2004-05), out of which, 57.8 % population is dependent on agriculture. Agriculture plays an important role in the States economy. The total number of farmers in the State is 1.66 Crore, of which, 43 % and 27 % are small farmers and marginal farmers, respectively. The average land holding is 1.66 Ha. 2. In the year 2008-09, the area under cultivation in the State was 22.66 Million Ha, which is 73.66 % out of the total physical area of 30.76 Million Ha. In the same year, the area under irrigation was 4.03 Million Ha, which is 17.78%. The food crops including cereals and pulses occupy 12.91 Million Ha (56.97%) area. The important Kharif crops are sorghum, millets, rice, pulses, soybean, groundnut, sunflower, sesame and cotton, while wheat, yellow gram, sunflower are grown in Rabi season. Sugarcane is also grown on a large area in the State. In the year 2008-09 the production of fruits, viz., grapes, mangoes, banana, oranges, sweet lime and pomegranate was 100.54 Lakh tonnes, and, the vegetable production had reached the level of 77.29 Lakh tonnes per annum. 3. The productivity of important crops in the State is low as compared to average productivity of these crops with national averages and averages for many other states. The productivity in other sectors of agriculture like Animal husbandry, Dairy, Fisheries is also low as compared to National Averages. The productivity levels in Agriculture are low mainly because irrigated area is low, most of the area is rainfed and though technology is available, it is not being fully adopted and improved practices are not followed to the full extent by farmers. 4. The data on arrivals of different commodities in Agriculture Produce Market Committees (APMCs) show that there is a good amount of marketable surplus in the State. The data relating to total arrivals of different commodities and total value of the same for the year 2008-09 are presented below.
Sr. No. 1 2 3 4 5 6 7 8 9 10 Item No of APMCs in State (Main Market Yards) No of Sub Market Yards in State Total Arrivals Total Value Total Cess Collected Supervision fee paid to State Govt. @ 5 Paise / Rs.100 sale Total No. of APMCs in surplus Amount of surplus Total No. of APMCs in deficit Amount of deficit Units Number Number Lakh MT Rs. Crore Rs. Crore Rs. Crore Number Rs. Crore Number Rs. Crore Particulars 294 612 239 32567.00 290.68 15.00 241 131.18 53 20.33

5. Though there is a good amount of marketable surplus in the state, the producers do not get reasonable price for their produce because of serious deficiencies in the present agricultural marketing system. The present marketing system is placed with certain shortcomings, viz., i) Value chain is too long and fragmented and therefore, particularly in perishables, share of the producer in the consumers rupee is very low (it is at times as low as 20%), ii) Lack of standardization and enforcement of quality and grades, iii) Insufficient and ineffective services to the farmers regarding inputs and information, iv) Lack of facilities of grading, packing, cold storage and processing, v) Inadequate transparency in marketing and vi) Lack of private sector investment. This results in stress to the farmers. 6. This problem could be better addressed through different interventions resting on two pillars, viz., i) Improving Extension support to farmers, and, ii) Improving Agricultural Marketing. Improving Extension support to farmers 3

7. During the mid-nineties, the GOI and WB explored a new approach to extension. The result was a new, decentralized extension approach to focus directly on agricultural diversification and increasing farm income and rural employment. The innovative model revolved around an agency called Agricultural Technology Management Agency (ATMA). ATMA was introduced at the district level to integrate extension programme across the line departments, link research and extension activities, and, de-centralize decision making through bottom-up planning procedures. The concept envisioned involvement of farmers and private sector in planning and implementation of extension programme at block and district level. The GoM has already started implementation of the ATMA model in all the 33 districts of the State. The project was initiated under the WB sponsored National Agriculture Technology Project (NATP) in 1998 which covered 4 districts, viz., Ahmednagar (1998-99), Amravati (19992000), Aurangabad (2000-01) and Ratnagiri (2001-02). It has been extended to additional 15 districts in 2005-06 under the Central Government scheme, Support to Extension Reforms. The ATMA model was introduced during 2007-08 under the aegis of WB assisted Maharashtra Water Sector Improvement Project (MWSIP) to Raigad, Nasik, Dhule, Jalgaon, Solapur, Satara, Beed, Parbhani, Nanded, Osmanbad, Nagpur, Bhandara, Gondia and Chandrapur Districts. Washim, Amrawati, Wardha, Akola, Buldhana and Yavatmal Districts, which were not already covered by ATMA, were also included in this project in 2006-07. Thus, the ground work for implementing de-centralized extension through ATMA has been done. The implementation experience has brought out certain inadequacies which need to be addressed to make the extension more effective. 8. The public agricultural extension system needs improvement at all levels. The knowledge and expertise of qualified and experienced scientists of Agricultural Universities, Research Institutes, NGOs, Private Sector, and Senior Specialists from Agriculture and other Line Departments would be tapped to provide training to the district, taluka and village extension workers, as well as the farmers. Greater emphasis should be given to working more closely with farmers on topics such as improved production practices, improving productivity, quality production, post harvest techniques, processing, market information, market intelligence and adoption of marketing techniques. Modern participatory extension methods based on farmers groups and associations would be introduced. ATMA has become weak after the closure of NATP project. ATMA is also considered as the scheme of Agriculture Department, though Agriculture as an activity includes Crop Husbandry, Horticulture, Animal Husbandry, Dairy, Fisheries, and Agricultural marketing. Therefore, ATMA needs to encompass the extension activities of all these line departments, if it has to be an effective instrument of knowledge dissemination to the farmers. Improving Agricultural Marketing 9. The key element of Maharashtra Governments agriculture sector strategy is based on overall strategy of GoI relating to agriculture which stipulates 4% annual growth rate in this and allied sectors. 10. To ensure better returns of produce to the farmers, agriculture marketing sector needs strengthening for which GoM has clear policy embodying long term vision for Agriculture Marketing. The GoM has the Vision: To develop vibrant, transparent, competitive agricultural marketing system in Maharashtra by 2015, in which private sector will have very decisive role, and, the State acting as facilitator, resulting in better price to producers, non exploitation of the consumers, creating huge employment in the sectors allied to agriculture emerging out of backward and forwards linkages, which will help the economy to grow at faster pace. The GoMs policy envisages reduction in the number of commodities which can be regulated over a period of time. As on 31/3/2010 the number of commodities included in the schedule (Maharashtra Agriculture Produce Marketing (Development and Regulation), Act, 1963 ) which can be regulated is 138. 4

11. Some of the major constraints in achieving better results in these sectors are: (i) Lack of coordination among concerned line departments, (ii) No convergence of the schemes, (iii) The schemes implementation is not integrated, (iv) End to end approach is missing, (v) Inadequate availability of funds, (vi) Inadequate infrastructure in agricultural marketing system, (vii) Lack of adequate arrangements to carry the marketing information and marketing intelligence to the producers, (viii) Inadequate risk mitigation measures, and (ix) Lack of alternate marketing system, coupled with poor knowledge of agricultural marketing. 12. The State Government has already amended the Maharashtra Agriculture Produce Marketing (Development and Regulation), Act, 1963 (APMC Act) on the lines of Model Act on Agricultural Marketing circulated by Government of India (GOI). The amended Act provides for various reforms like provision for contract farming, direct marketing, establishing private markets and farmer-consumer markets. Maharashtra agriculture Competitiveness Project (MACP) 13. The Maharashtra Agricultural Competitiveness Project (MACP) is proposed to address the issues mentioned above. Agriculture comprises of Crop Husbandry, Horticulture, Dairy, Animal Husbandry and Fisheries. The departments that are included in the Maharashtra Agriculture Competitiveness Project (MACP) are Agriculture, Animal Husbandry and Agricultural Marketing. In view of National Dairy Plan and National Fisheries Development Project being formulated at GoI, Sub-Components / activities pertaining to Dairy and fisheries have not been included in the project. Explanation: For this project Department of Agriculture means Agriculture, Animal Husbandry, Dairy Development and Fisheries Department, Animal Husbandry Department means Agriculture, Animal Husbandry, Dairy Development and Fisheries Department, and Cooperation & Marketing Department means Cooperation, Marketing & Textiles Department. 14. Agriculture as an activity is subjected to serious risk of natural conditions & price risk. Studies in this sector and in dairy and fisheries sectors have been proposed in the project which will be undertaken by independent consultants under the technical oversight of Agri Business Promotion Facility (ABPF) and the Project. The results of these studies so conducted, will be reviewed during the First Mid Term Review (MTR) of the project at the end of 2 nd year of the project. Based on the recommendations of studies decision whether to include activities relating to dairy, fisheries and agriculture insurance in the project for remaining four years would be taken. 15. The productivity improvement and production of improved quality of various agricultural produce is absolutely necessary to make agriculture viable. The thrust so far has been on increasing the productivity, and therefore, the extension machinery of the departments concerned was targeting to increase the production. Market led extension was totally lacking and this resulted in poor understanding of agricultural marketing by the concerned departmental agencies and the producers. 16.Various national programmes like Rashtriya Krishi Vikas Yojana (RKVY), National Horticulture Mission (NHM), and National Food Security Mission (NFSM) are implemented in the State. The proposed MACP, with the assistance of the WB, is one of the many steps being taken by the GoM, to address the various issues and constraints in development of agriculture. The components and subcomponents under MACP are based on the ingredients of the overall strategy of the State mentioned above. MACP aims to enhance the productivity in agriculture and improvement of quality production through capacity building of producers with the help of ATMA programs. In order to enable farmer to fetch competitive price for the agriculture produce, various alternative channels of marketing are proposed to be developed, besides strengthening the present marketing structure, by way of modernization.

I. (ii) PROJECT DEVELOPMENT OBJECTIVES

1. The Project Development Objective (PDO) and overall objectives of MACP are outlined below. The Project proposes to improve the productivity and quality of produce in agriculture and allied sector by various interventions proposed under Component A. The objective of better and reasonable returns to the farmer of his produce can be achieved if the farmer access to the markets is improved. This has been proposed to be achieved by infrastructure development and creating alternative marketing channels under Component B. For management of Components A & B of the Project, Component C, i.e. Project Management is proposed. 2. Project Development Objective (PDO) is stated as To increase productivity, profitability and market access of the farming community in Maharashtra. The proposed MACP aims to achieve the following: i) Build on the reformed extension system based on Agricultural Technology Management Agency (ATMA) concept through training, capacity building and knowledge transfer to the farmers with emphasis on market-led extension. ii) Contribute in increasing productivity, and quality of production, diversification of enterprise and income of farmers, thereby improving opportunities for employment and livelihood support, both in farm and in the non farm rural economy. iii) Aim to increase private sector investment in agriculture and allied sectors, and, promote more effective use of the government funds already being allocated to the line departments for extension and adaptive research. iv) Improve competitiveness of farmers, to capture increased income generating potential associated with a shift in the demand towards high value agriculture and higher quality of produce to meet greater urban demand. v) Enable farmers to respond positively to the changes in emerging markets with the support for improved product quality, product standards and realization of value addition opportunities. vi) Assist the State Government to address the critical issues of linking farmers more effectively to the markets and to foster the development of efficient and competitive marketing systems. vii) Expand market opportunities for the farmers, diversifying marketing channels. It would establish and strengthen the backward and forward linkages for the farmers through Growers Associations and with the help of private partnership. viii) Encourage private investment in the markets and agri-business in the state. 3. Various components and sub components in MACP and their component-level objective can be enumerated as follows: Component A: Intensification and Diversification of Market led Production (i) A1: Market-led Agriculture Technology Transfer (Objective: To increase the productivity of agriculture production by adopting modern technology.) (ii) A2: Agri Business Promotion Facility (Objective: To create trained manpower to operate and manage the infrastructure facilities.) (iii)A3: Market Information Services (Objective: To improve market access for enhancing the marketing opportunities for farmers.) (iv) A4: Livestock Support Services (Objective: To strengthen sources of alternative income to farmers.)

Component B: Improving Farmer Access to Markets (i) (ii) B1: Promoting Alternative Markets B1.1: Product Aggregation and Sale through Producers Association (Objective: To provide improved post harvest handling facilities at village level.) B1.2: Warehouse Receipts Development (Objective: To improve the capacity of farmers on price risk mitigation.) B1.3: Rural Haat Markets (Objective: To strengthen alternative marketing channel of traditional rural haats.) B1.4: Introducing e-Marketing Platform (Objective: To establish e-trading as one of the alternative marketing channels.) B2: Modernizing Existing Markets

B2.1: Modernizing Wholesale Markets (Objective: To improve transparency in all APMCs and to provide basic and productive infrastructure.) B2.1: Upgrading Livestock Yards (Objective: To improve transparency in all Livestock Markets and to provide modern infrastructure.) 3. The various interventions are designed in MACP components and sub-components to achieve the PDO. The Project Outcome Indicators are enumerated below: (i) The share of wholesale and retail price received by the farmer, (ii) Changes in crop yields, (iii) Compliance with business standards by office of Director of Marketing, (iv) Degree of price integration across markets in Maharashtra, (v) Changes in farmers house-hold income in real terms. 4. The Intermediate Outcome Indicators are as follows: (i) Farmers adopting improved production techniques and management practices in agriculture, (ii) Increase in farm diversification, (iii) No. of agri-preneurs and PAs (FGs, if available) accessing govt. schemes, (iv) No. of farmers utilizing market information services via SMS, (v) Increase in no. of goats in the target area, (vi) Commodities aggregated through FGs and FCSCs, (vii) No. of farmers obtaining warehouse receipts, (viii) Volume and value of sales of market transactions in Rural Haats (RHs), (ix) Change in lease value of RHs, (x) Volume and value of sales of products traded through the E-marketing pilots, (xi) Volume and value of sales of market transactions in APMCs. 5. There are also some important Social and Environmental Indicators such as: (i) Volume of organic waste generated at targetted mandis, (ii) Representation of women and tribal in market management committees. 6. As regards to improved project management and satisfactory monitoring and evaluation following are the indicators: (i) Annual project plan prepared, submitted and approved, (ii) Monitoring reports of satisfactory quality submitted every six months, (iii) Submission of 2 evaluation reports of satisfactory quality. 7. Considering the project development objectives the Project design has been developed which is described in the following chapter. ***

I. (iii) PROJECT DESIGN

1. As mentioned in Chapter I (i), a lot of efforts are being put in by the State Government to increase the production with the help of technology up-gradation and dissemination of technology amongst the farmers. However there are critical gaps existing in the present system, described in Chapter I (i), because of which the producers are not in a position to get the reasonable value for their produce. 2. To address these critical gaps the following Components and Sub-components are proposed in the MACP. All the subcomponents have been considered in an integrated manner so that maximum benefit is achieved by the farmers. Component A : Intensification and Diversification of Market Led Production A.1: Market Led Agricultural Technology Transfer A.2: Agri. Business Promotion Facility A.3: Market Information Services A.4: Livestock Support Services Component B : Improving farmer Access to Markets B.1: Promoting Alternative Markets B.1.1 Product Aggregation and sale through Producers Association B.1.2 Warehouse Receipts Development B.1.3 Rural Haat Markets B.1.4 Introducing e-Marketing platforms B.2: Modernizing Existing Markets B.2.1 Modernizing Wholesale Markets B.2.2 Upgrading Livestock Yards Component C : Project Management C.1 Project Co-ordination Unit (PCU) and Project Implementation Units (PIUs) C.2 Environnemental and Social Management C.3 Procurement Arrangements C.4 Financial Management C.5 Monitoring and Evaluation C.6 Governance and Accountability Action Plan (GAAP) 3. The various components and subcomponents of MACP mainly focus on the empowerment of farmers as the principal target group. However, the component wise principal target groups and their main project related outputs are enumerated in the following table. Component/ Principal Target Main project-related output Subcomponent Group Component A : Intensification and Diversification of Market Led Production Market Led Agricultural Farmers, Increased productivity, quality Technology Transfer Extension improvement of production and better personnel post harvest handling. Agri. Business Promotion Farmers, PGs, PA, Intensification and diversification Facility specialised agric options through advisory services service providers, agribusiness entrepreneurs Market Information Services Farmers, Farmers have improved access to Extension market information and increased personnel awareness of market opportunities.

Component/ Subcomponent Livestock Support Services

Principal Target Main project-related output Group Farmers/ Sustainability of agriculture as a Livestock business improved because of producers subsidiary activity Component B : Improving farmer Access to Markets Promoting Alternative Markets Product Aggregation and Farmers, PG & Post harvest management improved and sale through Producers PA income to farmers increased. Association Warehouse Receipts Farmers Warehouse receipt credit is available to Development the farmers and distress sale is reduced. Rural Haat Markets Farmers, Targeted markets are modernized and Consumers, farmer access to markets improved. Traders Introducing e-Marketing APMCs, Farmers, Congestion in APMC reduced and platform Traders farmer gets advantage of larger market. Modernizing Existing Markets Modernizing Wholesale APMCs, Farmers, Targeted markets are modernized and Markets Traders farmer access to markets improved. Upgrading Livestock Yards APMCs, Farmers, Targeted markets are modernized and Traders farmer access to markets improved. 4. The Objectives, Output & Outcome Monitoring Indicators, Policy & Regulatory Environment and Proposed / Completed Reforms, Selection Criteria, Activities to be Financed, Estimated Cost, Institutional & Implementation Arrangements, Funds Flow, Fiduciary & Safeguards Arrangements, Governance Risks & Mitigation Measures, and Sustainability are described in detail under each subcomponent. 5. Phase wise implementation: The project would be implemented in all the districts of the State in phased manner as shown below. After the commencement of the project all the subcomponents in First Phase districts will be initiated. The Second Phase will start one & half year thereafter and Third Phase after another one & half year. Phase I Districts Amaravati Akola Washim Yavatmal Buldhana Jalna Aurangabad Parbhani Hingoli Ahmednagar Phase II Districts Nagpur Wardha Bhandara Gondia Chandrapur Gadchiroli Latur Beed Osmanabad Nanded Solapur Phase III Districts Sindhudurg Ratnagiri Raigad Thane Nashik Dhule Jalgaon Nadurbar Pune Satara Sangli Kolhapur

Sr. No. 1 2 3 4 5 6 7 8 9 10

Sr. No. 1 2 3 4 5 6 7 8 9 10 11

Sr. No. 1 2 3 4 5 6 7 8 9 10 11 12

A brief description of the components of this Project is given below: Component A: Intensification and Diversification of Market Led Production. 6. This component has four sub-components: A.1 A.2 A.3 A.4 Market Led Agricultural Technology Transfer Agri. Business Promotion Facility Market Information Services Livestock Support Services

7. Market Led Agricultural Technology Transfer: Besides infrastructure development proposed under Component B of the project, a number of activities of capacity building are proposed under the project so that infrastructure created under Component B is properly operated and managed and it gives maximum benefits to the farmers. The programmes of capacity building form Component A of the project are going to be implemented in the catchment areas of activities under Component B. The objective of this component is to promote intensification and diversification of agriculture (including crops, horticulture, and livestock) by mainstreaming the Agricultural Technology Management Agency (ATMA) model of extension and expanding its scope of activities to include marketing extension, so that improvement regarding productivity and quality of production is achieved and Farmer gets better value for his produce. 8. The present extension system is largely production centered and little attention is being paid to agricultural technology transfer. The capacity building programmes including training, demonstrations, field visits proposed under this component will give emphasis on transferring the agricultural technology. The extension machinery of Agriculture and Animal Husbandry dept. will also be reoriented to carry out agriculture technology transfer besides production oriented extension activities. 9. All ATMAs require considerable strengthening for effectively undertaking marketing extension and technology dissemination programs to improve competitiveness of agriculture in Maharashtra. There is no dedicated manpower for the ATMAs, and the ATMA program is being implemented as a stand alone scheme of the Commissionerate of Agriculture rather than as a program for promoting convergence and integration of the development and extension programs covering crops, horticulture and livestock at the district, block and village levels. The VANAMATI also does not have adequate resources for capacity building and mentoring of ATMAs in marketing extension. The coordination of the ATMA program with the Animal Husbandry department and Agriculture Marketing Department needs to be strengthened. 10. Agribusiness Promotion Facility (ABPF): Component B under the Project envisages improvement of the existing market infrastructure and creation of new infrastructure. Alternative markets will provide the producer the freedom to make choice of the market. Under Component A capacity building programmes have been proposed for improving productivity and quality enhancement. Considering the present level of agricultural production in the State, there is a tremendous potential for development of agribusiness activities. Agribusiness can provide additional support to the farmers by way of value addition, if these activities are taken up by the farmers / PGs / PAs / Farmers Cooperatives. Agribusiness activities will be related to agriculture production, per se, creating backward linkages, e.g. providing organic manure to the farmers, and, forward linkages, e.g. food grain handling unit to clean, grade and pack food grains. ABPF will be an independent agency which will work in close association with PCU of the Project. The ABPF will operate in the catchment areas of subcomponents under Component B. 11. The role of the ABPF is to create a body of knowledge, a network of producer / market linkages and an ongoing flow of useful information which will accelerate the economic development of agricultural sector of Maharashtra. There will be four major components for ABPF: i) Overall 10

co-ordination and implementation of the program, ii) Conduct value chain studies, iii) Study new business models, and iv) Consultancy studies for (a) carrying out major studies on subjects like finance, policy and e-trading, (b) relatively short studies on implementation of APMC laws, (c) conducting seminars, workshops, and clinics, (d) bringing out publications, (e) providing trading support to PGs / FCSC agribusiness, and (f) training for ATMA business advisors, (g) The major Consultancy Studies by ABPF will include study of Dairy, Fisheries and Agricultural Insurance for their possible inclusion as project investment at a later date. The funding of these studies will be considered at the time of First Mid Term Review (MTR) and assessed whether these components can be included for additional Financing under MACP. These studies will be contracted out by PCU and will be conducted under the technical oversight of ABPF. Two additional activities, viz. process for facilitating Maharashtra Agribusiness, and Producers Organisation to access GoI grants and process for review discussion & development of improved designs for wholesale markets will be developed by ABPF. 12. Market Information Services: The Component A of the Project aims to improve the productivity and quality of the agricultural produce mainly through training and capacity building of farmers, whereas, the Component B of the Project has the objective of providing improved marketing infrastructure facilities for the farmers. In accordance of the overall objective of the Project, the component of MI empowers the agricultural producers to be able to take advantage of the global opportunities. As the absence of awareness about market information and intelligence is one of the main reasons for inadequate returns in agriculture, there is a need for improvement in agricultural marketing system including dissemination of market information and intelligence to the farmers. At present, APMCs disseminate some market information in the market yards only and that too in respect of the APMCs market area. Considering the globalization, it is necessary that farmer gets the market information about arrivals, prices, and quality standards of various commodities, not only from one market area, but from other market areas in the country and if possible from various countries of the world. This will enable the farmer to have increased access to the markets and will be able to get better prices. MI subcomponent is designed to upgrade MSAMBs website, and, make market information and intelligence available to the farmers. Likewise, SMS service is proposed to be enhanced for this purpose. MSAMB will be the implementing agency for this subcomponent with the help of SP. 13. Livestock Marketing Development: The existing extension system is poor which affects rapid growth and sustainability of livestock sector. Small ruminant farmers are disorganized resulting in their poor financial status. Likewise though the meat trade is growing, slaughter houses are unhygienic. The database relating to livestock is also inadequate unlike database for crop sector. Considering these gaps in the livestock sector, the subcomponent for livestock market development has been proposed which aims at improvement in marketable healthy livestock supply and greater access of livestock farmers to the existing markets. B.1 Promoting Alternative Markets: 14. Produce Aggregation and Sales through Producers Associations: Farmars Common Service Centers (FCSCs) have been thought as centers for produce aggregation to access alternative marketing channel to empower the producers. The FCSCs will be small scale commercially viable service entities owned and operated by Producers Associations (PAs). The PA may be a federation of the Producer Groups (PGs) of 10-15 active farmer members in each group and 1520 PGs in a village or cluster of villages within the radius of 5 KM coming together or by 250 to 300 producers coming together. The PA may be registered as society under Societies Registration Act 1860 or as Producers Company under the Indian Companies Act 1956. Each PA will have around 250 to 300 members. 15. It is proposed to establish 200 FCSCs of the food grain growers and 200 FCSCs of the horticulture producers. The FCSCs will have basic infrastructure for aggregation of the 11

produce, it's cleaning, grading and packing. It is proposed that 10% of FCSCs will graduate to the higher level organizations where additional infrastructure like weighing machine, godowns, auction hall, and cold storage would be constructed. The wholesale marketing activities will take place at these higher level FCSCs besides aggregation, cleaning, grading and packing of the produce. The State Govt. has already issued the Order No. KriViA / CR 47 / C-21, dated 18 /11/2008 exempting AgriMarts / AquaMarts, PGs and Cooperatives from the restrictive provisions about minimum requirements to be fulfilled. This exemption is applicable to FCSCs also. 16. The actual infrastructure to be created at FCSCs will be need based and will be finalized by FCSC with the help of NGO/ company/any other legal entity as service provider (SP). The SP will also be responsible for mobilizing groups, formation of PAs and other related activities. 17. Warehouse Receipts Development: The warehouse receipt programme will be promoted to minimize the price risk and make the credit available to the producers against the warehouse receipts through the banks. The Maharashtra State Warehousing Corporation (MSWC), a profitmaking State Govt. undertaking having the main function of warehousing, will be the main organization implementing this subcomponent. MSWC has identified 40 warehouses in Maharashtra for implementing this programme and has entered into an agreement with the National Commodities & Derivatives Exchange Ltd. (NCDEX). 18. Rural Haat Markets: There are around 3500 Rural Haats in the State. These Haats are managed by the Gram Panchayats at the village level and do not attract the provisions of the APMC Act. Around 300 Rural Haats are proposed to be upgraded in the project. The selection process for the Haats will be similar to that of the APMCs, i.e. a two stage process of Project Concept Note (PCN) and Full Project Proposal (FPP). The scrutiny of the proposals received will be performed by the same Approval Committee formed for the scrutiny of the PCN and FPP of APMCs. The Rural Haats will be required to provide 10% of their own contribution for basic infrastructure with balance of 90% from the project. The details of selection, implementation of Haat activities have been spelt out in the relevant chapter. Ten percent of RH will be considered for stage II (productive) infrastructure with 75% grant from the project. 19. Introducing E-Marketing Platforms: As a part of developing alternative marketing channels, Emarketing to provide virtual trading facilities to the agricultural producers and the respective traders is proposed under the Project. The development of this subcomponent will have three phases. In the first year of the project first phase will be completed involving study of the options, policy implications, and alternative technological solutions. The second year will involve testing of two alternative virtual market solutions. During the third year and thereafter up to 6th year of the project 294 locations will be covered by promoting E-trading activities. B.2 Modernizing Existing Markets 20. Besides establishing the alternative marketing channel which is the thrust area of this project, the existing agricultural Marketing system, i.e. APMCs and LSMs, need to be provided with modern infrastructure so that, the farmer has access to wider marketing system. In large number of APMCs the basic as well as productive infrastructure for agriculture marketing is inadequate. This component is designed keeping in view the above situation. There are 294 APMCs in the State governed by Maharashtra Agricultural Produce Marketing (Development & Regulation) Act 1963 (APMC Act). The State Govt. has introduced marketing reforms by amending the APMC Act in 2006 and the Rules under the Act were promulgated in 2007. These amendments are based on the lines of Model Act circulated by GoI. It is proposed to strengthen basic and productive infrastructure in selected APMCs. 21. This program is designed to promote modernization and improvement of 100 APMCs, 20 Live Stock Markets (LSM) and 4 markets for Small Ruminants (SRs). The APMCs / LSM to be

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included in the modernization and improvement programme will be selected on the basis of predefined selection criteria. 22. Selection Process: Project Implementation Unit (PIU-MSAMB) will undertake awareness campaign to inform the potential beneficiaries about the project and on the eligibility criteria to access the grant. It will make formal calls for proposal and the PIU-MSAMB may decide on the number of calls depending on the demand from the participants. PIU, MSAMB would be responsible for handling all matters of the day to day management of calling and scrutinizing these proposals. A two-stage screening process will be employed by PIU-MSAMB for screening of the proposals viz., Project Concept Note (PCN) and Full Project Proposal (FPP). After receipt of the PCN, the same will be examined and short-listing of the eligible institutions will be done by the Approval Committee consisting of following members. This committee would be called as PCN Technical Evaluation and Approval Committee. Same committee will function as FPP Evaluation and Approval Committee. i. ii. iii. iv. v. Nodal Officer - PIU (MSAMB) Sr. Accounts Officer- PIU (MSAMB) Civil Engineering Specialist - PIU (MSAMB) Market Field Engineer - PIU (MSAMB) Officer Incharge- APMC PIU (MSAMB) : Member : Member : Member : Member : Member Secretary

The detail selection process has been described under the relevant Chapter on Modernizing Wholesale Markets and Upgrading of Livestock yards. 23. Viability Gap Funding (VGF): Objective of the competitive selection process is to provide additional financial support to eligible bidder viz. VGF, over and above the subsidy that is available under the Project. The eligible bidder would be selected through a transparent and open competition where all technical evaluation criteria being equal, the financial support requested as VGF, shall be used for selecting the winning bidder. The VGF is available only for the basic infrastructure and not for the productive infrastructure in APMCs. These criteria would be used only for the selection of APMCs as the APMCs are required to provide, for basic infrastructure, 50% of project cost as their own contribution, 25% as the project grant and the maximum VGF upto to 25%. For productive infrastructure APMC would get 25% assistance from project and 75% will have to be contributed by APMC from own funds. Though actual VGF will be calculated in FPP of the short-listed APMCs by the service provider, the initial short-listing of APMCs will be based on VGF demanded in PCN provided the other selection criteria are met. Capacity Building & Training: 24. Various training programs are proposed in this project, under Component A, for capacity building and empowerment of farmers, farmers groups, personnel involved in extension activities of various line departments and the officers and staff concerned in handling and management of infrastructure to be created under Component B. 25. The MACP includes a strong element of capacity building through trainings and exposure visits. It is estimated that the total number of formal learning courses will amount to over 6,600. The SP delivering SMS agricultural information will need to provide training to (i) Field Extension Officers and (ii) those who will be provided with the SMS service by the project (iii) training to the potential buyers of the SMS service. The SP operating the ABPF will organize buyer-seller meets, local seminars and trainings to the ATMA Agricultural Marketing Advisers. 26. The bulk of these courses will be provided / organized by the ATMA. The training courses provided by ATMA are estimated to be over 4,100 which will be needed to be given to mobilize PGs / PAs and other farmer groupings. A further 2,400 courses will be designed to enable the group to build expertise and understanding the elements of successful operation. These courses will be organized in phases and will include training on markets, access to 13

finance, post harvest issues in the first phase, FCSC operation and livestock markets in next phase, followed by business management and specialized technical training in subsequent phases. The training of Lady Link Livestock Workers (LLLW), which will be focused in the areas of the new livestock markets, will require 100 courses. 27. In order to prepare the field functionaries and officers to undertake MSS and to be more market focused, including the use of market information, following number of courses would be undertaken. Estimated Number of Courses to be Provided per Project Year (PY) Particulars PIU, MSAMB SP ATMA Total Courses Per Year PY 1 0 0 0 0 PY 2 27 500 820 1347 PY 3 28 500 820 1348 PY 4 29 500 820 1349 PY 5 29 500 820 1349 PY 6 28 400 820 1248 Total 141 2400 4100 6641

The details of the training programs in Component A and the training cost on various training programs proposed in this project are given in cost tables. Component C: Project Management 28. For the overall policy issues, a High Power Committee, headed by Hon. Chief Minister of Maharashtra and all the concerned Ministers as the members, has been constituted. A Steering Committee headed by the Chief Secretary has already been set up for coordination in implementation. The Principal Secretaries of the line departments, the Principal Secretary (Planning) and the Principal Secretary (Finance) are the members of the Steering Committee. The Principal Secretary (Coop. & Mktg.) has been designated as the Nodal Officer of the Project at the State level. For day to day management of the Project the PCU has been set up at Pune, which is functioning under the control of the Principal Secretary (Co-operation & Marketing). Similarly Project Implementation Units (PIUs) have been set up for each of the line department to monitor and supervise the implementation of the activities pertaining to the concerned departments. The issues relating to Environmental and Social Management, Procurement, Financial Management, Monitoring and Evaluation, and Governance and Accountability Arrangements are addressed under Component C. 29. Integrated Approach: MACP has mainly three components viz.: A) Intensification and Diversification of Market Led Production, B) Improving farmer Access to markets, and, C) Project Management. While under Component B, the infrastructure is proposed to be created to improve farmer access to the markets, under Component A the issue of capacity building of the farmers has been addressed. The project is so designed that the subcomponents under Component B and the subcomponents under Component A result in an end to end approach. 30. The subcomponents proposed to create backward and forward linkages in such an integrated manner that all subcomponents are supplementary and complementary to each other so that the objectives of project are best achieved. The activities in the subcomponents of Component A will be undertaken in the catchment areas of the various activities proposed to be taken up under Component B. This integrated approach has been kept in mind while designing this project. 31. Funding pattern and mode of release of Funds / Financial Arrangements: The funding pattern for the subcomponents in the project will be as shown in table below:

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Project and GoM Beneficiary Contribution*% Contribution% A. Intensification and Diversification of Market Led Production A.1 Market led Agri. Technology Transfer 100.0 A.2 Agri-Business Promotion Facility 100.0 A.3 Market Information Services 100.0 A.4 Livestock Support Services** 100.0 B.1 Promoting Alternative Markets B.1.1 Product aggregation and sale through Producers Associations -- Stage-I Investments 75.0 25.0 -- Stage-II Investments 50.0 50.0 B.1.2 100.0 Warehouse Receipts Development B 1.3 Rural Haats Markets -- Basic Infrastructure (Stage I) 90.0 10.0 -- Productive Infrastructure (Stage II) 75.0 25.0 B.1.4 100.0 Introducing E-Marketing Platforms B.2 Modernizing Existing Markets B 2.1 Modernizing of Wholesale Markets -- Basic Infrastructure*** 50.0 50.0 -- Productive Infrastructure 25.0 75.0 B 2.2 Upgrading Livestock Yards -- Basic Infrastructure 100.0 C. Project Management C.1 PCU & PIUs 100.0 Sr. No. Component & Subcomponent * This includes 10% from GoM funds and 90% from Project funds. ** 100% grant for capacity building and 50% grant for Supply of buck & Chaff-cutter. *** Includes 100% grant for setting up computerized auction system. 32. The total cost of the Project is estimated at Rs. 703.95 crore, out of this the World Bank contribution would be around Rs. 461.21 crore (65.52%), the beneficiary contribution would be Rs. 191.02 Crore (27.13%) and State Governments contribution to be Rs. 51.72 Crore (7.35%). The fund flow arrangement in the project would be largely based on the Budget Distribution System (BDS) (electronic fund transfer) except for some components where funds will flow through BDS up to a particular stage & beyond that, these will be kept in separate bank accounts to be operated by designated authorities. The States mainstream accounting system maintained by the State Accountant General (Accounts and Entitlements) / monthly Drawing & Disbursing Officer (DDO) accounts The fund flow arrangement of the project has been spelt out in chapter on Financial Management, wherein the stages of fund disbursement and the roles of Drawing Disbursing Officers (DDOs) have been defined. All these Subcomponent are described in the following Chapters giving details of activities to be supported by activity schedule, cost estimates and other relevant information. ***

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COMPONENT A INTENSIFICATION AND DIVERSIFICATION OF MARKET LED PRODUCTION A.1 MARKET-LED AGRICULTURAL TECHNOLOGY TRANSFER
I. Objectives: 1. This component aims to improve the competitiveness of small farmers that would allow them to capture increased income generating potential associated with a number of emerging trends in Indian agriculture, including: (i) shifting demand towards high value agriculture and higher quality of produce, (ii) greater urban demand, and (iii) the move of large corporations into agricultural marketing. The project intends to put in place a process that would empower small farmers to be able to respond positively to these changes in the food market by creating enabling conditions and support for production systems diversification, increased farm productivity, improved product quality and standards, and realization of value addition opportunities. 2. The project would support models that allow farmers to obtain a larger slice of the retail rupee by fostering the establishment of forward linkages and the emergence of balanced, efficient and open supply chains. Doing so would open up a third marketing front, besides existing regulated markets and direct purchase arrangements. The direct purchase arrangements as currently pursued by large corporations also run the risk of excluding small farmers and potentially marginalizing farmers into becoming providers of raw materials in closed supply chains. The project offers the prospects of both improved prices for producers and increased productivity that better match with consumer demand. The farmers should be enabled to tune their production to changes in demand and to take advantage of new and alternative marketing channels as well as the potential of new technologies. 3. The GoM has already initiated actions to implement Agricultural Technology Management Agency (ATMA) model of agricultural extension in all the 33 districts of the state. The ATMA model was introduced in Ahmednagar, Amravati, Aurangabad and Ratnagiri districts under the aegis of the National Agricultural Technology Project (NATP) from 1998 to 2004. It was extended to 19 districts, including previous four ATMAs, in 2005-07 under centrally sponsored scheme Support to extension programme for extension reforms. The remaining 14 districts have adopted the ATMA model of extension during 2007-08. 4. The implementation experience has brought forth certain deficiencies in the working of extension system. The main reason for this is that the ATMA concept is being implemented as a stand-alone scheme of the Department of Agriculture rather than as a program for promoting convergence, integration and inter-departmental coordination at the district, block and village levels. The major constraints are: Lack of convergence in programs of different line departments. Lack of provision for dedicated manpower at various levels. Inability to use funds allocated by GOI for ATMAs. Lack of infrastructural support below district level. Inadequate support for growers associations and farmers organizations. Inadequate focus on market-led extension.

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5. In this context, knowledge and technology transfer will play an important role, something that the project aims to achieve by creating conditions that would allow the ATMA based model of extension to reach its full potential. In addition, the project intends to make agricultural markets more efficient by creating enabling conditions and support for reducing spoilage, generating economies of scale in output marketing and input supply, and fostering increased competition among the buyers of agricultural produce. 6. Marketing extension employs the same best practices as in production extension, in that it focuses on enabling farmers to learn for themselves (i.e. experiential learning) but the focus is on empowering producers to be able to engage directly with the market. The processes normally involve the extension officer taking a group of farmers through a semi-structured training course. Topics include resources audit, simple economic and costing analysis, carrying out own market research, direct interaction with the traders, training in post-harvest handling and marketing planning. There is a need to include traceability, sanitary and phyto-sanitary standards in the training programs for line department staff and farmers. 7. This component will facilitate intensification and diversification of production by: making extension and adaptive research more relevant and accessible to farmers; encouraging the introduction and adoption of more effective agricultural production systems; reducing the risk associated with change, especially for small operators; and focusing on marketing extension.

8. This will be primarily addressed by mainstreaming ATMA activities, and improving the ATMA focus on market-led extension. The scope of Strategic Research and Extension Plans (SREPs) prepared under the centrally sponsored scheme will be enlarged to cover marketing extension and marketing related activities. Since the SREPs for most of the districts have recently been prepared, for each district a Marketing Strategy Supplement (MSS) will be prepared which will supplement the agricultural production enhancing aspects covered under the SREPs. 9. The project component A seeks to focus on the strengthening ATMA programme to facilitate market-led extension. This will call for reorientation of the extension functionaries to focus on improved productivity, quality, market information and improved methods of marketing based on the updated market information and intelligence. This renewed focus on ATMA extension system would necessitate strengthening ATMA by institution and operation, making them vibrant and efficient to face the emerging challenges in agricultural production, marketing and agri-business. 10.The focus would be on ways and means for developing and strengthening interdepartmental linkages to support not only Farmers Common Service centres (FCSC) but also for providing support to the farmers in all the districts to achieve increased income from their land based occupations involving crops, horticulture and livestock. The effort would be to implement ATMA programme as an integrated, demand-led and farmer-centered programme of all line departments with special focus on marketing extension in all the districts of the state. 11. The SREPs for all the districts in Maharashtra have recently been prepared and cover the production aspects of field crops, vegetable, fruit, ornamental, spices and medicinal plants and livestock. Under this Project the Marketing Strategy Supplement (MSS) to the SREP will be prepared for each district focusing on what needs to be done to improve market- led production, marketing related training of line department staff and farmers and linkages with the investments proposed for improving marketing infrastructure under component B of the project.

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II. Outcome and Output Monitoring Indicators: 12. The outcome and output indicators are as follows: Sr. Outcome Indicators No. 1 Increase in productivity of the agricultural % increase in productivity of important filed production and horticultural crops. 2 Increase in cropping intensity. % Increase in cropping intensity. 3 Shift towards high value crops. % Shift towards high value crops. 4 Increase in marketed surplus. % Increase in marketed surplus. 5 Increase in producer price realization. % Increase in producer price realization. 6 Savings from reduction in spoilage. % Savings from reduction in spoilage. 7 Reduction in marketing cost. % Reduction in marketing cost. 8 33 ATMA strengthened and functioning Number of ATMA strengthened and regularly functioning effectively. 9 66 FIAC set up, strengthened and Number of FIAC strengthened and functioning functioning effectively. 10 Officer Sensitization workshops No. of Officer Sensitization workshops organized (66) completed 11 Documentation of success stories and No. of success stories and special studies Special Studies completed completed and presented 12 State level workshop conducted (12) No. of State level workshops conducted 13 Strengthening of VANAMATI (1) % increase in no. of participants trained 14 Strengthening of Horti. Processing % increase in no. of participants trained Training Center, Aurangabad (1) 15 Strengthening of Animal Husbandry % increase in no. of participants trained Training Center, Pune (1) 16 Total number of activity schedules % of targeted number of activity schedules developed by ATMA (33) developed by ATMA 17 Total number of approvals of MSS by % of targeted number of approvals of MSS ATMA (33) by ATMA 18 Total number of trainings (batches) % of total targeted number of trainings conducted (24+84+4100+500= 4708) (batches) conducted 19 Total No. of FIG / CIG / PG formed % of total targeted number of FIG / CIG (6700) formed 20 Total no. of demonstrations organized % of total targeted number of (Crop Demo. 13050 + Org. Fmg. 380 + demonstrations organized Post HM 1000 + Animal WF 1500 + Fodder Pdn. 2500 = 18430 ) 21 Total no. of buyer-seller meets organized % of total targeted number of buyer-seller (170) meets organized 22 Total no. of exposure visits organized % of total targeted number of exposure (141) visits organized 23 Strengthening of growers associations / % of targeted growers associations / farmer farmer organizations (15) organizations strengthened 24 Total Innovative pilots implemented No. of Innovative pilots implemented successfully (57) successfully Note- CIG / FIG / PG would be the focal point in the catchment area of activities around infrastructure described in Component B and the activities as described above would be suitably carried out by each CIG / FIG / PG as per their need based demands. Sub-division of all the above

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activities in a project mode under each initiative of Component B would be the precondition for release of project funds to ATMAs. III. Policy and Regulatory Environment: 13. Following are the issues related to policy & regulatory environment: i. Department of Agriculture (PIU-Agriculture) is the main implementing agency of this component. It is the only agency at present for agri-extension. ii. It envisages the strengthening of the various institutions within the framework of the business rules of those concerned institutions to expand their role in extension. iii. The implementation of the component will be guided by the Inter Departmental Working Group (IDWG) and its sub-committee on policy and regulatory matters related to extension. iv. ATMA is a district level organization under the chairmanship of the District Collector. All the districts in Maharashtra are covered. This structure needs to be the main focus point of multi-players extension policy. This component is described under two sub component namely i) Institutional Strengthening for Market-Led Technology Transfer ii) Preparation and Implementation of Marketing Strategies.

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A 1.1 - INSTITUTIONAL STRENGTHENING FOR MARKETLED TECHNOLOGY TRANSFER

I. Selection Criteria: 1. All ATMAs and Government Training Institutions of the line departments are considered for strengthening under the Project. II. Activities to be financed: 2. For improving market-led extension in Maharashtra, an assessment of ATMAs have indicated the need for strengthening ATMAs in terms of manpower, physical facilities and financial support; and promoting inter-departmental coordination at the state, district, taluka and village levels. The activities to be supported under this sub-component include: Strengthening of ATMAs Strengthening of Farm Information and Advisory Centers (FIACs) Strengthening of Inter-Departmental Working Group (IDWG) and Inter-Departmental Coordination

Strengthening of ATMAs 3. Contractual Services of Agricultural Marketing Expert: The focus of extension would shift from production to productivity, quality of production, marketing and increased income of the farmers. This would be achieved by following good agricultural practices, cost effective and intelligent marketing of the farm produce. Increased emphasis would be placed on post harvest management, value addition, traceability. This would create a number of agri-business opportunities culminating in formulation of bankable projects, commercialization / business plans. The Common Interest Groups / Farmers Interest Groups (CIGs/FIGs) getting organized around a particular commodity for services would need to be guided, mentored and facilitated to capture emerging marketing and agri-business opportunities. The present structure of ATMA does not have expertise in this field. The marketing extension to be strengthened through this project would necessitate having the services of one agricultural marketing expert in each ATMA. The marketing expert would be supported by an accountant and computer operator at the district level. This unit of three persons would function under the Project Director ATMA. The services of this unit would, however, be available to all line departments (Agriculture, Animal Husbandry and Agril. Marketing) of ATMA. This functional unit of marketing extension would also constantly liaise with ABPF at state level, so as to get inputs and guidance regarding programme implementation and development of location specific strategies. It will be in touch with the service providers facilitating setting up of FCSCs. It will help in developing Marketing Strategy Supplement (MSS) to the SREP for the district and identify specific production and commercial activities to be focused on every year. The services of agricultural marketing expert, accountant and computer operator would be hired on contract for the project period in all the districts. 4. Equipment, IT and other support for ATMAs: The project will support need based equipment, computers, IT and internet facilities, renovation and rehabilitation of office. Support will also be provided for operational costs, special studies, formation and training of FIGs, farmer federations and commodity associations, preparation of CDs, videos. The provision for information technology support would be available at district / FIAC level which would be shared with the relevant line departments involved in MACP.

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Strengthening of FIACs: 5. The Farm Information and Advisory Centre (FIAC) will act as the extension planning and operational arm of ATMA. It is a common meeting point for line departments to prepare detailed extension programme and coordinate their implementation at the taluka level. It is a level where farmer input can be effectively mobilized through a Farmer Advisory Committee (FAC). The FIACs are housed at Agri Clinics / Taluka Seed Farms at taluka level. Support will be provided for setting up two FIACs in each district. The selection of blocks where FIACs will be set up will be linked with the locations where improvement of marketing infrastructure is supported under component B. 6. Special studies: The market potential of major commodity and supply chains in a given district needs to be assessed. This will help agri-preneurs and farmer groups to suitably organize/modify their business activities taking into consideration the marketing potential. The study of this nature requires expertise in agri-marketing /agribusiness. The information generated through this kind of special studies will be shared with FIACs, agri-preneurs and other stake holders. The special studies would be got done by the reputed experts in private sector through ABPF. The detailed cost estimates for strengthening of ATMA are given in the Cost Tables. Strengthening of marketing extension and agribusiness capabilities of VANAMATI, other training centers of line departments: VANAMATI: 7. Contractual staff for Agricultural Marketing, Agribusiness and Monitoring and Evaluation: It is necessary to shift extension focus from production-orientation to market-led extension for increasing farm income by adopting end-to-end approach. Market-led extension will help farmers to minimize the production costs, improve the quality of farm produce, access emerging markets, increase the value of produce, resulting in increased income. VANAMATI will help in technical backstopping, training, capacity building and mentoring of ATMAs with greater focus on market-led extension and sensitization of senior officers of the line departments about the ATMA concept and approach. For this purpose it is proposed to strengthen VANAMATI. For enhancing the managerial capabilities of members of ATMA Governing Board, BTT, FIAC, separate training programmes will need to be organized by VANAMATI. For this purpose one Agricultural Marketing Expert, one Agri-business Specialist, one Monitoring and Evaluation Specialist and one accountant with computer knowledge will be hired on contractual basis and resource persons will be hired from other organizations as per need. To prepare district Marketing Strategy Supplements, special trainings will be organized for extension personnel by VANAMATI. The field level data collection, compilation and preparation of MSS shall be done by the district extension staff and ATMAs under the guidance of VANAMATI. 8. The contractual staff to be hired includes one Agricultural Marketing Expert, one Agribusiness Specialist, one M & E Specialist and one Accountant with Computer skills. 9. Capacity building of VANAMATI faculty members: The focus of agriculture extension system has to be on increasing productivity, improved marketing and enhanced farmer incomes. The entire extension machinery in the project areas has, therefore, to be reoriented to create awareness and understanding about increasing farm productivity and enhancing income of farmers through effective marketing. It would require expanding knowledge base and marketing skills and techniques by the extension management personnel. The VANAMATI being the apex agricultural extension management institute in the state, its faculty members must get trained in the concept and practices of market-led extension and agribusiness to provide leadership and training to the master trainers and district agricultural extension officers. The RAMETIs working at regional level should also have faculty members competent in this area. The training curriculum would include grading, packaging, certification, Agriculture Marketing Act, Rules, 21

contract farming, quality production, GAP, GMP, HACCP, traceability, Agmark, organic certification, market led extension, commodity exchanges, agribusiness opportunities. The Additional Director of VANAMATI along with two faculty members and one faculty member each from seven RAMETIs would be trained under the project at MANAGE, Hyderabad. In addition to the above members 3 persons from the PIU-Agri. will also be sent to MANAGE, Hyderabad for the training. Thus a total of 13 persons will undertake training at MANAGE. There would be five day intensive training programme. The training would aim at making the faculty members expert in this area of knowledge. The cost of this training is shown in the cost table. Similarly, 17 officers from the AHD department will undertake training at IIM, Ahmedabad, the cost of which has been shown in the cost table. 10. Preparation of Training Material and Organizing Trainings: For shifting the emphasis of extension, the apex and regional agricultural extension management training institutes will be required to get a team tuned to and geared up for imparting training in market led extension to the field extension functionaries. These training institutes would be required to develop training material such as training modules, manuals, CDs, videos. Support will also be provided for need based training equipment. The project will provide funds for training of core team for preparation of Marketing Strategy Supplements to SREPs for each district, organizing other trainings, operational funds, TA, DA, vehicle hiring . Support to Line Department Training Institutes: 11. Horticulture Processing Training Institute (HPTI): The Horticulture Processing Training Institute Aurangabad, working under Agriculture Department would focus on giving training to women farmers with the objective of turning them into small scale entrepreneurs in agriprocessing. Being a mobile training institute, the response to this kind of training would increase manifold. The training courses are designed for three to five days. Having regard to importance of training, the HPTI which lacks laboratory and training equipment at present will be supported under the project for acquiring the required facilities. The project would provide investment of Rs. 23.00 Lakh spread over the project. 12. Animal Husbandry Training Centre: The Animal Husbandry Department has a state level training centre in Pune which runs short term training courses for livestock development officers and livestock supervisors. This training centre is in need of training material and equipment for running effective courses. The courses to be run in this center would also need to be refocused with market-led extension concept as envisaged in the project. Five hundred Livestock development Officers and Live Stock Supervisors from the catchments area of selected 20 LSM and 4 SRM in MACP will be trained in this institute for marketing management, disease management etc. 3-5 days course will be conducted. It will be beneficial to motivate and train cattle owners within catchment zone. It will reflect in the increased number of cattle owners taking benefit of developed LSM and SRM under MACP. This will be a strong backward linkage for the development of LSM and SRM component. The cost estimates of these sub-components are given in cost tables of AHD 13. Sensitization workshops: Although the ATMA model of agricultural extension was introduced in the state in 1998, the spirit, objectives and methodology of functioning of ATMA are not fully understood by all line departments. Better awareness and understanding of ATMA model of extension is required at state, regional and district level. The heads, regional heads and district level officers of line departments would therefore need to be exposed and oriented in this approach of extension system. The state level one day workshops for state and regional level officers would be organized. This would help bring about integration in interdepartmental working and facilitate clear guidance from the state and regional level officers to district level officers. The Commissionerate of Agriculture would organize State level workshops while district level workshops will be organized by P.D. of respective ATMAs. This will also 22

facilitate appreciation of the MACP and the strategy for implementing market-led extension through the ATMAs. 14. Documentation of success stories and special studies: It is envisaged that the implementation of MACP would generate a number of success stories across the project area involving all line departments. The typical success stories need to be replicated to enhance the success of project. This would prove as a stimulus for the ordinary farmers to undertake enterprising activity in different spheres of development. Print and electronic media would need to be tapped to disseminate the success stories to as large a number of farmers as possible. The style of writing success stories and treatment of subject is different from normal scientific write up. To make the success stories appealable and generate curiosity; the style of writing has to be crisp. This would be best done by outsourcing the work to professional organization having adequate liaison with media. Nodal Unit/ Project Implementation Unit (PIU) Agriculture: 15. The project will provide funds for strengthening of the Nodal Unit/PIU Agriculture in the Commissionerate of Agriculture which serves as a secretariat for the Inter-Departmental Working Group (IDWG). This will include full time Nodal Officer of rank of Class-I Officer from the Department of Agriculture, Agriculture Officer and Agriculture Supervisor (designated as Community Extension Officer) from the Department besides the contractual staff (Agricultural Marketing Expert, Procurement Officer, Accountant with Computer skill, 2 assistants with computer knowledge and two messengers), need-based renovation of office and furniture, computer and other need based equipment, state level workshops, orientation workshops, special studies, consultancies, operating costs, TA, DA, vehicle hiring. The nodal unit would be headed by the Director Extension & Training. This unit would act as a link between Interdepartmental Working Group (IDWG), ATMAs, other PIUs and Project Coordination Unit (PCU) of MACP. It will guide, supervise and monitor project implementation and initiate corrective actions for effective project implementation. This Nodal Unit will also act as Project Implementation Unit for the project in the Department of Agriculture. The cost estimates for PIU Agriculture are given in cost tables attached in Appendix A1.(i). III. Estimated costs: 16. The total cost of this component is Rs. 2230.90 Lakh). IV. Institutional and implementation arrangements: 17. The implementing department for this subcomponent is Agriculture Department with the help of the field staff located up to taluka level. The active support and help of all the line departments will be taken. Each ATMA will have a Project Director and the District Collector being the Chairman of ATMA will coordinate all the departments. 18. The Inter-Departmental Working Group (IDWG) which was set up in 1998 under the World Bank funded National Agricultural Technology Project (NATP) will give overall policy directions for the functioning of ATMA. For this IDWG needs strengthening for which measures are contemplated under the Project. 19. The key functions of IDWG are: To provide a mechanism for interactions with the Technology Dissemination Management Committee of the Department of Agriculture and Cooperation, GOI; guide the human resource development programs and to monitor the district level technology dissemination programmes; To oversee and support agricultural extension and adaptive research activities being undertaken by the ATMA; and to make policy interventions on inter departmental matters, 23

including policy harmonization and coordination at the state, district and lower level, and issues related to women in agriculture; To promote and establish integrated approach in transfer of technology at state, division, district and taluka level by agriculture and the relevant line departments; To establish effective linkages with different line departments; marketing, input and credit institutions; NGOs, private/corporate sector to promote large scale extension reforms; To internalize new concepts, operational and institutional arrangement which have successfully worked under the pilot ATMAs set up under NATP; and To deal with any other policy and administrative issue related to implementation of the ATMA program, which emerge from time to time.

20. The composition of Inter-Departmental Working Group (IDWG) is as under: Sr. No.
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25.

Designation Principal Secretary ,Agriculture Principal Secretary, Planning or his representative Secretary, Finance or his representative Secretary, ADF Secretary, Rural Development or his representative Secretary, Tribal Development Secretary, Social Justice Secretary, Water & Soil Conservation Secretary, Women & Child Welfare Vice Chancellor, Dr. Punjabrao Deshmukh Krishi Vidyapeeth, Akola Vice Chancellor, Marathwada Krishi Vidyapeth, Parbhani Vice Chancellor, Dr. Balasaheb Savant Konkan Krishi Vidyapeeth, Dapoli Vice Chancellor, Mahatma Phule Krishi Vidyapeeth, Rahuri District Collector of concerned 16 districts Commissioner ( Agriculture) Commissioner ( Animal Husbandry) Commissioner (Dairy Development) Commissioner (Fisheries) Commissioner (Cooperation) Commissioner (Sugar) Director (Marketing ) Director, VANAMATI, Nagpur Managing Director, Maharashtra Agro Industries Development Corporation Ltd., Mumbai Managing Director, Maharashtra Sate Seeds Corporation Ltd., Akola Director (Extension and Training), Commissionerate of Agriculture, Maharashtra State, Pune

Chairman Member Member Member Member Member Member Member Member Member Member Member Member Member Member Member Member Member Member Member Member Member Member Member Member Secretary

Note: It is proposed to include Principal Secretary, Co-operation and Marketing as member of IDWG. District Deputy Registrar of Co-operation department will be included as member of respective ATMA.

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21. In view of the large size of the IDWG, the following Sub-Committee of IDWG will provide oversight and coordination of MACP activities related to this component: Sr. No. i) ii) iii) iv) v) vi) Designation Commissioner ( Agriculture) Commissioner ( Animal Husbandry) Director (Marketing ) Director, VANAMATI, Nagpur Project Director (MACP) Director (Extension and Training) Commissionerate of Agriculture, Maharashtra State, Pune Chairman Member Member Member Member Member Secretary

The sub-committee will meet once every quarter (more frequently in the early stages of project implementation) to review implementation progress of Component A of MACP. 22. Enhancing Effectiveness of IDWG: Although the IDWG was set up in 1998, the interdepartmental coordination for implementing the ATMA programme continues to be weak. Under NATP, the ATMAs in Maharashtra performed very well but have weakened since the closure of NATP in June 2005. For making the ATMAs vibrant and robust institutions, it is imperative to have an effective and efficiently functioning IDWG. Since the field implementation of different activities will be undertaken by the line department staff at district level and below, it is necessary that heads of the departments convey clear message to their field staff that ATMA activities are as important as the specific schemes implemented by their departments and should not be considered as additional burden on the field staff. Unless policy harmonization, convergence and integration of extension and support programs of all the line departments related with agriculture (crops, horticulture, livestock, marketing, credit) happen at the state level and is clearly conveyed to the field staff, it will be difficult to achieve optimum results on the ground. The pro-active role of IDWG is therefore critical. 23. In order to improve the efficiency and effectiveness of IDWG following steps are proposed: Regular half yearly meetings of IDWG, appropriate timely follow up of the IDWG decisions by the concerned line departments, and reviewing compliance in the following meetings; Strengthening the Nodal Unit in Commissionerate of Agriculture for organizing IDWG meetings, undertaking follow-up actions, identifying implementation issues and finding solution to implementation bottlenecks; and Undertaking pro-active actions to promote inter-departmental coordination and integration of on-going programs; and Regular review of implementation progress of ATMA programs, and take remedial actions to address implementation bottlenecks.

25

A1.2 PREPARATION AND IMPLEMENTATION OF PRODUCTION AND MARKETING STRATEGIES

I. Selection Criteria: 1. The selection criteria for the various activities under this subcomponent are as follows: (i) The officers and field functionaries from various line departments who are concerned with the implementation of various activities under the project will be selected for training. The farmers from the catchment area of various activities under Component B will only be considered for farmers training and demonstrations. The farmers selected for training will only be considered for field visits within and outside the state and demonstrations. The farmers from the catchment area of various activities under Component B will only be considered for formation of CIG / FIG of food grain growers, horticulture farmers and animal husbandry farmers. They should be willing to participate in group activity and share financial and regulatory responsibility. They should also be the producers of the agriculture produce for which the CIG / FIG is proposed to be formed. For agri-business development in the Project area, the potential SME including women will be selected by the SP and they will be trained for taking up agri-business development activities.

(ii) (iii) (iv)

(v)

II. Activities to be financed: 2. The following activities have been identified on the basis of SREPs and the general information that is currently available. These are for cost estimation purposes and may undergo some changes as the project implementation starts and Marketing Strategy Supplements (MSSs) are prepared. A) Preparation & Implementation of MSS and SREP : 3. All the districts in Maharashtra have already prepared the district Strategic Research and Extension Plans (SREPs) which include various agricultural extension activities for increasing agriculture, horticulture and live stock production. To give focussed attention to market-led extension each ATMA district would prepare a Marketing Strategy Supplements (MSS) to the SREP. The MSS will be developed under the guidance of experts in marketing extension and agribusiness based in the VANAMATI Nagpur who would be trained and oriented in the concepts and procedures of preparing MSS and market-led extension at the MANAGE, Hyderabad. They would become resource persons to guide, mentor and facilitate district teams to prepare MSSs. 4. Preparation of MSS in each district would follow following steps in logical sequence Step I: Orientation of District Core Team Step II: Training of AES team Step III: Data collection, and data analysis and, identification and prioritization of research and market led extension issues Step IV: Developing strategies for market led extension and focusing issues, developing outline /framework for MSS on the basis of the project thrust area Step V: Developing activity schedule and approval of MSS by ATMA

26

The activities under component B will be kept in view and linkages will be developed with the same for improving the markets. 5. The process of preparing MSS will be led by the Agricultural Marketing Expert in the ATMA and would involve the district level officers of all line departments. The district core team after getting training from expert team at VANAMATI would train AES teams involving taluka level officers of all line departments in data collection and data analysis. The development of strategies, activity schedule would be carried out by the district core team, under the guidance of state level facilitators. The preparation of MSS would be closely monitored by the PIU of the line departments. Necessary guidance and assistance would be provided to the districts from state level. The process of preparation of MSS of all the districts will start as soon as possible. The MSSs of 10, 11 and 12 districts would be completed during the first, second and third phase of the project respectively. The expenditure would be incurred on TA/DA, stationery, hiring of vehicles and other operational costs. The provision for this activity will be made to respective ATMAs. 6. The SREP and MSS documents will act as a template for setting a direction towards market-led extension and agricultural productivity enhancing activities in the district. Further, these will facilitate resource allocation across programme areas. The MSS and SREPs, therefore, would become the basic documents for the development of work plans at village, block and district level. The objective is not to duplicate what is already being supported under the centrally sponsored ATMA (extension reforms) and other schemes, but to fill critical gaps in the ongoing schemes with special focus on market-led extension. This will help in making efficient use of the public funds provided by the GOI and GOM, including Support to State Extension Programme for Extension Reforms, National Agricultural Development Plan and National Food Security Mission. 7. The Block Technology Team (BTT) members of the project areas would identify the activities of SREPs and MSSs which are relevant to their Taluka. These will act as guiding principle for identifying activities for preparing the Block Action Plans which will be combined to prepare District Annual Action Plan. The BTT and FIAC members shall take following issues into consideration for preparing the Block Action Plan: Extension activities identified in SREPs and MSSs Group demand as identified by FIAC members Ongoing scheme activities for dovetailing with MACP activities Success stories identified for replication

8. The SREP and MSS of each district would give description of the strategy to be followed for improving competitiveness of agriculture in a particular district. The specific activities coming from SREP and MSS would vary from district to district. Although the SREPs for all the districts have been prepared, the MSSs will be prepared after the project becomes effective. The execution of extension programme would naturally differ from district to district as it has to take into account the needs and priorities of the local communities as reflected in the SREP and MSS. B) Training: 9. All trainings for line department staff and farmers will be specifically targeted at the catchment areas of the APMCs, Rural Haats, FCSCs and other markets and marketing channels being set up under Component B of the project. The various trainings like training of officers, training of field extension functionaries and training of farmers would be undertaken in catchment area of the activities under Component B. Similarly the other programs of market led extension and capacity building like crop demonstration with field days, demonstrations on organic farming, demonstration on post harvest management technology, demonstration of fodder production, demonstration cum production units for goat as a high value enterprise would be implemented 27

in the catchment areas of the programs under Component B. For this purpose ATMA shall prepare the yearly plan for the district showing interface between the beneficiaries falling in the catchment area of programs of Component B and the programs of capacity building proposed under Component A. The farmers falling in the area of Component B activities like APMCs, Rural Haats, Live Stock Markets, FCSCs (Grain, Horticulture) will be identified which could be individual farmers / PGs / PAs. For capacity building, training programs, the same farmers, PGs / PAs will be involved in the programs of demonstrations, exposure visits depending on the locations of the farmers falling in a particular project intervention area. a) Training of Line Department Staff: 10. Training of officers: The training of officers is important as they have to act as resource persons to impart training to the field extension functionaries who are directly in contact with the farmers. The officers will need to be trained not only in productivity and quality improvement but also in different aspects of marketing and post-harvest management. The training should enable the officers to impart marketing related skills to the field extension functionaries and farmers. The training would also cover the project activities envisaged under Component B so that the officers are well equipped to implement their respective departments activities effectively. Orientation workshops will be organized to familiarize the line department field staff with project design, what is to be done, where, by whom, when and how. 11. The Class I / Class II officers would be selected for training. They would be trained at training institutes of respective line departments. Selected officers of Agriculture and other Departments will be trained at VANAMATI, Nagpur. IIM, Ahmedabad will develop training module and curriculum and arrange training to the officers of Animal Husbandry Department. The cost of training would involve expenditure on accommodation, food, training material, honorarium of trainers and stationery field visits. The trainings would be well structured and aimed to link the officers with project activities effectively. Training of a total 24 batches (30 officers per batch) in Agriculture department and 17 officers from the Animal Husbandry Department are contemplated under this programme. 12. Foreign training: The project would require continuous capacity building of officers of all line departments to carry forward the theme of project in an effective manner. The emphasis of capacity building would remain market-led extension, agribusiness and efficient production and post-harvest management practices of agri-horti commodities. The knowledge generated in this area in foreign countries needs to be studied for replication with necessary modifications in the project. A total of 8 officers drawn from different line departments would be deputed for training outside the country during project period. The officers working in the project would be selected for foreign training. They would be required to work in the project at least for three years after returning from training. 13. Training of field extension functionaries: The training of field extension functionaries is very important to disseminate the project theme to the farmers. The project would succeed only when farmers are motivated to adopt productivity and quality improvement techniques and market-led production practices. This would be possible if the field extension workers are competent in resource management and efficient production, marketing and post-harvest management technologies and practices. The importance of up-gradation of knowledge base of village extension functionaries cannot be over emphasized. The village extension functionaries from different line departments would be trained in market led extension, productivity and quality improvement as well as marketing techniques at respective departmental training institutes. 14. The field extension functionaries of all line departments have a definite role to play in technology and knowledge transfer to the farmers so as to effectively link the farmers to the project activities. The emphasis of training would be on the project 1inked commodities and also on the potential existing in the areas of their operations. The officers trained under the 28

project would act as trainers to field extension functionaries. Trainings will be conducted at Krishi Vigyan Kendras (KVKs), Poly Clinics and RAMETIs. The field extension functionaries linked with project activities would be selected to undergo this training which will be structured one to serve the purpose of effective knowledge transfer to the farmers linked with project activities of respective line departments. The training cost would involve expenditure on accommodation, food, training material, stationery, honorarium of trainers, field visits. b) Mobilization and Training of Farmers: 15. Mobilization and Training of farmers and Producer Organizations: The benefits of group working around a commodity or service are apparent. The farmers and farm women would need to be grouped based on their own interest into CIG / FIG / PG. These groups will be actual beneficiary of different components under ATMA model. The group functioning is always cost effective and profitable than individual operation. The farmers in the project area would be mobilized to form PG / CIG / FIG through Service Providers (NGOs). The skill up gradation and exposure of PG /CIG in the respective production and marketing fields is equally important. This would enable such groups to pursue the identified commercial activity in a cost effective and efficient manner. Both the activities of mobilization of farmers into PGs and their skill upgradation would be carried out by experienced and technically competent SPs (NGOs) in all project districts. The selection of SP (NGO) for formation of CIGs / FIGs / PGs would be done centrally by respective PIU of line department. 16. The number of FIGs / PGs / CIGs estimated to be formed under the project in catchment area of Component B would be: Agriculture Department (including crops and horticulture): 6000 & Animal Husbandry: 700. In addition, the CIG /FIG would be formed in APMC Market or other selected marketing intervention locations and would be linked to Farmer Common Service Centers set up under Component B. These FIGs / PGs / CIGs belonging to Agriculture Department will subsequently undertake appropriate production, post-harvest management and marketing activities. The FIGs / PGs / CIGs promoted under Animal husbandry sector will be linked to Livestock markets and Small Ruminant Markets under Component B. c) Trainings directly related to market improvement activities proposed under Component B: 17. The farmers should be better able to attune their production to changes in demand and to take advantage of new and alterative marketing channels being provided under the project as well as the potential of new production technologies. A range of interventions are planned to strengthen the marketing infrastructure under Component B. Some interventions seek to create alternative marketing channel while others aim of strengthening the existing agri-marketing infrastructure. The farmers linked to these project based interventions in the catchment area of specific markets being upgraded/developed under the project would need to be trained in concepts and practices of market-led production, productivity, quality improvement and marketing techniques. This will help farmers link to respective marketing channels to realize better returns through improved productivity, quality and intelligent marketing of their agricultural produce. 18. The project envisages strengthening marketing infrastructure at APMCs, Rural Haats, Livestock and Small Ruminant Markets. The new marketing channels are sought to be created under the project in the form of Farmer Common Service Centers. The ATMAs of the districts would select representative farmers linked to each of these institutions in the catchment area of these markets for relevant trainings. After the identification of catchment areas of the respective markets has been completed, the selection of farmers from these areas would be made by the relevant line departments for these trainings. Each line department would develop the training module and curriculum of this training course. The training would be organized by the line departments at departmental training centers/institutions/ KVKs/Agri-polyclinics. 19. An indicative list of Component B activity linked farmers trainings is given in the following 29

table. This list is not exhaustive and is subject to modification based on implementation experience:
Total no. of farmers to be trained 25,000 12,500 2,500 11,250 1,250 25,000 No. of batches (each 25 farmer) 1000 500 100 450 50 1000

Sr. No. 1 2 3 4 5 6

Project activity

Unit No.

Trainers

Place of training APMC meeting hall PS meeting hall APMC meeting hall APMC meeting hall

Modernization of APMC markets Improvement of Rural Haats Strengthening of livestock markets Strengthening of Small Ruminant markets* Goat demonstration cum production unit* Farmer Common Service Centers (Grain) Farmer Common Service Centers (Horticulture) TOTAL

100 300 20 4 2 200

TAO /AO / AR TAO /AO / AR DAHO / LDO DAHO / LDO DAHO / LDO TAO / AO / AR TAO / AO / AR

Agri. Poly clinic FIAC /Agripoly- clinic

200

25,000

1000 4100

These trainings will inter alia cover production, quality, post-harvest management and marketing of specific commodities / products which are handled by these markets / marketing channels / procurement agencies. d) Other trainings: 20. The SREP and MSS would also bring out the general training needs of farmers in the district. An indicative list of such prospective project activity based trainings is as under. i) Training of specialised Agric-Service Providers: 21. The group economic activity in post harvest management of agri-horti commodities is getting increased attention by rural youth including women entrepreneurs and PGs. The interested entrepreneurs / PGs and the rural youth need to be provided specialised training in this area of economic activity. This would help develop large number of agribusinesses in rural areas in the backdrop of availability of multiple marketing channels and outlets in urban areas. A large number of PGs are being organized through District Rural Development Agency (DRDA). The PGs and the rural youth need to be empowered and linked to the marketing activities envisaged in the project. These will require training in agri-horticulture commodity processing and marketing. The ultimate objective is to link them to FCSC for marketing of their produce. 22. The Agriculture Department would train around 10,000 rural youth including entrepreneurs and PGs in rural areas in agri-horticulture commodity processing and marketing as specialized Agric-service providers. The training to these entities would be provided in the field of agribusiness and agro processing which would provide value addition to the produce. Training would be provided in the area e.g. sericulture, nursery management, fruit and vegetable processing, bee keeping, horticulture including flowers arrangement, seed production, agricultural machinery repairs and maintenance, packing of agricultural produce, pulses processing, flour mill, vermicomposting, paddy processing, cashew nut processing, etc. The trainees would be selected from the catchment areas of various interventions proposed under 30

Component B. These will be drawn mainly from the PGs / CIGs / FIGs for agricultural productivity improvement and for formation for FCSC formation of grains and horticulture. The duration of training, charges for the various trainings as well as the course content would be different for each activity. A Service Provider for this purpose would be selected. The SP would prepare the course content, duration of training, charges for the training, the identification of institution where such trainings would be provided. Training would be imparted to 10,000 people for various activities in 500 batches of 20 each. ii) Training of Village Lady Livestock Link Workers (VLLWs): 23. The extension work that is performed in the AHD is conducted by such personnel who are saddled with the responsibilities of disseminating information pertaining to various government schemes. Considering the magnitude of operation to be carried out under AHD in the project, the existing staff of the AHD would be inadequate. In order to establish a live and continuing livestock extension constituency in the villages with links to AHD, training of VLLWs would be conducted who would perform the extension work required under the project. The details of the same have been given in Chapter A.4. The cost includes cost of vaccination kits and other material to be supplied to VLLW. The cost estimates of these sub-components are given in cost tables of AHD. B. Exposure Visits for Farmers a) Outside the state: 24. Some enterprising farmers would be given the exposure to success stories in agribusiness outside the state during the project period. The farmers would learn from successful agribusiness projects outside the state and replicate the success stories in the state. The farmers linked to project activities under Component B would be selected for exposure visit outside the state. The exposure to successful agri-business project would help them to establish enhanced market linkages, leading to increased productivity and income. Each department will select the farmers in the catchment area of respective project activities under their control on the basis of predefined criteria. A total of 16 batches (a batch of 30 farmers) would be sent on exposure visits from second to sixth year of the project. Each exposure visit would be of 5-10 days duration with predefined destinations. b) Within the state: 25. The interested and enterprising farmers would also need to be given exposure of successful agri-business projects within the state. This would go a long way in ensuring replication of activities in large numbers leading to success of the project. The relevant line department will select representative farmers linked to project activity under Component B for exposure visits. The exposure visits will be arranged in batches, each batch comprising 30 farmers during second to sixth year period of the project. C. On-Farm Demonstrations a) Crop demonstrations with field days: 26. The demonstrations serve as an effective instrument for rapid dissemination of technology. The effectiveness of demonstration would increase with organization of field day around each demonstration. The demonstrations to be organized under this project would be composite demonstrations, demonstrating complete technology package of production. The country and the state is facing severe crisis of availability of pulses and the pulses prices have shoot up beyond reach of the common man. There is a tremendous scope for improving pulses production in Maharashtra because of favorable soil and climatic conditions. Therefore besides other crops the pulses crop demonstration will be considered on large scale. Other demonstrations would cover the field, vegetable, fruit and flower crops. These demonstrations 31

would be organised in the areas of activities being undertaken under Component B under this project. The crop wise number of demonstrations planned is: Field crops - 12000, Vegetable crops - 450, Fruit crops - 300, Flower crops - 300. These numbers are only indicative and are likely to change during to implementation. 27. These demonstration will be organized in the catchment area of Component B activities. The selection criteria for the farmer for undertaking the demonstration programme will be as under (i) (ii) (iii) (iv) (v) (vi) (vii) The farmer should have minimum area of land for demonstration under a particular crop. The farmer should be willing to spend additional amount required from his own resources. The selected farmer will be entitled for one demonstration only. The land proposed for demonstration should be a road side plot. The farmer must adopt the modern technologies and practices in timely manner. The land should be representative of the predominant land type in the area. The land should be leveled and should have access to irrigation facilities. However this will not be applicable to demonstration on rainfed crops.

28. The demonstrations would be organized in a cluster of around 8 to 12 farmers. The provision of control plot for comparison should be made. BTT under the supervision and guidance of ATMA will finalize the list of farmers selected for Demonstration. 29. The farmers undertaking demonstration would be given off-farm inputs viz; seed, fertilizers, insecticide, micronutrients etc. by project. The inputs of the recommended varieties having high yielding qualities and the other inputs of high efficacy will be provided. These farmers are supposed to be trained under the training programme of the farmers in technology transfer. The farmers covered under demonstration are expected to use inputs exclusively for demonstration crop and keep the record of the same. The tillage practices and all recommended crop management practices by field functionaries should also be followed. The data regarding yield of the crop from demonstration crop and from the control plot should be kept by the farmers and all this information should made available to the field functionaries at the time of their visit to the demonstration plot. The field days visit of the farmers to the demonstration plot will be the integral part of the demonstration. 30. A number of demonstrations are undertaken under different GOI sponsored programs, like National Agriculture Development Plan (NADP), National Food Security Mission (NFSM), and National Horticulture Mission (NHM). The demonstrations planned under this component would not duplicate the efforts of these programs. The emphasis of crop demonstrations under the project would be to demonstrate the quality and productivity improvements to be brought about through Good Agricultural Practices (GAP). Each demonstration would demonstrate integrated crop management package to the farmers. These demonstrations would be undertaken in the catchments areas of different types of markets to be upgraded/set up under Component B. Efforts would be made to concentrate more number of demonstrations of the crop/group of crops which a particular market will handle. 31. The cost norm for demonstrations would cover the expenditure on provision of critical inputs i.e. seeds, fertilizers, insecticides, micronutrients to address the constraints in the adoption of improved technologies in the demonstration area. The field day cost would include the expenditure on tea, snacks, stationery for 50 persons. Each demonstration will have the complete package of Integrated Crop Management (ICM) practices and a small control with farmers practice. At each demonstration site a field day will be organized at a critical stage near crop maturity so that the impact of adoption of improved ICM practices vis--vis farmer practice are visible.

32

32. The number of crop demonstrations, size of demonstration plots and cost norms are shown in the following table. The size of demonstration plots and cost norms are only general norms for costing purposes and can be modified depending on nature of the crop, technologies to be demonstrated and other relevant ground realties. For example if the cost of inputs is high, the size of demonstration plot can be reduced and vice-versa. However, every demonstration will have a field day near the harvesting stage of the crop in which large number of farmers from the village and adjoining areas will participate. The District Superintending Agricultural officer will plan the demonstrations in the district. The Crop group wise area of demonstration, cost norm and the number of demonstrations would be as follows,
Area of demo (Ha) Cost norm per demo (Rs) Cost of field day per demo (Rs) Total Cost per demo (Rs) No. of demo Total Cost (Rs in Lakh)

No

Crop Group

1 a) b) c)

Field crops Cereals Pulses Oilseed 0.40 0.40 0.40 4500/5500/6500/1500/1500/1500/6000/7000/8000/Total 4000 5000 3000 12000 300 450 300 13050 240.00 350.00 240.00 830.00 21.00 31.50 21.00 903.50

2 3 4

Fruit crops Veg. Crops Flower crops

0.20 0.20 0.10

5500/5500/5500/-

1500/1500/1500/-

7000/7000/7000/Total

33. These demonstration will be carried out in the catchment areas of the different markets covered under Component B. They will cover cereals, pulses, oilseeds, cotton, vegetable, fruit, flower and other important crops grown in these catchment areas of different types of markets improved under the project. 34. All the crop demonstrations would be organized by ATMA/line department in the district. b) Demonstrations on organic farming: 35. The biological approach to crop production is proving beneficial to the farmers not only in reducing the cost of production but also for realizing higher returns than the mainstream farming. The organic produce fetches premium price in the domestic as well as international market. This is amply proved by the contract farming experiment in organic cotton in Vidarbha. The organic production technology would be disseminated on larger scale through demonstrations under the project. The demonstrations on cotton, pulses, cereals, fruits and vegetables would be organized across the state in the catchment areas of activities planned under Component B, during second, third, fourth, fifth and sixth year of the project. Each demonstration would be of 0.4 ha area and would be organized at prominent places along the roads. Organization of field day around each demonstration would be an integral component of each demonstration. The cost norm for a demonstration along with a field day expenses are shown in the following table. The area, number and cost norms for demonstrations with field days are consistent with the norms for the GoI funded schemes.

33

Sr. No 1

Crop Group

Area of demo (Ha) 0.40 0.40 0.40 0.20 0.20

Cost norm per demo (Rs) 4000/6500/4000/4000/4000/-

Cost of field day per demo (Rs) 1500/1500/1500/1500/1500/-

Total Cost per demo (Rs) 5500/8000/5500/5500/5500/-

No. of demo

Total Cost (Rs in Lakh)

Field crops a) Cereals b) Cotton c) Pulses Sub total 2 Fruit crops 3 Veg. Crops Total

80 110 90 280 50 50 380

4.40 8.80 4.95 18.15 2.75 2.75 23.65

36. The cost norms for demonstrations would include the expenditure on provision of critical inputs in the demonstration area. The field day cost would include the expenditure on tea, snacks, stationery for 50 persons. A total of 380 demonstrations would be organized during the project period involving investment of Rs 23.65 Lakh. 37. The demonstrations planned will be arranged in the catchment area of project activities envisaged under component B. The selection of sites and farmers would be made on the basis of predefined criteria given in the guidelines. The plan of demonstration will take into account the major commodity to be handled by a particular market/marketing channel, concentrating higher number of demonstration of that particular crop/crop group in the area of operation of the market. c) Demonstrations on post harvest management technology: 38. Realization of higher market prices is possible only after the farm produce is properly graded, packaged and labeled. This technology must reach common farmers. Keeping this objective in view, the demonstrations on post harvest technology would be organized. This kind of demonstration would be a method demonstration along with organization of field day. The cost norm for a demonstration would be Rs. 3500/- per demonstration for all crops. The cost norm would include the expenditure on cleaning, grading, packaging cost @ Rs 2000/- per demonstration and a field day cost @ Rs 1500/- which would include expenditure on tea, snacks and stationery for 50 farmers watching the method demonstration. The demonstrations would be linked to FCSCs focusing on commodities being handled by them. A total of 1000 demonstrations would be organized with investment of Rs. 35.00 Lakh. Adoption rates of demonstrations will be recorded in the years following the year in which demonstrations are organised. In about 10% of the demonstrations, the adoption rates (number of farmers adopting demonstrated technologies, area on which the technologies are adopted and farm level yield gains achieved by the farmers) will be monitored in the following years. This is essential for evaluating the productivity / quality gains achieved by the farmers as a result of demonstrations and trainings. d) Animal welfare camps on improved veterinary and livestock management practices: 39. The simple veterinary techniques like de-worming, vaccination, dehorning and artificial insemination should reach animal farmers in large numbers so that the farmers themselves are in a position to take care of their herds. The demonstrations of this kind are method demonstrations and would involve less cost. The demonstrations would be organized with involvement of farmers in field days. The cost norm for demonstration would be Rs 3500/, which would include cost of medicine/drug @ Rs 2000/- and the cost of organizing a field day @ Rs 1500/- around each demonstration. The demonstrations would be organized in the catchment area of live stock & small ruminant markets planned to be strengthened under 34

component B. A total of 1500 demonstrations would be organized with investment of Rs 52.50 Lakh. e) Demonstration of fodder production: 40. The technology of fodder production and feeding would need to be demonstrated under the project. This would be planned in catchment area of livestock and small ruminant market under component B. The demonstrations on fodder varieties of cereals (maize and jowar), Lucerne, berseem, grass hybrids like Yeshwant / Jaywant would be organized. Each demonstration would be organized on 0.4 ha area with total cost of Rs 7000/. This would include Rs. 5500/for critical inputs and Rs 1500/- for organizing a field day. A total of 2500 demonstrations on this theme would be organized with investment of Rs. 175.00 Lakh. This programme will be implemented by the AHD with the help of ATMA. The size of demonstration plots and cost norms are only general norms for costing purposes and can be modified depending on nature of the crop, technologies to be demonstrated and other relevant ground realties. f) Organised marketing of small ruminants through Small Ruminant (SR) Federations: 41. Modernization of four Small Ruminant (SR) Markets has been proposed in the project. The AHD with the assistance of a NGO would carry out the mobilization of SR farmers into CIGs, to federate further into SR federation. These SR markets identified are (i) Atpadi, Dist.Sangli, (ii) Karjat ,Dist.Ahmednagar, (iii) Dound, Dist.Pune and (iv) Dahivadi, Dist.Satara .The details of the mobilisation of SR farmers have been given in section III of Chapter A. 4. Cost of training for this activity is shown under ATMA. g) Demonstration cum Production Units for Goat as a High Value Enterprise: 42. AHD would employ a SP / NGO who would be given the task of promoting goat as a high value enterprise. The farmers in the two SR markets would be given demonstrations on this aspect. The details of the same have been given in of chapter A. 4. Exposure visits to these demonstrations are shown under ATMA. h) Buyer Seller Meets: 43. The agri-horticultural commodities and processed products produced by the FIGs / PGs / CIGs would need to be efficiently marketed through various marketing channels. As the technology and the market is becoming complex, with new product types and shifting consumer demands, foreign companies can become joint venture partners for providing technical and financial support in establishing a network. The Buyer-Seller Meet (BSM) is a unique concept of prefixed meetings, presentations and one-to-one sessions. The BSM is for providing a customized floor for organizations to meet, discuss, consult and transact business with the specific names in the industry and for country/corporate houses to make product-specific or country-specific presentations to a pre-fixed niche audience. 44. To avail the opportunities in the current scenario, it is proposed to organize Buyer-Seller Meet at the state as well as district levels from the second year of the implementation of the project in a phased manner. At the state level 1 Buyer-Seller Meet will be organized every year from second year (Total cost for 5 years is Rs. 5.00 Lakh) and at the district level 1 Buyer-Seller Meet will be organised per district per year from second year (33 x 1 x 5 = 165 @ Rs. 0.75 Lakh per meet, the total cost is Rs. 123.75 Lakh). The estimated cost of organizing these 170 Buyer-Seller meets is Rs. 128.75 Lakh. These buyer seller meets will be organised in the catchment areas of project interventions planned under Component B. i) Strengthening of growers associations / farmer organizations: 45. The Growers Associations/Farmers organizations have a vital role to play in the transfer of knowledge, quality production, input supply, marketing and promoting value added products. 35

Over the years, some of the growers associations have performed exceedingly well in organizing growers for these purposes. The high level of technical knowledge amongst grape growers in Maharashtra is mainly attributed to the work done by Maharashtra Grape Growers Association. The Grape Growers Association in Maharashtra has set an example as to how growers associations can empower the member farmers to get linked to national and international markets. The growers association of this kind can become an effective link between Government and farmers. Through this link, it is much easier and effective in reaching the advisories to the farmers. 46. It is necessary to promote and strengthen growers associations related to Vegetable Crops, Mango, Pomegranate, Banana, Flowers, Sweet Lime, Strawberry, Guava, Lemon, Aonla, Orange, Cashewnut, Custard apple and Fig. The growers associations would need assistance for training, workshops and meetings. This provision will be used on demand from respective growers associations/farmers organization to meet the expenses on technology transfer related activities. This provision would be kept at state level. j) Innovative pilots: 47. A number of innovations take place at the farm level from time to time. These relate to development of new varieties, farm equipment and management practices. Such innovative activities need to be supported in a small way so that the benefit of innovations reaches large number of farmers. Such innovative activities would need to be supported through ATMA from time to time. The decision to support would rest with the governing body of ATMA.. The ATMA concerned would be in a position to use this amount for innovative pilots with the concurrence of PIU. k) Operating costs and mobility of staff: 48. The implementation of MACP involves a number of components and subcomponents. Consequently the volume of office work and field activities would increase. The office expenses would include stationery, telephone charges, TA / DA of officers and staff. Also the mobility of officers at district and taluka levels would increase necessitating financial support for Petrol, Oil, Lubricants (POL) and hiring of vehicles. A lump sump provision @ Rs 10 Lakh per district per year has been made to cover operating costs, POL, vehicle hiring, TA/DA during the project period. The total cost of this activity is Rs. 1980.00 Lakh. III. Estimated costs: 49. The total estimated cost under various activities under this subcomponent is Rs. 5122.05 Lakhs. IV. Institutional and implementation arrangements: 50. The Department of Agriculture, GOM, will be responsible for group formation under ATMA for those farmer groups whose primary reason for coming together is production. The Department of Agriculture, GoM will also be responsible for overall coordination and implementation of project activities related to this sub-component. The implementation will follow a community-driven approach with active participation of the beneficiaries and other stakeholders (including line departments, NGOs and private sector) in the design, implementation and monitoring of the interventions. In order to enhance inter departmental coordination and effectively involve farmers in the planning and implementation of various activities, Sub Committee of IDWG with related members will be put in place in addition to the existing multi disciplinary IDWG for effective functioning of ATMAs. 51. Project Implementation Unit (PIU) Agriculture: For coordinating implementation of Component A, a Project Implementation Unit (PIU) has been established in the Commissionerate Agriculture. A Deputy Director of Agriculture has been designated as Nodal Officer, PIU (Agriculture). The PIU will liaise with the PCU and coordinate the implementation 36

of various activities by VANAMATI, ATMAs, field staff of Department of Agriculture and other relevant entities. It will be responsible for monitoring of implementation progress. The PIU will regularly compile and submit to the PCU/ Bank various technical, financial, M & E and other reports. The Nodal Officer will take pro-active action to bring any implementation bottlenecks to the alternation of Director of Extension and Training / Commissioner of Agriculture / Project Director MACP. The PIU (Agriculture) will consists of full-time Nodal Officer, Agriculture Officer and Community Extension Officer (from the grade of Agriculture Supervisior) from the Department of Agriculture. In addition, the project will fund Agricultural Marketing Specialist, Procurement Officer, Accountant with Computer knowledge, two Assistants with computer skill and two Messengers on contract basis. The project will meet the costs of mobility, TA/DA, hiring of vehicles, office and other required contingencies, need based civil works/ furniture, computers, IT and other equipment, workshops, M & E, Impact assessment and other studies. The hiring of contractual staff for Department of Agriculture will be done by the Commissioner of Agriculture. The Nodal Officer will be responsible for the day to-day activities of the sub component. Director of Extension and Training will have the overall responsibility for regularly monitoring and oversight of the implementation of various activities undertaken by the Department of Agriculture/ ATMAs under the project. 52. The project activities to be undertaken for strengthening of ATMAs, strengthening of VANMATI, and preparation and implementation of MSS would be coordinated, guided and monitored by the PIU. Since the extension activities relating to all line departments are to be implemented through ATMA, regular meetings of the State Level officers of line departments will be conducted for smooth and successful implementation of the project. The functions of PIU will include coordination and effective implementation of project activities, monitoring, evaluation and impact assessment of various components relating to extension. It will also monitor the activities undertaken by the ATMAs. The innovative pilot proposals submitted by the respective ATMA would be approved by PIU. 53. ATMAs: At the district level preparation and implementation of MSS would be coordinated by respective ATMA, using the resources of all the participating line departments, KVKs, concerned State Agricultural Universities and participating NGOs and private sector entities. Contractual services of Agricultural Marketing Expert and Accountant cum Computer Operator would be made available at district level for each ATMA under the project. In each district, the ATMA team would take the responsibility for preparation of Marketing Strategy Supplement (MSS). The MSS will be the basis for execution of extension activities envisaged under the project. The training of ATMA team/core team will be arranged by VANAMATI with the assistance of resource persons trained by National Agricultural Extension Management Training Institute (MANAGE, Hyderabad). The resource persons at VANAMATI will help in overall coordination of preparation of MSS in close association with the ATMA teams. District and field level staff of line departments - Agriculture, Animal husbandry and Co-operation and Marketing would be responsible for implementation of project activities related to their areas. 54. Apart from overall coordination of extension activities at district level, the ATMA would act as facilitator between Producer Association (PA) and Service Provider (SP) under Component B. The ATMAs would appraise the commercialization/ business plan prepared under the guidance of SP, and submit it to Project Implementation Unit (PIU)/Project Coordination Unit (PCU) for approval. Besides these, the ATMA bodies will be responsible for providing technical guidance to members of PG / FCSC / PA in association with SP, reviewing activities of PA and submitting the report to PIU, working in close coordination with ABPF for selection of entrepreneurs, assisting PIU/PCU in monitoring project activities at district level, and preparing annual action plan based on findings of the MSS.

37

55. VANAMATI: VANAMATI, the state level apex training institute, will be responsible for organizing training to ATMA core team in preparation of Marketing Strategy Supplement to SREP. They will also organize training of line department staff. Training module and training material on marketled extension would be prepared by VANAMATI. To carry out all these functions VANAMATI would be supported by dedicated contractual staff of one Agricultural Marketing Specialist, one Agri-business Specialist and one M & E Specialist. Training of field extension functionaries would be organized by VANAMATI. The VANAMATI will also assist the PIU in overall planning, coordination and monitoring of the sub-component activities. 56. Procurement: i) Inputs: The procurement of inputs like seeds, fertilizers, insecticides, micronutrients and other relevant materials required will be done by following World Bank Procedure .The quality and efficacy of the material will be the primary requirements. Wherever the quantity to be procured is less then $50,000/- value, the World Bank procedure of Shopping will be followed. The seeds which are available exclusively with Government agencies like foundation seed/ new variety will be procured from the dealers of the concerned Government agency by following WB procedure. ii) Goods and equipments: Goods and equipments required for PIU Agriculture and Horticulture processing training institute Aurangabad will be procured by PIU Agriculture. Goods and equipments required for ATMA and VANAMATI will be procured by ATMA and VANAMATI respectively. iii) Consultancy services and personnel: SP for formation of FIGs / PGs / CIGs of the farmers for productivity and quality enhancement and service provider for designing training module of the training of specialized Agric-Service Providers will be procured by PIU Agriculture. The contractual staff required in PIU Agriculture and ATMA will be hired by Commissioner Agriculture whereas the contractual staff for VANAMATI will be hired by VANAMATI. All the procurement under this component and subcomponent will be carried out by following World Bank procedure. V. Funds Flow: 57. The funds for two subcomponent under this component i.e. described under A.1.(i) and A.2(ii) will be provided in the budget of Agriculture Department of GOM and will be released as per BDS (electronic funds transfer) to PIU Agriculture. Funds for HPTI, Aurangabad which is Government Institute under Agriculture department will be released to Joint Director Agriculture, Aurangabad as per BDS, who will make payments of contractors /suppliers of HPTI as and when required. The funds required for various activities under this component for ATMA, and VANAMATI will be released by Commissioner Agriculture to ATMAs and VANAMATI through core banking. All ATMAs and VANAMATI will be the spending units. The funds given to ATMAs and VANAMATI will be in the form of advance and these institutions will have to submit Un-Audited Financial Report (UAFR) every month and utilization certificate every quarter to PIU Agriculture. PIU Agriculture will submit the report to PCU and PCU will claim further required funds from the GOM. The funds will be released in tranches after verifying the utilization of the earlier tranche released and on getting utilization certificate of the same. 58. ATMA will keep the amounts received by it from Commissioner Agriculture in a separate Bank Account for MACP and will spend from this account for various ATMA activities. The funds for the activities of other line departments relating to training, demonstrations will be provided by ATMA to the concerned District level/Taluka level Officers of the line departments on receiving the proposals from them and those are duly sectioned by governing council of 38

ATMA. The concerned line departments will be responsible for submitting monthly financial report to ATMA. 59. The external audit of accounts of MACP till the point of release of funds through BDS will be conducted by Accountant General whereas the external audit of VANAMATI and ATMA accounts will be conducted by Charted Accountant appointed for the purpose on contract by PCU by following World Bank procedure. The internal audit of all accounts of MACP under this component will be conducted by firm of Charted Accountant contracted by PCU as per the World Bank procedure. 60. Concurrent Monitoring and Evaluation: The sub-component would require rigorous internal monitoring and concurrent evaluation for which the monitoring and evaluation specialist from VANAMATI will develop the impact evaluation formats. Under the overall guidance and supervision of M &E specialist from VANAMATI the sub divisional Agriculture Officer will carry out impact assessment of demonstrations on sample checking basis. Out of the total demonstrations 10% and 5% demonstartions randomly selected will be evaluated by Sub divisional Agriculture Officer and DSAO respectively. Out of these the M & E specialist from VANAMATI will sample check 1% of the demonstrations to verify the proper impact assessment by the field Officers. The impact assessment reports will include the adoption rate of technology by the farmers. This task has been included in the ToR of M&E specialist of VANAMATI. Expenditure for this work would be made available from operating funds at PIU level. The Monitoring and Evaluation Specialist of VANAMATI will provide reports of monitoring and evaluation to the PIU and PCU. The Monitoring and Evaluation will include the achievement of various activities proposed under the project and also the impact of demonstration, trainings, field visits on increasing the productivity and improvement in quality of the produce. VI. Fiduciary and Safeguards arrangements: 61. Competent and experienced local NGO / Company/ any other legal entity will be appointed as SPs for carrying out various activities like mobilization of groups, training. Selection of SP for this purpose will be done as per WB guidelines and the track record of SP in the relevant field in particular and its functioning in general will be kept in mind while its selection. ATMA has very important role to play in implementing this component. The ATMA has representatives of farmers and NGOs, besides departmental officers on its governing body. Therefore the expenses of ATMA are subjected to public scrutiny and review. Regular internal and external audit will provide adequate Fiduciary and Safeguards arrangements. VII. Governance Risks and Mitigation Measures: 62. The following table provides the details of likely risks and mitigation measures in the implementation of this subcomponent.
Sr. No. 1 Risks Technical / Design Description Sound need assessment is critical for the impact of this component (i) Present thrust of extension service is production oriented. (ii) Technical inputs required for providing training in market-led extension to the Risk Mitigation Measures Design of the training programs will be need based. (i) Officers of the line department are proposed to be trained in market led extension and allied fields to change the orientation to include marketing besides production. Training will foster backward and forward linkages in agricultural production. (ii) Experts / Specialists from the field of Agribusiness, Agri-marketing and M&E will be taken

Implemen-tation capacity and sustainability

39

Sr. No.

Risks

Description stakeholders. (iii) Co-ordination among the line departments is critical. (iv) Participation by farmers in training programmes, demonstrations, visits is critical for the success of such programmes. (v) Present thrust of extension service is production oriented. (vi) Technical inputs required for providing training in market-lead extension to the stakeholders. (vii) Capacity building of trainers is required. Programme is to be completed in phases and therefore release of funds becomes critical. --Small, marginal farmers and backward class farmers should be included in the programme.

Risk Mitigation Measures on contract basis to formulate the training input. (iii) Sensitization Workshops (iv) Strengthening of IDWG for policy harmonization and promoting convergence with ongoing progress. (v) Mobilization of farmers into CIGs / FIGs and their sensitization will ensure their participation. (vi) Officers of the line department are proposed to be trained in market led extension and allied fields to change the orientation to include marketing besides production. This will help farmers to get involved. (vii) Experts / Specialists from the field of Agribusiness, Agri-marketing and M&E will be taken on contract basis at VANAMATI to formulate the training inputs besides Agriculture Universities, KVKs, and VANAMATI. (iv) Trainers will be provided with appropriate training inputs for further training the stakeholders. The funds will be released in tranches after verifying the utilization of the earlier tranche released and on getting utilization certificate of the same. Procurement will be done as per WB norms as described in the chapter. Preference will be given to the small, marginal farmers and backward class farmers. The representatives of farmers, CIGs / FIGs /PGs and SPs involved in implementation should be able to meet this risk.

Financial Management

4 5

Procurement Social and environment safeguards

Other ( for example project specific corruption risk, ownership of project / program, prevalence of failure in similar projects)

---

As all the institutions included in this component are registered under various statutes and have their own framework of rules and regulations, these risks are well mitigated.

VIII. Sustainability: 63. The investment under this subcomponent will become sustainable because of the following: (i) The inputs regarding extension and training provided under this component improves the productivity and quality of agricultural production. (ii) Better post harvest management practices will generate additional income to the farmers and reduce the post harvest losses. (iii) The CIGs / FIGs / PGs of the producers of food grains, horticulture crops and animal husbandry formed will develop organic integration with institutions like APMCs, Rural Haats and FCSCs resulting in effective forward and backward linkages. ***

40

A.2 AGRI BUSINESS PROMOTION FACILITY (ABPF)

I. Objectives 1. Agricultural production and its marketing are interrelated activities and MACP addresses these firstly by improving agricultural extension system (ATMA model), and secondly by providing upgraded marketing infrastructure which will be made accessible by traditional as well as alternative marketing channels. Besides these interventions, the competitiveness of the farmer will be improved by capacity building. The sustainability of agriculture will improve because of all these interventions. Considering the scope of further improving sustainability of agriculture, value addition to agriculture produce is most important critical factor. Development of various business activities either supporting agriculture or based on agriculture production will add to the income of the farmers. It is therefore proposed to include the Agri-business Promotion Facility (ABPF) as a subcomponent under this Project. 2. The manpower involved in operations and management of infrastructure created under Component B of this Project including non officials in management and executive cadre and other personnel will have to be provided with technical and management skills for operations & management of the facilities created. The ABPF will have the main role to train these personnel. Besides this number of studies would be undertaken by ABPF which will also include three studies relating to development of dairy marketing, development of fisheries marketing and agricultural insurance. The findings of these studies will be reviewed at the time of first Mid Term Review (MTR) and assessment will be done whether to include these activities under this project after for financial support. These studies will be contracted out. The staff of ABPF with the support of PCU will prepare ToRs for the work and take technical oversight role. The responsibility of contracting will be that of PCU. 3. Two additional activities will be supported under ABPF viz. i) A process for facilitating Maharashtra Agri. Business and Producers Organisation to access GoI grants and ii) a process for the review, discussions and development of improved designs for wholesale markets and Rural Haats. ABPF will have a major role in facilitating greater state utilisation of GoI marketing grants. 4. ABPF is proposed on contract basis. It will function till the project period is over. However, by the end of fourth year an independent cell will be established in MSAMB for similar functions as ABPF. This cell will get hand holding from fourth year as it will work in close guidance of ABPF consultancy under the project. At present MSAMB has got project and consultancy cell with some expertise. This will be strengthened by providing additional expertise so that this cell can function as ABPF after the project period. Besides Project cell in H.O.of MSAMB it is proposed to have Project Advisers/Project Facilitators in regional offices of MSAMB. At the district level there would be panel of Agri-business/Agri Marketing Advisers with ATMA or District Deputy Registrars of Co-operative Societies. The regional level and district level experts will be drawn from private sector and their panel will be maintained at the regional and district level respectively whose names and details will be published on the website so that the prospective users can contact them and avail their services. These experts will be trained by ABPF under the project during the 5th and 6th year of the project phase. The Project Advisers/Project Facilitators at regional level and Agri-business/Agri-Marketing Advisers at the district level will provide services to prospective entrepreneurs, i.e. agric-graduates, agricdiploma holders, diploma and degree holders in management and all other entrepreneurs in various fields of agri-business and agric-marketing and will provide services like preparing project reports, proposals for banks, proposals for accessing GoM/GoI grants. The ABPF under the project is thus aimed to develop and arrangement to make the similar services available to agric-entrepreneurs even after the project period. 41

5. ABPF will hold annual and zonal conferences of Agribusiness Advisers and a satisfaction survey will be carried out to know how the ABPF has benefited to their knowledge. Like wise satisfaction survey of the SP of APMCs, RH & FCSC will help to understand the benefits of ABPF to beneficiaries. The SPs of APMCs, RH and FCSCs will be invited for annual and zonal conferences organized by ABPF. This will function as a learning platform where results of any studies can be disseminated and market designers, architects, APMC personnel and SPs involved in supporting APMCs, RH and FCSCs would attend and share their experiences and learnings. ABPF role is to provide services, and support to the project and its implementing agencies to improve performance. The regular satisfaction surveys will be carried out to know ABPFs ability to deliver the information, training and advise needed by the project and its service providers. Users of APPFs services need to be able to identify how the facility has impacted on the outcome of their work. These surveys will cover the relevant personal in PCU and MSAMB, the 33 Agribusiness Advisers in the ATMAs, service providers supporting FCSCs and market designs, attendees at dissemination conferences of ABPFs work and a sample of individuals who have downloaded ABPF generated information from the MACP website. The consultancy reports will be uploaded on the website by ABPF and the downloading of the same by registered users will be monitored. II. Outcome and Output Monitoring Indicators 6. The following table enumerates the Outcome and Output monitoring indicators: Sr. No. 1 Outcome Indicator

2.

Share of trade through alternative markets % increase in the share of trade under the Project. through alternative markets under the Project. Project clients of ABPF find that their services % satisfaction level by clients of has had a positive impact on outcomes of their ABPF and case studies of how ABPFs work inputs has had positive outcomes in the field. Output Number of personnel trained related to project activities. Measurement of knowledge gained before and after the trainings Number of Major Studies to be carried out (e.g. Milk and Fish Sectors for potential expansion of project, GI indicators, Insurance, Impact of SMS) Number of value chains and number of other studies completed and reports shared with PCU and ATMA effectively (20). Number of new business models studied and shared with PCU and ATMA effectively. Indicator % of the total targeted no. of trainings conducted. % of trainees satisfied with the training & seminars provided by ABPF. % of targeted studies satisfactory completed

Sr. No. 1 2 3

% of targeted value chain studied and shared with ATMA.

% of the new business models studied and shared with PCU & ATMA with a survey of examples of how these studies have changed the behavior of ATMAs clients. Satisfaction Survey of ATMA Agri% of ATMA Agri-business Advisors and business Advisors and SPs of APMCs, RH SPs of APMCs, RH and FCSCs satisfied and FCSCs and examples of impact of Agri- with ABPF training and examples of the business training. impact of ABPF on their work. 42

Sr. No. 7

Output

Indicator

9.

10. 11.

Increase in the amount of GoI grants % of States share in accessing grants of accessed by State GoI as compared with the budget allocation. Number of wholesale markets and rural % satisfaction of attendees at annual haats designs reviewed, and discussed with Market Design seminars and examples of stakeholders and improved designs of the new improved designs adopted by same suggested. wholesale markets and rural haat as a result of the seminars. Number of various consultancy studies % of targeted consultancy studies completed. completed and number of registered users who have downloaded the reports. Preparation of 75 commodity profiles % of targeted number of commodity profiles prepared. Number of publications done. % of targeted number of publications done.

III. Policy and Regulatory Environment: 7. Enumerated below are the issues related to policy & regulatory environment: (i) ABPF activity is related to capacity building of personnel related with the improvement of infrastructure of the institutions selected in Component B of the Project and documentation activities like study of value chains, and preparation of project profiles. Such training and allied activities of study & documentation in ABPF shall be undertaken by a Consultant, to be appointed by competitive selection process. Enabling regulatory framework is already in place through amended APMC Act wherein alternative agri-business channels are allowed freely to operate. (ii) Various studies, documentation, surveys, and results that will be created and shared with ATMA in due course of implementation of ABPF will be intellectual property of the Project. The relevant clause regarding IPR will be appropriately included in the TOR and MOU under this component. Provision of Amended APMC Act would provide the necessary policy instruments for such studies. IV. Selection Criteria 8. The selection criteria for those who would be trained by ABPF are included in respective components narrated in the Project Document. 9. Separate consultants will be selected by competitive bidding process for carrying out various studies under the project. The TOR for the same will be prepared by ABPF with the support of PCU. ABPF and PCU will take the technical and oversight role on this. Contracting of the consultancy will be done by PCU. V. Activities to be financed 10. The overall role of the ABPF is to create a body of knowledge, a network of producer / market linkages and an ongoing flow of useful information which will accelerate the economic development of Maharashtras agricultural sector. The program will be overseen by the Agricultural Marketing Specialist within the PCU, while the roles of ABPF will be put out to contract. 11. There will be three major contracts: (a) for the overall co-ordination and implementation of the program; (b) consultancies around value chains, (c) to study business models, and (d) in addition there will be a number of one off studies and trainings. All these components have to be need based and linked to various sub-components of Component B. Training needs under 43

Component B would be worked out by respective SP and ABPF together and that would become the agenda for Capacity Building for the personnel viz. farmers, officials, PG members and other stakeholders, for ABPF. 12. The role of ABPF consultants will be as under: A. Consultancies for the overall co-ordination and implementation of the program: i) Agribusiness and Marketing Consultancy at HQ Level ii) Agribusiness and Marketing Consultancy at Zonal Level iii) Preparation of proposals for GOI iv) Other misc. consultancy requirements and to facilitate Maharashtra agri-businesses and producer organizations to access GoI grants. B. Consultancies around value chains, to study business models, major, minor and one off studies: i) Value Chain Analysis ii) Studies of, and Advisory services provided on new business models promoted by the project iii) Major studies : a. Study of Dairy Marketing Development b. Study of Fisheries Marketing Development c. Study of Agric-insurance and piloting yield Risk Management Mechanism d. Study of the Impact on Farmer Profitability through the use of SMS based Agricultural Information systems e. Study of and potential on-going support for the development of Geographic Indicators in Maharashtra f. Finance, Policy and e-trading. iv) Minor studies for agro-marketing and provide training : a. Study to review, discuss and develop the modern design for wholesale markets and rural haats. b. Studies required for agri-business needs of ATMA. c. Provide training to e-trading v) One off studies- Meat Study for Pune city. vi) Preparation of Commodity Profiles C. Training: i) Seminars, Workshops and Clinics. ii) Training courses. iii) Training for ATMA and Agri-business Advisers. D. Publications: A. ABPF consultancy for over all coordination and implementation of program: 13. The envisaged operational structure of the ABPF will have two senior staff located at the Project HQ, one will oversight on the program around markets, products and agribusiness business models (Agric - Business & Marketing Specialist), the second to oversee the issues around policy and access to finance for agri-business (Finance & Policy Advisor). A junior agricultural economist will assist them. 14. There will be three regional offices, reflecting the three regions (Marathwada, Vidarbha and Westerns Maharashtra) 1 of the state. In each will be staffed an agribusiness advisor and a junior agro-economists. Their role will be to create network with the agribusiness and financial sector and act as a resource center for the agribusiness advisors in the ATMAs. These roles will be put out to contract for Consultancy Company.

Also corresponding to the States major agro-climatic zones.

44

15. The role of the Agribusiness and Marketing Specialist is to: i) Oversee the training program conducted by the zonal offices for the managerial personnel involved in the management of the infrastructure facilities proposed to be developed under Component B of this project. Oversee the conducting of value chain studies, dissemination of the findings and that the information is useful to the sector. To see the information from the value chain is widely disseminated via publications, trainings (especially to Agribusiness Advisors in the ATMA), seminars and via web based information Create a role as a point of contact and conduit for information and networking between the agribusiness and trading sector, their associations (i.e. CCI, Maratha CCI and FICCI), and the project, the Maharashtra State Agricultural Marketing Board , the GoM and the zonal offices; Oversee the studying, understanding and analysis of a series of business case studies that will be carried out of the new marketing, models that will emerge as a result of the project i.e. FCSC, E-Mandis and local aggregators of product to access the new financial instruments like warehouse credit and contracts, and that the findings are disseminated to entrepreneurs, financial institutions and the agri-business and farming sectors; Ensure that the successes and failures of the new marketing models is rapidly understood and the key issues rapidly disseminated to the financial institutions entrepreneurs and ATMA business advisors;

ii) iii)

iv)

v)

vi)

vii) Provide a commentary on markets, products and evergreen business models and on the different financial institutions and their products on the project web; viii) Identify new and potential important marketing / agribusiness models that are emerging in Maharashtra, and if considered significant enough (i.e. having potential for large scale replication), commissioning studies so that their effectiveness, impact and profitability is well understood by the broader agriculture and agribusiness and rural finance sectors; ix) Feed information on new market and agri-business opportunities into the communication network in the project, so that field staff are well informed, and can advise their clients and capture from field feedback on successes and failures and modify messages and activities accordingly. ABPF will hold annual and zonal conferences /workshops of Agribusiness Advisers and a satisfaction survey will be carried out to know how the ABPF has benefited to their knowledge. The SPs of APMCs, RH & FCSC will be invited to attend these conferences/ workshops which will help them to understand the benefits of ABPF to beneficiaries. Surveys will be carried out of level of satisfaction of attendees and of examples of the impact of ABPF on their work.

x)

xi)

xii) to assist in the emergence of a process to enable APMC and agribusiness in accessing GoI marketing grants (.e.g. guidelines trainings, support services provided by MSAMB in applications etc) 16. The role of Financial and Policy Advisor is to: i) ii) act as an advisor to the project on issues around the policy impacts on agribusiness and farmers, and as an interface between the financial sector and the project; create a role as a point of contact and conduit for information and networking between the agribusiness and trading sector, their associations (i.e. CCI, MCCIA and FICCI, and the financial sector, the project, the Maharashtra State Agricultural Marketing Board and the 45

zonal offices, so that policy and trading and farming needs can be better tuned with one another; iii) iv) v) vi) commission studies on key policy issues and new financial instruments so that policy decisions can be fact based; create a role as an interlocutor between the Financial sector, the project and government; understand the modus operandi of the financial institutions, the new financial products and loaning criteria that are emerging; encourage the financial sector to understand the financial needs of the agri-business and trading sector and seek to increase the access of finance;

vii) facilitate trainings by the financial sector to the agribusiness and trading sector; viii) provide a commentary on policy and regulations, and on the different financial institutions and their products on the project web; ix) sensitize the financial sector to new business models, investment opportunities and potential alternative and newer financial products that will benefit the farming and agribusiness and trading sector; ensure that an understating of financial products and institutions is well understood by project staff and particularly by ATMA agri-business advisors so that they can advise their clients accordingly.

x)

The junior agricultural economist will carry out research and information gathering for the Agribusiness and Market Advisor and the Policy and Financial advisor and act as alternates on their behalf. 17. The role of the Zonal Office will be to: i) work closely with the 11, or so, ATMA agribusiness advisors working in their respective zone, providing trainings, information, advice, convening seminars and acting as a two way conduit for information between field staff and the ABPF HQ and PCU staff; conduct training programs for the manpower involved in management of various infrastructures proposed to be created under MACPs component B. This training will be mainly business related and in management areas to suit the requirement of the operations and management of various infrastructures created under the project. The consultants at head office and zonal office will have to develop need based training module, draw training plan and conduct these training programs. act as a conduit for the exchange of information between the project, HQ and field staff, especially the Agri-business advisors, and the agribusiness community, and convene meetings/trainings between ATMA agri-business advisors so that best practices and field lessons are exchanged; assist ATMA agribusiness advisors in carrying out local area resources audit/ information gathering exercises and that this information is forwarded for inclusion onto the MSAMB web site; to network with the local agri-business community, their trade and professional associations so that business opportunities and marketing linkages can be fed into the project network; to organize, in conjunction with the local agri-business community, their trade and professional associations a number of seminars, workshops and buyer: seller meets annually and ensure that the information and training provided is relevant and responds to the needs of the local agribusiness and trading community. 46

ii)

iii)

iv)

v)

vi)

vii) to approve the business plan prepared by PA for FCSC. B. Studies: (i) Consultancy for study of Value Chains: 18. The contract will be put out to bid for suitably qualified institution and consulting company, for study of some 20 value chains and the communication of the findings to the sector and to ATMA agri-business advisors. Major important crops including cereals, pulses, oilseeds, fruits and vegetables and flowers will be covered in value chain analysis. These will include sorghum, wheat, maize, rice, pulses, soybean, sunflower, mango, banana, grapes, pomegranate, orange, guava, cashew nuts, tomato, onion, okra, brinjal, cauliflower and exotic flowers. The value chains studies will be shared with ATMA. These studies would generate model project reports under each value chain to be adopted by prospective agri-business entrepreneurs. (ii) Consultancy for Study of New Business Models: 19. The contract will be put out to bid for suitably qualified institutions and consulting company for the study of new business models promoted by the project, identifying key factors of success and failure and explaining the financial needs and returns of the studied new marketing venture. This is likely to include FCSC, E-Trading and the role of local aggregators to consolidate smaller farmers produce so that they are able to take advantage of the new financial instruments that are emerging, the economics and business models of APMCs providing productive services, e.g. cold stores, pack houses, ripening rooms. Outcome of such studies will be seminars and outline business plans for use by SP, investors, APMCs, Financial institutions to reduce the risk and increase in knowledge for future similar investments. . (iii) Major Studies: a. Consultancy study of Dairy Marketing Development: 20. India with a total milk production of 110 million tonnes remained the largest milk producing country in 2008-09 with a share of close to 15 percent of world milk production. Maharashtra is one of the milk surplus states in India. Total production of milk in Maharashtra is around 7.00 million tonnes. In Maharashtra there are dairies in the cooperative sector, the government sector and the private sector. The total milk production of cooperative and government sector is around 82.00 lakh liters per day (LLPD), with almost equal share of each. The unorganized sector has additional production of around 18.00 LLPD to 20.00 LLPD. 21. The National Dairy Development Board (NDDB), has proposed around $4 billion (Rs. 173 billion) draft National Dairy Plan (NDP) to increase the country's milk production from the current level to meet the projected demand of 180 million tonnes by 2021-22. Commensurate with this goal, it may be reasonable to project that Maharashtras milk production should grow from 7.00 million tonnes to around 13 million tonnes by 2020. 22. The NDP focuses on: (i) productivity measures to enhance milk production as the average annual incremental production will have to increase from 2.5 million tonnes now to 5 million tonnes over the next 15 years, and, (ii) strengthening and expanding infrastructure to procure, process and market milk through existing and new institutional structures. The NDP plan proposes to increase the share of the organized sector in milk production to 65 percent from the current 30 percent to ensure supply of quality milk to consumers. NDP covers strengthening and expanding infrastructure to procure, process and market milk through existing and new institutional structures, of which Maharashtra state is likely to be a major beneficiary state. 23. In view of the above, there is a need to explore the potential of introducing proactive measures to increase the productivity and production of milk in Maharashtra, viz.: (i) (ii) Undertaking campaign for production of clean milk (CMP programme). Milk Price based on microbial quality by implementing CMP programme. 47

(iii) (iv) (v) (vi) (vii) (viii) (ix)

Milk Payment through smart cards. Provision of bulk milk coolers (BMCs), automatic weighing and testing machines. Fully automatic and computerized milk processing facilities. Establishment of cold chain from farmer to consumer. Milk marketing through automatic vending machines (not only in Mumbai but even in smallest towns in the state). Enforcement of stringent quality norms. Organization of New Generation DCS as per Indian Companies Act applicable to Producers Companies.

24. Considering various interventions under NDP what is required to be done in the field of Dairy Marketing Development will be studied under MACP. A study is proposed for development of a roadmap for Maharashtras dairy industry from Production to Marketing. This study shall be completed during the early two years of the project. Based on the results of this study WB in consultation with GoM at the time of Mid Term Review of MACP will decide whether subcomponent of Dairy Marketing Development should be included in MACP and what activities need to be taken. Besides other objectives, this study will cover as to how the dairy development including processing of milk and its marketing development should be tackled; particularly in suicide prone districts of Vidharba region of Maharashtra, and what kind of investment is needed for the same. 25. The draft TOR for the study will be prepared by ABPF with the support of PCU, and ABPF and PCU will take the technical & over sight role on this. Consultant contracting will be the responsibility of the PCU. If need be PIP for Dairy Marketing Development in Maharashtra form the stage of production till marketing will be prepared by consultant. b. Consultancy study of Fisheries Marketing Development: 26. Fish is important sources of cholesterol free protein to non-vegetarians. Maharashtra State has the coastline of around 720 km and the marine fish production of the state is 4.10 lakhs tonnes. Besides this the State has 1.30 lakhs tonnes of inland fish production. There is water spread of over 3.20 lakhs ha. under inland water bodies. Inland fisheries development has therefore tremendous potential. In addition to this the GoM has taken massive program of digging of farm tanks under the program of water and soil conservation and these tanks are increasingly being used for growing of fish by the farmers in the State. 27. There are some bottlenecks in the development of inland fisheries in the State. These are i) Non availability of quality seed of cultivable freshwater fish species acting as limiting factor for creating marketable surplus of fish production due to lack of intensification and coverage of available area under aquaculture ii) total requirement of fingerlings for the State is around 12 crore, as against the availability of around 2 crore iii) lack of fish handling infrastructure iv) inadequate facilities for storage transport v) inadequate marketing infrastructure. To address these issues and other gaps and to enhance the production of fish GoI has launched National Fisheries Development Program (NFDP). Maharashtra is going to be one of the States getting benefit under the program. The outcome / results of NFDP would be known only after around 2 years. In the light of NFDP, what needs to be done in Fisheries Marketing Development in the State under MACP, needs to studied. It is therefore proposed to undertake study of fisheries marketing investments which can be included under MACP. This study will be conducted by consultant under the overall supervision of ABPF. This study would be undertaken early during MACP implementation and reviewed at the point of Mid-Term-Review of the project and WB in consultation with GoM will decide the possible inclusion of activities for fisheries marketing development in MACP during the later years of implementation of project. ToR for consultant will be drawn by ABPF with the support of PCU. ABPF and PCU will take the technical oversight role over this study; contracting will be the responsibility of the PCU.

48

c. Agriculture Insurance and Product Development/ Piloting yield Risk Management Mechanism 28. Agriculture as an economic activity is severely affected by various factors which are beyond the control of the farmers. The scanty, untimely, inadequate or heavy rains, sudden changes in weather conditions, hailstorms, frosts and fogs, sudden epidemics of diseases and pests etc. make agriculture a very unsafe and unsure activity. The lack of infrastructure for post harvest handling and loopholes in Agriculture Marketing System adds to the uncertainties in Agricultural business. Thus risk in Agriculture is a very complicated and complex phenomena, manifested by uncertain productivity and inadequate price realized by the farmers for their agricultural produce. This problem needs to be addressed, to insulate the farming community to the extent possible. The National Agriculture Insurance Scheme, popularly known as Crop Insurance Scheme, does not cover horticultural crops. Maharashtra's strength in horticulture needs no emphasis. Therefore, there is an absolute necessity to develop insurance products for horticulture crops, acceptable to farmers, which are not available at present. Besides horticultural crops insurance products acceptable for non-perishable crops by the farmers need to be developed. 29. It is proposed to study the agriculture insurance with particular reference to the horticultural crops and few non perishable crops. Study of the present status of data about yield of crops identified and collection of more comprehensive data to fill up the gaps, develop new methodologies for data collection, organization and dissemination of the data that align with the needs of insurance companies to develop insurance products based on Crop Cutting Experiments (CCE) and assist the Department of Agriculture to maintain database for such CCE based crop insurance. Study of existing weather data, identify the gaps in the same and collect required weather data to fill up the gaps and develop linkages between weather parameters and yield of crops for weather data based crop insurance. This study and product development will be done during first 24 months of the project to develop a more perfect and matured CCE based insurance product and weather data based insurance product for the identified crops. 30. The study could include what the farmers want as an insurance product to cover their crops. Different products available in the market will be studied and the expectations of the farmers, officials who implement the scheme, Govt. who shares the responsibility of premium & compensation, and, the insurance company would be examined. The products which are acceptable to all the players can be identified and road map of product development can be drawn. These studies would include two sets of crops i.e. perishables (fruits and vegetables) and non-perishables i.e. cereals, pulses and oilseeds. 31. This study will be conducted during early 2 years of the project period through an independent consultant who will be recruited by competitive bidding. ToR for the consultant will be prepared by ABPF with the support of PCU and ABPF. They will take technical and oversight role on this. Contracting of the consultant will be done by PCU. On the basis of the results of the study the World Bank in consultation with GoM at the time of MTR will decide whether the testing of the products, its launching, the rolling out of the program can be considered under MACP, and, with what support during the remaining period of the project. d. Ad-hoc Studies: 32. A number of ad hoc studies will be commissioned, mainly in response to need. These include those of Policy, e.g. the implementation of APMC Act, the issues on Agricultural and Agribusiness finance, e-trading, cross state trade, and other new business models. This would lead to agri-business capacity creation at the grassroots level.

49

(iv) Minor studies for agro-marketing: a. Study to review, discuss and develop the modern design for wholesale markets and rural haats: 33. This study will be around the development of modern design for the wholesale markets and the rural haats taking into account the present infrastructure in the modern markets and the emerging modern systems in the most developed markets. Market designs have not improved for the last 50 years. The infrastructures are of traditional nature. ABPF will develop improved design of wholesale markets & RH. The study should able to visualize design of wholesale market in 2030. ABPF will commission the study and hold conference every year and make the design of wholesale market and RH available to the users. b. Studies required for agri-business needs of ATMA: 34. Agri-business needs of ATMA will be studied by the Agri-business Specialist and Marketing Specialist with the support of Finance and Policy Advisor in the zonal offices of ABPF. Each of the zonal office will conduct these studies for ATMA in its zone and the results will be shared in the form of report to ATMA, PIU, Agriculture and PCU. c. Study of potential for Geographic Indicators in Maharashtra, A study will be undertaken of the need and opportunities for Geographic Indicators in Maharashtra, and if proved promising the ABPF will provide support for Farmer Organizations wanting to register the Geographic Indicators for their products. d. Study of the Impact on Farmer Profitability through the use of SMS based Agricultural Information systems An existing survey is being carried out in Maharashtra across 100 villages and 1,000 households of the impact of RML, when either directly delivered to farmers, or routed by village field functionaries. The ABPF will commission this study to continue for 2 further years in order to validate the impact of these information services over time. (v) One off studies- Meat Study for Pune city. 35. This study will cover meat trade in Pune city with an objective to start modern slaughter house for hygienic meat production to meet the growing demand of the same in Pune city. The write up on this is given under chapter A.4. This study will be conducted by ABPF with the support of AHD. An independent consultant will be contracted for this by PIU, AHD. The ToR for the same will be prepared by ABPF. (vi) Preparation of Commodity Profiles 36. Marketing opportunities (profiles) of important 75 commodities are proposed to be included on the web site in English and Marathi languages. The commodities having maximum arrivals and prominently used in the State are selected from various categories for creating commodity profiles. This will help farmers to manage the pre & post-harvest operations in order to realize better price to their produce in the market. The Commodity Profiles will be prepared by an independent consultant who will be appointed by competitive bidding. The ToR for the consultant will be drawn by ABPF in consultation with PCU. The contracting of the consultant will be done by PCU and preparation of commodity profiles will be done by the consultant under the overall guidance of ABPF & PCU. Indicative list of points those will be considered while creating commodity profiles is given in the following para however, the concerned expert who will create these profiles can give additional necessary information. 37. Origin of the commodity, importance, its major producing states, countries, major commercial varieties, post harvest losses, harvesting care, post harvest equipments, grade specifications, grading at producers level, major storage diseases & pest and control measures, storage structure, 50

storage facilities, pledge finance system, marketing practices and constraints like major assembling markets, arrivals, dispatches, inter-state movement, export import features like sanitary & phyto sanitary requirements, export procedures, standards and quality, grading, packaging, agri-export zones, marketing channels, marketing costs and margins, marketing information and extensions, alternative system of marketing, institutional facilities, processing and utilities etc. Commodities having maximum arrivals and prominently used in the State are selected from various categories for creating commodity profiles. The details are as follows.
Category Fiber (1) Cereals (6) Pulses (6) Oilseeds (5) Jaggery (1) Fruits (18) Vegetable (15) Condiments (8) Flowers (5) Animal Husbandry (10) Commodities Cotton Bulrush-Millet, Paddy-Unhusked, Wheat-Husked, Sorgum, Maize, Rice. Gram, Lentil, Green Gram, Pigeon Pea, Black Gram, Green Peas. Ground Nut Pods, Safflower, Soyabean, Sunflower, Sesamum. Jaggery Mango, Pineapple, Fig, Sapota, Pomegranate, Grapes, Banana, Lemon, Sweet Lemon, Papaya, Apple, Orange, Custard Apple, Strawberries, Guava, Melon, Water Melon, Amala. Potato, Ladies Finger, Cauliflower Cucumber, Carrot, Onion, Cabbage, Garlic, Capsicum, Drum Stick, Tomato, Ginger, Green Peas, Beans, Brinjal. Coriander, Turmeric, Cashew nut, Chilly, Almond, Raisin, Betel leaves, Muster Aster, Rose, Mari Gold, Jasmine, Tuberose. Bullock, Cow, Hen, Eggs, Sheep, Buffalo, Goat, Pig, Horse, Fish.

(C) Trainings, Seminars, Workshop , and technical investigations: 38. In addition a series of regular seminars, trainings and technical investigations will be carried out; each one of them would be to build up the capacity of project personnel under Component B. It is proposed to hold one workshop per zone and at HQ of ABPF every year during all the six years of the project period. 39. Management and business training activities to be conducted by ABPF in the catchment area of the subcomponents of Component B are given in the following table:
Management and Business Training Activities to be conducted in the catchment area of subcomponents of Component B
Sr. No. 1. 2. 3. Component / Sub Component under MACP Training to the manpower concerned with the management of infrastructure 800 a (8 person per APMC) 192 b (8 person per APMC) 2400c (8 person per Rural Haat) Entrepreneurs training by ABPF

APMC (100) 2,000 * LSM (24) 480 * Rural Haat (300) 6,000* Developing Farmer Common Service Centre 4. FCSC (Grain) (200) 1000 d (5 person per FCSC) 4,000 * FCSC (Horticulture) (200) 1000 e (5 person per FCSC) 4,000 * 5. E - Trading (294) 294 (1 person per APMC) f 5880* 6. MSAMB Officers Training for Business Dev. 20g Line Dept. Training to upgrade them in business 7. 30 area 10 per department (Agri mkt., Agri, AHD) Training to ATMA officials in business areas 3 8. 99 departments for 33 Districts Note- a, b, c, f , g : Training of the personnel involved in management of APMC s, Live Stock Markets, & Rural Haats will be conducted by NIPHT, after the Study of Training Needs by SP. d, e: Training of personnel of FCSC (Grain) and FCSC (Horticulture) will be provided by SP. * Twenty participants per activity / subcomponent under component B.

(D) Publications: 40. Documentation of number of success stories from various interventions under the project viz., FCSC (Grains), FCSC (Horticulture), e-trading, warehouse receipt credit, modern infrastructures like grain handling unit in APMC, vermicomposting, godown, cold storage, functioning of modern RH, functioning of ATMA, trainings, demonstrations etc. ABPF will 51

take out 25 publications every year of the project at the cost of around Rs. One lakh per publication which will be shared with respective institutions (all) and ATMAs. 41. GANTT Chart: The time plan for various trainings, workshops, seminars & studies to be conducted by ABPF over the project period is shown on the following Gantt chart. It would facilitate understanding of various activities that will be conducted by ABPF and timings of the same.
Sr. No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Activities Preparation of proposals for GOI. Consultancy to access GoI grants Value Chain studies (20 Crops) Studies on business models Study of Dairy Marketing Development Study of Fisheries Marketing Development Study of Agric-insurance and piloting yield Risk Management Mechanism Study on Finance, Policy and e-trading. Study of modern design for wholesale markets and rural haats. Studies for agri-business needs of ATMA Training to e-trading Meat Study for Pune city Preparation of Commodity Profiles Training for ATMA Agribusiness Advisers Publications Management and Business Training to APMCs Management and Business Training to RHs Management and Business Training to FCSCs E-trading trainings MSAMB Officers Training for Business Development Line Department Training Training to ATMA officials Annual Conference of Agribusiness Advisers & others Zonal Conference of Agribusiness Advisers & others Year-I Year-II Year-III Year-IV Year-V Year-VI Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4

VI. Estimated costs 42. Total cost will be funded by the State Government.

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VII. Institutional and implementation arrangements 43. Procurement of ABPF will be carried out by PCU by following World Bank procedure. ABPF will work in close coordination with PCU and line departments. The work of ABPF will be constantly monitored by PCU. ABPF will have to submit reports of the work accomplished to PCU regularly. PCU shall have rights to give directions to ABPF for taking corrective steps so that the role of ABPF is performed as per the contract / agreement between PCU & ABPF. The funds will be made available to ABPF Consultants and Service Providers by PCU every quarter as per the budget, based on the programs. ABPF will have to submit the proposals for release of funds to PCU with details of the budget provision, programs targeted and actual performance. PCU will release funds to ABPF consultants and Service Providers and they shall maintain the accounts of funds received and utilized. They will also be responsible to submit periodical returns to PCU of the project. The continuation of the services of consultants would depend upon the effective delivery of agreed items of consultancy. VIII. Funds flow 44. The provision of funds will be made in the budget of the Dept. of Coop. & Mktg. and will be released as per BDS to the Director of Agri. Mktg. who will draw cheques from treasury and give to MSAMB-PCU. PCU will make payments to consultants under ABPF by crossed cheque as per the progress of the work. PCU will have one account for all the activities for which it is a spending unit. The cheque will be signed by the Chief Finance Controller and the Accounts officer after sanction of the bills by the Project Director. The maintenance of accounts of all the activities implemented directly at the level of PCU will be maintained by PCU. IX. Fiduciary and Safeguards arrangements 45. Following will take care of Fiduciary and Safeguards risks: i) WB procedure of procurement & financial management will be strictly followed. ii) Release of funds in tranches as per progress of work to SPs will be made. iii) Regular internal & external audit, MIS and M&E would bring out the problems, if any, in the implementation. X. Governance Risks and Mitigation Measures 46. Following are the risks and their mitigation measures: Sr. No. 1 Risks Technical / Design Description Design of training is vital for the desired impact of this component. Manpower training is essential for the sustainability and continuity of the inputs. ----In the absence of agribusiness training it is difficult to develop entrepreneurship. Risk Mitigation Measures All the activities will be conducted through expert SP / consultants. Training the manpower concerned with operations & management of various subcomponents will build up implementation capacity. Release of funds in tranches as per progress of work to SPs. Will be done as per WB norms & procedures. ABPF consultancy will empower the youth and women to start their agribusiness resulting in social and economic development.

Implementation capacity and sustainability Financial Management Procurement Social and environment safeguards

3 4 5

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Sr. No. 6

Risks

Description

Risk Mitigation Measures Entire ABPF component would be need based and the agenda for the consultants would be driven by various stakeholders and their respective SPs. The effectiveness of the Capacity building in agribusiness activities would be strictly monitored on the basis of outcome of such capacity building measures.

Other ( for example --project specific corruption risk, ownership of project / program, prevalence of failure in similar projects)

XI. Sustainability 47. ABPF consultancy will empower the youth and women to start their agri-business resulting in social and economic development. The reports of the studies conducted by ABPF will be the property of the Project which will bring benefits to the Project. The overall impact in the State by ABPF by way of dissemination of knowledge through various consultancies will help the farmers to improve quality and productivity resulting in higher income because of emergence of new agri-business opportunities identified by ABPF.

48. Long term sustainability of ABPF will be ensured by taking over the function of ABPF by MSAMB after project period is over. As such MSAMB has a mandate of developing agribusiness projects; agro processing projects in the State and providing training in these areas with the help of their sister organization National Institute of Post Harvest Technology. MSAMB has its own Project Consultancy Cell with expertise in the areas of agric business, agro processing and value addition to agric-produce. MSAMB with the help of NIPHT will look after the function of ABPF after the project period is over. The MSAMB will recover reasonable fees for the services it will render as ABPF after the project period, from the beneficiaries for training, project preparation and advisory service. The officers and staff is proposed to be trained by ABPF under the project for which cost is provided. ***

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A. 3 MARKET INFORMATION SERVICES

I. Objectives 1. There is a need for improvement in agricultural marketing system by adopting systematic approach and latest technology like Information Technology, for collection and dissemination of Market Information and Intelligence. One of the reasons for lack of returns in agriculture is traditional way of marketing through middlemen and absence of awareness about market information and intelligence. The other reasons are unscientific and inadequate crop planning, crop husbandry, post harvest management and inadequate alternative marketing channels. At present, APMCs are able to disseminate only price information to the farmers related to respective market area only. The scope and coverage of market information dissemination needs to be expanded. Some interventions for the same are proposed under this subcomponent. The main objectives of this subcomponent are: (i) dissemination of market information without the limit of geographical boundaries. Information from markets in India as well as from International markets will be made available, (ii) Apart from price data, information on Weather forecast, Crop advice, Use of fertilizers & pesticides, and Agricultural technology will be made available, (iii) The Market Information Services will provide analysis of information and trends in prices, demand on continual basis. 2. This subcomponent is proposed to achieve the following: i) Web based Project Management Information System (PMIS): for effective monitoring & evaluation of the Project. ii) Integrated Project Portal (IPP) (enhancement of MSAMB website): for providing information about Project activities, PCU, PIUs, Implementing Agencies, Project progress, Market Information and Intelligence, market opportunities (commodity profiles), stake holders and technical information from various line departments at single point access. iii) Web based Geographical Information System (GIS): for providing realistic spatial information like distance between two markets, their production area, major infrastructure available at APMCs, market arrivals and prices of agriculture commodities. iv) SMS Service: The dissemination of price information, weather forecast, market news and technical guidance through local language SMS to various field functionaries on mobile who will in turn share this information with the farmers. This information would help farmers to decide when, where and at what price the produce is to be sold, application of pesticides, fertilizers and post harvest management. v) Market Information Display: Effective dissemination of price and other necessary information using electronic media like LCD TV within the regulated markets. vi) E-Trading Platform: To improve agricultural marketing system by providing web based etrading platform through Virtual Markets in the State. II. Outcome and Output Monitoring Indicators 3. The outcome and output monitoring indicators are as follows: Sr. Outcome No. 1 Increase in number of the farmers using market information services as a part of their decision making 2 Satisfied users of quality of market information service provided 55 Indicator % Increase in number of the farmers using market information services as a part of their decision making % level of satisfaction with the quality of market information service provided

Sr. Output No. 1 100% Management Information System (MIS) reports generated by each line department 2 Development of IPP covering all the line departments 3 Number of hits/downloads to MSAMB website for accessing the information 4 5 34000 field functionaries accessing SMS service during the project period. SMS service provided to 60000 institutional functionaries and lead farners on demonstration basis. 150 Market Information Display (MID) system commissioned and in use Increase in farmer prices through access to price displays Effect of farmer profitability through access the SMS services Development of 75 commodity profiles Development of GIS based database for 294 markets in Maharashtra

Indicator % of Management Information System (MIS) reports generated by each line department IPP developed within the time frame % increase in the Number of hits/downloads to MSAMB website for accessing the information over the previous year Number of Govt. field functionaries receiving SMS service % institutional functionaries and lead farmers covered by SMS on demo basis and % of the same subscribing to SMS service in the following year. % of targeted Market Information Display (MID) system commissioned and in use Survey of farmers price % of wholesale price comparing similar market with and without display Continuation of existing research programme in 100 villages in Maharashtra % of targeted number of development of commodity profiles % of GIS based database for targeted markets developed

6 7

8 9 10

III. Policy and Regulatory Environment: 4. Following are the details of policy and regulatory environment: i) Dissemination of market price and information related to marketing of agricultural produce through web site, SMS service and Market Information Display, as per the Section 39 J(vi) of APMC Act. ii) Information on IPP and Market Information Display is freely accessible. iii) Third party consultant/ SP will be appointed on contract for study, design, development and implementation MIS. The selection of SP will be done through competitive bidding and contracting of SP will be done by PCU. iv) Third party consultant/ SP will be appointed on contract for study, design, development and implementation IPP. The selection of SP will be done through competitive bidding and contracting of SP will be done by PIU, MSAMB. As IPP will emcompass all the activities of the project, though IPP will be implemented by PIU MSAMB as it has basic infrastructure, the approval of PD will be taken for implementing all the activities of IPP. v) Third party consultant/ SP will be appointed on contract for implementation of SMS service. The agreement will be signed between MSAMB and SP with regard to SMS service inter alia providing number of commodities to be covered, training to subscribers, user need and ingredients like prices, arrivals, trends, weather data, and agricultural technology details. Based on the minimum price at which data is disseminated through SMS, support would be provided to the subscriber for the service. Database created for 56

SMS service during project period will be owned by MSAMB. Necessary provision regarding this has been incorporated in ToR of SP. The selection of SP will be done through competitive bidding and contracting of SP will be done by PIU MSAMB. vi) The MSAMB has entered in to contract with the Reuter India Ltd. and NOKIA for provision of SMS service. MSAMB is the first in India to provide this service to the farmers. This service is being used at present by around 1,00,000 subscribers. It is proposed to scale up this service at the most reasonable cost in this project. vii) Third party consultant/ SP will be appointed on contract for implementation of Market Information Display system. viii) For Market Information Services, the IT security policy will be defined in consultation with the consultant for the usage of computer hardware (desktops & servers), system & application software, UPS, various tools, database, network equipments, antivirus, Internet leased line and contents for IPP, MIDs and SMS service. This policy will involve security of data (i.e. database), network security & rules, control on Internet usage. ix) The Project will have the copyrights of contents and data MIS and IPP. Access, usage and maintenance of the data center will be done as per the IT security policy. x) There will be provision for disaster management for the Data Center located at MSAMB. IV. Selection Criteria 5. Selection criteria for selecting Field Functionaries and Lead farmers for free SMS service: To increase the awareness about SMS service among the farmers, it is proposed to provide free SMS service to various field functionaries and Lead farmers during the project period. The Govt. functionaries will be provided with SMS services for the duration of the project period in their area. This is proposed because the effectiveness of government extension functionary is substantially improved because of market and technology information. Moreover government field functionary will not be able to subscribe to this service at their own cost. The institutional functionaries and farmers leaders would be provided with SMS service for limited period for three months and six months respectively for demonstration purpose, as they may subscribe if they want to avail these services. 6. Field Functionaries: They will disseminate information received through SMS service to farmers. The field functionaries engaged in extension work of Agriculture, Agricultural Marketing, Animal Hisandry and Gram Panchyat working at village, circle & at Taluka level will be considered for this programme. Similarly, institutional official viz. Secretary of PACS & APMCs and godown keepers of MSWC are taken into consideration. The details of these functionaries working in the field given in the following table.
Sr. No Particulars of Functionaries Number Available Per Taluka Total in 33 Dist. (355 Talukas)

Govt. Field Functionaries 1 Agriculture Dept. Agriculture Officer Agriculture Supervisor Agriculture Assistant Sub total 2 Gram Panchyat (Total-27000) Gram Vikas Adhikari (2926) Gram Sevak (16629) Sub total

3 5 40 48 5 40 45

1065 1775 14200 17040 1775 14200 15975

57

Sr. No 3

Particulars of Functionaries

Number Available Per Taluka 1 2 3 Total

Total in 33 Dist. (355 Talukas)

Animal Husbandry Dept. Live stock development officer Live stock extension assistant Sub total

355 710 1065 34080 10650 294 500

Institutional Field Functionaries 1 Secretary of Primary Agri. Credit Coop. Society (11078) 2 Secretary of APMC 3 Godown keeper of MSWC godown

30

Total

11444

7. From the above table Govt. field functionaries will be selected in phased manner from concerned districts of the three phases. First phase will have 10 districts, second phase 11 districts and third phase 12 districts. Govt. field functionaries selected in each phase will be provided with the SMS service till the end of the project period i.e. up to 6th year of the project. The phase wise government field functionaries to be provided with SMS service during the project period is as follows.
Phase Functionaries 1st Phase1 Agri. Officer Agri. Supervisor Agri. Assistant Gram Vikas Adhikari Gram Sevak Live stock dev. officer Live stock extension assistant Phase-1 Total Phase2 Agri. Officer Agri. Supervisor Agri. Assistant Gram Vikas Adhikari Gram Sevak Live stock dev. officer Live stock extension assistant Phase-2 Total Phase3 Agri. Officer Agri. Supervisor Agri. Assistant Gram Vikas Adhikari Gram Sevak Live stock dev. officer Live stock extension assistant Phase-3 Total Grand Total 9600 20160 300 500 4000 500 4000 100 200 9600 2nd 300 500 4000 500 4000 100 200 9600 330 550 4400 550 4400 110 220 10560 3rd 300 500 4000 500 4000 100 200 9600 330 550 4400 550 4400 110 220 10560 360 600 4800 600 4800 120 240 11520 31680 Year Subscriptions 4th 300 500 4000 500 4000 100 200 9600 330 550 4400 550 4400 110 220 10560 360 600 4800 600 4800 120 240 11520 31680 5th 300 500 4000 500 4000 100 200 9600 330 550 4400 550 4400 110 220 10560 360 600 4800 600 4800 120 240 11520 31680 6th 300 500 4000 500 4000 100 200 9600 330 550 4400 550 4400 110 220 10560 360 600 4800 600 4800 120 240 11520 31680 46080 156480 52800 57600 Sum

58

Thus total of 156480 subscriptions for Govt. field functionaries will be covered during project period. 8. Demonstration of SMS services: Three months free SMS service (trial) will be provided to institutional officials. After the project, period these officials may subscribe to the service. The phase wise selection of functionaries during the project period is as follows.
Institutional Officials (3 months free trial) Particulars of Year wise Subscriptions (Approx. 10 Talukas are Phase Functionaries considered in a district ) 1st 2nd 3rd 4th 5th 6th Phase 1 PACS Secretary 3000 APMC Secretary 98 Godown Keeper 166 Phase-1 Total 3264 Phase 2 PACS Secretary 3300 APMC Secretary 98 Godown Keeper 166 Phase-2 Total 3564 Phase 3 PACS Secretary 3600 APMC Secretary 98 Godown Keeper 166 Phase-3 Total 3864 Grand Total 3264 3564 3864

Sum

3264

3564

3864 10692

Thus, 10692 officials (functionaries) will be selected for free SMS service for the period of three months on demonstration basis. 9. From 355 Talukas in the State, average 30 field functionaries are to be selected from each Taluka to provide free SMS service. The details about numbers of Govt. field functionaries and institutional officials for providing free SMS service are given in above tables. These functionaries are associated with ATMA for extension activities. Hence, ATMA will provide detail list of functionaries every year, at the rate of average 30 functionaries per Taluka. The detail list will have information about name, designation, address, cell number of each field functionary and primary crop enterprises that are important in the area. The selection criteria for selecting the field functionaries would be; i) The field functionary should belong to any one of categories of field functionaries of line departments under the project. ii) He should have his own mobile hand set compatible for Marathi language with sim card. iii) He should be less than 57 years age so that he will not retire during the next one year. iv) He should undertake to provide information received through SMS service to the farmers from the area in which he is functioning. v) Based on above selection criteria BTT under overall supervision of ATMA will shortlist 30 senior most field functionaries every year from each Taluka & forward the list to PIU MSAMB. 10. Lead Farmers: It is proposed to provide free SMS service to lead farmers for the period of six months, every year from the second year, till end of the project period. It is proposed to form groups of farmers to support various activities of line departments under the project. It is envisaged to form number of groups of the farmers by Department of Agriculture, AHD and Agricultural Marketing, under MACP. The Chairperson and Secretary of the newly formed PGs and the existing PGs will be the lead farmers for this programme. Besides, the farmers who have been awarded for 59

excellency in agriculture by the Agriculture Dept. will be considered as the lead farmers. Based on the time line of formation of these groups, the no. of lead farmers that will be identified for each year are given in the following table.
Sr. No 1 2 3 Particulars Agriculture PGs FCSC (Grain) PGs FCSC (Horticulture) PGs Total PGs(1+2+3+4) Existing PGs required to be selected Total no. of PGs No. of Lead Farmers from PGs Farmers who have received agric. awards (Krishi Pandits, Krishi Mitra, Udyan Pandit, etc.) from the Govt. Total Lead (A+B) Farmers 1st Yr 2nd Yr 2000 1000 1000 4000 950 4950 9900 100 3rd Yr 2000 1000 1000 4000 950 4950 9900 100 4th Yr 2000 1000 1000 4000 950 4950 9900 100 5th Yr 1000 1000 2000 2950 4950 9900 100 6th Yr 4950 4950 9900 100 Total 6000 4000 4000 14000 10750 24750 49500 500

A B

10000

10000

10000

10000

10000

50000

11. The groups formed in first year of the project period will be functional in second year and groups formed in second year will become functional in third year and so on. Thus the groups formed during first year of the project will be considered for selection of lead farmers during the second year of the project & those formed in second year during the third year and so on. It is proposed to select Chairperson and Secretary of the groups as lead farmers for SMS service delivery for the period of six months. Therefore, as much as twice the number of groups formed will be the available number of lead farmers. In addition to this to make the number of groups to 5000 to make the number of lead farmers, as 10,000 the short fall of the groups will be met from existing groups. The number of such groups required to be selected is shown in above table. These groups will be selected by ATMA. Every year 100 lead farmers who have received Krishi awards from the Govt. will be covered to provide free SMS service. List of such lead farmers will be provided by ATMA. 12. There are a large number of existing groups of farmers formed in the State under different programs of Government viz. RKVY, MWSIP, ATMA program, MAVIM. Out of these, the groups fulfilling following criteria will be selected by ATMA. i) ii) iii) iv) v) The groups should be within the catchment area of activities proposed under Component B. Group should be functional It should have at least 10 members It should have bank account Regular meeting of the group should be held

13. The groups to be formed under MACP by line departments should also fulfill above criteria. From the groups selected as above the lead farmers for SMS program will be selected as under. i) All the chairpersons & secretaries of the groups selected will be included. ii) Chairperson and Secretary should possess handset compatible for Marathi language with sim card. iii) Chairperson and Secretary should have their own land, they should be at least 7th standard passed and their age should not be more 70 years. iv) Chairperson and Secretary should not be a trader. 60

v) As per above criteria selection of lead farmers from various groups will be made by ATMA with the help of the district level officer of each line department. 14. Thus, from the selected PGs, every year from the second year of the project, 10,000 lead farmers will be covered by SMS service. The farmers once selected will get free SMS service for six months and thereafter, they will have to subscribe if they are interested to receive the information. Farmers will not be repeated. 15. Selection criteria for APMCs for installation of Market Information Display: APMCs having income of more than Rs.15.00 Lakh are considered for installation of Market Information Displays. From 294 APMCs, 232 APMCs have income more than Rs.15.00 Lakh. MSAMB has installed Market Information Displays at 69 APMCs. Out of 232 APMCs, 163 APMCs do not have the systems installed. Therefore, from the list of 163 APMCs first 150 APMCs, based on average annual arrivals for last 5-years will be selected for installation of Market Information Displays. V. Activities to be financed 16. The following main activities are proposed to be financed under this subcomponent: (a) (b) (c) (d) (e) Market Information Dissemination through Mobile. Market Information Display. Management Information System (MIS). Integrated Project Portal (IPP) Training, Operation and Maintenance Support.

(a) Market Information Dissemination through mobile (SMS Service): 17. MSAMB is the first Agricultural Marketing Board in the country to enter into agreement with Reuters India Ltd and subsequently with another agency i.e. NOKIA for dissemination of market information & intelligence through SMS service. Reuters has formed Reuters Market Light (R.M.L.) a separate group for analysis of production, marketing data and dissemination of analyzed information. R.M.L. has started SMS service for farmers and other concerned for dissemination of information about arrivals & prices of agricultural commodities, weather forecast, market guidelines / news, crop advice, agrotechnology guidance for application of pesticides & fertilizers. The information received through SMS, helps farmers in taking decisions, like when to sell the produce, when to apply manures and fertilizers to crops, when to harvest the produce etc. 18. Presently, the subscriber is paying Rs.175/- for 3 months to avail SMS service for two commodities and 3 markets for each commodity. Subscriber can register for more commodities with additional charges as mentioned above. Each subscriber gets commodity prices of 3 markets of his choice from the list of markets. More than 100000 farmers have been enrolled under this scheme so far. Preliminary independent survey carried in September 2008 revealed that repeat subscriptions are rising rapidly and framers satisfaction levels are high, particularity with the market price and weather information2. However it is observed in this study that the benefits are taken largely by bigger and young educated farmers. Therefore, if the extension staff of the line departments, village level workers and lead farmers are targeted by SMS service, information would reach to much larger number of small & marginal farmers. These functionaries will disseminate marketing information amongst farmers and will also help in encouraging them to use SMS service. 19. The project will outsource, to a private operator, the provision of a local language, Agricultural Short Messaging Service3 (SMS) which will deliver targeted technical, market and climatic information to these public sector field functionaries. Early evidence suggest that this will empower them technically and enhance their status as information providers within their
2

Study was conducted for impact assessment of Reuters SMS service by Mr. Bart Mintern of IFPRI, Delhi and Dr. Marcel Fachamps of Oxford University at the instance of World Bank, by field visits in Maharashtra. 3 Text messages delivered to cell phones.

61

communities. They will be specifically trained and tasked with the onward dissemination of this information to small and more disadvantaged producers. Over the course of the project the equivalent of 156,480 annual subscriptions will be purchased at an annual cost of Rs 500 each (i.e. $ 12/p.a. as compared with a salary of $ 5,000 p.a.). Additionally the system will be used to send targeted messages to the project field operatives. The program will be rolled out in three phases. Surveys will be used to gauge its value and to fine tune content and frequency to ensure cost effectiveness. The service will also be provided on a demonstration basis to key decision influencers such as, lead farmers, Sectaries of Agricultural Co-operatives and FSCs etc. 20. Selection process of field functionaries, preparation of database of their details, selection process of service provider and training of SMS service to MACP staff (PCU & all PIUs) and field functionaries will be completed in the first half of the first year as per the selection criteria mentioned earlier. The distribution of free SMS service to the field functionaries will be started from second half of the first year till the end of the project period. These functionaries will be selected from the districts of phase1, phase2 & phase3 in first years, second year and third year respectively. As mentioned earlier in selection criteria, first year 9600, second year 20160 and from third year to sixth year 31680 Govt. filed functionaries will be covered. The functionaries selected in each phase will be repeated till end of the project period. Thus, 34080 Govt. field functionaries will be covered in six years to provide free SMS service, covering annual subscription up to 156480. Institutional officials will be selected in three phases in first, second and third year respectively. As mentioned earlier in selection criteria, first year 3264, second year 3564 and third year 3864 institutional officials will be selected. Thus, 10692 field functionaries will be covered for free SMS service for the demonstration purpose. These functionaries will not be repeated and free trial of three months will be provided to functionaries of each phase in respective year. Details about selection of lead farmers are given in selection criteria. Free SMS service for the period of six months will be provided to 10000 lead farmers every year from second year of the project, till end of the project period (i.e. for five years). Thus, 50000 lead farmers will be covered to provide free SMS service. The free SMS service will be provided to total around 94772 recipients during the project period (34080 Govt. field functionaries, 10692 institutional officials and 50000 lead farmers). Each field functionary and lead farmer may disseminate information received through SMS service to at least five farmers. So that 473860 farmers could be covered during the project period. MSAMB will create a database of selected field functionaries and lead farmers. The ownership of this database will be with MSAMB and it will be shared with service provider as and when required. The ToR will have condition about sharing of database between MSAMB and SP and ownership of the same with MSAMB. This will help in the review of the service. 21. SMS service will be customized as per the requirement of the subscriber (e.g. geographical area (pin code), commodities grown, potential markets, etc.) With the help of pin code provided by the subscriber, area based information can be provided through SMS. Similarly, information about crop advisory, market news, use of pesticides & fertilizers can be sent as per the commodities and markets selected by the subscribers. The subscriber will have choice to change commodities, markets. The Service Provider will provide training to subscribers about (i) how to enable Marathi language (ii) operations of SMS service on the Cell phone, (ii) how to interpret the information received through SMS, (iv) frequency of SMS for particular information, (v) how to interact with customer support team in case any problem related to the service. Training part of the service can be achieved through the ATMA and / or at the VANAMATI. This will be part of the extension program for field officers. Presently, few agricultural commodities are covered under SMS service. But, this service will be further extended to cover wider range of products (e.g. various agricultural crops, horticulture crops, livestock, poultry products, etc). This SMS service will have facility to send messages to field staff of the project and Govt. officials. 22. In view of the rapid changes in technology, the MSAMB may opt to directly send out its own SMS messages from third year of the project on subscription basis. MSAMB will do this activity on no profit no loss basis. MSMAB may start providing 4 SMS (Market rates, weather forecast, price 62

trend and agriculture technology) per day to subscribers on reasonable charges. Those who are interested can subscribe to this service. During 3 years of project period MSAMB will keep on improving the service based on the experience of the service provider and after the project period MSAMB will have enough experience to operate it on Individual basis. It is a mandate of MSAMB to provide such service. This will help to control the prices of such services being provided by various service providers. MSAMB will explore the possibility of mobilizing USO funds while starting its own SMS service. 23. It is proposed to go for competitive bidding for selection of service provider, so that SMS service can be provided at reasonable charges. The no. of public field functionaries, institutional field functionaried and the lead farmers to be covered under SMS service year wise is given in the following table:
No. Functionaries

1 2 3

Public field functionaries Institutional field officials Lead farmers

1st 2nd 9600 20160 3264 3564 10000

Year Subscriptions 3rd 4th 5th 31680 31680 31680 3864 10000

Total 6th 31680 10000 156480 10692 50000

10000 10000

(b) Market Information Display: 24. MSAMB has its own web site for dissemination of information about various projects, schemes and activities carried out in the filed of Agricultural Marketing. This website also provides information about daily arrivals and prices of agricultural commodities. This is the unique web site for on-line spot and future prices of agricultural commodities. Information available on the web site can further be disseminated through PACS, FCSCs, ATMAs, APMCs. Web based information can be accessed/disseminated through Internet only. Therefore, not depending on one media for information dissemination, MSAMB has initiated scheme of installation of Market Information Displays (MIDs) at Market Yard of APMCs. Market Yards have been identified for installation of MIDs, because it is a place where farmers and market functionaries are visiting regularly. Presently, MIDs have been installed at 69 APMCs in the State. Electronic media used for this system is 54/44 projection TVs. This technology was available when the project was started. Projection TV System comprises one computer with internet connectivity, UPS, 54/44 projection TVs and customized software in regional language for display of information. Though, the experience of this system is quite encouraging, it could not achieve the expected success due to following reasons. i) Limitation in clear visibility of Projection TV in the sunlight. Requires shed / room / hall for proper visibility. ii) Inadequate facilities for proper visibility by APMC. iii) Insufficient publicity of the scheme by APMCs. iv) Needs more training to the staff of APMCs for handling the system and effective utilization of the same. v) One TV in the entire market yard. 25. Considering above reasons, latest LCD TV Systems are proposed for installation at 150 APMCs in the State. These TV systems will work as Market Information Displays (MIDs) for dissemination of agricultural information. This system comprises of three LCD TV of 40 size, computer with Internet connectivity, UPS, Dot Matrix / Laser printer and customized software in Marathi 63

language for information display. Consolidated information about arrivals and prices available on MSAMB web site will be displayed on this system through customized software. This software will be web based installed at MSAMB web server and could be accessed by MIDs through broad band Internet. As this software will be installed on web server, any update in the arrival & price data will get reflected to all MIDs in regional language. This system will be useful for farmers to get market prices for selling his produce and to get information about agricultural technologies. This will help the farmers to improve the cultivation practices, production, schedule pre & post harvest measures, need for grading/packing. One Printer is proposed in this system to provide hardcopy of required information by the farmers on nominal charges. 26. Experience of 69 APMCs where Projection TV Systems have already installed, will be taken into consideration while implementation of MIDs in first year at 30 APMCs. Operations of MIDs will be reviewed and the lessons learned in first year be applied to the second year of 40 APMCs and so on. Installation of MIDs at 150 APMCs will be completed in four year so that lesson learned in each year can be used to improve the system in next year. 27. Considering the past experience, it is proposed to install more than one TV in one yard of comparatively small size (40), instead big size TV. This will help for displaying information at more than one location in market yard. The LCD TV proposed for this scheme will be used for public display. Hence LCD TV considered is of high contrast ratio, minimum resolution of 1920x1080 pix minimum 10 bit colour reproduction. These specifications are as per available technology. Since the specifications of TVs are for public display purpose, the cost of TVs may be more as compared to the cost of TVs used for home segment. Details of items of expenditure under this component are: Sr. No 1 2 3 4 5 6 7 8 9 ITEM 3 LCD TVs of 40 Latest Computer with internet UPS one hour backup 50 mtrs cables to connect Computer to 3 LCD TVs Windows operating System Regional Language support software Application Software Dot Matrix Printer/ Laser Installation and basic training

28. It is proposed that the entire Operations & Maintenance (O&M) of such a dissemination system could be outsourced to a private player at certain terms and conditions, so that upkeep and maintenance of such an info-structure is ensured. During the warranty period of all equipment, the service provider will maintain the system. The warranty period will be mentioned in terms and conditions of the purchase. After the warranty period, concern APMC will be responsible for the maintenance and upkeep this system. 29. Training to APMC staff for effective use of Market Information Display: Considering past experience in implementation of MID at various APMCs in the State, regular training and workshops are required to be conducted for APMC staff for effective use of MIDs. Monthly training of four days shall be conducted at NIPHT, Talegaon Dabhade, Dist. Pune, as this institute is having required facilities like computer lab, training hall, audio visual equipments for presentation and lodging-boarding. Four days training shall cover topics like basics of computer fundamental, Microsoft Office, Internet, email, websites, basic hardware maintenance, maintenance of operating software, handling of LCD TVs & software for information display and effective 64

utilization of MIS. Similarly, one day workshop once in a quarter shall be conducted at APMCs, where MIDs are installed. During this workshop hands on training will be given on effective utilization of the system for information dissemination and other activities. Some farmers can be included in this workshop. 30. Estimated Cost of Training & Workshops: Particulars Yearly 10 batches of four days training at NIPHT*, Pune are proposed. Each batch should have 25 participants. Estimated charges for one batch of 25 will be Rs.1.5/- Lakh at the rate of Rs.1500/- per person per day. For 10 batches the estimated cost is Rs.15/- Lakh per year. One day workshop at APMC once in two months for 50 participants @ Rs.11500/- for one day. i.e. Rs.69000/- per year One year charges @ Rs. 15.70 Lakh therefore for Five years charges Rs. Lakh 15.00

0.70 78.50

*NIPHT, Pune is the institute under the control of MSAMB having state-of-art facilities and good campus for conducting such training programs. (c) Management Information System (MIS) 31. There are three line departments involved in this project, viz. the Department of Agriculture, the Department of Animal Husbandry, and the Department of Agricultural Marketing. Each of these departments would be required to implement and manage various activities proposed under various components under this project. For day to day management of the Project, the Project Coordination Unit (PCU) has been set up at Pune, which is functioning under the control of the Principal Secretary (Co-operation & Marketing), GoM. Similarly Project Implementation Units (PIUs) have been set up for each of the line departments to monitor and supervise the implementation of the activities pertaining to the concerned departments. The issues relating to Environmental and Social Management, Procurement, Financial Management, Monitoring and Evaluation, and Governance and Accountability Arrangements are handled by the PCU. 32. The various items of importance relating to the implementation of different components and sub components of the project will be included in the MIS reporting system. The parameters and the activities to be included in MIS will have to be decided by SP depending on the basis of the existing reporting system in various line departments and their requirements. SP will have to undertake detail study to do this in consultation with PCU, PIUs and implementing agencies involved in the project. 33. An elaborate, state of art, web based, interactive MIS shall be implemented by the Project Coordination Unit (PCU), for monitoring the various project activities, that would be under taken at various field locations by a all number of implementing agencies. The PCU will appoint SP for study, design, development and implementation of MIS. 34. The actual process of hiring a Service Provider (SP) and setting up of full-fledged web based interactive MIS will take time, and, as all the critical project activities need to be monitored from the day-one of project implementation, it has been decided to develop Simple MIS which will be developed by PCU in consultation with the PIUs . Such simple MIS reporting system shall be implemented within 3-4 months and will be in vogue until the full-fledged web based interactive MIS is in place and running satisfactorily. 35. The simple MIS reporting system will comprise of a number of formats to be compiled from all the implementing entities in the field for regular periodical reporting on various issues those need to be critically monitored for effective implementation of the project. The contents of the formats shall be as required by the scope of monitoring of the critical activities in implementing the components of MACP, including input parameters, output parameters and

65

activity parameters. The simple MIS reporting will be in the spreadsheet formats and shall be compiled and collated by PCU. 36. Initially the simple MIS reporting system mentioned above will be implemented in the Phase I districts of the Project viz.: Amaravati, Akola, Washim, Yavatmal, Buldhana, Jalna, Aurangabad, Parbhani, Hingoli, Ahmednagar. As the project would be implemented in all the districts of the State in phased manner, the said system as mentioned above, will be implemented in second phase Districts of the Project as the MACP implementation program will roll out in phase II District till the WEB based MIS is in place. 37. SP for MIS: Besides starting the simple MIS by PCU, immediate steps to bring the competent SP on board for desiging, developing and implementation of the web based MIS will be taken. The recruitment of the consultant for the development of Web based MIS, study of the existing systems in practice, study of the requirement of the project, designing & development and implementation of web based MIS will take around 15-18 months. Till then the simple MIS reporting system developed by PCU will be in place. The SP for MIS besides all responsibilities shall be responsible for successful migration of the existing databases to the web based MIS . 38. The MIS will enhance the efficiency and effectiveness in the functioning of the PCU and the PIUs, as well as all the Implementing Agencies (IAs), as follows. The MIS will provide accurate and timely information regarding regular, routine operations for controlling, organizing and planning of implementation activities in MACP. Administrative Functions relating to PCU & PIUs: o PCU and PIUs will be able to monitor all the inputs, outputs and activities as per the procurement plan. o IAs will be able to coordinate with PIUs and the PCU for achievements of their prescribed annual targets both physical and financial. o PCU and PIUs will be able to coordinate the logistics for optimum performance of all the field units. o MIS will help IAs to define problem, gather related data about its scope, and identify the constraints, if any. o PCU will be able to automate repeatable processes. MIS will integrate information from multiple sources for undertaking functions, such as: Budgeting, Expenditure reporting, Auditing, and Funds management, relating to financial issues in the project. MIS will integrate information from field offices for undertaking functions, such as: Procurement Planning, Contract Management and Quality Control, relating to procurement issues in the project. MIS will provide tools to allow collation of inputs from various implementing agencies, produce standard reports, allow specialized queries to track all aspects of project progress (including physical and financial progress and project impacts), relating to monitoring & evaluation issues in the project. MIS will bring together and ensure better and faster communication among PCU, PIUs and implementing agencies involved in the MACP and will be useful tool for grievance redressal. 39. The SP will undertake the following MIS specific activities of Project: Study, prepare and submit Functional Requirement Study document for design, development and implementation of web based interactive MIS. The study will include process of existing MIS at PCU, PIUs and the concerned Departments up to the field level implementation authorities. The SP shall submit plan / story board and design the MIS in continuous interaction with the project team, taking in to consideration : 66

o Web standards, uniform guidelines, content management strategies o Model templates for all the required reports of participating line departments, including Scheduled reports, On-demand reports, Key performance indicator report, and Exception reports. o MIS evaluation mechanism, for the Project Management, based on the objective parameters and the user feed back, for smooth operations and effective utilization of the MIS. o Consultations with the M&E consultant. Develop and implement the web based interactive MIS to PCU and PIUs under MACP. Migration of data compiled with the Simple MIS reporting system developed initially by the PCU to the web based interactive MIS system. Assess the training requirements, training need, and provide training to all the users for handling & managing MIS. Provide support to web based MIS for smooth operations and effective utilization.

40. The MIS will provide suitable, flexible, interactive, user-friendly tools to allow collation of inputs from various implementing agencies, produce standard reports, allow specialized queries to track all aspects of project progress (including physical and financial progress) at any time. The MIS will help the PCU, PIUs and field implementing agencies (IAs) to monitor all key inputs, activities and outputs under the project including the Procurement and Financial management aspects. 41. For effective planning and monitoring of MACPs diverse activities several MIS initiatives have been planned under the project to address the needs of the three line departments and many implementing agencies/ entities who would be implementing these initiatives. The MIS will reduce significantly the time and efforts required for record maintenance, reporting and facilitate effective monitoring at all levels. The MIS will strengthen the information flow from top to bottom, and vice versa, and also enhance the utility of the information and knowledge towards achieving the Project goals. 42. The MIS will capture transactions in the field to track all aspects of project progress. It will help in addressing issues of duplication of data entry and preparation of reports as per the Project requirement. The software should be capable of automatically collating and generating reports required at various levels. 43. The work plan encompasses a variety of activities to bring in the uniformity in all the online databases, access and standardization of MIS suitable for MACP initiatives. 44. The MIS system would include systems for (i) Procurement Management, (ii) Financial Management, (iii) Implementation Progress Monitoring, (iv) Monitoring & Evaluation (v) Knowledge Management, and (vi) Grievance Monitoring. There will be a comprehensive Monitoring & Evaluation (M&E) System developed separately and the MIS will be designed and developed taking in to consideration the information input requirements of the M&E system. 45. The MACP project plans to develop a user-friendly, interactive, web-based Integrated Project Portal (IPP) for the MACP Project activities and dissemination of information. IPP will enable single point access to the information about various activities of the Project (PCU, PIUs & Implementing Agencies, market functionaries) and various web based applications (MIS, M&E, Web GIS, etc.), Market Information and Intelligence, and technical information from various line departments. d) Integrated Project Portal (IPP): 46. It will be a portal for the MACP Project. An appropriate web strategy would be developed that allows for information to all stakeholders, ensures transparency in terms of availability, 67

distribution and utilization of resources, enables access to data and information to target beneficiaries/users through a web-based systems. MSAMBs present web site will be part of IPP. This web site is already exhaustive in terms of contents and technology in view of present demand. To achieve the objectives of IPP, MSAMB web site will further be enhanced in order to support additional requirements e.g. database of market functionaries, trend analysis of arrivals & prices of agricutural commodities, price discovery mechanism, Web GIS envisaged in various Components and Sub-components of MACP. The Integrated Project Portal will be a comprehensive knowledge bank in terms of management of project as well as the technical and logistics support required by all the line departments. It is proposed to develop web sites for line departments and link the same to IPP. 47. The information of IPP will be useful to keep track on various activities carried out by PCU, PIUs and all implementing agencies. It will facilitate to take various inputs, including inputs related to web-GIS, from various levels of the project, process it, and generate necessary reports through respective softwares for the use of Bank, PCU, PIUs, and the IAs. In order to facilitate smooth exchange of information master database such market functionaries database is proposed to be developed. Also, for seamless integration of information of all the web sites of PCU, line departments and IAs, it is necessary to upgrade the existing software, hardware, network items and peripherals in MSAMB data center. 48. Commodity profiles proposed to be developed by ABPF will be made available through this web site. The Integrated Project Portal will be a comprehensive knowledge bank in terms of management of project as well as the technical and logistics support required by all the line departments. It is proposed to develop Web based Geographical Information System on pilot basis to provide realistic spatial information about road network, market infrastructures for logistic arrangements and price trend analysis for the use of market functionaries and proposed eTrading system. 49. The proposed Integrated Project Portal on MSAMB web server shall have the following components:
Integrated Project Portal (IPP) Enhancement of MSAMB web site: Technology Upgradation: MSAMB has well established data center for catering the requirements of web site, mailing facility, applications, database, network security, antivirus system. This data center is in functioning since five years. Considering the requirements of main and sub components of MACP project, present data center of MSAMB needs to be expanded. This involves procurement of high end servers, latest system/ application/ database softwares, necessary software tools, network items, security items, UPS, desktops, antivirus, high speed internet connectivity (leased line & broad band) to support the IPP, MIS, MII, Web GIS and activities of other component, sub components and new challenges of virtual market.

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Market Functionaries Database: MSAMB website is providing information about daily arrivals & prices at APMCs and write-up of various schemes, projects and activities carried out by MSAMB. Besides this information, additional information of various market functionaries viz. traders, agents, processors, exporters, importers, input suppliers, transporters, would be needed for operation of virtual market. This information will be collected from APMCs, ATMAs and concerned departments. More than six lakhs records are expected to be entered in database of the web site, for displaying this information in Marathi and English language. A tentative list of stakeholders is as follows. S.N 1 2 3 4 5 6 7 Particular of Market Functionaries Traders Processors Commission agents Input suppliers Exporter Importer Transporter Total Nos. 123634 7794 32102 100000 2300 3000 50000 318830

WEB GIS: Considering the aspects of WEB GIS, it is proposed to make use of it for bringing some geographical information like district wise map of the State, road network, main, sub markets & major infrastructure, arrivals and prices of Agri. commodities, on pilot basis. This will help in providing realistic geographical information on these items on web site. This can be useful for decision making about transport / logistic arrangement for shipment of Agri. commodities, as the system will provide information about realistic distance of expected location as well as prevailing prices. Similarly, this information will provide information about various facilities available at main & sub yard e.g. godown, cold storage their capacities etc. This system can further be extended to put remote sensing data (satellite images) of important Agricultural commodities on WEB GIS to provide information about area under cultivation, yield assessment. This can be analyzed with some required data for crop planning/ management. Broad elements of WEB GIS are as follows. GIS Server GIS Softwares GIS Database Development of web based GIS: o Procurement of digitized district wise map of the State. o Procurement of digitized road network: To provide information about distance between two markets, to make necessary arrangement for logistics or to select nearest market to reduce the transportation cost and get more price realization. o Digitization of spatial references of main & sub markets. This includes various infrastructure facilities (e.g. godown, cold storage, etc.) available at APMCs or in the vicinity of APMCs. o Digitization of data about production, arrivals & prices of important agricultural commodities, to provide trend analysis. This can assist in crop planning and subsequent marketing. o Tie-up with the transporters for easy mode of transport of the agri-produce once e-bid is finalized. Web Site/ Content development for Line departments: It is proposed to develop web sites for line departments to display their activities. The contents for these web sites will be static (text/image) as well as dynamic (database related) and would focus on the marketing opportunities with reference to specific sectors like agriculture, horticulture, and animal husbandry. For this purpose, concerned officials of line departments are to be consulted for finalization of static, dynamic contents and formats for information collection. Concerned line departments will provide information as per the agreed formats.

50. The objectives of IPP are as follows: 69

IPP will be designed for MACP support processes, activities and personnel to improve the access, processing and sharing of structured and unstructured information within and across the enterprise. IPP will mainly incorporate users roles, processes, workflow, collaboration, content management, data warehousing, customized applications for MACP and project intelligence. IPP will be used to manage major process such as Procurement Management, Finance Management, Quality Control, HRM, etc. It will be a front-end underlying software applications (MIS, M&E, Web GIS, etc) and provide alternate interface.

51. The SP for designing, development, implementation & training of IPP : Third Party Service Provider will be appointed to carry out functional requirement study, design, develop IPP and implementation of the same including training. The SP will undertake the following specific activities of Project: Functional Requirement Study document for upgradation of MSAMB data center, and design & development and implementation of IPP including Web GIS. Detail requirement of hardware and software for the MSAMB data center, including servers, latest system software; application software; database software, necessary software tools, network items, security items, UPS, desktops, antivirus, high speed internet connectivity (leased line & broad band) for upgradation of MSAMB data center.

Design IPP taking into consideration ; o Web-standards, uniform guidelines, content management strategies and development of model template for websites of participating line departments. o An appropriate web strategy, which will allow access to information to all stakeholders, ensures transparency in terms of availability, distribution and utilization of resources, enable access to data and information to target beneficiaries / users, and, facilitates reporting through IPP. o Provide a common search feature to retrieve information. o Provide IPP evaluation mechanism, for the Project Management, based on the objective parameters and the user feed back, for smooth operations and effective utilization of the IPP. 52. Implementation of IPP will comprise of ; o Developing websites for PCU and all line departments. o Create market functionaries database compatible to MSAMB website and data entry of around six lakh records in Marathi & English, in the same database. This data will be available on MSAMB web site for the use of farmers. o Design, development and hosting of the system based on web based Geographical Information System (GIS) on MSAMB server with link to MSAMB web site. This system will provide realistic spatial information to the agriculture market stakeholders, like road-distance between any two markets, their catchment areas, major infrastructures available at these markets, arrivals and prices of agriculture commodities in these markets.

Training: Assess the training requirements, training need, and provide training to all the users for handling & managing IPP. Capacity building of personnel from PCU & PIUs. Support to web based IPP for smooth operations and effective utilization.

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53. The computer hardware, internet connectivity & tally software for the field offices of all the line departments: The field offices of all the line departments will be provided with computer hardware, internet connectivity and tally software for accounting. These computers will be utilized for monitoring the activities, reporting, BDS and account keeping. The hardware will include computer, ups, and printer. (e) Training, Operations and Maintenance Support: 54. Training for IT personnel: MII, MIS & IPP are crucial activities for the effective implementation of MACP. MIS and IPP involves implementation, administration and maintenance of latest servers, system/application softwares, database, network items, data/ network security management. Training about implementation of these items is essential. Similarly, regular administration, maintenance and management of these items is a must to up keep the entired system and to get desired performance. Hence, training regarding these aspects is necessary for IT personnel. This training should be divided as hardware (i.e. server, network items, etc.) and software (i.e. operating system, database (MS SQL), dot net, etc.). It is proposed that, the training should be arranged by concerned hardware and software vendor. For effective utilization of MIS, IPP and M&E systems, training is essential for all staff under MACP project and concerned implementing agencies. This training will be given by the concerned Service Provider. 55. Operation and Maintenance Support: It is proposed to expand present data center with high end servers, latest system/application/database software, necessary software tools, network items, security items, UPS, desktops, antivirus, high speed internet connectivity (leased line & broad band) to support the MIS, IPP, MII, Web GIS and activities of other components and sub components. All computer hardware, softwares, network items may have one year warranty. 56. The project will integrate these services together over a period of two years. MII Project Roll Out Plan
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

MSAMB Integrated Web Site

MSAMB Web Site Market IQ Market Info Portal to Line Depts. Project Information Market prices - Mandis & e trading Market IQ ABDF VC Database of Stakeholders MSAMB Technical Information Line Depts. Government Polices ABDF Project Information PCU Mandi Market Info.Display E-trade + APMC SMS with key messages to Field Staff SMS as a platform for e trade The program will roll out and Evaluation will be carried out in the 6th Year.

SMS Messages Extension

& Master Farmer Trainers

Selection of SP by Competitive Bidding Process

VI. Estimated costs 57. The items of investment included in this component are listed below: Sr. No. Particulars 1 Market Information Dissemination through mobile (SMS Service) 2 Market Information Display including Training

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Sr. No. Particulars 3 Consultancy, design, development & implementation of Management Information System (MIS) & training 4 Consultancy, design, development & implementation of Integrated Project Portal (IPP) & training 5 Data Center and training 6 Hardware and Tally software for spending units 7 Connectivity for data center 8 Operation and Maintenance Support The Project will provide 100% funding to meet the cost of this subcomponent. VII. Institutional and implementation arrangements 58. The MIS sub component will be implemented by PCU, whereas the other sub components under Market Information Services will be implemented by PIU, MSAMB. 59. MSAMB has well established Information Technology (IT) department with data centre. MSAMB has its own web server with dedicated leased line for functioning of the website (www.msamb.com). IT department has computer experts for maintenance of the website. Therefore IPP will be implemented by PIU-MSAMB. However, the approval of PD for implementing all the activities under IPP will be taken as PCU and all PIUs will use IPP. VIII. Funds flow 60. The funds for all these activities will be provided in budget by the Dept. of Coop. & Mktg., GOM and will be released as per BDS (electronic fund transfer system) to the Director of Agri. Mktg., who in turn shall release the funds by treasury cheque to MSAMB. MSAMB will maintain separate MACP account and the payments will be made to the contractors / suppliers by crossed cheques signed by the Managing Director, MSAMB and the Nodal Officer, PIUMSAMB, except for the funds for MIS, which will be paid by PCU to the SP. The periodical requirement of funds for various activities under this subcomponent based on timeline is given in costs table attached in Appendix B.1. IX. Fiduciary and Safeguards arrangements 61. Following are the fiduciary and safeguards arrangements: i) Procurement process and selection of consultant will be carried out as per the guidelines given by World Bank and by open tender system through public notice in the news papers. ii) The SPs will be appointed by following WB procedure. iii) Internal and external audit will be conducted to keep track on fund flow. iv) All information about the project and its implementation will be available on IPP. v) MIS will help constant monitoring and evaluation of the project implementation. vi) For each activity there will be proper complaint grievance system in existence. X. Governance Risks and Mitigation Measures 62. The risks and mitigation measures are as follows:
Sr.No 1 Risks Technical / Design Description Technical aspects / designing should be keeping in view the objectives of the subcomponent Risk Mitigation Measures Institutions like National Informatics Center (NIC) having technical expertise and vast experience will be considered for this purpose.

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Sr.No 2

Risks Implementation capacity and sustainability

Financial Management

Description Training and capacity building of the existing staff as well as the various users of these services is critical for the success The hardware and the software are high cost items, which call for timely implementation as per schedule for its impact on the Project ---

Risk Mitigation Measures Adequate provision for training and capacity building has been made under the subcomponent

Procurement

The payments will be made to the contractors / suppliers by crossed cheques signed by the Managing Director, MSAMB and the Nodal Officer, PIU-MSAMB. MIS and continuous M&E will be sufficient safeguard Procurement process and selection of consultant will be carried out as per the guidelines given by World Bank and by open tender system through public notice in the news papers. No risk is involved. As a matter of fact there will be positive social and environmental impact No risk is involved. There will be increase in transparency due to information dissemination, MIS, IPP.

Social and environment safeguards Other ( for example project specific corruption risk, ownership of project / program, prevalence of failure in similar projects)

---

---

XI. Sustainability 63. The issues of sustainability are discussed below: i) Information provided through SMS service, Market Information Display will help in getting better prices to farmers and increase market cess of APMCs. There will be increased demand for the service for obvious increase in the income of the farmer as well as APMCs. ii) After a period of two years MSAMB will start SMS delivery service of its own on no profit no loss basis. After project period MSAMB will make this full-fledged service as a commercial activity. iii) Certain analyzed data compiled through website can be made available on commercial basis which can generate income to MSAMB. iv) The activities, relating to system operation and management, back up and maintenance, end user support, are outsourced to qualified technical agencies. MACP would need to develop a core team of professionals who are trained in specific aspects of IT/IS to manage these teams and be self sustaining.

***

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A. 4 LIVESTOCK SUPPORT SERVICES

I. Objectives 1. Twenty Live Stock Markets (LSMs) and 4 Small Ruminants (SR) Markets would be strengthened under the Project. Such markets need marketable surplus and market development. This would be achieved as follows (i) Marketable surplus through sustainable and rapid growth and development of livestock sector can be ensured if due attention is paid to providing extension support to live stock farmers. At present extension manpower with Animal Husbandry Department is inadequate. The Shortcoming could be addressed by functioning of lady link workers in this sphere. (ii) Similarly Small Ruminant Farmers are spread across and are not able to improve their financial status in isolation. However if such farmers are brought together in a group and trained for the healthcare of the animals their problems would be better addressed, creating healthy marketable surplus. (iii) Consumption of Meat in Metropolitan cities has increased tremendously. However the trade of such meat does not take place in good hygienic conditions. Considering the huge demand for consumption of meat, a study of meat trade in Pune will deal with issues of setting of modern slaughter house, ensuring future demand for livestock and value added products. (iv) Unlike for agricultural crops, database for livestock is not available. Considering the huge production and trading of livestock there is an imperative need to collect and compile such data for its dissemination. Dissemination of market information through a specialized cell is therefore proposed under this component. II. Outcome and Output Monitoring Indicators: 2. The outcomes and output monitoring indicators are as follows: Sr. Outcome Indicator No. 1 Sustainable and rapid growth and % increase in number of livestock arrivals in the development of livestock marketing. market.

Sr. Output No. i Village level lady link worker Increase number of SR population in a cluster. Increase in extension services Establishment of strong communication link Increase in market awareness.

Indicactor

% population increase in a cluster on and above background growth. % increase AHD extension services Communication link established via SMS and weekly meetings. Market awareness increased (from record of VLLW kept) VLLWs earns minimum Rs. 300 per week for service rendered. 60% VLLWs remain operating for 3 years after their training.

Sustainability of VLLWs Post operational status

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Sr. Output Indicactor No. ii Strengthening of SR % increase in market arrival. Increase in market arrival 100% CIGs of SR farmers formed. Formation of 600 CIGs % increase measured on kidding basis. Performance of breeding buck % increase in weight basis selling Increase in selling on weight basis iii Goat as a high value enterprise demonstration Formation of 500 units and visits of 100% units formed and no. of farmers visited each unit. farmers At least 500 additional demonstration units Adaptability of demonstration formed iv Meat trade study Meat study in Pune conducted. Study of meat trade v Market Intelligence and development cell in AHD Database for livestock and information is put Database for livestock in market in the Website of Project. intelligence and development cell and information shared with project. 3. The issues related to implementation are as follows: i) The Commissioner (AHD) will be the main implementing authority for this sub-component, assisted by the Nodal Officer of PIU-AHD is established in the office of Commissioner AHD. ii) Federations of farmers owning Small Ruminants will be a registered and an elected board of representatives would look after the business. SP for formation of PGs / CIGs of SR farmers will form these federations during initial period of one to one & half years. These federations will be the bodies implementing SR Component from second year of the project period. iii) The consultancy will be employed on contract by PIU-AHD in consultation with ABPF (according to WB procurement procedures) to conduct the meat trade study in Pune. Study will be conducted by consultant under the overall technical oversight of ABPF. Component would be implemented through AHD. III. Selection Criteria: 4. Livestock health coverage would be through Village Lady Link Worker (VLLW). The selection of VLLW will be done on the basis that they should be permanent residents of the village, they should be literate and in the age group of 18 - 40. 5. The Sangli, Ahemadnagar, Pune and Satara districts have been selected for formation of Federation of Farmers owning Small Ruminants considering the high propensity of small ruminants found in these four districts. 6. Pune City (Dist. Pune, Maharashtra) has been identified for conducting a study of meat trade as a pilot because of a large variety of sample of meat traders and consumers are available in this city. 7. The design of AHD information cell and database shall be need based and in accordance with the recommendations of the SP.

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IV. Activities to be financed: a) Livestock Extension Constituency in Villages Livestock Lady Link Workers (LLW): 8. It is proposed to strengthen the extension network of the Animal Husbandry Department. Under the present set-up, most of the extension work is performed by a Livestock Development Officer (Extension) and 2 to 3 Livestock Supervisors in each taluka. They are supposed to perform a number of duties like dissemination of information regarding various government schemes, selection of beneficiaries under ongoing schemes of the government, motivating and encouraging rural farmers to adopt better management practices. Looking at the wide canvas of operations to be performed, it can be seen that the present setup is not capable of performing the expected duties in an effective manner. Many a time the departments livestock extension officer can not reach the village to provide emergency treatment to the livestock, because of his large geographical area of functioning. In effect, extension support to livestock farmers to optimize their investment in livestock does not exist in the present day set up. The solution would be to build up capacity, skills and self help facilities in villages to establish a live and continuing livestock extension constituency in the villages with organic links to the Department of Animal husbandry and not to add another salary earning extension cadre to the Departments Establishment. 9. Under the project AHD will train and equipped one lady link worker each in 2500 selected village clusters in the state at the rate of 500 per year of the project, from the operational areas of 20 live stock and 4 SR markets proposed to be modernised under MACP, with priority for backward areas like Marathwada and Vidarbha. Each cluster will cover 5 villages. The Lady Link Worker will be a village house wife identified in each cluster by the extension officers (AHEOs, LDOs, LEOs and Livestock Assistants) of the AHD in association with the Gramsabha under the guidance and control of the ATMA. Training of the LLW will be by ATMA Designated KVKs, training duration of 7 days (class room 40 per cent and hands-on 60 per cent) and will include husbandry practices for different species of animals, basic sanitation and hygiene, information on animal and poultry diseases, and practical training in skills like vaccination and de-worming of indigenous fowl in backyard units, vaccination of small ruminants and livestock, appropriate no cost / low cost technologies like termite control for feeding back yard poultry, azola culture for feeding poultry and small ruminants and candling of eggs for improving hatching rate of indigenous fowl eggs in back yard units. They will on a continuing basis receive short modules of trainings on various skills from the AHD from time to time. These Lady Link Workers will assist the AHD in the implementation of all Extension Support activities listed under Component B in their respective areas of operation. Even though Poultry marketing development is not the part of MACP, the livestock & SR farmers do maintain some poultry birds at their back yard which fetch them additional income. This is supplementary activity to agriculture being undertaken by many farmers for improving their financial condition. Therefore LLWs will also attend to the activities like vaccination, deworming and termite control of backyard poultry. 10. These lady link workers will be self employed livestock extension agents in villages and will be linked to the AHD through the Livestock Assistants and AH Extension Officers. They will earn modest incomes as service fee for services they provide like poultry / small ruminant vaccination and technology transfer. These extension agents will constitute a live and continuing livestock extension constituency in villages and should be constantly nurtured by the AHD through active communication links both ways and supply of poultry / livestock / SR Vaccines. Each of them will be provided a vaccination kit. The training and the kit will be a one time grant to the Lady Link Workers. They will regularly vaccinate indigenous fowl in back yard poultry units in villages as well as small ruminants in the village. They will also be an intelligence constituency for disease reporting: all livestock diseases / mortality in villages / human diseases running concurrently with animal epidemics; and will be of immense use in 76

mass vaccinations in case of emergencies like out break of avian influenza / RD. Vaccination kits will be procured by PIU-AHD. Communication link to VLLW will be established via. SMS and weekly meeting at respective veterinary dispensary in a cluster and VLLW will also keep record of the work she had done and will submit weekly to the veterinary dispensary. 11. Sustainability of live stock lady link worker will be attained by performing i) low cost technology transfer ii) assistance to AHD extension. iii) Performing husbandry practices, by this VLLW will earn atleast Rs.300 per week for the above services rendered which will take care of sustainability of VLLW. The LLW will evolve as a live and dynamic livestock extension constituency in the villages, private, self employed and outside of the government. This activity will result in improved health of livestock and will therefore increase productivity of livestock. The activity of Livestock Extension Constituency in Villages -Lady Livestock Link Workers (LLW) will be implemented by the District Animal Husbandry Officer of the AHD under the guidance and control of the ATMA. b) Support to Small Ruminant (SR) Farmers: Organized Marketing of Small Ruminants: 12. The AHD with the help of an accomplished NGO/Company/any other legal entity as SP will carry out intensive social mobilization programs creating Common Interest Groups (CIGs) / PGs of SR breeders in four districts of Sangli, Ahmednagar, Pune and Satara promoting the formation of CIGs. These CIGs will form new SR Federation/ SR farmers P.A linking them to the small ruminant market yards in Karjat (Ahmednagar Dist.), Atpadi (Sangli Dist.), Dound (Pune Dist.) and Dahiwadi (Satara Dist.) respectively. 13. Each CIG will have some 15 SR farmers as members and a total of 600 CIGs together in the four districts will be formed at the rate of 150 per year over the 4 project years. The SP will also help improve the breeding and husbandry practices in SR Flocks through skill / technology training / capacity building. The SP will also be responsible for linking the CIGs to the Market yards and will help streamline bulk marketing of small ruminants through promotions, melas, internet networking and electronic media. Thus total of 9000 SR farmers will be covered under this program. 14. Activity of Support to Small Ruminant (SR) Farmers - Organized Marketing of Small Ruminants: and formation of new SR Federations/ PAs of SR farmers will be implemented by District Animal Husbandry Officer of the AHD through an accomplished NGO/Company/any other legal entity as Service Provider, under the guidance and control of the ATMA. PIU (AHD) will procure SP, issue the contract and payment will be made by Deputy Commissioner AHD. The costs of training under this activity is embedded in the ATMA budget of Sangli, Ahmednagar, Pune and Satara Districts. The SR Farmers for support will be identified by the SP / Livestock Development Officer (LDO) / Livestock Extension Officer (LEO) of the AHD in consultation with the Gram Sabha. Identified SR farmers will be trained in batches of 25 by the SP in the KVK arranged by the ATMA / AHD for a period of 7 days on good husbandry practices, selection and management of bucks and breeding does, first aid, health care / disease prevention, cultivation of high yielding fodder crops and organised marketing of live animals for breeding / meat purposes. On an average one farmer has 10 sheeps as he is a small/ marginal farmer & his main source of livelihood is sheep herd. Around 15 farmers in one village will form one CIG/PG and there will be total of 600 CIGs in 600 villages. These farmers will be provided with three bucks per CIG (per village). In each village there will be only 3 buck to be provided and one farmer will get one buck. The farmer getting the buck will recover service charges from the other members of the group availing services of the buck. The bucks will be procured by CIGs on Community Procurement basis with the technical support of SP and AHD. Performance of breeding buck will be measured on kidding basis. The training will be provided by AHD, however the funds will be given to them through ATMA. 77

c) Demonstration cum Production Units: Goat as a High Value Enterprise (Yeotmal District in Vidarbha and Beed District in Marathwada) 15. The AHD will promote the concept of Goat as a high value enterprise in the demonstration mode using the well endowed farmers in the two districts of Yeotmal and Beed and under the guidance and control of the ATMAs as pilots. The activity will be implemented with the help of Service Provider. For both the activities i.e. support to SR farmers and demonstration cum production unit, the same NGO/Company/any other legal entity will be handling the activity. 16. One ha of irrigated land can raise 100 Osmanabadi / or other large breeds of goats on high quality and high yielding cultivated fodder. The ideal fodder combination will be Hybrid Napier variety CO 3 and Desmanthes Virgates (Hedge Lucerne) yielding 100 M.T. of grass / legume mix per ha per year. Meat production will be based on the cultivated fodder and will have outputs of 2.5 MT of chevon (goat meat) per ha with net return of over Rs.2,00,000/- per ha annually. 17. The SP with the technical support of AHD will identify 250 farmers from each district under the program. Selection criteria for selection of these farmers (demonstration units) will be i) Farmers should have 0.50 to 2.00 acres of irrigated land. ii) He should have 20 Does for breeding. These does should be stall fed. iii) The farmer should be willing to share 50% cost of buck and rotatory chaff cutter. 18. AHD with the help of the SP will promote goat for meat as one of the highest value enterprise for diversification for the well endowed farmers in these two districts. This would be a demonstration programme using farmers with 0.50 to 2.00 Acres of irrigated land. Total number of 500 units (250 units per district) at the rate of 125 units per year over the 4 project years would be covered in 2 selected districts. Each unit owner should have a minimum of 20 Does for breeding and would get ready for the market one-year-old 20 goats born in the unit, both male & female, per year. The Demonstration Units will raise their small ruminant flocks exclusively as stall fed animals, primarily on cut/ chopped home produced grass/ legume mix (a combination of Hybrid Napier CO3 variety and Desmanthes virgates: Hedge Lucerne). 19. This sub-component will be implemented by District Animal Husbandry Officer of the AHD under the guidance and control of ATMA. SP for this program will provide social mobilization and extension support. Participating Farmers will be identified by the DAHO / SP with the help of the ATMA and the Gramsabha of the area. Identified SR farmers will be trained in batches of 25, by the SP in the KVK arranged by the ATMA / AHD for a period of 7 days on good husbandry practices, selection and management of bucks and breeding does, first aid, health care / disease prevention, cultivation of high yielding fodder crops and organised marketing of live animals for breeding / meat purposes. 20. One breeding buck will be supported at 50% project share basis. The bucks will be procured by the identified farmers with the technical support of SP and district level officer of AHD. 21. The selected farmers will be supplied with fodder seed (10 to 12 kg per acre) and fertiliser (having 2 bags of urea) on one time basis with the cost of Rs. 1,000/- per unit. Procurement of seeds and fertilisers will be done by ATMA by following World Bank procedure. 22. Once these demonstration units start functioning AHD and ATMA with the support of SP will organise field trips for the farmers from adjoining districts and for the farmers from same district. Total number of farmers to be covered under filed trips will be 750 from the two districts where demos are organised. These trips will be organised in batches of 30 each. Cost of the trips will be Rs. 1500 per farmer. The SP will arrange slide show and provide all the technical information of demonstration to the farmers so that more number of farmers will take up this enterprise. Special emphasis will be given on adoptability of demonstration by the farmers who paid visit to the demonstration units. 78

d) Study on Meat Trade in Pune: 23. The state has in all some 338 registered slaughter houses, most of them for large animals. The small ruminant meat trade in Maharashtra including meat and live animal export (excluding poultry meat) aggregates annually to some 1,50,000 M.T and it is worth Rs.22.50 billion. Pune has a flourishing meat trade with 400 meat retail outlets. Over 3000 small ruminants are slaughtered everyday and trade volumes are close to 36 M.T of chevon / mutton / lamb. Unfortunately the city does not have a slaughter house for small ruminants while it has some 4 large animal slaughter houses. Slaughter of small ruminants takes place in the 400 meat retail shops. Meat trade, throughout the state is devoid of basic cleanliness and hygiene; meat in general is not handled as a human food item. There is an urgent need to streamline meat trade in all major urban centres of Maharashtra. 24. If we look at the entire value chain right from the sale of meat stock to wholesalers, to retailers and to the final delivery to consumers, it can be seen that there are huge synergies which can be exploited. For most of the other food products a number of favourable changes have been introduced in the trade during last few years. With the coming up of large food chains and retail stores, we are witnessing changes which have the potential of revolutionizing the manner in which these food products are going to be traded and consumed. This is the most appropriate time for undertaking a study which will evaluate the potential for this trade and to make some positive recommendations. It is a win-win situation whereby consumers get the right quality at the right price, while the farmers and the traders also get their due share in a fair and transparent manner. 25. Under this component it is proposed that a comprehensive meat study for Pune City be undertaken. The basic aim of the study would be to have a closer look at the entire meat value chain in a city like Pune starting from the livestock owner to the slaughter house and finally to the urban meat retail shop and consumer. It will identify the issues involved in meat transport and retail and it will also consider the possibility of setting up a modern slaughter house for small ruminants. The social, legal and environmental implications of streamlining the meat trade chain will be evaluated. The proposed study would be undertaken by a professional consultant who has the required experience in this area and the consultant will be expected to complete the study in six months on the basis of which a comprehensive proposal for modernization and streamlining of meat trade in Pune can be submitted for consideration by the GOM / World Bank. This study shall be conducted by consultant contracted by PIU-AHD in consultation with ABPF and under the overall technical oversight of ABPF. 26. ABPF with the help of PIU AHD will draw ToR for selection of consultant for this study. Contracting of Consultant will be done by PIU-AHD. 27. The study will be carried out by an accomplished consultant and the output of the study will comprise: i) Situation Analysis of the meat market in the Pune City: Volume, Infrastructure, supply chain, and retail trade ii) Situation Analysis of the existing slaughter facilities / practices, meat transport and handling, meat trade / meat retailing, hygiene and quality control iii) Need for modernization of slaughter facilities including the establishment of a new slaughter facility for small ruminants, iv) Regulatory frame work for assuring quality, quality control, hygiene and public health safeguards. v) Modernization of meat handling, transport, meat retailing and retail outlets vi) Design and plan for SR Slaughter House with Equipment List, Specifications, Source of Supply, and vii) Investment Dimensions and Techno-economic Analysis. 79

e) Market Intelligence and Development Cell in AHD: 28. Gathering information and intelligence on livestock products is extremely essential for enhancing livestock productivity and for facilitating greater volumes of trade in the sector. Agricultural market information is vital, because such data is not only a key input for informed planning and decision-making by agricultural market participants, but also for effective government policy making and administrative decision-making. Although considerable resources have been directed towards collecting and disseminating information on basic crops (cereals, groundnuts, and so on), less attention has been given to collecting, disseminating, and analyzing livestock and livestock product data. Timely information on prices, volumes produced, quantities traded, locational availability, and stocks is largely unavailable. A booming national economy and an ever increasing demand for livestock products in general and meat in particular has attracted enormous market pull on small ruminant populations. 29. The organizational setup of the AHD shows that it has confined itself to the role of a service provider. There is an urgent need to expand this role so that the functions indicated above can be performed in an effective manner. The needs of farmers have to be understood and they have to be encouraged by removing hurdles like credit availability, lack of marketing network and access to quality information. AHD has no expertise in the field of marketing of livestock. The idea is to develop Market Intelligence & Development Cell in AHD. The information will be put on Website & disseminated through block level dispensaries and field level machinery of the AHD. 30. It is proposed to have a Market Intelligence & Development Cell within the AHD in the o/o Commissioner, AHD, Pune. A consultant would be appointed to structure and establish this cell in AHD. This SP will undertake study and design the cell within a period of one year. The activity of the cell will include collection of daily / weekly prices of livestock and livestock products, and adequate emphasis would be given for dissemination of this information to farmers all over the state. The cell would also aim for building capacities of the departmental staff. Special training sessions would be organized along with exposure visits. The Cell will function in close association with ATMAs. 31. This cell would have subject experts like an Agri-Economist, IT expert, a Marketing Expert and a Training Organizer. They would be drawn from fields like Agri-Economics, Rural Marketing and Human Resource Management. They will be on contract for a period of 5 years beginning from II year of the project period. These experts will be contracted by PIU AHD. This cell will be established during the second year of the project period. SP in consultation with AHD will draw the ToRs for the recruitment of these experts. The main functions of the Market Development Cell would be as follows: i) Gather marketing information and facilitate proper dissemination of this information. ii) Ensure proper health care of animals in livestock markets. iii) Develop thorough understanding of the economics of livestock sector. No real efforts have been made to measure the impact of this sector in economic terms. This is very important for understanding the factors which can contribute towards the growth of this sector and in designing suitable policies for improving overall performance of the sector. iv) Identify bottlenecks like credit availability, availability of cold storages, grading facilities. v) Act as an information database. vi) Identify key problems being faced by entrepreneurs engaged in sectors like poultry, meat industry and liaise with ABPF (Agri Business Promotion Facility). vii) Training of staff so that they also become aware of the importance of market development.

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32. It is expected that over a period of time the cell would develop the required expertise to offer specialized advice to new entrepreneurs who are exploring business opportunities in the livestock sector. This facility would be made available on payment of certain charges. A major focus of its work would be to provide export facilitation services and also to provide market related information. With the coming of large retail chains there will be a huge demand for such information and it will ensure a steady stream of revenue for the cell. In due course of time, the departmental officers would acquire the competence to be able to contribute to the working of the cell and a few of them could be sent on deputation to the cell. After the project period, departmental officers will man the cell and continue to give the services against the charges to be recovered. Thus the cell will be self supporting and sustainable even after the project period. 33. Organizational Structure of the Cell: This cell will be established in the II year of the Project period after the completion of study by SP during the six months of first year.
1. 2. 3. 4. 5. 6. Commissioner of Animal Husbandry Agri. Economist IT Expert Training Organizer (H R Management) Marketing Expert Dept. Officer (1) Chairman Member Member Member Member Convener / Secretary

34. The cost estimates of this cell are as under: Sr.No. 1 2 3 4 5 Total Component Salary Office expenses T.A/D.A etc. Training, Seminars, Workshops Consultancies and studies Cost (Rs. in lakhs) 150.00 100.00 100.00 100.00 050.00 500.00

35. Some of the activities proposed in this subcomponent would primarily be dealt under ATMA i.e. training, demonstration; visit would be organized to the farmers. However these activities would be undertaken with a coordinated effort of PIU AHD and ATMA. The Dist officer from the AHD will work closely with the concerned ATMA to ensure that the capacity building measures are provided to such farmers which are covered in the project. f. Animal health check up camps: 36. Twenty LSM and 4 SR markets are being modernized under MACP. In order to promote trade of healthy livestock and small ruminants in markets, routine health check up programme is being carried out by state Animal Husbandry department as an ongoing activity throughout the state. But it is not possible to cover each & every village in the state under this activity. It is proposed to organise two camp per LSM & SR every year of the project. These will be organised at the village selected by taluka LDO with the help of District Animal Husbandry Officer (DAHO). Thus total of 48 camps per year & 288 camps in project period will be conducted. Break up of the unit cost is given in following table. The following Unit Cost norms are approved under kamdhenu yojana of GoM. Sr.No. 1 2 3 4 5 Total Item Dewormming of Animal Supply of Mineral Mixture and Vitamins Iradication of Ectoparasits Infertility Treatments Publicity and mass propaganda Cost per camp (Rs.) 17,500 1,00,000 15,000 15,000 7,500 1,55,000

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37. Average 150 large animals and 300 SR will be checked in one camp. Thus total of 36,000 (150 X 40 X 6 ) large animals and 14400 (300 X 8 X 6) SR will be checked in these camps. This will ensure that more and more disease free livestock is fetched in the market which will be beneficial to the sellers and the buyers. More and more livestock owner will take the benefit of market and market allied activity through awareness prgrammes. It will be a strong backward linkage for 20 LSM + 4 SRM development components. This will ultimately help in achieving enhanced public awareness towards marketing of good and healthy livestock and development of market ethics too and also emphasis will be given on the increase of 5 to 10 % of milk production in a targeted area. 38. Criteria for selection of village for carrying out Animal Health Checkup camps: 1. Village should be within catchment zone of LSM and SRM being strengthened under MACP. 2. It should have minimum of 500 large animal and 500 small ruminants population. 3. There should be demand from the Village for organizing camp and the villagers should be willing to participate in the project. There should be a gramsabha resolution to this effect. 39. With the help of AHD staff, this programme will be implemented through Dist. Dy. Commissioner of Animal Husbandry; Dist. Animal Husbandry Officer of State Animal Husbandry Department will work as implementing authority for this scheme under the project. Cost of this activity works out to Rs. 446.40 lakhs shown in Appendix A.4. g. Strengthening of the State Level Training Centre, Pune. 40. Department of Animal Husbandry is a having State level Training Centre at Gokhale Nagar Pune. In service Livestock Development Officers and Livestock Supervisors are being trained in various technical and livestock management courses at this institute. Besides refresher courses for capacity building are also organised. 41. Total 500 Livestock Development Officers and Livestock Supervisors from the catchment of zone of selected 20 LSM and 4 SRM in MACP will be trained in this Institute for marketing management, Disease Management etc. wherein five days course will be conducted. It will be beneficial to motivate and train cattle owners within catchment zone. It will reflect in the increased number of cattle owners taking benefit of Developed LSM and SRM under MACP. This will be strong backward linkage for the development of LSM and SRM component. Cost of strengthening of this centre is estimated at Rs. 27.00 lakhs shown in Appendix A.4. VI. Estimated costs: 42. The details of items of expenditure under this sub-component are as follows: a) Livestock Extension Constituency in Villages - Lady Livestock Link Workers (LLW) items of investment:
Sr. No. 1 Items Village Based Training (VBT) and Induction of 2500 Village Lady link workers for 2500 village Clusters: (AHD) in catchment areas of 20 livestock and 4 SR markets taken up for modernisation under the project. Teaching Materials, Practice Kits, Communication facilities and network

b) Support to Small Ruminant (SR) Farmers, Organized Marketing of Small Ruminants in Sangli, Ahmednagar, Pune and Satara districts: c) Demonstration cum Production Units, Goat as a High Value enterprise in Yeotmal District in Vidarbha and Beed District in Marathwada items of investment: 82

Sr. No. 1 2 3 4 5

Items Breeding Buck ( including insurance + concentrate) Rotary chaff cutter Seed and Fertilizer Exposure visit to Demos NGO support for SR farmers and Demonstration

d) Market Intelligence and Development Cell in AHD: Total cost of this subcomponent is Rs. 20.00 Lakh for Consultant and Rs. 500 lakhs for the Cell. e) Animal health check up camps : Rs. 446.40 lakhs. 43. Major cost under this component is going to be funded by the Project. VII. Institutional and implementation arrangements: 44. Institutional and implementation arrangement of this subcomponent will be mainly with AHD with the help of their field officers and ATMA. The SPs are proposed for various activities proposed under the subcomponent. VIII. Funds Flow: 45. The funds flow under this component will be as per BDS (electronic transfer of funds). The budget provision will be made by the Govt. under AHD (ADF). The funds will be made available to the District level Dy. Commissioner (AH) as per BDS. The payment to the SP will be made by Dy. Commissioner (AH) in 3-4 tranches as per the progress of work. These accounts will be operated by the Dy. Commissioner (AH) of the concerned district for making payments to the respective contractors. IX. Fiduciary and Safeguards arrangements: 46. All the activities under the subcomponent are directly to be executed by AHD. The procurement procedures of WB will be strictly followed. Regular internal and external audit, MIS and M&E will be sufficient safeguard arrangements. X. Governance Risks and Mitigation Measures: 47. The risks and their mitigation is stated below:
Sr.No 1 Risks Technical Description Capacity building of all the beneficiaries by AHD & ATMA is important for the success of this subcomponent. The field machinery of AHD need to be strengthened in the field of agricultural marketing. Timely payment to SPs is essential for implementation as per schedule. --Inclusion of small & marginal farmers in the activities of federation will enhance the impact of the component. Risk Mitigation Measures (i) Adequate arrangements of training & capacity building have been made. (ii) Expert service providers will be engaged for technical supervision aspects. Information & Intelligence Cell is proposed in the O/of Commissioner, AHD. Proper scheduling has been done and payment will be made in tranches. WB guidelines and procedures will be followed to minimize the risk. (i) Small & marginal farmers in SR production will be included in the programme on priority, (ii) The rural women will have additional means of livelihood as LLWs who will provide extension service at door step at low cost.

Implementation capacity and sustainability Financial Management Procurement Social and environment safeguards

4 5

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XI. Sustainability: 48. The investment under this sub-component will become sustainable considering the following: (i) (ii) LLWs will have source of earnings and will make this activity sustainable. Livestock extension service to the farmers at the doorstep at low cost will result in saving on cost of animal health care, and will result in increasing the life and productivity of live stock. SR federations will be formed by formation of CIGs which will help to increase income of the farmers, because of training & capacity building activities. Market information & intelligence cell in AHD will become self sustaining after the project period as it will give consultancy services on commercial basis to various enterprises related to livestock sector. ***

(iii) (iv)

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COMPONENT B IMPROVING FARMER ACCESS TO MARKETS B1 PROMOTING ALTERNATIVE MARKETS

Overview 1. The Agricultural Produce Market Committees are the regulated markets in the State for the trade of agricultural produce. The farmer in the State has been selling the agricultural produce in these markets. However, to enable the farmer to fetch better price for the agricultural produce, it is necessary to improve the farmers access to the markets. This could be achieved by: i) formation of farmers groups which will perform the activity of aggregation of their produce, ii) value addition to the produce, iii) warehouse receipts development, iv) selling of produce at the rural haats, and, v) providing e- marketing platforms for trade of agricultural produce. 2. It is proposed to establish the Farmers Common Services Centers (FCSCs) by bringing farmers together in the form of voluntary group of about 12 to 19 active farmers and federating 15 to 20 groups into Producers Association (PA). There are more than 2,00,000 groups of farmers / women in the State in the form of Commodity Interest Groups (CIGs), Farmers Interest Groups (FIGs), Producers Groups (PGs). The existing groups from the above that are functioning, as well as the new farmers groups formed under the project, will be performing the activity of aggregation of the their produce under an entity of Farmers Common Service Centre (FCSC) and they will also undertake marketing of Agri. inputs to the farmers. These FCSCs will be functioning on behalf of the member farmers and will strive to undertake activities of providing input marketing for the production of agricultural produce which will result in an added value to the farmers produce. The limitations of individual farmer with regard to the marketing of the agri. produce will be also taken care by these FCSCs. 3. The FCSCs to be formed in the project will be primarily of two types, i) FCSCs for the foodgrains and ii) FCSCs for horticultural crops. FCSC (Food grains) will necessarily have foodgrain producing farmers. Similarly, FCSC (Horti.) will have farmers producing horticultural crop. 4. The FCSC will be located at the village level and will have a legal status, owned and managed by PA registered as a society under Societies Registration Act of 1860. The representatives of the member farmers will manage FCSC. The FCSCs will be eligible for financial grant under the project to provide some basic facilities to the farmers within the vicinity of the FCSC. 5. Generally, the farmers sell the agricultural produce immediately after harvest for want of storage facilities and to meet their financial needs. Due to the glut of the produce in the market after the harvest, the farmer has to perform distress sale. With regard to the foodgrain producing farmer, the compulsion of the farmer to sell the produce at distress could be reduced to some extent with the warehouse receipt facility. 6. The Maharashtra State Warehousing Corporation (MSWC) has more than 800 no. of godowns with around 12 lakh tonnes storage capacity in the State. Out of these, 40 godowns with 72,000 MT storage capacity have been identified by MSWC under the project which will have a tie up with the Banks and the commodity exchange. The foodgrain producing farmer will store the produce in these godowns, avail credit from the banks through the warehouse receipts and will have the option to sell the foodgrain through the commodity exchange at a future date. 7. Within the vicinity of these selected MSWC godown, some of the APMCs (40 nos.) will be identified which will also undertake warehouse receipt programme.. 85

8. Assistance to the MSWC and APMCs will be given in the project to undertake investments in their godowns. The successful implementation of this activity will result in i) usage of large no of godowns for storage purpose, ii) increase finance under warehouse receipt and iii) increase in trade on commodity exchange. 9. Rural Haats (RHs) are the village level agricultural markets where there is a direct interface between the farmers and the consumers. Usually, Rural Haats are held once or twice a week. There are 3500 such rural haats in the state today, where the farmers sell their produce directly to the consumers. 10. Around 90% of the produce traded in these markets is agricultural produce and the rest is non agricultural produce. These Haats are held on the land owned by local Panchayat / Municipality and APMC Act are not applicable to these markets. 11 The conditions of the rural haats in Maharashtra are substandard in-terms of infrastructural development. Trading generally takes place in a dusty place and there is no drainage, toilets, drinking water source and shelter against sun, rain and wind. The market place is generally unhygienic, lacks sanitation and this is a source of diseases to human beings and also results in spoilage of produce. 12. Considering the growing population of villages and increased needs of the consumers for fruits and vegetable in the village, it is necessary to develop basic minimum infrastructure like elevated platforms with sheds, pavements, internal roads, toilets, drinking water, drainage, and electricity, in rural haats Both farmers and consumers stand to gain because of short supply chain and improved infrastructure which will help the producers to realize better prices and create a better trading place. 13. In light of the above, the project would improve the infrastructure of selected rural haats in the state. The successful implementation of the programme under project will have demonstration effect for the development of remaining haats in the state with active participation from the Panchayat. 14. Besides, the program of formation of FCSCs, warehouse receipt finance and modernising rural haats as an alternative marketing channel, virtual mandi concept i.e. e-trading is proposed to be augmented under the project. An additional option of e-trading has been included in the project. The trade of agricultural produce on exchange requires observance of certain requirements viz. volume of produce, grading / standardization of the the produce. This will be open up huge market to be the producer with an added advantage of not being required to bring farmers produce to the APMC yard and will also be able to realise better price. 15. It has been proposed to setup e-trading in 294 locations in the State which will be operated by an e-trader by obtaining e-trading license from Director of Agriculture Marketing. These etrading platforms will perform the trade by providing the facility / information to the buyers and the sellers registered with them. 16. All these interventions of creating additional marketing channels have been dealt in detail under Component B of this project. ***

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B1.1 PRODUCT AGGREGATION AND SALE THROUGH PRODUCERS ASSOCIATION

I. Objectives 1. Maharashtra is a leading producer of fruits, vegetables and flowers. The production of fruits in Maharashtra stood at 100.54 Lakh MT and that of vegetables at 77.29 Lakh MT in the year 2008-09. The state has strength in production of grapes, mangoes, banana, pomegranate, oranges, tomato, and onion. Though the production of these fruits and vegetables has increased many folds, poor post harvest practices are followed leading to substantial loss in value of these commodities. 2. Similarly, Maharashtra is also a major cereals and pulses producer. The total production of cereals, pulses and oilseeds was 161.18 Lakh MT in the year 2008-09. Inadequate availability of post harvest facilities at the village level also leads to loss to cereals and pulses producers. Graded product will bring additional return to producers due to value addition. 3. These constraints affect the income of the farmer, mainly due to inadequate post harvest handling facilities at village level. In order to address these issues and to provide village level basic infrastructure for post harvest handling like cleaning and grading of food grains and cleaning, grading, packing of fruits and vegetables in more hygienic conditions, it is proposed to establish the Farmers Common Service Centers (FCSCs) by the Producers Associations (PAs) formed by the Producer Groups (PGs) of the farmers or by producers. 4. Group Activity is more effective for the benefit of the members of the group than the individual efforts. Informally formed small groups called as self help groups have exhibited their strengths in various fields including agriculture, in improving financial conditions of the members. 5. FCSCs are conceived as small scale commercially viable entities owned by PAs. The FCSCs will support 250-300 members, through Producer Groups (similar to SHGs) of around 12-19 active members in each Producer Groups (PGs). The FCSC will mainly deliver some basic value added activities, in grain and horticulture and carry out input marketing and output marketing. This would involve supply of inputs like seeds, fertilizers, manures, pesticides, cattle feed to the members & farmers and also aggregation of produce, its cleaning, grading and marketing. 6. Around 15-20 PGs will be formed in a village or a group of villages within the radius of 3-5 Kms. These PGs will be federated in to a PA which will be registered under the Society Registration Act, 1860 with the Charity Commissioner to have the legal status / othert suitable Acts. While forming PAs, the existing groups eligible for inclusion in PA will be considered besides the new groups to be formed. The inclusion of existing PGs in formation of FCSC should have at least 12-19 active members, the working of the group should have been stabilized and it is functioning regularly and it should be willing to join FCSC and share the responsibility of contribution for the FCSC infrastructure. 7. The MACP proposes to establish FCSCs with the main objective of aggregation of agricultural produce and for providing basic minimum value addition facilities like cleaning, grading, packing and input marketing. The number of FCSCs proposed to be formed would be as follows: (i) FCSC (Food grain) - 200 FCSCs (Food grain) for cereals / food grains for providing cleaning, grading, and packing facilities. These FCSCs will be linked to the MSWC godowns identified for providing Warehouse Receipt Financing and Electronic Trading Services. These FCSCs will also have the options to avail the warehouse receipt from the selected identified and accredited APMC godowns within the vicinity of the MSWC godowns. (ii) FCSC (Fruits and Vegetable) - 200 FCSCs for fruits and vegetable for providing cleaning, grading, and packing 87

services to fruits and vegetable farmers. Preference would be given to districts having higher density of production of fruits and vegetable, i.e. over 1,000 MT per sq. km. FCSCs will bring advantages like saving in commission agents charges, market fees, other marketing expenses like hamali, and still be able to link with the value chain reducing substantially the transactional cost. 8. The FCSCs, the Producer Groups and PAs will be mobilized by Service Providers, i.e. NonGovernmental Organizations NGOs/ companies / other legel entities. It is envisaged that an elected committee of members of Producers Groups will form a management committee and oversee the performance of an incentivized manager. The manager will be trained in technical issues of post harvest management, marketing and in operating a transparent accounting system by SP. The Service Provider will support the operation of the Producer Association, and to accelerate the cross learning of best practices. 9. The FCSCs will be studied by an ABPF managed consultancy contract so that the lessons learnt, both from successes and causes of failure, on management, processes, marketing, partnership arrangements and the financial and businesses mode; can be rapidly understood and used to improve the design of new FCSC and to enable banks to be able to better assess the potential for investing in such facilities. 10. Successful FCSCs will be encouraged to undertake further investment, including productive investment, limited to Rs. 20.00 Lakh with additional support from the Project to develop from a basic FCSC into an Agri Mart. It is expected that nearly 20% of the FCSCs will graduate to a higher level of activity after successfully implementing the basic infrastructure. These FCSCs which will graduate to a level of Agri Mart will function at village / taluka level depending on the success of FCSCs. The criteria for accessing funds for FCSC Stage I Funding and Stage II Funding are described under formation details of FCSC. II. Outcome and Output Monitoring Indicators 11. The management of piloting FCSC as stated above will be carried out by a suitably qualified SP selected by competitive bidding process. The agreement between the PIU (MSAMB) and SP will indicate how the FCSC operations will be successful. The SP would be allowed to operate with high degree of independence so that they can use innovation, dynamism and flexibility to develop viable FCSC. The SP would exit FCSC in 36 months period. During the first 12 months, the performance of SP would be measured on the basis of prescribed milestones and graduation in each of the 4 interlinked stages, viz., i) Social mobilization and formation of PGs, ii) Nurturing and capacity building of PGs, iii) Formation of PAs and establishment of FCSCs; and iv) Diminishing Oversight and support of PAs. 12. The measures of success of SP by the end of 36 months period will be as under: (i) (ii) PA operating without financial support by the end of 36 months. The PA with reserve fund to cover short term cash flow deficit and for reinvestment in the FCSC facilities. (iii) The PA has an effective governing structure. (iv) The PA has the transparent accounting system. (v) The PA can function as a working example for other farmer organizations to observe and learn from.

Outcome Increase in income of farmers Reduction in post harvest handling losses (food grain and fruits & vegetables) 88

Indicators % increase in income of farmers % Reduction in post harvest handling losses

Outcome 100% PA members utilizing facilities of FCSC No. of farmers outside PA utilizing facilities of FCSC Output Registration of 400 PAs Successful commencement of 400 FCSCs 100% Capacity utilization by FCSC 80 FCSCs becoming eligible for Stage II Funding 200 FCSCs (Foodgrain) linked to MSWC network

Indicators % PA members utilizing facilities of FCSC % Increase in the no. of farmers outside PA utilizing facilities of FCSC Indicators No of PAs registered No. of FCSCs commenced successfully No. of FCSCs handling produce at 100% Capacity No. of FCSCs becoming eligible for Stage II Funding No. of FCSCs (Foodgrain) linked to MSWC network

The baseline values to be developed by M&E consultant for various indicators above will be considered while evaluating the performance. III. Policy and Regulatory Environment: 13. The policy of the formation of groups i.e. Producer Groups (PGs), Common Interest Groups (CIGs), Farmers Interest Group (FIGs) is already in vogue. FSCSs will be the Producers Associations formed by Producer Groups (PGs) and may be registered under the Societies Registration Act, 1860 with the Charity Commissioner. FCSC will function within the overall policy and regulatory framework as per the Societies Registration Act and byelaws of Association. Policy environment in which FCSC would be working is given in Societies Registration Act, under the provisions applicable to social organisations. The management of PA will vest with the elected board from amongst the members. The provision about constitution of managing committee will be made in the byelaws. Since the management of FCSC will be done by PA, which will be producers organisation, the producer members will form the board of directors. Therefore the representatives of the farmers will actually oversee and manage the affairs of FCSC. 14. The proper documentation of the title of the land on which FCSC would be established will be ensured. The land will be either purchased by making contribution by the members or it will be gifted by some member or organization or it may be taken on lease or it may be allotted by the Government. The documentation like sale deed, gift deed, and lease deed respectively will be got registered and kept on record. 15. The restrictive rules regarding minimum criteria required to be fulfilled for setting up the private markets will not be applicable to FCSC as per the exemption order issued by GoM.

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IV. Selection Criteria 16. The selection criteria for location of FCSCs shall be as follows: Sr. No. 1 2 Selection Parameter Availability of land Locational Focus FCSC Grain Minimum 0.25 acre land required. Preferably in the catchment areas of the 40 MSWC godowns and 40 APMC godowns identified for warehouse credit. Minimum 500 MT per annum food grain production of potential members of FCSC. At least 50% members will commit their produce for handling by FCSC. Locations where locally produced material is sold to distant markets. Areas where there is a tradition of community or co-operative activity. Road connectivity of the selected FCSC location, logistically important locations (existing marketing centers, near important cross roads, easy access to urban markets), proposed land less than 100 meters away from the road, availability of electricity and telephone connectivity (Landline and Mobile), availability of banking and drinking water facility. Presence of effective ATMA. FCSC F&V Minimum 0.25 acre land required. In areas with expanding production, increasing sales volumes outside the district and especially expanding marketable surpluses. Minimum 2000 MT per annum fruits & vegetables production of potential members. At least 50% members will commit their produce for handling by FCSC. Locations where locally produced material is sold to distant markets. Areas where there is a tradition of community or co-operative activity. Road connectivity of the selected FCSC location, logistically important locations (existing marketing centers, near important cross roads, easy access to urban markets), proposed land less than 100 meters away from the road, availability of electricity and telephone connectivity (Landline and Mobile), availability of banking and drinking water facility. Presence of effective ATMA.

Production related

4 5

Market related Cultural related Infrastructure related

ATMA Activities

17. The selection criteria for membership of FCSC: The Selection criteria for membership of various farmers organizations like PGs / CIGs / FIGs / PAs will be as under: i) ii) iii) iv) v) vi) vii) A member will express his willingness to become member of PG / CIG / FIG. A member will actively participate in all functions and activities of PG / CIG/ FIG and PA. A member will contribute his equity to the Producer Associations (PA) A member will bring his produce to the FCSC for sale. A member will purchase his farm inputs through the FCSC. A member will produce and prepare his produce for marketing as per directions of FCSC. A member will contribute his share to the Producer Association as upfront payment for business development plan of FCSC as needed. viii) A member will contribute his share to the Producer Association towards the reserves of FCSC as needed.

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V. Activities to be financed 18. Activity Schedule and Implementation Cycle: Total of 400 FCSCs are planned under the project. Main thrust will be on horticulture crops including onion and field crops. On an average 50% FCSCs will be of foodgrains, oilseeds & pulses and 50% that of horticulture crops. If FCSC model works well during project implementation stage, the number of FCSCs will be scaled up. The following table gives the proposed phasing in the formation of PGs, PAs, and establishment of FCSCs. a) Phasing For FCSC (Food grain) Activity / PY PY1 PGs 1000 PAs and FCSCs -b) For FCSC (F & V) Activity / PY PGs PAs and FCSCs PY1 1000 --

PY2 1000 50 PY2 1000 50

PY3 1000 50 PY3 1000 50

PY4 1000 50 PY4 1000 50

PY5 -50 PY5 -50

PY6 --PY6 ---

19. Illustrative particulars of First Level and Higher Level (Graduation Level) activities are as follows: a) For FCSC (Food grain) (i) Illustrative list of investment for FCSCs (Food Grain) (Stage I) Sr. No. 1 2 3 Infrastructure Investment Items Improvement of temporary storage and drying. 1.0 MT per hr grain cleaning, grading, and packing machinery with shed Additional need based Agricultural Equipments

(ii) Illustrative list of investment for FCSCs (Food Grain) (Stage II) (Agrimart) Sr. No 1 2 3 4 5 6 7 8 Infrastructure Investment Items Computer with internet connectivity for MII Display Board with Accessories Auction Hall 500 sq.ft. @ Rs.300/sq.ft. Godown - 150 Tonnes Capacity Drying Yard Input Suppliers Shops -10, each of 150 sq.ft. @ Rs.500/sq.ft. Toilets Drinking water & Electricity

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b) For FCSC (F & V) (i) Illustrative list of investment for FCSCs (Fruits and Vegetables) (Stage I) Sr. No. 1 2 3 4 Infrastructure Investment Items Small common pack house for fruits and vegetables, of 300 sq.ft. with asbestos cement sheet roof, flooring, ventilation, toilet. Plastic crates (20 kg capacity) 1000 crates @ Rs. 200/- per crate Grading and packing tables for fruits and vegetables Need based Agricultural Equipments

(ii) Illustrative list of investment for FCSCs (Fruits and Vegetables) (StageII) (Agrimart) Sr. No 1 2 3 4 5 6 7 8 Name of work Computer with internet connectivity for MII Display Board with Accessories Auction Hall of 500 sq.ft. @ Rs. 500/- per sq.ft. Pack house for washing, grading, packing of fruits and vegetables (500 sq.ft) with packing table Fax machine with furniture 5 M.T. Cold Storage Drinking water & Electricity Toilets

Note: Though the illustrative infrastructure proposed is shown in the above tables, the actual infrastructure to be developed will be need based and on participative consultation process. This will be done by SP, who will be selected by competitive bidding process. The project will not fund purchasing of land, construction of guest house, traders shops and structures otherwise prohited by law. 20. Eligibility for First Level and Higher Level (Graduation Level) funding to FCSC: (a) Eligibility for First Level FCSC: The number of PGs/ farmers required to form PA have been mobilized and formed. Those are in place and have started functioning. ii) The members of PGs/ farmers have made the required contribution towards the PA. iii) PA has been registered under Societies Registration Act. iv) PA has acquired land as per the prescribed selection criteria and it is in possession of PA with proper title and documentation. v) Land should have been acquired from the contribution by the members which are not the part of the cost of the Project. (b) Eligibility for Higher Level FCSC: i) The infrastructure for Stage I funding should have been completed. ii) Stabilization of operations. iii) Adequate own funds to meet own contribution or members willingness to contribute for additional investment of Stage II of infrastructure. iv) Audit completed, and no irregularities found. v) Surplus, Growth rate (utilization of capacity) arranged in descending order. First 40 FCSCs for FCSC (Grains) and FCSC (Horti) each will be selected. VI. Estimated costs 21. Total cost of this component is Rs. 6558.80 Lakhs. 92 i)

22. This subcomponent will be implemented by PIU-MSAMB with the help of District Deputy Registrars of Co-operative Societies, Taluka Assistant Registrars of Co-operative Societies and a Service Provider. Procurement of material, goods and contractors for FCSC will be done by the community. Detailed guidelines about community procurement have been given in Procurement Manual and also in Community Operations Manual. Necessary training regarding community procurement will be given to the Managers and members of PA by the SP. Procurement of NGO as SP will be done by PIU -MSAMB by following competitive bidding process. VII. Institutional and implementation arrangements 23. Ownership and Management: As discussed above, the FCSCs will be owned and managed by Producer Associations (PAs), which in turn will be federations of Producer Groups (PGs) / (Producers). Each producer group will consist around 12-19 members, and PA will consist of 15-20 PGs / 250 to 300 farmers. The PG would be moulded on Self Help Group (SHG) model, based on principles of self-help and willingness to work together as a group, given the difference in the nature of the primary activity to be undertaken by the group (microfinance vs. marketing). The PGs will have simple records and reporting systems, which will be maintained by one of the PG members. 24. The PAs will be structured similarly to an SHG federation. It will have a governance structure, separate, but linked to that of the governance of the PGs. The PAs will also have a staffing structure consisting of Community Para-professional, who will maintain the accounting and reporting systems, and will be responsible for maintaining the FCSCs records. 25. Wherever feasible and desirable, the FCSCs can be established on Government Land, in the premises of an existing member-based organization such as a Primary Agricultural Cooperative Society or an Agricultural Marketing Society, and possibly in the premises of Rural Haats. Private land can be used when provided by members or on a lease agreement. PAs may purchase minimum of 10,000 sq.ft. (10R) of land from their own resources by making contribution from the members. PAs will enter into MOU with these organizations clearly specifying the obligations of both entities and fee payment or revenue sharing modalities. 26. Key process steps for development of FCSC a. Service Provider will initially start community mobilisation and formation of PGs and PA. Once PA are formed and proper governance structure is put in place, training to office bearers of PA will be provided. b. PA with Service Provider, will prepare a Business Plan (both for capacity building and special assistance with fund allocation) and submit to the Zonal Office of ABPF for approval. After approval of indicative plan by Zonal Office of ABPF, PA will start the work of development of FCSC and on spending of beneficiary contribution, PA will submit proposal for advance to DDR office. DDR will release the advance within 7 working days of receipt of proposal. On spending of 50% amount of first advance, PA will submit proposal for second advance and DDR will release the second advance. Similar process for third advance will be followed. c. PA with Service Provider and Technical Assistance from outside, as and when needed, will implement the plan. Service Provider will verify completion of the plan. d. On completion of plan, PA will submit the status of the Business Plan to the office of the DDR along with completion reports and photographs of work completed. DDR will check the completion report and certify completion of the plan and submit the completion report to PIU. 93

e. On completion of plan, procurement and financial management and asset created by PA will be verified (upto 30% of total FCSCs covered in the project) by an independent external consultant. 27. Procurement: The procurement of civil works, goods and equipment will be carried out by following community procurement process of World Bank. The plans, estimates and Bid document for civil works as per the approved business plan, will be prepared by PA with the help of Market Field Engineer of PIU. Thereafter SP will call for tender for civil work and equipment separately, which will be evaluated and finalised by procurement committee of FCSC. The work order will be issued by concerned PA. At FCSC level procurement committee will be constituted which will comprise of a) Chairperson / President of FCSC Chairperson b) Three members of elected management committee of the FCSC Member c) ARCS of the taluka Member d) Manager of the FCSC Member Secretary. The procurement of civil works can also be done by force account method. i.e the work will be carried out by the PA as a agency, by purchasing the material required for the construction and getting the work done through skilled and unskilled labour. The FCSC level procurement committee will undertake procurement of civil works up to US$ 50000 and of goods up to US$ 20000 only. 28. Release of fund : a) The community procurement is proposed for FCSC program. PA will open an account in Nationalised Bank and deposit their contribution in that account. PA may do civil work by force account or by the contract by shopping procedure. b) After the amount of beneficiary contribution is spent, the PA will prepare and submit first advance to the DDRCS to the tune of 25% of investment cost. The proposal should contain invoices, photocopies of passbook , photograph of work done and utilisation certificate duly signed by chairperson and Manager of PA. On receipt of proposal, DDR will release first advance of 25% by drawing amount by cheque or by core banking. On spending 50% amount of first advance, PA will submit proposal for second advance with similar document to DDR office. DDR office will release second advance and similar procedure will be adopted for third advance. DDR will release advance within 7 working days for each advance. c) On completion of the work, completion certificate duly signed by Chairperson and SP with the invoices, photocopies of passbook of account, photographs of work competed and utilisation certificate for third advance signed by Chairperson and Manager of PA will be submitted to the office of DDR a) FCSC (Food grain) 29. Selection of Service Provider: (FCSC Grain) The mobilization of Producer Groups, the formation of the Producer Associations, the training and support for its management and operation will be contracted out to a suitable service provider. PIU-MSAMB will select and hire the SP for participative consultation and investment design of FCSC. 30. Service providers will be selected on the basis of their local knowledge in the districts chosen for implementation and their expertise i.e. in crops and marketing. The Phased Activities of the SP for FCSC Development are summarized below: Stage 1: Social mobilization and PG formation: Stage 2: Group nurturing and capacity building: Stage 3: Formation of PAs and establishment of FCSCs: Stage 4: Oversight and Diminishing Operational & Management support of PAs: 3 months 9 months 1 year 1 year

31. Stage 1: Eligibility criteria for PGs formation for establishment of the FCSCs will include the following: 94

i) ii) iii) iv)

Production of Cereals and Pulses of members of PA should be at least 500 MT per annum. Small and marginal farmers (Marginal Farmer- Land holding up to 1.00 ha and Small Farmer- Land holding above 1.00 ha up to 2.00 ha) may be given preference. Possession or long-term lease agreement of land required for setting up of FCSC, or long-term lease agreement for use of the existing buildings. Evidence of mobilization of 25% cost of investments, as a combination of own and bank funds in the PAs bank account.

32. Stage 2: The Stage 2 will build the Producer Groups capacity, understanding of the project and start saving for the planned investment in the FCSC and finalize the site location. The Stage 3 involves the formation of a Management Committee to provide oversight of the PA. The committee would, in conjunction with the SP, select the manager of the PA (ideally from local communities). The manager will be provided with capacity training, particularly in post harvest activities (i.e. grading, cleaning, quality assessments), in marketing and trading. This will include training relating to procurement, electronic spot trading, warehouse credit and futures options. This training will be provided by the SP. The SP will introduce an accounting system which enables all the members to understand the financial flows and the transparency of the accounting system. The financial management system will include the building up of a balance for re-investments and to cover operational costs. The PA management committee will be provided with a small management grant (i.e. Rs 24,000/-) to underwrite the managers income only once. The business model will include payment for the manager which is linked to sales / throughput so that he / she is incentivized to build volumes. The procurement of FCSC would be undertaken under Community Procurement procedures as laid down by the World Bank. The assets created by the FCSCs will verified by the Physical Asset Verfication Consultant. 33. Operational Activities: The following illustrative options could be available to the members of the PAs after using the services provided by the FCSCs. a. Take their produce to MSWC warehouse or to APMC warehouse or sell in APMC. b. Obtain finance against their produce through the Warehouse Receipt Financing from banks for the produce store in MSWC or other accrediated warehouses. c. They can sell the produce on spot or future market depending on price situation through the MSWC warehouses d. The produce can be sold to direct marketing license holder who may be a trader, exporter, processor or retail chain operator. e. Input marketing, supply of inputs. 34. It is found that using the scientific storage and financial instruments that are available with MSWC are most profitable which can be seen from the following discussions. 35. Producers, individually or via Producers Groups (PGs) and Producers Associations (PAs) will deliver to the MSWC godowns (and later 40 APMCs) single quality commodity. This will involve the Grain FCSC grading and cleaning, some field level quality assessment (e.g. moisture content), bagging, weighing and the delivery of produce within a narrow weight range. The manager of the PA will also need to make up lots not only of a single quality but also where the individual producers, or their PG, have similar marketing strategies e.g. immediate sale, warehouse credit for 1, 2 or 3 months. The minimum lot size may be around one bag of produce considering the production of the small and marginal producers. 36. The product is assayed at the godown to verify quality (at Rs 500/- per lot) and provided with a lot number. The FCSC manager will communicate with the manager of the MSWC godown which lots are to be sold on the spot market on the same day as delivery, or to store the lot for the specific period of time and whether to negotiate a futures contract.

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37. Three days after the sale is made, the buyer electronically transfers the payment to NCDEX Spot Exchange account. Deductions are made to MSWC, for storing the produce (at Rs 20/tonne/month) and assaying the product (at Rs 500/- per lot) and handling (at Rs 1.50 per 50 kg bag), for NCDEX Spot Exchange (at 0.1% of the value of the sale), to MSAMB / APMC (at 1% of value of sale, plus another 0.05% for supervision cost), and, if applicable, interest on the warehouse credit (at about 1% per month of the loan). Selling grain through traditional Mandis will incur costs of between 5 and 6%. After deductions the money is transferred electronically into MSWC account, who will transfer the funds to the designated account of the FCSC the next day. The manager of the FCSC will make deductions for costs (grading, sacks, transport, managers fees), building a reserve fund and transfer the funds (or provide cash) to the PG, or to the individual farmers. In this particular example if the PA chose to store the grain for 3 months and take 75% Wholesale credit, the interest charges would amount to Rs.2250/- i.e. 3% on Rs.75,000/- loan. 38. The table below provides an estimate of the potential additional returns that farmers can obtain by using the FCSC for their producer association to grade, clean and pack grain and to facilitate marketing through the Mandi, the Spot Market at MSWCs facilities, or to store at MSWC for three month. These are contrasted with the returns for a farmer selling un-graded produce through the Mandi shortly after harvest. In this table standard grading rates for grain found in Mandi of Rs 11 per Quintal has been used. It has been assumed that the manager is paid 1% of sales. Illustrative Estimated Farmer Returns: Particulars Sales of 10 tonnes Less Total Mandi /commission charges FCSC Grading Charges FCSC management charges @ 1% Assay Loading & unloading Storage Charges Warehouse credit interest NCDEX charges MSAMB/APMC GoM supervision TOTAL COSTS NET RETURN BENEFIT % BENEFIT b) FCSC (F & V) 39. Selection of Service Provider (FCSC F & V): The mobilization of Producer Groups, the formation of the Producer Associations, the training and support for its management and operation will be contracted out to a suitable service provider. PIU-MSAMB will select and hire the SP for participative consultation and investment design of FCSC. This may be local NGO / Mandi Sale Rs.100,000 Rs 5,500 Mandi sale graded Rs.107,500 Rs 5,913 1100 1075 1100 1075 500 600 1100 1175 500 600 600 2,250 118 1175 0 7,577 Rs 109,923 Rs 15,423 16.3% Same day spot sale Rs 107,500 Sale after 3 months Rs 117,500

(included above)

(included above)

5,500 Rs 94,500 -

8,088 Rs 99,412 Rs 4,912 5.2%

107 1075 50 4507 Rs 102,993 Rs 8,493 9.0%

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company / any other legal entity. It is envisaged that both the Grain and the Horticultural FCSCs can be carried out by a single SP by grouping. 40. The phased activities of the SP are summarized below: Stage 1: Social mobilization and PG formation: Stage 2: Group nurturing and capacity building: Stage 3: Formation of PAs and establishment of FCSCs: Stage4: Oversight and Diminishing Operational & Management support of PAs: 3 months 9 months 1 year 1 year

Key elements of the SP program are to develop interest (Stage 1) and create membership of the PA. 41. Eligibility criteria for PG formation: i) Production of the members of horticultural PA should be at least 2000 MT per annum. ii) Small and marginal farmers (Marginal Farmer- Land holding up to 1.00 ha and Small Farmer- Land holding above 1.00 ha up to 2.00 ha) will be given preference. iii) Possession or long-term lease agreement of land required for setting up of FCSC, or longterm lease agreement for use of existing buildings. iv) Evidence of mobilization of 25% cost of investments, as a combination of own and bank funds in the PA bank account. 42. The Stage 2 will build the Producer Groups capacity, understanding of the project and start saving for the planned investment in the FCSC and finalize the site location. Stage 3 involves the formation of a Management Committee to provide oversight of the PA. The committee would, in conjunction with the SP, select the manager of the PA (ideally from local communities). He / She will be provided with capacity training, particularly in post harvest activities (i.e. sales, grading, cleaning, quality assessments), in marketing and trading. This will include training by ATMA and interaction with large scale buyers. The SP will introduce an accounting system which enables all the members to understand the financial flows and which is transparent. The financial management system will include the building up of a balance for re-investments and to cover operational costs. The PA management committee will be provided with a small management grant (i.e. Rs 24,000/-) to underwrite the managers income only once. The business model will include payment for the manager which is linked to sales / throughput so that manager is incentivized to build volumes. 43. Operational Activities: The following options will be available to PAs producers after using the service provided by the FCSCs. Provision of field crates to reduce crop damage. Grading and packing of produce. Logistic support, i.e. collection and delivery. Seeking out alternative sales outlets (i.e. direct marketing licence holder who may be processors, retailers, specialized and larger scale buyers) 44. Producers, individually or via Producers Groups (PG) and Producers Associations (PAs), will deliver their produce to the FCSC. The manager of the PA will supervise the collection, provide plastic field boxes, grade the produce and repacking and sales of it, direct, or via mandis, and delivery to terminal markets, processors and other buyers. 45. Illustrative Estimated Farmer Returns: Mandi Sale Particulars Sales of 5 tonnes Rate (according to grade or purchaser) 50000 @ Rs. 10/kg Mandi sale graded 75000 @ Rs. 15/kg 97 Auction sales 80000 @ Rs. 16/kg Delivery to Terminal Market 90000 @ Rs. 18/kg

Mandi Sale Particulars Less Total Mandi /commission charges (8%) FCSC Grading Charges FCSC management charges @ 1% Loading & unloading Storage Charges Hiring of field crates (200 Creats) Govt. of Maharashtra Supervision Charges @ 0.05% TOTAL COSTS NET RETURN BENEFIT % BENEFIT

Mandi sale graded

Auction sales

Delivery to Terminal Market

4000

6000 500 750

6400 500 800 300 0 200 40 500 900 300 0 200 45

300 0 200 25

300 0 200 37.50

6025 45475

7787.50 67212.50 21737.50 47.80 %

8240.00 71760.00 26285.00 57.80 %

1945.00 88055.00 42560.00 93.58 %

VIII. Funds Flow 46. The procurement of civil works, goods and equipments under this subcomponent will be done as per norms of Community Procurement. However the funds flow will be through BDS. The FCSC (Food grain) and the FCSC (F&V) will be implemented by PIU-MSAMB. 47. The funds for this sub component will be provided in the budget of the Dept. of Cooperation & Marketing, GOM and will be sent to the Director of Agri. Mktg. as per BDS (electronic funds transfer system). The Director of Agri. Mktg. in turn will release the funds to the DDR by B.D.S. 48. The DDR will release funds in three tranches/ installments to PA. First advance of 25% of investment cost will be released after the amount of beneficiary contribution is spent. Second and third advance of 25% of investment cost will be released after 50% of each advance is spent. Details of release of fund are given in para 28 . 49. The PAs could be registered under the Societies Registration Act. 50. The FCSC (Food Grain) and FCSC (F&V) may carry out their activities with the association of the Primary Agricultural Credit Cooperative Societies (PAC) or Cooperative Marketing Societies. In the event of such business associations with certain cooperative societies suitable contractual deed shall be drawn and signed by the concerned parties. 51. The SP will prepare the need based business plan for FCSC and it will be discussed and revalidated in the general body of PA. The business plan of FCSC will be checked and approved by agribusiness and marketing specialist of ABPF in Regional office. IX. Governance Risks and Mitigation Measures 52. The following table provides the details of likely risks and mitigation measures in the implementation of FCSCs (for Food grain and F&V). 98

Sr. No. 1

Risks Technical / Design

Description Timely formation of PGs and their subsequent activity stabilization.

Risk Mitigation Measures Farmer PG models have been tested and found successful. Besides SP is proposed for various activities from group formation to overseeing the execution. Training to beneficiaries by SP is proposed in the Project.

Implementation capacity and sustainability

Inadequate technical knowledge amongst beneficiaries regarding activities proposed to be taken up by any particular PG / CIG.

Financial Management

Delay in release of payment to contractors due to non receipt of utilization certificates from the beneficiary.

MOU for defining the roles and responsibilities of the beneficiaries, department and the SP. Release of funds through crossed cheques putting a/c no. and name of banks. Dist. level Accountant for reconciliation and reporting. (i) Community Procurement is proposed in FCSC which will be carried out as per WB guidelines (ii) Grievance Redressal System, would be in place. The main beneficiaries will be the agriculturists and horticulturists. No hazardous chemicals / products are used. As the agriculturists / horticulturists are the owners of the facility (individual producer / member of PAs / PGs of producers / cooperative societies) such risks are not involved.

Procurement

---

Social and environment safeguards Other ( for eg. project specific corruption risk, ownership of project / program, prevalence of failure in similar projects)

---

---

X. Sustainability: 53. A pilot survey of the few districts in Maharashtra has been carried out by MSAMB with the help of DDRCS to pilot test readiness and capacity of the farmers to contribute to FCSC. The following observations are made on the basis of the survey: i. Acceptance or Readiness to FCSC Conceptii. Possibility of formation of group and willingness to participate in FCSC iii. Willingness to use the FCSC for grading of the produceiv. Willingness to invest Rs. 2000-2500/- individually in such FCSC centers (approx 25% contribution of the FCSC) 100 % 100 % 100 % 100 %

54.The estimated returns to the farmers utilizing the facilities of FCSCs (Illustrative Financial Models) is shown in the respective paras on operationalization of FCSCs, which makes it clear that the investment under this sub-component is sustainable.

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55.The investments in FCSC (Grains) will be sustainable considering even 75% capacity utilization of 1.0 MT / hr grain cleaning and grading machinery. Total quantity of food grains handled per day would be around 6 MT (6 hours working) and 1800 MT per year for the working of 300 days. Total revenue generation is expected to be around Rs. 3.60 Lakh @ Rs. 200/- per MT as cleaning and grading charges. Leaving the allowance of 50% revenue as cost of O&M, the net income per year would be Rs. 1.80 Lakh. The capacity utilization of the machinery after initial 2-3 years will be more than 125% - 150% as the unit can be operated in 2 shifts and adequate quantity of grain is available. It is presumed that produce of the members as well as non members will be handled. 56. The FCSC (F&V) will bring the revenue around Rs. 200/- per MT for use of its facilities of crates and pack house. Presuming that 5.0 MT of produce is handled per day, it will earn Rs. 3.00 Lakh per annum (300 effective working days). The net revenue of about Rs. 1.50 Lakh, after making provision of Rs. 1.50 Lakh for O&M, makes the investment sustainable. It is presumed that produce of the members as well as non members will be handled. 57. The investment in the Higher Level FCSC will also be sustainable. To illustrate the example of FCSC (F&V) having cold storage of 5.0 MT capacity is given below. The graduation to the higher level will be sustainable as it would be earning extra income through the rentals / service charges from the users. For example, the economics of a cold storage of 5.0 MT capacity operating for 300 effective days is as shown: Facility Cold storage of 5.0 MT capacity (Investment cost Rs. 6.25 Lakh) Utilization & Charges 300 effective days use per annum with 100% capacity utilization and on an average @ Rs. 200 / MT / Day Total Charges Rs. 3.00 Lakh Operating Expenses Annual Expenses around Rs. 1.00 Lakh Net Income Net Income Rs. 2.00 Lakh Enough to service the investment. Pay back period 4 years.

58. Post Implementation Operation & Maintenance Arrangements: The productive infrastructure will be a source of additional income to the PA. Such additional income shall be used for the post implementation operation & maintenance of the facilities established under the Project. ***

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B1.2 WAREHOUSE RECEIPTS DEVELOPMENT

I. Objectives 1. The farmers normally sell the produce immediately after harvest because there is no arrangement for storage and farmer has immediate need of money for his livelihood. They often need to settle loans taken from money lenders and banks for cultivation or consumption needs during lean period and to make payments for inputs taken on credit. However, the prices usually tend to be low during harvest season and increase later. Because of this, there is a glut of the produce in the market after harvest and the farmers have to sell under distress. The realization of the produce is very low as compared to the prices which could be realized after 4-5 months from the harvest, i.e. during the lean season. The problem can be addressed by providing scientific storage and interim financial credit to the farmer against the stored agricultural produce. 2. Since 1990, Maharashtra State Agricultural Marketing Board (MSAMB) has successfully supported a Pledge Loan Scheme operated by selected APMCs. Under this scheme, farmers obtain loans to the extent of 50-75% of the value of the commodity they store in APMC godowns. These loans are provided by APMC using funds provided by MSAMB. The APMCs participating in this program have a 100% repayment rate on loans made under this program4. However, limited funds available with MSAMB for this activity have limited the number of farmers who are able to benefit from this service provided by APMC. Hence, the project proposes to enhance access to this service by facilitating the expansion of the warehouse receipt financing for farmers through selected godowns of Maharashtra State Warehousing Corporation (MSWC). The scope would increase further with the Warehousing Act of 2007 which allows private godowns getting accredited for warehouse receipt through financial institutions. 3. This sub-component aims to improve access to price risk management services for farmers. Availability of finance against stored produce and improved knowledge on price risk management allows farmers and farmers organizations to obtain better price realization for their produce. 4. In addition, trading through Electronic Commodity Exchange provides an alternative marketing channel, which increases potential for better price realization. With the amendment of the APMC Act in Maharashtra, establishment of Electronic Spot Markets that allow online trading trough electronic commodity exchanges (outside APMCs and across state boundaries) have become possible. The National Commodity and Derivative Exchange Limited (NCDEX), the Multi Commodity Exchange Limited (MCX), and National Spot Exchange Limited (NSEL), three national commodities exchanges, are in process of setting up systems that make this feasible in Maharashtra. Hence, the project proposes: i. ii. iii. To build capacity of farmers on price risk management for Cereals and Pulses PAs, and the associated PGs, To support a pilot activity that will provide access to trading through Commodity Exchanges for farmers, and, In parallel, work in partnership with the MSWC to support the emergence of this new trading conduit through capacity building, upgrading of Godowns and facilitating access to trading screens.

5. MSWC has more than 800 warehouses with around 12 lakh tonnes of storage capacity. In agricultural producing areas utilisation of storage capacity of godowns is more than 75%.
4

During the period from 2002-03 and 2008-09, the number of APMCs involved in this program has ranged between 23 to 54; the number of beneficiaries have ranged from 800 to 3833 ; the total loan amounts have ranged between Rs.36 million to Rs.188 million.

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Overall utilisation of MSWCs warehouse capacity is 89%. Finance against warehouse receipts of MSWC provided by banks was Rs. 184.59 crore. The negotiable receipt credit against warehouse receipts of MSWC is increasing every year. Initially 40 godowns of MSWC have been identified for warehouse receipt scheme programme. MSWC has already entered in to agreement with NCDEX Spot , and, tie up between NCDEX Spot and the Banks for Warehouse Receipts Scheme through MSWC has been done. II. Outcome and Output Monitoring Indicators 6. The details of Outcomes & Output Monitoring Indicators have been given in the table below: Outcomes Expected No glut situation in the market. Better price realization. Outputs Expected Access to warehouse-receipt financing by 40,000 farmers, of which 20,000 small and marginal farmers. Use of online trading through commodity exchanges by 20,000 farmers, of which 10,000 small and marginal farmers. Warehouse receipt financing of Rs. 80 Crores Number of warehouse receipt transactions. Volume of produce pledged for warehouse receipt transactions. Online trading of FCSC (Graduated Level) worth Rs. 180 Crores, both spot & futures Upgradation of 40 MSWC Godowns, establishing laboratory and connectivity. Accreditation of 40 MSWC Godowns. Performance indicators % increase in the sales during lean season. % increase in price realization. Performance indicators i) % of Total Targeted Farmers accessing warehouse receipt financing services. ii) % of Total Targeted Small and Marginal Farmers accessing warehouse receipt financing services i) % of Total Targeted Farmers using online trading through commodity exchanges ii) % of Total Targeted Small and Marginal Farmers using online trading through commodity exchanges % of Total Targeted Volume of warehouse receipt financing accessed by farmers % increase in number of warehouse receipt transactions. % increase in volume of produce pledged for warehouse receipt transactions. % of Total Targeted Volume of online trading through commodity exchanges by farmers % of Total Targeted number of MSWC Godowns where repair are completed, laboratory and connectivity is established. % of Total Targeted number of MSWC Godowns accredited.

The baseline values will be fixed by the M&E Consultant for comparing the results. 7. These figures are based on the following assumptions: i) 200 FCSC / PA, each with around 20 PG (each PG with 10 active members) would be feeding product to FCSC, so there will be 40,000 active farmers in total. ii) Each farmer will produce 2.5 tonnes of grain per annum, so 40,000 farmers will produce a total of 1,00,000 tonnes of grain per annum. iii) Initially farmer will commit 2 tonnes for cleaning / grading the grain through the FCSC (Food grain) / PA, with half for immediate sale in local market / APMC and half for warehouse credit. iv) Over a period of time the producers will increase their volumes marketed through the FCSC to some 70% of output (i.e. 1,12,000 tonnes in total) and of this amount 70% (i.e. 78,000 tonnes in total) will take advantage of warehouse credit.

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v) The average value of product stored, at the time of storage will be Rs 1500 per quintal, of which 75% of the value is provided in warehouse credit. The average sale price of stored product is Rs 1700 per quintal. III. Policy and Regulatory Environment: 8. The policy and regulatory environment is as follows: i) The regulation regarding accreditation of warehouses to spot exchanges and credit against warehouse receipt is already in place, ii) The agreement between MSWC and NCDEX spot has already been signed. This agreement provides for quality standards of acceptable produce, price determination mechanism, payment mechanism, delivery responsibility, and dispute settlement arrangements, iii) Tie up between MSWC and Union Bank of India has been done. Manual of instructions in respect of operationalization of Warehouse Receipt Instrument will be prepared in Marathi by MSWC and circulated amongst the farmers and other stakeholders, covering such issues so that the component is well received by the farmers. iv) Warehouse Act provides for getting credit against warehouse receipt from the banks. Besides this MSWC has entered into MoU with Union Bank of India for providing credit to the farmers against the produce of the farmers kept in warehouse. Union Bank of India has branches at 29 locations where MSWC godowns are located. At remaining 11 places Union Bank of India does not have their own branches. To facilitate availability of credit against warehouse receipt to the farmer, the Union Bank of India has made the arrangements with the local branch of other bank. IV. Selection Criteria 9. Forty warehouses of MSWC have been selected on the following basis: i) The godown is located on the main road and is easily accessible by all weather roads. ii) It has suitable arrangements for electricity, telephone, and connectivity. iii) The godown is in the area where there is concentration of production of food grains, oil seeds and pulses. iv) MSWC staff is available for godown / warehouse management. 10. Selection Criteria for APMCs for godown program: The APMCs for godown program have been shortlisted on the basis of the following criteria. i) APMC has the godown of at least 200 Mt capacity. ii) APMC yard where godown is selected is in the catchment area of the MSWC godown. APMCs selected for modernization under MACP have been given preference. iii) APMC godown is accessible by all weather road. iv) APMC has the experience of pledge financing has been given preference. A total of 40 APMCs have been shortlisted on the basis of above criteria. However, the list of APMCs identified is tentative and the final selection of APMCs will depend on (i) Willingness of APMC to participate in the programme, (ii) APMC is generating surplus, (iii) APMC should obtain license under the Maharashtra Warehousing Corporation Act for carrying out the activity of warehousing, (iv) APMC should have tie up with Spot Exchange.

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V. Activities to be financed A. MSWC godowns :11. The project will provide support to upgrade facilities in 40 MSWC warehouses. Investments financed will include repair of godowns, setting up of commodity testing laboratories, purchase of computers, commodity exchange ticker displays, and electronic weighing machines. In addition to the investments made in the warehouses, the project will also finance costs involved in networking the 40 warehouses that will be upgraded and in setting up an electronic warehouse receipt system for these 40 warehouses. The following table gives an illustrative list of investments per MSWC godown that will be financed in the Project . Illustrative list of investments per MSWC godown Sr. No. 1 2 3 4 5. Infrastructure Investment Items Upgrading of existing godown infrastructure Setting up computers for on line trading Electronic weighing scales Price information ticker Setting up quality assessment laboratory

12. The total investment in about 12.00 Lakh MT of the existing storage capacity MSWC godowns is estimated at around Rs 700 Crore. If this is annualized at 2.5%, over the six years of the project, MSWCs investment amounts to some Rs 100 Crore. 13. Capacity Building Activities: Capacity building on price risk management will be provided at two levels: representatives and functionaries (book-keeper) of the PGs and PAs. 14. Activity Schedule: The activity schedule for upgradation of facilities at MSWC godowns is given in the following table. Activity / PY MSWC Warehouses up-gradation and warehouse receipt financing and e-trade service provision Warehouse receipt financing and e-trade service provision Price Risk Management Training for PG representatives and functionaries (individuals trained) Price Risk Management Training for PA representatives (individuals trained) B. APMC godowns :15. The National Spot Exchange Ltd. (NSEL) has already agreed to have a tie up with the APMCs. The NSEL has further agreed to tie up with the Banks to provide credit facilities to the produce stored at these APMC godowns. 16. To have such a tie up arrangement, investments will be required to be made in these APMC godowns. The investments will be for setting up computers, weighing machines, price information ticker, setting up Commodity Testing Lab. The following table gives the illustrative list of investments per godown. Illustrative list of investments per APMC godown Sr. Infrastructure Investment Items 104 PY1 10 PY2 20 5 1000 PY3 10 15 1000 120 PY4 20 1000 120 PY5 1000 120 PY6 120

No. 1 2 3 4 5

Setting up computers for on line trading Electronic weighing scales Price information ticker Setting up quality assessment laboratory Renovation of Godown

17. The total investment in 40 APMC godowns will be Rs. 360.00 lakhs (40 godowns X Rs. 9.00 lakhs). 18. APMCs selected under warehouse program will be linked for NSEL and the warehouse receipt of these APMC godowns, which are accredited, will be eligible to get warehouse receipt credit. These godowns will be linked with the local banks, preferably with the branch of nationalised bank. 19. Activity schedule: The activity schedule for upgradation and functioning of APMC godown is given in the following table. Activity / PY PY1 APMC up-gradation and warehouse receipt -financing and e-trade service provision VI. Estimated costs and project sharing: 20. Summary of investment items and share of project funding: No. 1 2 3 4 5 6 7 Activities Improvement of MSWC warehouses Contractual Staff (40 lab technicians and 1 Deputy Manager) Capacity Building on Price Risk Management Consultancies and studies Improvement of APMC godowns Awareness generation, training and capacity building Operating costs ( rental, staff, support etc) Project Financing Share 100% 0% 100% 100% 100% 100% 100% PY2 5 PY3 10 PY4 15 PY5 10 PY6 --

VII. Institutional and implementation arrangements 21. Outline of Operation of Scheme: The PIU MSAMB will be the implementing agency for MSWC programs with the help of MSWC. MSWC will give one officer of the rank of Deputy/Assistant Manager to work on PIU MSAMB. MSWC being State Govt Corporation it will implement its program. PIU MSAMB will only oversee the same. Whereas program of APMCs will be implemented by PIU MSAMB, the procurements relating to MSWC will be the responsibility of PIU MSAMB. The MSWC is a profitable5 Government Corporation with 800 godowns in Maharashtra and a track record of innovation, dynamism and partnerships with the private sector. Its storage capacity in the state is around 1.2 million tonnes, of which up to 40% is available to farmers to store their grains at a lower charge than for the trade. A partnership has been created so that under the MACP the States grain farmers can benefit from the package of financial instruments and scientific storage that MSWC and the APMC is developing with
5

Rs. 35 Crore profit in 2009

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the Banks and the Commodity Exchanges. Currently farmers have the APMCs as the sole marketing route for their marketable surplus of grains. This has high costs, limits the producers ability to time the sales to benefit from seasonal changes in price as trading behaviour is often opaque. Additionally, farmers are often forced to sell at the least advantageous time, because of the need to pay back loans. 22. The planned intervention provides farmer with the choice of other marketing channels, which are lower in cost, transparent in processes, prices and quality assessment, provide assured payment and which enable farmers to store produce and take advantage of warehouse credit, futures markets and electronic spot exchanges. 23. Producers, individually or via Producers Groups (PG) and Associations will need to be able to deliver to the 40 MSWC and 40 APMC godowns a single quality commodity. For spot exchange lot size is around 1 bag. This will involve grading and cleaning, some field level quality assessment (e.g. moisture content), bagging, weighing and the delivery of produce within a narrow weight range. The product is assayed at the godown to verify quality (at Rs 500 per lot) and provided with a lot number. A choice can then be made as whether to sell the produce on the spot market on the same day, or to store the produce. In this case the decision needs to be made on whether to take advantage of warehouse credit scheme available and whether to lock the sales lot into a futures contract at an assured price. Lot size whether decided. 24. Three days after the sale is made, the buyer electronically transfers the payment to confirm the sequence of nos. in received chapter structure NCDEX Spot account. Here deductions are made: i) To MSWC, for storing the produce (at Rs 20 / MT / month) and assaying the product (at Rs 500 per lot) and handling (at Rs 1.50 per 50 kg bag) , ii) For NCDEX Spot (at 0.1% of the value of the sale), iii) To MSAMB / APMC (at 1% of value of sale, plus another 0.05% for supervision), and, if applicable, interest on the warehouse credit (at about 1% per month of the loan). 25. The information given in table in the chapter on FCSC, under the para Estimated Farmer Returns, shows that the farmer will get extra return of 5.2%, 9.0% and 16.30% if the produce is sold in APMC as graded; same day spot sale and sale after 3 months after taking advantage of Warehouse Receipt Credit Scheme, respectively. 26. The information in the table mentioned above provides an estimate of the potential additional returns that farmers can obtain by using the FCSC for their producer association to grade, clean and pack grain and to facilitate marketing through the APMCs, the Spot Market at MSWCs facilities, or to store at MSWC for three month. These are contrasted with the returns for a farmer selling un-graded product through the APMCs shortly after harvest. 27. Price risk management business model: Warehouse receipt financing: Selected MSWC warehouses will shift to an electronic warehouse receipts system from a manual one and will be networked to enable an efficient warehouse receipt financing system. Warehouses in selected APMCs will also provide this service. Electronic receipts will be transmitted immediately to the banks with which MSWC and APMC have an agreement and loans to be issued against it automatically based on the value of the receipt. The benefit is that farmers or CIGs are able to deposit their commodities at a MSWC / accredited APMC warehouse and get immediate access to credit from the participating banks against the value of the commodity. The MSWC has expertise in scientific storage, is committed to having up to 40% of its godown space available to farmers and offers storage at a nominal rate to farmers. This package of instruments (i.e. high quality storage, independent quality assessment and warehouse credit) will enable producers not to make distress sales, but instead to be able to take advantage of the price increases that take place after the main harvest season. As per the provisions of the MSWC Act, the Warehouse 106

Receipt of the MSWC is negotiable. Even then, the NCDEX spot has entered with agreement with Union Bank of India to develop these arrangements. 28. This service will be available at 40 MSWC and 40 APMC warehouses. The APMCs that participate in this activity will be located in the vicinity of MSWC warehouses selected and be subsets of the APMCs there are being modernized under MACP. The capacity of relevant MSWC and APMC personnel will be upgraded through targeted capacity building activities based on an assessment of capacity building needs. 29. Electronic Spot Trading: MSWC has entered into agreement with NCDEX Spot and Union Bank Of India on 3 rd May 2010 and 4th May 2010 respectively. MSWC has identified 40 warehouses for the programme. These ware houses will be accredited as delivery centers for the exchange. MSWC will outsource the trading function to existing trading members of the commodity exchange, who will then act as an agent for farmers, PGs, and PAs to enable them to sell their commodities through the exchanges at the designated warehouses of MSWC. The expected benefits are that farmers will have lower marketing costs6, obtain better prices and assured price realization. The farmers will be provided credit against warehouse receipts by the Union Bank Of India. The following figure gives an integrated process map for the warehouse receipt financing and e-trading service that will be provided by the MSWC.
Figure 2.1: Incorporating Warehouse Receipts in the Financing Cycle

Source: Bryde and Martin (1999)

30. Capacity building on Price Risk Management: Representatives of the Cereals and Pulses PAs, and the representatives of the associated PGs will be trained on price risk management. This training will encompass price analysis; systems and procedures to aggregate produce, access financing, and trade as a group; and, benefits and risks in warehouse receipt financing and etrading. 31. Implementation Arrangements: PIU MSAMB is responsible to implement this component with the support of MSWC. MSWC will appoint an officer of the rank of Deputy Manager /
6

An important feature of this intervention will be the lower cost of trading through a commodity exchange (at some 2.5%) rather than through a APMC (at some 5% of sales value). Additionally assured price realization by the trading partners will reduce the level of price discounting that is believed to occur in the APMC system because of the risks of non-payment.

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Assistant Manager supported by an assistant, to coordinate the warehousing activity in PIUMSAMB and field level machinery, and to prepare annual work plans. S.P. for FCSC (Grains) with the support from NCDEX Spot deliver price risk management trainings, as well as training in grading, quality control, and to introduce a transparent accounting system. Procurement of goods and contractors for MSWC will be carried out by PIU MSAMB. Tenders will be called by PIU MSAMB & will be finalised by PIU MSAMB where representative of MSWC will be present. Work orders will be given by MSWC & MSWC will implement the program. 32. The PIU MSAMB will oversee the integrated implementation of the FCSC and MSWC and APMC package of financial instruments and scientific services. The MSAMB will call for the tenders of need based equipments required for APMC godowns where the representatives of APMC would be present. 33. The mobilization of FCSC through PA and PGs will follow the program of Godown development agreed between MSWC and NCDEX, which is primarily driven by the commercial imperative to start with those facilities believed to have the highest potential and therefore the best chances of early success. Of the MSWC facilities 17 are located within the 1 st phase program of MACP, 13 are in phase 2 and 10 in phase 3. However by the second year of the project, when the first FCSC will be sufficiently mobilized to deliver graded product, investments will have been made in 17 godowns. In each MSWC godown catchment 5 FCSC will be developed. The service provider will have to mobilize PGs and PAs to support the emergence of viable Grain FCSC. 34. In order to facilitate the emergence of viable business models for dissemination and learning by other potential grain FCSC, the ABPF will, identify key features of success and failure and develop a financial model in partnerships to encourage further investments in new FCSCs. VIII. Funds flow 35. The budget provision will be made, under the budget of Dept. of Coop. & Mktg. (DOCM) for this sub-component. The DDO from the DOCM will drw the funds from treasury and disburse the same to MSWC for MSWC related activities. For APMC program funds will be accessed by DDRCS of the concerned district as per BDS and payments will be made to contractors by drawing the bills from treasury. IX. Fiduciary and Safeguards arrangements 36. Following are the fiduciary issues: i) The contract between the MSWC and the banks and the validity of the warehouse receipt shall be subject to the terms and conditions of the contract. ii) Accreditation procedures and norms for APMC godowns selected in this sub-component will be supervised by the competent authority for according accreditation. This will ensure the operations of the warehouse as per the norms. iii) Procedures of Warehouse Receipt Scheme of MSWC shall be given wide publicity in local language to involve maximum number of farmers. This will ensure capacity utilization of the facility. iv) The provisions for M&E, Internal Audit, External Audit, Procurement Management, Financial Management, GAAP will also strengthen the monitoring in this respect. X. Governance Risks and Mitigation Measures 37. Following are the risks & mitigation measures: Sr. No. Risks Description Risk Mitigation Measures

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Sr. No. 1

Risks Technical / Design

Description Networking for etrading is a new concept that will be implemented in the Project. Operations of warehouse receipt system and e-trading through MSWC warehouses will have to be accepted by the farmer community.

Risk Mitigation Measures Training and capacity building for establishment and maintenance of etrading network.

Implementation capacity and sustainability

3 4

Financial Management Procurement

--Lack of response to bids, possibility of cartel, over estimation. ---

Social and environment safeguards

Other ( for example project specific corruption risk, ownership of project / program, prevalence of failure in similar projects)

---

(i) MSWC has adequate technical know how about repairs of godowns, (ii) Training and capacity building for operations of warehouse receipt system and e-trading through MSWC warehouses, (iii) MSWC will make public the procedural details in local language through Warehouse Receipt and e-trading Manual / detail guidelines. Full time Finance Controller and well set accounting system and Govt. Audit. (i) Procurement as per WB guidelines including E-tendering, (ii) Grievance Redressal System, (iii) Procurement based on approved latest DSR. (i) As it is a new activity no existing community participation shall be hampered by implementation of this component, (ii) Agricultural Produce being non-hazardous they pose no environment risk. Selected godowns are owned by MSWC and program will be managed by MSWC in collaboration with NCDEX. MSWC being a business organization would not invest unless being sure of the returns.

XI. Sustainability 38. Following points bring out the sustainability: i) The scientific storage and interim finance against warehouse receipt will reduce post harvest losses and at the same time meet the immediate financial needs of the farmers. This will make investment under this subcomponent sustainable. Modernized warehouses with Warehouse Receipt Arrangement will attract more farmers to keep the produce in MSWC warehouses and APMC godowns resulting in increased income of MSWC and APMC. The advanced facilities of spot exchanges and e-trading will open up the larger / virtual market benefits to the farmers resulting in higher income. It will be a demand driven system because the benefits of sale at the time when market prices are better will be available to the farmers.

ii)

iii) iv)

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v)

vi)

vii)

In order to increase the turnover, wide publicity will be given to the Warehouse Receipt Scheme and E-trading facility. Success stories shall be studied through ABPF and the best financial practices shall be replicated. Stocks will be adequately insured. Post Implementation Operation & Maintenance Arrangements: The godown / warehouse infrastructure and the laboratories, connectivity with suitable marketing network developed under the project will be a source of additional income to the MSWC and the APMC (owner of the godown). Such additional income shall be used for the post implementation operation & maintenance of the facilities established under this Project. MSWC being a statutory corporation making profit, the operations and management of the warehouses after project period will also be done by MSWC itself. One warehouse of 2000 MT capacity will generate an income of about Rs. 12.00 Lakh in a period of 3 months (Rs. 600/- per MT storage charges payable to MSWC). There will be 2 seasons of produce and therefore the estimated income for a period of 6 months can be taken for evaluating the sustainability of the activity. Presuming that 50% of the income will be spent on O&M, the balance 50% makes the investment sustainable. The additional income generated from this activity will make the infrastructure sustainable.

***

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B1.3 RURAL HAAT MARKETS

I. Objectives 1. The Rural Haats (RH) managed by Village Panchayats are the best examples of direct interface between farmers and consumers. There are 3500 Rural Haats in Maharashtra. These are held once or twice in a week. The management of these haats rests with local authority viz., Village Panchayat or Municipality. 2. However, these haats are held in dusty places and conditions are most unhygienic. The haats have no basic infrastructure facilities like sheds for sellers and pathways for buyers. Therefore, it is proposed to modernize around 8 to 14 rural haats managed by Village Panchayats in every district so that total 300 RHs are modernized in the state by providing basic infrastructure. II. Outcome and Output Monitoring Indicators 3. As a result of the project interventions in selected RH the expected outputs and outcomes are as follows: Sr. No. 1 2 Outcome Growth in volume of RH transactions. Farmers and buyers satisfied with modernized infrastructure. Output RH with improved infrastructure. Capacity utilization of improved infrastructure in modernized RH by farmers and traders. Reduction in waste in targeted markets Panchayat members in targeted RH trained in improved RH management practices. RH where improved management practices have been implemented Monitoring Indicators % increase in volume of produce sold in targeted markets. % of farmers and buyers satisfied in targeted markets per RH. Monitoring Indicators % of targeted RH with improved infrastructure. % Capacity utilization of improved infrastructure per RH. % Reduction in waste in targeted RH. % of Panchayat members in targeted RH trained in improved RH management practices (record keeping, accounting, use of display boards). % of RH where improved management practices have been implemented (record keeping, accounting)

Sr. No. 1 2

3 4

The baseline values to be developed by M&E consultant for various RH will be considered while evaluating the performance. III. Policy and Regulatory Environment: 4. The Maharashtra Panchayat Act provides for running of RH by the Panchayat. The Act also provides for the formation of sub-committees for various activities of the Panchayat. The RH Management Committee can therefore be formed under the provisions of the provisions of the Act. Wherever such sub-committees exist, the representatives of the farmers, consumers & traders will be co-opted as members of the RH Management Committee. Where such subcommittees do not exist and RH are being managed by the whole Panchayat, the RH Management Committee having representatives of the farmers, consumers & traders would be formed. 111

5. The provisions of APMC Act are not applicable to village RH and therefore none of the provisions under the APMC Act will come in the way of modernization of RH. 6. Need for reforms in the functioning of RHs: The following reforms would be mandatory for the RHs to access project funding. S. No. 1 2 Basic Reforms Willingness to form RH Management Committee consisting of representatives of Panchayat, farmers, consumers and traders Willingness to create RH Infrastructure Maintenance Fund @ 1 % of total infrastructure investment cost at the time of issue of work order. This fund will be kept in separate account and used only for the purpose of repairs and maintenance of the infrastructure with prior permission of regulatory authority. Public display of Haat income & expenditure, tender documents. Implementation of waste management system. Additional Reforms Willingness to undertake investment in PPP mode Project funding available for

Basic infrastructure like internal road, toilets, fencing, parking.

3 4 Sr. No. 1

Project funding available for Productive assets like cold storage, pack-house, in PPP

IV. Selection Criteria 7. The selection of Rural Haat location for modernization has to pass through selection criteria as described below. i) Population: Villages having population of around 7,500 and more from all districts would be selected, excluding the district headquarters and places having Municipal Councils. ii) Land availability: The Village Panchayat should have its own land with clear title for the rural haat on which Rural Haat is presently held. iii) Own Contribution: Capacity to contribute 10% of the cost of development for the basic infrastructure. iv) The village Panchayat should have elected management. v) The account of the village Panchayat should be audited up to date with no serious audit observation. vi) Willingness of the Village Panchayat to setup Rural Haat Management Committee (HMC) for the management and operations of the haats. vii) Willingness of the Village Panchayat to allocate 1% of the proposed investment cost as Haat Maintenance Fund from the end of first year after commissioning of the modern infrastructure in RH, to be kept in a separate bank account for the use of future maintenance of infrastructure created. viii) The place should be connected by all season motorable roads. ix) Those villages covered under scheme for setting up of Haats under Swarnajayanti Gram Swarojgar Yojana (SGSY) of GoI will get the benefit of convergence and would be preferred in this programme. Objectives of the two interventions are Complimentary Project would up grade the existing RH while SGSY scheme would construct market place for PGs on rotation basis for marketing of their Produce. 8. Competitive Selection Process: Two stage competitive selection processes PCN and FPP would be followed for selecting eligible RHs.

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i) PCN- the RHs desirous of participating in the project will submit PCN in the prescribed format to the PIU-MSAMB. The PIU MSAMB will perform the scrutiny of the PCN to see that the RH meets the selection criteria mentioned above. ii) The PIU MSAMB will further perform the Scrutiny of RH based on population, annual turnover of the Village Panchayat, own funds of the Village Panchayat and annual turn over of the RH. For each of these issues, 0.25 marks are awarded to the RH providing the highest values, whereas the other RHs are awarded marks for each issue proportionately with regard to the higher ranked RH. iii) The evaluation report of the PIU-MSAMB is submitted to the Approval Committee (same as in case of APMC). Upon the approval of such committee, the RH is eligible to prepare a Full Project Proposal (FPP) with the assistance of SP. iv) Total of 300 RH will be selected from all the districts of the State; however not more than 14 RH from any district would be selected. Ranking of RH on the basis of PCN will be done district wise. 9. Eligibility for Investment in Productive Infrastructure to get selected for Productive Infrastructure: i) RHs having capacity to invest 25% of the cost, ii) RHs completing the basic infrastructure as per time plan, iii) RHs generating the highest growth rate measured in terms of percentage, To ensure equitable spread, 10% RHs from each Phase districts will be selected. If adequate number of RHs are not found eligible for productive infrastructure, additional RHs eligible for basic infrastructure will be considered. V. Activities to be financed: Illustrative list of investments to be made and Rural Haat Modernization phasing: 10. The ceiling of investment for each haat will be Rs. 20 Lakh for Stage I infrastructure and Rs. 30 Lakhs for Stage II infrastructure. Initial investment for Stage I infrastructure will be Rs. 20 Lakh, subsequently 10% of RHs (30 numbers) will become eligible for higher level of investment for Stage II infrastructure, i.e. Rs. 30 Lakh per RH. However, the actual investment in each haat will be demand driven based on the needs of Haat users. It will be mandatory for each Haat to make sure that basic infrastructure like covered sheds, platforms, toilets, drinking water facility, electricity is taken up for being eligible to take up Stage II infrastructure. Stage I & Stage II infrastructure would be a combination of basic and productive infrastructure. The details of Illustrative list of infrastructure are as follows: A: Basic Infrastructure
Sr. No. 1 2 3 4 5 6 7 8 Particulars Platforms with sheds for Producers Pathways (LS) Drinking Water, Bore well pumping set with taps (LS) Electricity (LS) Toilet Block Compound / fencing (LS) Garbage/ Solid waste Pit (LS) Watchman Cabin Total Cost of Basic Infrastructure Approx. Total Area / Capacity 3000 Sq. ft. Unit Rate Rs. 350 / sq. ft. LS LS 200 sq. ft LS Rs. 500 / sq. ft. LS LS 500/sq.ft Total Rs. in Lakh 10.50 3.00 1.00 1.50 1.00 2.00 0.50 0.50 20.00

100 sq ft

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B: Productive Infrastructure
Sr. No. 1 2 3 4 5 Particulars Godown Small Cold Storage Grading & packing unit (pack house) for fruits & vegetables Grading, packing tables Grain Pulses Unit with Shed Total Cost of Productive Infrastructure Approx. Total Area / Capacity 500 MT 5 MT 1000 Sq ft 3 No. 1.5 MT / hr. Unit Rate Rs.2,000 / MT Rs.1.25 Lakh / MT Rs. 400 / Sq ft Rs. 25,000 / table LS Total Rs. in Lakh 10.00 6.25 4.00 0.75 9.00 30.00

Capacity Building and Training: 11. To achieve the objectives of the institutional strengthening the Panchayat would require enhancing the capacity of the members and Rural haat management staff of Panchayat, DDRCS, Taluka ARCS and field staff of MSAMB. The arrangements of capacity building and training under this subcomponent will be the same as it is under Upgrading & Modernization of APMCs. The said training will be imparted by the NIPHT. VI. Estimated costs 12. The total estimate on this sub-component is Rs. 74.85 Crores for upgrading 300 RHs. VII. Institutional and implementation arrangements a) Institutional Arrangements 13. PIU-MSAMB along with DDRCS and Taluka ARCS would be responsible for implementing the RH modernization program along with the respective Village Panchayat. The role of PIUMSAMB would be to liaise with the contractors and the SPs, approve variations and time extension, sample checking and resolution of any disputes within the terms of the contract/s. Though Panchayats are under Rural Development Department (RDD) of GOM, a large number of development programmes like National Rural Employment Guarantee Scheme (NREGS), Sarva Shiksha Abhiyaan (SSA), Shaleya Poshan Ahaar Yojana (SPAY) are implemented by Village Panchayat without any direct involvement of RDD. Similarly RHMIP will be implemented by Cooperation & Marketing Department with the help of respective village Panchayat. The necessary liaison will be kept by DDRCS and ARCS with concerned BDOs for which orders have been issued by the Government. 14. PIU-MSAMB will be responsible for hiring of SP for participative consultation and market design of RHs. The specific tasks to be carried out by MSAMB, Village Panchayat and SP in the various stages of the project is given in the following table

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Sr. No

Process step / Activity

Roles and Responsibilities (Primary responsibility underlined) PIU (MSAMB) Panchayat Community / Market users PIU-MSAMB

Hiring of service provider for participative consultation and market design - ToR prepared, EoI / RFP released, Bid received, evaluated and contract finalized. Training of MSAMB personnel, and Officers of the Directorate of Agril. Marketing , Taluka ARCS, MSAMB Engineer for RHMIP Ongoing monitoring and management of SP ensuring compliance with the conditions set forth in RFP Awareness generation of the project in the selected location

SP + PIUMSAMB

PIU-MSAMB DDRCS

Sarpanch, Panchayat + VDO* Sarpanch, Panchayat + VDO* Sarpanch, Panchayat + VDO* Community/ mkt. users to provide inputs to RHMIP preparation Community to participate in setting up this committee through PRA

SP, PIU-MSAMB DDRCS

Setting of Haat Management DDRCS + ARCS Committee (HMC) for overseeing the management of Haat Signing of MoU between Haat Management Committee, Village Panchayat and PIU Preparation of Rural Haat modernization and improvement plan (RHMIP) SP + DDRCS + Taluka ARCS SP + DDRCS + Taluka ARCS

Sarpanch, Panchayat + VDO* Sarpanch, Panchayat + VDO*

10

Endorsement of RHMIP by the market users HMC and Panchayat to call for market users meeting, sign off by HMC and Panchayat members Mobilization of 10% of Panchayat contribution towards RHMIP Approval of bid documents for the construction as per RHMIP

SP + DDRCS + Taluka ARCS

Sarpanch, Panchayat + VDO*

Community / market users to provide inputs to RHMIP preparation through PRA Community / market users to sign off in the RHMIP

ARCS

PIU-MSAMB + SP

11

Call for tender, Tender evaluation SP and finalization Release of work order Ongoing monitoring and PIU MSAMB management of consultants ensuring compliance with the conditions set forth in RFP

12 13

Sarpanch, Panchayat + VDO* Sarpanch, Panchayat + VDO* Procurement Committee of RH VDO, Panchayat VDO, Panchayat

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Sr. No

Process step / Activity

14 15

16

Roles and Responsibilities (Primary responsibility underlined) PIU (MSAMB) Panchayat Community / Market users Certification about the work MFE + Contractor VDO, measurement / completion + SP Panchayat Recommendation for payment Panchayat Sarpanch, VDO Payments to contractor DDRCS + Drwg. Panchayat intermediate and final payment Dsbg. Officer in the Sarpanch, o/o DDRCS VDO Post evaluation - user survey / community score card M & E Consultant Community / Market Users to provide all information

17

*Village Development Officer (VDO) is the Chief Executive Officer of Village Panchayat and therefore he has to play effective role in implementation of RHMIP. b) Implementation Arrangements i) Description of activities for preparation of RH Modernization and Improvement Plan (RHMIP) 15. Awareness generation about the project: The process of RH Modernization and Improvement Programme (RHMIP) starts with awareness generation about the project in the RH command area. During the meeting all the market users and other stakeholders would be invited and will be informed about the project, its objectives, approach and process, possible intervention and expected benefits. Besides meetings, awareness generation process would include wall writings, audio-visual shows giving the details of the RHMIP. 16. Panchayat Assessment: The haats are managed by the Village Panchayats, the assessment of Panchayat to commit itself for the haat improvement and modernization would be carried out. This assessment would cover the willingness and capacity of Panchayat to undertake the necessary changes in the haat management, and operations and financial ability to provide its contribution towards investments. The list of changes, if any, would be shared with Panchayat and an endorsement received. 17. Signing of Memorandum of Understanding (MoU) between the Panchayat and Project: Once the awareness generation process and the assessment of Panchayat is completed, formal signing of MoU with the Panchayat and project would be done. This will delineate the commitments and mandates of the two parties towards each other. 18. Participative Consultation: Participative consultation would be carried out through PRA (Participative Rural Appraisal) technique. This will ensure that the investments in the haat meet the user needs. During the consultation process the problems faced by the producers, traders and other market users would be identified, possible ways of overcoming the problems would be discussed and finalized. The investment needs would be prioritized with the market users based on the budget available under the project. 19. Preparation of design and work estimate: After identification of the investment interventions, the design and cost estimates for the civil work and other related activities will be prepared by the third party service provider along with the Rural Haat Management Committee (RHMC). SP will be selected by competitive bidding by PIU MSAMB. Each of the Village Panchayat desirous of modernizing RH and fulfilling other selection criteria will have to submit 116

information in the Project Concept Note (PCN) Format for Selection of RHs. On scrutiny of the PCN, a list of selected Panchayats for rural Haat modernization would be prepared. 20. Financing pattern: The Panchayat would bring finance to the extent of 10% from their own funds and will get the Project assistance of 90% for Stage I infrastructure. For Stage II infrastructure the Project assistance will be 75% and balance 25% will have to be raised by the Panchayats. 21. Preparation of Rural Haat Modernization and Improvement Plan (RHMIP): RHMIP will include the PERT chart, design, cost estimates of the investments, financing pattern and address the issue of changes to be done in the haat operations and management. It would also have a detailed project feasibility study, list of monitoring and evaluation indicators and detailed cost tables as indicated below a. b. c. d. e. f. Survey data of the Rural Haat, Need assessment and investment prioritization matrix Existing layout plan Final design, architectural drawings, structural designs and drawings Detailed feasibility report Bill of quantity and Bid document as per project guidelines

22. Endorsement of the RHMIP by Panchayat: After the design, cost estimates and the implementation plan for all interventions have been prepared, it will be compiled into RHMIP document (FPP). RHMIP will be presented to the Gramsabha for their ratification. The third party service provider in charge of the RHMIP preparation will discuss and clarify all queries related to the RHMIP implementation plan, designs and cost estimates. Based on the discussions, any required change would be carried out. Once the RHMIP has been agreed upon and finalized, a general body meeting of Panchayat will be held to pass a resolution approving and adopting RHMIP. The Panchayat would submit the RHMIP to MSAMB for final approval. ii) Implementation of RHMIP 23. Rural Haat Modernisation Account: The grampnachayat will open seperate account with the nearest branch of the Nationalised Bank. This account would be jointly operated by the Chiarperson of Grampanchayat and VDO. The own contribution of the RH will be deposited in this account before the modernization works are started. 24. Tendering process: The procurement of civil works and goods and for RH development will be carried out by following the community procurement process of WB (shopping and forced account). Once the plans estimates and bid documents are prepared by the SP, those will be approved by RHMC. Thereafter SP will call for tenders which will be evaluated and finalized by SP and procurement committee of RH. The work order would be issued by the concerned Village Panchayat. At RH level the procurement committee will be constituted which will comprise of the (a) Chairman Panchayat, (b) DDR or his representative, (c) Two members from Haat Management Committee (d) Representative of concerned Service Provider (design supervision consultant) for Rural Haats (e) Village Development Officer [VDO] Panchayat will be the Member Secretary. The Haat level procurement committee will undertake procurement of civil works upto US $ 50,0007- and of goods upto US $ 20,000 only. Above this limit and upto US$ 1,00,000 for works Local Bidding Procedure will be followed. 25. Ongoing Monitoring of works: The progress of the work, quality and quantity of work done will be closely monitored by the SP, RHMC, Market Field Engineer (MFE) of MSAMB and VDO. The measurement for various works will be done jointly by the SP, Contractor, MFE and VDO, Panchayat. The SP will also be required to regularly inspect the works to ensure full compliance to the technical designs, technical specifications and also to regularly monitor the
7

The threshold to be revised based on performance during the Mid Term Review

117

progress of works of the approved construction. SP will also carry out testing of construction material to ensure its quality. MFE of MSAMB would carry out regular inspections of work to ensure full compliance of technical design, specifications, and also to regularly monitor the progress of works of approved construction. 26. Arrangements for quality control: In order to ensure control on the quality and quantity of the works, PIU-MSAMB would appoint Market Field Engineer (MFE) on contract. On an average one MFE will be appointed on contract for every district. Main role of MFE as detailed below, is to ensure compliance to engineering design, technical specification and contract conditions by the contractor a. Ensure effective supervision to attain high quality construction. b. Ensure full compliance to engineering design, technical specification and contract conditions. c. Minimize time overrun and cost overrun as well as to avoid contractual disputes. d. Build the capacity of the Engineers of MSAMB and Village Panchayat (if available) in construction supervision, contract administration and project management. e. to undertake quality control checks. 27. Release of Payments: a. The community procurement is proposed for RH program. Grampanchayat will open separate account in Nationalised Bank and deposit their contribution in that account. Grampanchayat may do the work on force account or give contract by shopping procedure. After the amount of the beneficiary contribution is spent, Grampanchayat will submit the proposal for 1 st advance to DDRCS equivalent to 30% of the investment cost. The proposal should contain the invoices, photpcopy of passbook of the beneficiary account, photograph of the work done and utilisation certificate duly signed by Chairperson and SP on receipt of the proposal DDRCS will release first advance of 30% by drawing the amount from the treasury by cheque or may deposit the amount in beneficiary account by core banking. b. On spending 50% of the first advance Grampanchayat will submit proposal for II advance of 30% with the similar documents to DDRCS. DDRCS will release II advance. Similar procedure will be adopted for III advance. DDRCS will release payments of advance within 7 days from the receipt of proposal from Grampanchayat for each advance. c. On completion of the work, completion certificate duly signed by SP, Chairperson of Grampanchayat, MFE & VDO with the invoices, photocopy of passbook of beneficiary account, utilisation certificate for third advance duly signed by Chairperson of Grampanchayat and SP and the photograph of completed works will be submitted to DDRCS. 28. Transparency and accountability: The lists of works to be taken up will be given wide publicity by means of display in the office of Village Panchayat or other public institutions within the area. Whenever a work is taken up, the estimated cost of the work, item of work proposed to be executed; details of the executing agency will be exhibited on a display board at the place of work, so that all market users are aware of the details of the work being executed. Phasing of rural haat modernization: The haat modernization programme would be taken on a phased manner as given in the following table

29.

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Sr. No. 1 VIII. Funds flow

Particulars Rural Haats Total

Yr-1 -

Yr-2 75 75

Yr-3 75 75

Yr-4 75 75

Yr-5 75 75

Yr-6 -

Total 300 300

30. An independent budget head will be opened in Cooperation & Marketing Department, GOM in which provision under the Project for this component will be made. The funds would be released by Cooperation & Marketing Department, GOM to Director of Agricultural Marketing as per Budget Distribution System(BDS). Director of Agricultural Marketing in turn will release the funds to the DDR through BDS. DDRCS will release funds in tranches to Grampanchayat. First tranche of 30% of the investment cost will be released after the amount of beneficiary contribution is spent. Second & third advance of 30% of the investment cost will be released after 50% of each advance is spent. Details are given under para 27 i.e. under Release of payments. IX. Fiduciary and Safeguards arrangements Maintenance of records and book keeping: 31. The Panchayat will maintain the accounts and registers for the work relating to RH of the concerned Panchayat. 32. The Panchayat will also maintain the following records, other than those specified under the various act and rules as applicable: a) An up-to-date copy of the Act / Rules / directions and orders from MSAMB / government, b) Maps showing (i) the boundaries of the haat, (ii) Taluka and District map showing village / towns and roads, c) Registers (i)Asset register, (ii) Minutes register general body, managing committee and sub committee meetings, (iii) Account Books related to RHMIP fund received & spent, (iv) Register of payment of bills from RHMIP fund. 33. DDRCS will maintain accounts relating to amounts received from Panchayats as their contribution, amount received from the Project / the State Govt., payments made, bill register, and cheque register. Though MACP beneficiary contribution account will be only one account in nationalized bank at district level, separate ledger accounts for each beneficiary APMC, RH and FCSC will be maintained by the office of DDRCS. 34. Regular Internal Audit & External Audit for validating the transactions by a third party expert, will reduce eventuality of omission and commission. Periodical Reporting i.e. MIS for monitoring progress in respect of the short term and long term Project Goals will be introduced to bring in fiduciary safeguards. Operations and Management of Rural Haats: 35. Rural Haat will be managed by the Rural Haat Management Committee (RHMC) (*) which would be constituted. This committee shall consist of the following members, a. b. c. d. e. f. Sarpanch / President of Village Panchayat 5 Members of Panchayat 2 representative of farmers to be co-opted 2 representative of traders to be co-opted 1 representative of consumers to be co-opted VDO of Village Panchayat Chairman Members Members Members Member Member Secretary

(*) Note: Wherever such sub-committees exist, the representatives of the farmers, consumers & traders will be co-opted as members of the RH Management Committee. Where such subcommittees do not exist and RH are being managed by the whole Panchayat, the RH Management Committee having representatives of the Panchayat, farmers, consumers & traders would be formed. This committee will be headed by Sarpanch of Panchayat. 119

36. The RHMC will look after the operations and management of RH as per the provisions of relevant Acts, under the general guidelines framed by the Village Panchayat for operations and management of RH. Panchayat will have to make the provision of 1% of investment cost on RH at the time of issue of work order and should be used only for the maintenance of infrastructure created. This amount will be deposited in Rural Haat Modernisation Account of the grampanchayat. The operations and management will be outsourced to the private players who will be selected every year by competitive bidding. X. Governance Risks and Mitigation Measures 37. Following are the risks & their mitigation measures: Sr. No 1 Risks Technical / Design Description Willingness of the Panchayat as well as the capability of the institution to enforce the reforms are important for a need based design Capacity building of the personnel of Panchayat required for performing implementation activities as per WB norms. Infrastructure should be maintainable by the beneficiary institution. Risk Mitigation Measures SP, which will be selected through competitive bidding, will do PRA for identifying the needs, defining the resources, prioritizing the needs, and ratification of the FPP in the Gramsabha Extensive training to the personnel of the Panchayat and the concerned line departments regarding implementation & sustainability point of view has been proposed under the project. Separate infrastructure maintenance fund shall be created by the beneficiary Panchayat. Funds shall be released in tranches. Next tranch shall be released only when satisfactory utilization is verified at the district level and PIU, PCU level. Will be done as per community procurement process for which there will be Community Procurement Committee at RH level. Haat Management Committee will keep regular upkeep and cleaning RH. Observance of reforms by Panchayat and monitoring of the same by the PIU-MSAMB shall create conducive atmosphere for higher levels of transparency and efficiency in implementation.

Implementation capacity and sustainability

Financial Management

Funds should be made available in time for maintaining continuity and creating the desired impact. ---

Procurement

Social and environment safeguards Other ( for example project specific corruption risk, ownership of project / program, prevalence of failure in similar projects)

Higher arrivals and increase in sales transactions will result in increase in Haat waste. ---

38. Governance in Haat Management: The governance in RH management would involve mitigation measures like: (a) Participatory consultation with market users in selection of market 120

investments, (b) Selection process of rural haats based on predefined selection criteria, (c) MFE of PIU MSAMB for each district will keep close watch over the quality of work and monitor the progress. MFE will jointly with the SP, contractor and VDO of Panchayat, will take measurements of works completed, (d) Project support for capacity building of Haat on planning, budgeting and market management, (e) Establishment of Haat Management Committee to oversee management of the Haat. The agencies responsible for these measures would be RHs, PIU-MSAMB and the SP. The detail governance mechanism in RH management is described in separate chapter on Governance and Accountability Action Plan (GAAP). XI. Sustainability 39. The investment under this component would be sustainable because of the increase in arrivals and increase in the income of Panchayat. Waste Disposal Unit will generate additional income. Presuming that at least 300-500 farmers will come to sell their produce in RH, @ Rs. 20/- per farmer as service charge (this will be about 2% on average sale of 100 Kg. F&V by each farmer), per Haat-day collection will be Rs. 6000/- and for 52 week-days it will be Rs. 3,12,000/-. In addition at least 25 MT of compost per annum would be available from Waste Disposal Unit, which will fetch Rs. 75,000/- per annum, thus making the total income of Rs. 3.87 Lakh per annum. This will increase as number of farmers coming in the Haat will increase. This will make the investment sustainable. ***

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B1.4 INTRODUCING E-MARKETING PLATFORMS

I. Objectives 1. Today the farmers have only one option of selling their produce in APMC. Various alternative marketing channels like produce aggregation through FCSCs, Warehouse Receipts Scheme to facilitate marketing with linkage to Spot exchanges and banks are proposed. This will create alternative marketing channels for the farmer who will have choice to sell his produce where better terms would be available. So as to expand the alternative marketing e-Marketing Platforms (E-Trading) / Virtual Marketing is proposed under the Project. 2. The planned development of Virtual Market is innovative and experimental. Virtual Markets for agricultural products are very much in their infancy but with new technological development, field results are undergoing significant revision and refinement. There will be a three-phase program which will (i) explore options, (ii) pilot systems and finally (iii) deliver an integrated e-platform within the MSAMB web site with the capacity to disseminate offers, buying enquiries and prices via local language SMS. II. Outcome and Output Monitoring Indicators 3. Such an e-business model offers the potential of very significant benefits Sr. Outcome No. 1 Establishment of e-trading facility at 294 locations in the State and its employment as alternative marketing channel. Outcome Indicator % of targeted number of e-trading facilities established and e-trading is accepted as an alternative marketing channel. Output Indicator

Sr. Output No. 1 Increase in the volume of agricultural produce traded via e-trading facility at targeted locations. 2

% increase in the volume of agricultural produce traded via etrading facility at targeted locations. Increase in the income of farmers who are making % increase in the income of farmers use of the e-trading facility at targeted locations. who are making use of the e-trading facility at targeted locations.

Note: The baseline values will be fixed by the M&E Consultant for comparing the results. III. Policy and Regulatory Environment: 4. Under the Forward Markets Commission (FMC) various futures commodity exchanges have come into existence. There are exchanges in to spot marketing and future marketing of various commodities, including agriculture produce. The policy of the GOI towards spot and future marketing of agricultural produce is based on the need to expand marketing platforms to the producers so that they get higher price to the produce. At the same time certain commodities in short supply or having exorbitant consumer prices are regulated in future markets through etrading. The legal framework for this activity provides safety measures regarding quality, price, delivery and payment mechanisms. 5. GOM has amended the APMC Act on the lines of the Model Act and the Rules under the Act provides for e-trading. The State Govt. has already granted licenses to MCX and NCDEX in Maharashtra for carrying out e-trading activity. 122

IV. Selection Criteria 6. All the APMC market areas will be considered for this program. The norms of selection of etrading license holder will be provided by SP for feasibility study of virtual marketing. Around 8 to 9 locations will be selected from each district preferably one in each APMC market area with a restriction of maximum five in any one market area. V. Activities to be financed 7. The initial phase will be to examine the options, policy implications, alternative technological solutions and the emergence of international best practices so that the MSAMB can make informed decisions as to roll-out the program. This feasibility study would be conducted in the first year of the Project. 8. The Phase 2 will involve design, development and pilot testing of two alternative virtual market platforms. During pilot testing feedback of Project team, MSAMB officials and users will be collected and accordingly changes will be made in the software to start full fledge operations of virtual market. Virtual market platform should have facility of broadcasting SMS. The details of items of expenditure in this component are as follows. Sr. No. 1 2 3 4 5 6 Items (Illustrative for costing purpose only) Server UPS Network Items O.S., database & softwares, A.V. Leased line E-trading Software development and Training to users

Per year expenditure Sr. No. Items (Illustrative for costing purpose only) 1 Hardware maintenance (10%) 2 Software support (Rs.12 Lakh per year @ Rs. 1 Lakh p.m. 3 Leased line * Feasibility study will be conducted in first year. Pilot testing will be in second year of the project. From third year onward support for hardware, system & application software is required till end of the project period. Therefore, per year maintenance cost is worked out for four years of the project period. 9. The Phase 3 will involve the large-scale implementation of the preferred technical solution and its integration into the MSAMB web site so that it can deliver both services e-trading and information dissemination, both via internet and cell phones. The essential features for eCommerce mechanism are web site, merchant account, e-commerce software, internet server, shopping carts, security protocols and digital signatures. 10. The selected technology would then be commercialized with the Marketing Board and its software as the platform for trade, while the management of the individual e-trading would be by the private sector. It is envisaged that the system would enable producers, user organizations, electronic traders and existing traders to be able to offer product to the market and that a system would be in place that would enable buyers and sellers to broadcast buying needs and product requirements to one another. Under an electronic trading platform, there are possibilities for secured buying processes to be put in place and it is envisaged that traders would subscribe to the service and the cess income would cover the private management costs as well as provide an income stream for the State Government. The business case for the operation of e-trade facility will be monitored by the ABPF, lessons learnt and best practices will form the core of a training course for future e-traders. 123

11. It is envisaged that 294 locations in Maharashtra will be identified for Virtual Market piloting. These locations may be within the APMC yard or out side APMC yard. The private player will be selected. PIU MSAMB will give an advertisement in the newspaper for selection of private player. The private player should obtain license of e-trading from Director of Marketing as per The Maharashtra Agricultural Produce Marketing (Development and Regulation) Rules, 1967. Training about virtual market will be given to the license holders of e-trading by the SP. The estimated cost for providing computers and peripherals would be Rs.294.00 Lakhs @ Rs.1 Lakh per location. APMC / MSAMB will lease out this facility to the e-trading license holder who will register buyers, sellers and undertake e-trading of agricultural commodities. Charges for registration can be taken from buyers and farmers / sellers. As per the provisions of the Agriculture Produce Marketing (Development & Regulation) Rules, 1967, the e-trading licence holder will collect 1% cess, which will be shared as 75% by APMC and 25% by e-trading license holder. In addition 0.05% will be collected from buyers by e-trading license holder and will be paid to the State Govt. as supervision charges. 12. Virtual market can be operated with one computer, broad band Internet facility, UPS and software which will be provided under the project. DDRCS will procure these equipments for the locations in the districts and will be provided to e trading license holder selected on the terms and conditions which will be decided on the basis of recommendations of SP. The maintenance will be the responsibility of the e-trading license holder. After 5 years period the license holder will have to have his/her own equipment, if he/she wants to continue his business. As the MSAMB is providing e-trading platform services to e-trading license holders, MSAMB will charge nominal membership to be paid every year. The norms of the membership charges will be worked out by the SP. The license holders, who do not require equipment under the project, can avail membership of MSAMB platform on payment of their charges. VI. Estimated expenditure items: 13. The various expenditure items under this sub-component are as follows. Sr. No. 1 2 3 4 Item Feasibility study Design, development, pilot testing & training Necessary hardware, softwares, network items, leased line Providing HW & SW to APMCs

VII. Institutional and implementation arrangements 14. The PIU MSAMB shall be the implementing agency for carrying out the assessment study and feasibility of this sub-component. An SP will be selected for carrying out the pre-defined tasks viz. Feasibility study and Pilot testing of the model developed. The roll out of the program in 294 selected locations will also involve providing the required HW & SW to these locations. The concerned DDRCS shall be the field level officer involved in the implementation. 15. The service provider for feasibility study and pilot testing will be selected by PIU MSAMB by following WB procedure. 16. The procurement as per the WB norms of HW & SW for 294 locations shall be done by District Deputy Registrar of Cooperative Societies for the locations in the concerned district. The procurement training will be given by the Procurement Training Consultant to all the concerned. VIII. Funds flow 17. The budget shall be sanctioned by the Planning and Finance Department, GOM and the budget provision will be made to the Dept. of Cooperation and Marketing through BDS (electronic funds transfer system). Director of Marketing will release funds to PIU MSAMB for pilot 124

testing and hardware and software to be procured at MSAMB. The funds for hardware and software of 294 locations will be released to DDRCS by BDS who will draw the funds from respective treasuries and make the payment to the suppliers. IX. Governance Risks and Mitigation Measures 18. The risks and their mitigation are given below Sr. No. 1 Risks Technical/ Design Description Networking for e-trading is a new concept that will be implemented in the Project. Farmers, traders and Staff involved in Management are new to the technology and concept. Scope for improving Accounting systems, Delay in Audit, Irregular follow up for improvement. --Risk Mitigation Measures Feasibility study by an expert SP to develop suitable model, and testing of the same. Training and capacity building of all concerned.

Implementation capacity and sustainability Financial Management

Procurement

Social and environment safeguards Other ( for example project specific corruption risk, ownership of project / program, prevalence of failure in similar projects)

Small & marginal farmers may not get access to the system because of their small volume. ---

Full time account staff at the beneficiary level and also at district, PIU and PCU. Regular internal and external audit, MIS and M&E. (i) Procurement as per WB guidelines including E-tendering, (ii) Grievance Redressal System. (i) FCSCs will serve as aggregating centers of small and marginal farmers produce. (i) Computer Terminals are leased to licensed operators for e-trading and will be regulated by the conditions of license by DoM.

XI. Sustainability 19. The following measures will ensure sustainability of this program. i) An expert SP shall be appointed following the WB procedures for assessment of the feasibility of the implementation of the Project. ii) The program envisages in depth feasibility study and pilot testing of the developed two alternative models and then rolling out the program at 294 locations. iii) The operations and maintenance of the infrastructure created under this subcomponent will be done from the income generated through E-trading . iv) Capacity building of the farmers, e-trading license holders, and APMC personnel will be ensured by SP.

***

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B2
Overview

MODERNIZING EXISTING MARKETS UPGRADING MARKET INFRASTRUCTURE

1. The APMCs are established as local authorities under the Maharashtra Agricultural Produce Marketing (Development & Regulation) Act 1963 (APMC Act) and the Rules made there under in the year 1967. The main objective of the Act is to regulate agricultural marketing of notified commodities and provide adequate protection to the producers from the exploitation of the buyers. 2. Approximately 40 to 50 % of the total agricultural production of the state is sold through regulated markets or the Agriculture Produce Market Committees (APMCs) in the State. The State has 294 main market yards and 612 sub market yards, and of these market yards, as many as 196 market yards trade in cattle and other livestock. 3. There is a provision in APMC Act that agricultural produce should be sold by open auction. However, there are rare instances of Hatta System of auction (auction taking place under cover of cloth on hand and making some signs by fingers under the cloth) found in some APMCs. There is a scope for bringing more transparency in auction systems. Many APMCs do not have modern infrastructure. This also needs to be developed. 4. The trade of livestock, especially cattle, sheep and goat, is done mainly in an unorganized way without any regulation and sale of animals does not take place on the basis of milk yield or body weight. There is a need to improve transparency in the transaction between the buyer and the seller for trade of livestock 5. Many of the APMCs market yards do not have basic market infrastructural facilities such as internal roads, drainage, electricity, water, weigh bridges, auction hall, trader shops, and unloading ramps. These markets are underdeveloped and are characterized by: (a) produce is not cleaned before it is brought to market, (b) different qualities of produce are not sold separately, (c) produce is not graded before being sold, (d) produce is not sold by standard packages, (e) produce is sold with a lack of price information creating an atmosphere of uncertainty, (f) storage facilities are not used or not available and immediate sales have to be made. 6. This results in poor service in many of the markets to the stake holders including the farmers. Therefore, it is becoming imperative to improve the functioning of these market yards by providing infrastructure and training the manpower connected with management of these APMCs as per requirement. Therefore it is proposed to modernise 100 APMCs and 24 livestock markets under MACP. ***

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B2.1 MODERNIZING WHOLESALE MARKETS

I. Objective: 1. APMCs form the hub of agricultural trading which are democratically run local bodies. The major stakeholders are farmers, traders and consumers. Recently the amendment of the APMC Act has enabled licensed direct marketing agencies and private markets to participate actively in the agricultural marketing. It is imperative for the APMCs to provide to the stakeholders facilities for agricultural marketing in the form of basic and productive infrastructure for the purpose of: (i) Proper Handling of Agricultural Produce, (ii) Dissemination of Marketing Information, and (iii) Efficient Waste Management. 2. The level of investment in utility infrastructures in APMCs is low, mainly because: i) Public utility infrastructures in APMCs like land development, compound wall, drainage, electricity, pavements, auction halls and auction sheds, toilets, and canteen are non productive assets. The share of these investments in the development of APMCs is large and needs longer gestation period. ii) The infrastructure like godown, cold storage, cleaning, grading, and packing units can come up with public private partnership (PPP), but in order to attract private investors, support would be required in the form of advisory services and establishment of mechanisms for risk sharing. iii) Moreover APMCs do not get the loan easily from the commercial banks for such development. Many a times, personal guarantee of the Directors of the Committee is demanded by the Banks for the loans of APMCs which is not agreed to by the Directors. 3. The result of this complex situation is either slow development or no development of APMC yards. The problem is addressed by providing assistance under MACP that would be linked to reforms in the functioning, management and operations of the market yard. The strategic objectives of modernization of APMCs are briefly stated below. i) Transparency: To improve transparency in all the APMCs to be modernized, the transparency will be ensured by: a) Computerized recording of arrivals of vehicles entering the market carrying agricultural produce, computerized recording of sale transaction and accounting. b) The sale of fruits and vegetables is conducted by open auction; however there is scope to improve transparency in these transactions. The electronic auction is proposed on pilot basis in the biggest APMCs in the State i.e., New Mumbai & Nagpur to bring in transparency in the sale of fruits & vegetables. ii) Open Auction: Open auction of the agricultural produce is mandatory in the Model Byelaws with the provision for stringent action against the defaulting APMCs for not complying with open auction. The computerized auction system will be implemented in around 10% of the APMCs proposed to be modernized to bring in complete transparency. Wide publicity by displaying the message that produce must be sold by open auction and sale by hatta system or without open auction is illegal will result in awareness generation among producers. The aggrieved will be invited to lodge complaint with APMC and Director of Marketing or his taluka/district level officer, which will be enquired and dealt with seriously. This will ensure implementation of this reform. These measures will result in increase in income of farmers; avoid evasion of cess, resulting in increased income of APMC which will boost sustainability of the Project. iii) Value Addition: Cleaned and graded produce will fetch better price in all the APMCs: a) The fruits and vegetables are required to be graded and packed properly to have value addition. In two APMCs Electronic Auction Halls are proposed, whereas in other APMCs 127

to be modernized under the Project wherever necessary washing, cleaning, grading and packing units for fruits and vegetables with pack houses are proposed. b) For auction of produce in Electronic Auction Hall in New Mumbai & Nagpur APMC, it would be a precondition to get the produce properly washed, cleaned, graded, and packed. c) Food grains, oilseeds and pulses are brought by the farmers to the APMC from the field, without cleaning and grading which reduces the price received by the farmers. The price realized by the producer is at least Rs. 50/- to Rs. 100/- per quintal less for food grains, oilseeds and pulses as compared to the price realized by the farmer for the produce duly cleaned and graded. Infrastructure would therefore be created to make the produce more acceptable to the traders and to the consumers, which is cleaned, graded and packed. II. Outcome and Output Monitoring Indicators: 4. As a result of the project interventions in selected APMCs the expected outputs and outcomes are as follows: Sr. Outcome No. 1 Growth in volume of market transactions. 2 Farmers, traders and buyers satisfied with modernized infrastructure. Monitoring Indicators % increase in volume of produce sold in targeted markets. % of farmers, traders and buyers satisfied in targeted markets per category of Market Yards. Monitoring Indicators % of targeted agriculture market yards improved. % Capacity utilization of improved infrastructure. % Reduction in waste in targeted markets. % of APMC members in targeted markets trained in improved market management practices (record keeping, accounting, use of display boards). % of markets where improved management practices have been implemented (computerization, record keeping open auction system, payment within 24 hours, standard accounting practices, use of display boards). % increase in the share of farmers in the consumers rupee. % of APMC computerised auction system is implemented.

Sr. Output No. 1 Agriculture market yards with improved infrastructure. 2 Capacity utilization of improved infrastructure in modernized markets by farmers and traders. 3 Reduction in waste in targeted markets. 4 APMC members in targeted markets trained in improved market management practices. 5 APMC markets where improved management practices have been implemented.

6 7

Share of farmers in the consumers rupee. APMC Markets where computerised Auction System has been implemented

The baseline values to be developed by M&E consultant for various APMCs will be considered while evaluating the performance. 128

III. Policy and Regulatory Environment: 5. The APMC functions as per the provisions of the Maharashtra Agriculture Produce Marketing (Development & Regulation) Act, 1963, the Rules under that Act and the byelaws of the APMCs. The GOM has already amended the APMC Act on the lines of Model APMC Act circulated by the GOI and various reforms like establishment of private markets, farmer consumer markets; direct marketing, contract farming, single licensing, and e-trading licensing have been provided. 6. The model byelaws have been circulated to APMCs for adoption and as on 31 st May 2010, 8 APMCs have already adopted model bye laws, and, other APMCs are in process of adopting the same. Basic provisions relating with many of these changes proposed in the byelaws are already there in APMC Act. The purpose of making these provisions in the byelaws of APMCs is to make those more explicit and understandable by all stakeholders including farmers. The amendments in APMC byelaws proposed will be implemented in all the APMCs proposed for modernization as a precondition. The model byelaws have been prepared by the Directorate of Marketing in consultation with representatives of APMCs and the same have been circulated to the APMCs. The APMCs desiring to participate in the project will put forth these byelaws before elected committee for its approval for adoption. Subsequently all the APMCs in the State will adopt these byelaws. The reforms introduced in the byelaws of APMCs are given in the following table. S. No. 1 2 3 4 5 6 7 8 9 Basic Reforms ( To avail Project Funding for Basic Infrastructure) Adopt model byelaws as prescribed by MSAMB Computerized and standard accounting procedure, preparation of annual reports as per standard accounting norms Public display of market income & expenditure, tender documents Provision for direct sale to consumers and bulk consumers Open auction practices Computerized mechanism of licensing of functionaries and the monitoring of the same Electronic Weighing Daily Payment within 24 hours of the produce sold. Willingness to create Market Infrastructure Maintenance Fund @ 1% of total infrastructure investment cost per annum from the year of commissioning the facilities. This fund will be kept in separate account and used only for the purpose of repairs and maintenance of the infrastructure with prior permission of regulatory authority. Prominent display of price information in the market through multiple price display boards Implementation of waste management system. For APMC Mumbai & APMC Nagpur: Feasibility study of electronic auction system only as pilots.

10 11 12

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S. No. 1 2 3 4

Additional Reforms ( To avail Project Funding for Productive Infrastructure) Willingness to undertake investment in PPP mode Willingness to start Pledge loan scheme / Warehouse receipt and connectivity to commodity exchanges / E-trading Computerized Auction System Computerized recording of the entry of all vehicles carrying agriculture produce (including bullock carts) entering in to the Market Yard

7. The Model Byelaws incorporating aforementioned reforms have been sent to all the APMCs for its adoption. These will be discussed in APMC meetings. The committees have the representatives of farmers, traders, commission agents and workers (Hamal). These bylaws will then be adopted by APMCs and will be approved by Taluka Assistant Registrar/ District Deputy Registrar of Co-op. Socys., to whom powers of Director of Marketing, M.S. are conferred. To ensure the compliance, the MOU between APMC and the Project will also include willingness to comply with all above reforms besides other terms and conditions. To ensure the compliance, wide regular display of bylaws providing for reforms will be made on display boards in APMC yards. The producers and all other stakeholders will become aware about the provisions, and can work for redressal of grievance, if aggrieved. 8. Subsequent to reforms and introduction of computerized system of recording of the important events, beginning from arrival of agricultural produce at the entrance of Market Yard and up to actual sale of the agricultural produce and subsequent payment to the producer, is as mentioned below: a. Recording of Arrival: Each vehicle arriving at the Market Yard is recorded at the entrygate (Details captured: Date & Time of the arrival, Description of Vehicle, Name of the Producer, Description of Agricultural Produce, Name of the Agent) b. Recording of Sale Transaction: The agricultural produce is presented to agent for sale (Details captured: Date & Time of the Sale, Name of the Producer, Description of Agricultural Produce, Name of the Agent, Weight of the Produce, Gross Sale Price, Total Cess) The above reforms will ensure transparency in the working of all APMCs proposed to be modernized. 9. Besides the periodical checks by regulatory authorities and stringent action for not implementing reforms and the provisions of bylaws, constant publicity of reforms and provisions in byelaws like open auction of produce, weighment of produce on electronic weigh bridge, payment within 24 hours and all such provisions will be displayed on display boards by APMCs at conspicuous places, so that producers and all stakeholders would know the same & if aggrieved, they can make complaint to the concerned authority which will be dealt seriously. This will ensure implementation of reforms. IV. Selection Criteria: Markets to be modernized 10. The primary analysis of the market related data and infrastructure related data has been carried out as mentioned below. a) Production related data: The production data of major commodities viz., fruits, vegetables, pulses, oilseeds, grains have been analyzed with respect to the area under cultivation, production for the past five years in the market area of APMC. The average growth rate in area and production in the market area is considered. Also the population of 130

the market area and the commodity wise marketable surplus is estimated. The locations having higher growth rate and higher marketable surplus are given higher ranking. b) Market related data: The existing agriculture markets in the district have been studied in respect of arrivals, sales, turnover, and collection of cess during the past five years. The average growth rate in turnover, arrivals, sales and cess is calculated. Higher rating is accorded to the APMCs having higher growth rate of annual arrivals. c) Infrastructure related data: Road connectivity of the selected market yard location is an important criterion. 11. The final selection of APMC market to be included in modernization programme done as per the process described below. would be

12. Based on the competitive process of selection, existing markets yards of 100 APMCs would be modernized. Out of these 98 APMCs (District level APMCs- Minimum 18, maximum 24 and taluka level APMCs-minimum74, maximum 80) would be selected on a competitive basis. However for the purpose of costing 24 district level APMCs ( B type) and 74 taluka level APMCs( C type) have been considered in the cost tables. Two APMCs would be modernized with electronic auction hall with connectivity to commodity exchanges, on a pilot basis considering the quantum of arrivals, two largest APMCs in the State, viz. Mumbai and Nagpur have been selected under the project. 13. Competitive Process: This competitive process would ensure that only those entities that are interested in the modernization programme and are willing to undertake the reforms that are proposed under the MACP are selected. The competitive process will be followed as detailed below: i. Awareness creation, information sharing and mobilization: PIU, MSAMB in close collaboration with DDRCS will share information about assistance under MACP with potential participants like APMCs and RHs, describing the objective, scope and the rules for competing for the assistance. An awareness campaign will be undertaken to inform the potential beneficiaries about the project and the eligibility criteria to access the grant. ii. Call for proposals and Screening stages: Based on the mobilizations, PIU, MSAMB will make formal calls for proposal based on the district wise project phasing as given in the chapter of project design. PIU, MSAMB will also decide on the number of calls to be made depending on the demand from the districts. A two-stage screening process will be used: Project Concept Note (PCN) and Full Project Proposal (FPP) screening. PIU, MSAMB has conducted the exercise of calling PCN from 105 APMCs from Phase-I districts included under MACP. Out of these, 99 APMCs submitted PCN. The competitive process described under this para has been adopted. The institutional criteria (Criteria-I described herein after) were fulfilled by 81 APMCs. Whereas, 30 APMCs fulfilled economic criteria (Criteria II). These 30 APMCs were ranked on the basis of VGF demanded by them. Out of these 30 APMCs FPP of 8 APMCs have been prepared in-house by the Project Preparation Team. iii. Project Concept Note (PCN): The purpose of a PCN is two fold: To allow applicants to submit a proposal in summary form for preliminary assessment of the concept without the need to prepare a full-fledged proposal that requires much efforts, thus reduce transaction costs by eliminating from the start any proposal that fails to meet the eligibility criteria, and To allow PIU, MSAMB to manage evaluation of process so as to identify a short list of the concept notes that are worth pursuing to the level of Full Project Proposals. iv. The PCN will be presented following a standard format which will be simple and focused on describing the investment requirement.

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v. PCN Evaluation: Each PCN will be evaluated by PIU, MSAMB. Evaluation will focus on the strength of the proposal based on the Project objectives. For the purpose of short listing of the APMCs from the PCN received, the following Criteria will be applied. (a) Criteria I : Following institutional criteria will be considered Availability of land: The APMC should have land with clear title under its possession (either owned or minimum of 30 years long term lease). This will be the pre-condition for applying further selection criteria for selection of APMC in the modernization programme under the Project. APMC should have an Elected Management, APMC should have full time CEO / Secretary, APMC should have generated Cash Surplus for last 3 years, APMC should not have defaulted any loan, The accounts of the APMC should be audited for the past 3 years and there should be no serious audit observations in audit reports, APMC should be willing to invest in productive infrastructure in PPP mode only after Basic Infrastructure is completed, APMC should be willing to undertake reforms mentioned above.

The APMCs fulfilling above mentioned selection criteria will be considered for Further selection scrutiny as per Criteria II (b) Criteria II: following financial criteria will be considered Average annual cess ( above Rs.20.00 Lakh) 0.33 marks/point Average annual agri produce arrivals (above 30,000 MT) 0.33 marks/point Average positive growth in annual arrivals -0.34 marks/point The APMCs showing highest figures for cess, actual arrivals and positive growth for annual arrivals will be given 0.33, 0.33, and 0.34 prints respectively, and the other respectively. and the other APMCs will be given proportionate points for all the three issues and accordingly APMCs in each district will be ranked. (c) Criteria III: Based on the scrutiny as per criteria II, the VGF sought by the APMC seeking least VGF will be ranked first while the other APMCs will be ranked according to their VGF requirements. The scrutiny of APMC from the PCN as per Criteria II and III will be performed by PIU- MSAMB. vi. The outcome of the evaluation of PCN would be presented by PIU, MSAMB to the Approval Committee for approval. The approval committee will comprise of Project Director, Chief financial controller, Marketing co-ordinater, Managing DirectorMSAMB (PIU). Nodal Officer PIU will be the member secretary of the committee. This Committee would select not more than 5 APMCs per district for Preparation of MMIP or FPP.

vii. Market Modernization & Improvement Plan (MMIP): The APMCs that would be selected for modernization under the Project from the PCN stage would follow MMIP which includes the process of feasibility study by SP, Preparation of Full Project Proposal (FPP) and implementation of the improvement programme which is given in detail in implementation arrangements viii. Full Project Proposal (FPP): The full application will be a more thorough exercise for which the selected applicant will be supported through technical assistance through third party Service Provider (SP) for APMC, who would be competitively selected by the Project. The technical assistance would be provided by the third party SP and funded by

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ix.

the Project and would follow the procedures laid out in the MMIP process. The SP will prepare FPP for APMCs selected in the first stage selection Process. FPP review and approval: After the completion of the pre-investment (feasibility) study by SP, the detailed proposal (FPP) will be submitted to PIU, MSAMB by the applicant. PIU, MSAMB will once again evaluate the proposal. The findings of the PIU, MSAMB and additional information like VGF requested will be submitted to the Approval Committee for discussion and approval.

x. The implementation cycle of the MMIP is shown below:

Implementation Cycle of MMIP

Awardee starts implementation MSAMB, DDR, TA(SP) monitors the implementation Completion Call for proposal

MSAMB release grant

Contract Supervision Consultancy

Project Concept Note submission

Pre-screening

FPP Evaluation and approval Committee

Approval Committee reviews & decides

Evaluation of concept note

PCN Technical Evaluation Committee

Accept

Accept

Recommendation of MSAMB after review of Full Project Proposal

Submit Full Project Proposal

Prepare full proposal

Technical Assistance support by SP

14. PCN Technical Evaluation Committee: The MMIP is a competitive grant programme and the eligible applicants proposal, PCN, would be evaluated by the Technical Evaluation Committee of PIU-MSAMB, which will include (a) Nodal Officer - PIU, (b) Sr. Accounts Officer- PIU (MSAMB), (c) Civil Engineering Specialist, (d) Market Field Engineer, (e) Officer Incharge APMC -Member Secretary. Nodal officer, PIU, MSAMB will inform the APMCs about their selection of their PCN. 15. FPP Evaluation and Approval Committee: The FPP of the APMC will be approved by the FPP Evaluation and Approval Committee. The PCN Technical Evaluation Committee will also act as FPP Evaluation and Approval Committee. On the basis of packaging of APMCs selected (i.e. No of APMCs to be clubbed together), the tender for these APMCs will be given by the PIU MSAMB. The infrastructure development programmes under the project would be carried out on the basis of predefined selection criteria by the SP to be selected by competitive bidding process for development of the respective infrastructure. Procurement will be done as per the threshold and procedure given in the Procurement Manual. The approved FPPs costing more than Rs. 50.00 lakhs would be sent to PCU.

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V. Activities to be financed: Illustrative list of investments to be made and phasing: 16. Illustrative investments for APMC Agriculture Market Yards: An illustrative list of investments along with the cost to be made in these regulated markets is given below: a. Illustrative list of Basic Infrastructure for Category A, B and C Markets. Sr. No.
1 2 3 4 5 6 7 8

Menu of Items
Modern Auction Platform with shed (with elevated platform, flooring, electrical fixtures.) (300 Sq. Mtr.) Platform with shed for direct marketing of farmers produce to consumers (52 Sq. Mtr. x 4 Nos. Platform with shed for direct supply of bulk consumer & organized retailers (263 Sq. Mtr.) Drinking Water facility Toilet Block (30 Sq. Mtr.) Compound - 450m long barbed wire fencing with 0.45m thick U.C.R. masonry 2 feet high (840 Running mt.) (Land required is 10 acres, hence cost of compound wall is considered for 10 acres area, excluding the land cost.) Roads with watchman cabin Street light & electricity

b. Illustrative list of Productive Infrastructure for: i) Category A Markets (Mumbai & Nagpur APMCs):
Sr. Menu of Items No. 1 Electronic Auction Hall & Pack House For Fruit & Vegetable 2 3 Food grain & Pulses Cleaning Unit (40 MT per hour capacity) Solid Waste Management Unit / Vermi composting Unit (40 MT / day)

ii) Category B Markets(District Level APMCs): Sr. No. 1 2 3 4 5 6

Menu of Items
Pack House For Fruit & Vegetable Food grain & Pulses Cleaning Unit (40 MT per hour capacity) Solid Waste Management Unit / Vermi composting Unit ( 10 MT / day) Cold Storage (500 MT) Godown (500 MT) Electronic Weighbridge ( 40 MT capacity)

iii) Category C Markets (Taluka Level APMCs): Sr. No. 1 2 3 4 5 6 Name of the work Pack House For Fruit & Vegetable Food grain & Pulses Cleaning Unit (10 MT per hour capacity) Solid Waste Management Unit / Vermi composting Unit ( 5 MT / day) Cold Storage (100 MT) Godown (250 MT) Electronic Weighbridge (40 MT capacity)

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17.

In addition to the basic and productive infrastructure proposed in 98 APMCs additional investments would be made in Category A markets (Mumbai and Nagpur) in Electronic Auction Halls and Electronic Trading of Perishables with linkage to Spot Exchanges.

c. Computerized Auction System 18. There is a scope for bringing more transparency in auction systems being held at APMCs in the State. As a part of modernization of markets GoM has decided to introduce computerized auction system at some markets on pilot basis. The PPT team has visited Karnataka State during 16/03/2010 to 20/03/2010 to study the computerized auction system implemented at Mysore and Tumkur markets. Based on the study of computerized auction system in Karnataka by PPT, MACP the computerized auction system is proposed in 20% of the APMCs taken up for modernization. Main objective of introducing computerized Auction system is to bring in complete transparency in the process of auctioning which will enable the farmers to get the maximum price of his produce. 19. Computerized auction system is an innovative idea and first experiment in the State. Computerized auction system is dependant on the quantum of arrival of produce which is traded through the system. One or few of the non perishable commodities among soyabean, tur, wheat, jawar, bajara, and maize will only be selected for computerized auction system in the beginning. Similarly, selection of IT infrastructure will be done based on the quantity of arrivals and geographical area of the market. This will help streamline the process of computerization of auction system at the APMC. The computerized auction system is proposed to be divided into five stages as: i) Gate entry, ii) Quote entry, iii) Price declaration, iv) Cess assessment and v) Farmer receipt, for proper executions of all processes of the auction system. 20. Process of the Proposed Computerized Auction System: (a) Gate Entry: The details about date, name & place of the farmer, commodity, and quantity of the produce, name of commission agent will be entered in the computer installed at gate. To avoid the crowd and congestion of vehicles, four computers are to be installed at the gate. The lot number will be auto generated by the software and two slips will be printed with lot number. Farmer will keep one slip and another slip will be kept at the lot for the display. Gate entry should start as soon as the produce arrives and can be continued till end of the arrivals of identified commodity. The lots should be allotted for next day in case the produce arrives after the cut off time of price quote by traders. (b) Quote Entry: Five Kiosks with two computers and one printer at each kiosks will be installed at auction platforms. The lots should be displayed at auction platform with printed slip given at the gate entry. Trader should observe the lots, and, quote his price in the computer with the help of software. He can take a print of his price quote. A time slot should be decided for the traders to quote their prices. This time slot can be based on the quantum of produce arrives at peak season and office timing of the APMC. After the cut off time, the trader should not able to quote his price. (c) Price declaration: Two computers should be installed at the office with auction software. The software should have facility to generate a report for maximum price quoted by the traders. Prince declaration should be done by the secretary or authorized APMC official with the help of software. The report should be printed in two copies, one copy for the commission agent and another copy for the APMC. The APMC official should declare the price with the help of printed report. This announcement should be done through loud speaker, for which sound system arrangement should be made accordingly. Similarly, declared price can be displayed on the LCD TV proposed to be installed under Market Information Service. The computerized auction software should have option for displaying live prices through display system (LCD TVs).

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(d) Cess Assessment: After price declaration concerned commission agent will enter actual weight of commodity in the software through independent login facility. Software will generate report for the commission agent for the cess amount to be paid by him. The facility has been provided to APMC officials through independent login to monitor cess collection (i.e. cess to be paid by commission agent, actually paid and balance). (e) Farmer Receipt: After the cess assessment the farmer receipt will be generated through the software for payment to be made to the farmer. 23. To start with, computerized auction system is proposed for one market with one commodity. Once this system is established, the same can be replicated to other 9 identified markets, after the period of six months. After one year, computerized auction system can be established in another 10 identified markets. The proposed model for computerized auction system may have two servers, 4 computers at gate and five Kiosk with 2 computers each and 2 computers at APMCs office. The software for the auction process should have five features (i) gate entry, (ii) quote entry, (iii) price declaration, (iv) cess assessment, (v) farmer receipt. 22. The Servers and computers mentioned above model should be linked to form local area network with the help of Wi-Fi technology. 24. The items of expenditure for the proposed computerized auction system are given below.
Sr. No. 1 2 3 4 5 Item Server with Operating system Computer at gate Computer for Kiosks Computer at office Network Items Router Firewall Switches Wi-Fi system Dot Matrix Printer 132 Col Dot Matrix Printer 80 Col Laser Printer Application software for 20 APMCs. y Sound system- 2 Mikes, 1 Amplifier, 5 speakers & cables Portable Generators Civil work & furniture

6 7 8 9 10 11 12

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Schematic Diagram of Computerized Auction

Date, name & place of the farmer, commodity, quantity, name of Commission Agent

Farmer Slip

Lot Slip

Gate Entry

Price Quote by Trader

Trader Quote Print

Price Declaration

Max. Price Report

Maximum Price declaration for Farmer to sell his Produce

Process d. Standardised Accounting System for APMCs 25. There are 294 APMCs in the State and function as per the Maharashtra Agriculture Produce Marketing (Development and Regulation) Act 1963 and Maharashtra Agriculture Produce Marketing (Development and Regulation) Rule 1967. The Act have guidelines for APMCs to maintain few accounts viz. cash book, salary register, license register, Govt. Loan Register etc. Accounting system adopted by APMCs is on the basis of mercantile. It is maintained manually with the help of various registers. Though, there are guidelines in the Act, account keeping varies from APMC to APMC. Various account heads maintained by APMCs are as per the heads of APMC budget. Average 180 common heads are available under the budget approved by the Marketing Board. Same head are used by APMCs for account keeping. Following are the problems in existing accounting systems at APMCs. i) The accounting heads vary from APMC to APMC. ii) Income and Expenditure heads are not properly grouped. iii) It is time consuming to prepare comparative statements of expenses incurred. iv) It is tedious to sort out budgetary provision from the current year expenses. v) Manual records are difficult to maintain safely and subject to human errors. vi) The existing manual system can be easily manipulated. vii) The existing manual system requires more human efforts. viii) It is difficult to know exact financial position at any point of time. 26. In view of above problems and reform agenda, it is necessary to have standard accounting system for APMCs. This could be achieved by using standard accounting software which is commonly used. If standard accounting software is provided to all APMCs, they can 137

maintain their accounts as per the standard groups and sub groups available in the software. This standard accounting system will include the provision of accounting of the cess collected within the market yard and out side the market yard. This will help in uniform account keeping and reports generation at all APMCS. Hence, common accounting platform like Tally or equivalent accounting software is proposed to be installed at APMCs for dayto-day account keeping and reporting. 27. The MSAMB will provide all the necessary information about accounting system prevalent in the APMCs and the standard formats for income expenditure statement, balance sheet and other accounts. The supplier of software in consultation with MSAMB will customize the software to meet the requirements of MSAMB to bring in standardised accounting system in APMC. 28. It is proposed to provide latest single user software for 294 APMCs. The multi user version of software will be useful for accessing the software on more than one computer for multiple purpose. Multi user latest software will be purchased from authorized supplier. The supplier will customize, install the software at APMCs and provide training to concerned staff for usage of the software. Market Development Programme Studies: 29. Under the project, comprehensive studies would be undertaken to have a closer look at the various issues that affect the development of marketing chain and feasibility studies for implementing various innovative pilots proposed under the project. An illustrative list of studies that would be undertaken is: i) Feasibility Study and Setting up of Electronic Auction Hall at two APMCs, preferably places like Mumbai & Nagpur. A study for the same is proposed to come up with the modalities for setting up the electronic auction hall. ii) Feasibility Study of Electronic Trading of Perishables and Non-perishables with linkage with Spot Exchanges is proposed on pilot basis in two APMC markets. Capacity building and training 30. To achieve the objectives of institutional strengthening, enhancing the capacity of all direct stakeholders of the project from APMC members up to the state level staff of the Project Coordination Unit is essential. 31. National Institute of Post Harvest Technology (NIPHT), Talegaon Dabhade, Dist. Pune would impart training and capacity building programme. The institute has the requisite infrastructure and manpower to provide training programmes. But to be effective and efficient, all training programs must start with a Training Needs Assessment (TNA). 32. TNA is used for identifying the gaps and to provide information for a decision on whether the gaps could be addressed through training. Also the results of the TNA allow the project to set the training objectives in a clear and defined way. 33. Once the TNA is completed and training objectives are clearly defined, designing of the programme content and training the trainers from NIPHT, would be taken up. The activities pertaining to TNA, designing the programme content and training of the instructors would be outsourced to an external consultancy like IIM, IRMA on a competitive basis, following the procurement guidelines of the project. 34. The above arrangement of capacity building and training under this subcomponent will also be applicable to the subcomponent of modernization of LSM and upgrading village RH.

138

35. The SP for TNA, designing programme content and training the trainers of NIPHT will be the same for the subcomponents of upgrading & modernization of APMCs, modernization of LSM and upgrading and modernization of RH. VI. Estimated Costs: 36. The total cost for the modernization of 100 APMC markets (Category A Markets, Mumbai and Nagpur -02, Category B Markets, District level markets -24 and Category C Markets, Taluka level markets 74) is Rs.262.74 Crore. The cost on computerized auction system and standardized accounting system is proposed to be given as project grant by GoM. VII. Institutional and Implementation Arrangements: a) Institutional arrangement: 37. PIU.-MSAMB and Department of Cooperation & Marketing are responsible for implementing the APMC modernization program. The role of PIU- MSAMB would be to liaise with the contractors and the SPs, approve variations and time extension, sample check and jointly verify of the measurement books, process bills / claims of the contractors and consultants and resolve disputes within the terms of the contract/s. 38. PIU-MSAMB will be responsible for hiring of third party SP for participative consultation and market design for APMCs selected under the project. The specific tasks to be carried out by PCU, PIU-MSAMB / Dept. of Co-operation & Marketing, the selected APMC and the appointed SP in the various stages of the project is given in the following table: Sr. No Process step / activity PCU 1 Hiring of SP for participative consultation and market design - ToR prepared, EoI / RFP released, Bid received, evaluated and contract finalized. Training of MSAMB personnel, Officers of Directorate of Agril. Marketing, DDRCS, ARCS of concerned Taluka, APMC Engineers & Architects for MMIP. Ongoing monitoring and management of SP ensuring compliance with the conditions set forth in RFP Awareness generation of the project in the selected location Roles and Responsibilities (Primary responsibility underlined) PIU (MSAMB)/ APMC Community / Dept. of Co-op. Market users PIU - MSAMB/ PCU

SP +PIU MSAMB

PIU -MSAMB + DDRCS +MFE

APMC Engineer, if available

SP + PIU MSAMB + DDRCS + ARCS

APMC

Community / market users to provide inputs to MMIP preparation

139

Sr. No

Process step / activity PCU

5 6

APMC assessment to carry out the MMIP Signing of MoU between APMC and PCU

PCU

Roles and Responsibilities (Primary responsibility underlined) PIU (MSAMB)/ APMC Community / Dept. of Co-op. Market users through PRA SP + DDRCS + AR PIU-MSAMB APMC DDRCS + AR + SP SP + PIUMSAMB + MFE + DDRCS APMC Engine ers Community / market users to provide inputs to MMIP preparation through PRA Community / market users to signoff in the MMIP APMC

Preparation of MMIP

10

11 12

13

Endorsement of MMIP by the market users of APMC APMC to call for market users meeting, sign off by APMC committee members and market users Mobilization of APMC contribution towards MMIP Notification, Receipt, Evaluation and approval of bid documents for the construction as per MMIP, Call for tender, Tender evaluation and finalization, Release of work order Ongoing monitoring and management of consultants (SP + TSC) ensuring compliance with the conditions set forth in RFP Certification about the Work Measurement / Completion

APMC DDRCS + AR + SP

PIU (MSAMB) + SP

APMC

PIU - MSAMB + DDR + MFE

APMC APMC Engineer/ Architect

Contractor + ARCS + SP+ Field Engineer

14

Recommendation for payment Payments to contractor intermediate and final payment DDRCS + Drawing & Disbursing 140

APMC Secretary + APMC Engineer/ Architect Chairman+ Secretary APMC

15

Sr. No

Process step / activity PCU

16

Post evaluation - user survey, community score card

Roles and Responsibilities (Primary responsibility underlined) PIU (MSAMB)/ APMC Community / Dept. of Co-op. Market users Officer from the o/o DDRCS Community / Market Users under guidance of M&E Consultant

b) Implementation Arrangements (i) Description of activities for preparation of Market (APMC) Modernization and Improvement Plan (MMIP) of existing APMC markets 39. Awareness generation about the project: The process of MMIP starts with awareness generation about the project in the APMC command area. During the meeting all the market users8 and other stakeholders would be invited and will be informed about the project, its objectives, approach and process, possible intervention and expected benefits. Besides meeting, awareness generation process would include wall writings, audio-visual shows giving the details of the MMIP. 40. APMC Assessment: Assessment of APMC to commit itself for the MMIP would be carried out. This assessment would cover the willingness and capacity of APMC to undertake the necessary changes in the APMC management and operations and financial ability to provide its contribution towards investments. List of changes, as indicated in the previous section in the APMC operations and management would be shared with APMC and an endorsement received. 41. Signing of Memorandum of Understanding (MoU) between the APMC and Project: Once the awareness generation process and the assessment of APMC are completed, formal signing of MoU with the APMC and the Project would be done. This will delineate the commitments and mandates of the two parties towards each other. 42. Demand analysis and estimating market turnover: Once the MoU is signed, analysis of existing production, consumption and trade volume in the APMC using past 5 year data would be undertaken. This will help in understanding how the APMC relates to the other marketing channels. This would essentially answer questions pertaining to a) is the trade volume increasing, b) what is the change in the trade pattern. This would be combined with the estimate of future production of the agriculture produce in the APMC catchments area, per capita consumption in the district, and trade throughput in the APMC. This demand analysis and estimation would be done through a combination of secondary data and primary survey and would be outsourced to the third party SP. 43. Participative Consultation: Participative consultation would be carried out through PRA (Participative Rural Appraisal) technique. This will ensure that the investments in the market meet the user needs. During the consultation process the marketing problem faced by the producers, traders and other market users would be identified, possible ways of overcoming the problem would be discussed and finalized. The problems faced by the APMC needs to be classified into two broad categories, viz.:

Market users are defined as producers / farmers, traders, APMC members, other market functionaries and local authority like municipality

141

i. APMC management issues like unfair trade practices, inadequate resources for operations and maintenance (O&M) for the APMC, lack of trained staff in modern management, issues related to license, governance, ii. Physical constraints like inadequate parking space, congestion in APMC, poor physical infrastructure, lack of modern post harvest equipments / machineries. 44. Prioritization of Needs: The investment needs would be prioritized with the market users based on the budget available under the project. 45. Preparation of design and work estimate: After identification of the investment interventions, the design and cost estimates for the civil work and other related activities will be prepared by the SP along with the Work Sub Committee of the APMC. 46. Financing pattern: The APMC would bring contribution to the extent of 50% from their own funds or by raising loan, Viability Gap Funding from Govt. of Maharashtra would be up to the maximum of 25% and State Govt. contribution will be 25% for basic infrastructure. For productive infrastructure 25% would be given by the State Govt. and 75% will have to be mobilized by the APMC. For computerised auction system and standardised accounting, 100% cost will be funded by GoM. 47. Preparation of MMIP: MMIP will include the PERT Chart, design, cost estimates of the investments, financing pattern and address the issues relating to changes to be done in the APMC operations and management. It would also have a detailed project feasibility study, list of monitoring and evaluation indicators and detailed cost tables as indicated below a. Survey data of the APMC, b. Need assessment and investment prioritization matrix c. Existing layout plan d. Final design, architectural drawings, structural designs and drawings e. Detailed feasibility report and viability gap. f. Bill of quantity and Bid document as per project guidelines 48. Endorsement of the MMIP in the general body of APMC: After the design, cost estimates and the implementation plan for all interventions have been prepared, it will be compiled into MMIP document. MMIP will be presented to the APMC General Body. The SP in charge of the MMIP preparation will discuss and clarify all queries related to the MMIP implementation plan, designs and cost estimates. Based on the discussions, any required change would be carried out. Once the MMIP has been agreed upon and finalized, a General Body Meeting of APMC will be held to pass a resolution approving and adopting MMIP. The APMC committee would submit the MMIP to MSAMB for final approval. ii) Implementation of MMIP: 49. Works Account: MACP Beneficiary Contribution Account will be opened at each district in the State Bank of India. This account would be jointly operated by the DDRCS and the Drawing & Disbursing Officer from the o/o DDRCS. The beneficiary contribution will be deposited in this account upfront (1/3rd cash and 2/3 rd in the form of loan sanction order) before issue of work order The maintenance of records of this account regarding amount received from the beneficiary contribution deposited in the account & payments made from this account for MACP works shall be maintained by the o/o DDRCS for which an independent accountant with computer knowledge is proposed in each DDRCS office. With regard to the funds from the project the same will be made available to the DDR by the Director Marketing through Budget Distribution System (BDS). The DDR will draw the funds through the treasury and make the payments to the contractor. 50. Tendering process: Once the plans & estimates are prepared by the SP, those will be submitted to PIU (MSAMB). The FPP Evaluation and Approval Committee, comprising of Nodal Officer 142

- PIU, Sr. Accounts Officer- PIU (MSAMB), Civil Engineering Specialist, Market Field Engineer and Officer Incharge APMC - Member Secretary, will evaluate and approve the plans and estimates. On such sanction, PIU (MSAMB) will call tenders as per the procurement norms prescribed under the project. The tenders costing up to Rs. 50.00 Lakhs will be decided at the level of PIU (MSAMB), and, above that limit tender finalization would be done by PCU and the procedure laid down in procurement manual will be followed. The respective APMC will be invited to participate in tender finalization process by PCU / PIU (MSAMB) as the case may be. The work order would be issued by the concerned APMC. 51. Ongoing Monitoring of works: The progress of the work, quality and quantity of work done will be closely monitored by the Work Sub Committee of the APMC facilitated by the SP and Market Field Engineer (MFE) of MSAMB. MFE will be appointed for technical quality supervision of the civil works by MSAMB, preferably one MFE per district. The measurement for various works will be done jointly by the SP, the Contractor, and the Secretary of the concerned APMC, APMC engineer, and ARCS of the concerned Taluka. 52. The SP will also be required to regularly inspect the works to ensure full compliance to the technical designs, technical specifications and also to regularly monitor the progress of works of the approved construction. For this purpose SP shall provide adequate engineers independent for recording measurements and for checking the measurements and bills. The details of the same are given in TOR for appointment of the SP. 53. Independent third party quality control: In order to ensure a third party control on the quality and quantity of the works, PIU-MSAMB would appoint Market Field Engineer (MFE), preferably for each district, with the following objectives. MFE will look after the quality aspect of work of APMC, LSM, RH, and FCSC. a. Ensure compliance of engineering design, technical specification and contract conditions by the contractor, b. Ensure effective supervision to attain high quality construction, c. Ensure full compliance of engineering design, technical specification and contract conditions, d. Minimize time overrun and cost overrun as well as to avoid contractual disputes, e. Build the capacity of the Engineers of APMC in construction supervision, contract administration and project management 54. Mode of Preparation of bill & Release of Payment: a. Intermediate and final payments to the contractor would be based on quantity of works completed and certified, less amount already paid. Measurements of works will be carried out by Contractor, SP and APMC Secretary jointly. Market Field Engineer (MFE) of PIU, MSAMB will carry out 10% checking of quantities appearing in each bill and certified to be in order. The measurement will be recorded in PIU, MSAMB measurement book (MB) and the contractor will sign the same indicating acceptance. The bill will be sent to DDRCS for payment with the recommendation of Chairperson & Secretary of APMC. b. Cheques for the payment of bills would be signed jointly by DDRCS and the Drawing & Disbursing Officer in the o/o DDRCS only after the receipt of recommendations as stated above. 55. Transparency and accountability: The lists of works to be taken up will be given wide publicity by means of display in the office of APMC or other public institutions within the area. Whenever a work is taken up, the estimated cost of the work, item of work proposed to be executed, details of the executing agency will be exhibited on a display board at the place of work so that all market users are aware of the details of the work being executed. 143

56. The year wise phasing of this subcomponent is as follows: Category APMC A APMC B APMC C Total VIII. Funds Flow: 57. An independent budget head will be opened in Cooperation & Marketing Department, GoM in which provision under the Project for this component will be made. The funds would be released by Cooperation & Marketing Department, GOM to Director of Agricultural Marketing as per Budget Distribution System (BDS). Director of Agricultural Marketing in turn will release the funds to the DDR through BDS. In addition there will be MACP Beneficiary Contribution Accounts in a Nationalised Bank at the district level to be operated jointly by the DDRCS and the Drawing & Disbursing Officer in the o/o DDRCS. This bank account will have the contribution of the beneficiary institution deposited in it. Funds for NIPHT for Training of APMC personnel will be released by Director of Marketing to PIU-MSAMB who intern will pass on the funds to NIPHT by cheque. IX. Fiduciary and Safeguards Arrangements Maintenance of records and book keeping: 58. The DDRCS shall maintain detail subcomponent wise accounts in his office in the form of ledgers, cash book, and check register for the funds received and payments made for every APMC. The APMC will maintain the accounts and registers for the works relating to that APMC in appropriate books. 59. The APMC will also maintain the following records, other than those specified under the APMC Act and Rules: a) An up-to-date copy of the Act / Rules / directions and orders from MSAMB / Government, b) Maps showing the boundaries of the market yard and sub yard, c) Registers Asset register, Minutes register General Body, Managing Committee and sub committee meetings. 60. Safeguards Arrangements - As the Project implementation involves large number of activities and equally large number of transactions there is a need of strong safeguard measures to mitigate the risks. (i) Internal Checks & Systems and Reconciliation of Accounts: for covering mechanism of crosschecking, (ii) Project Audit Internal Audit & External Audit: for validating the transactions by a third party expert, (iii) Computerized Accounting System: for Standardized practices and procedures, thus reducing eventuality of omission and commission, (iv) Periodical Reporting MIS: for monitoring progress in respect of the short term and long term Project Goals. X. Governance Risks and Mitigation Measures: 61. The following are the risks and their mitigation measures:
Sr. No. 1 Risks Technical / Design Description Willingness of the APMC as well as the capability of the institution to enforce the reforms are important for a need based design Risk Mitigation Measures SP, which will be selected through competitive bidding, will do PRA for identifying the needs, defining the resources, prioritizing the needs, and reiterating the FPP in the GB of APMC

Yr I 0 0 0 0

Yr II 0 4 14 18

Yr III 1 5 15 21

Yr IV 1 5 15 21

Yr V 0 5 15 20

Yr VI 0 5 15 20

Total 2 24 74 100

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Sr. No. 2

Risks Implementation capacity and sustainability

Description Capacity building of the personnel of APMC required for performing implementation activities as per WB norms. Infrastructure should be net income generating. Funds should be made available in time for maintaining continuity and creating the desired impact. --Electronic weighment system may decrease work in hand for Tolaidaar daily workers. ---

Risk Mitigation Measures Extensive training to the personnel of the APMCs and the concerned line departments regarding implementation & sustainability point of view has been proposed under the project. Productive infrastructure is self liquidating, therefore sustainable. Separate infrastructure maintenance fund equal to 1% of the cost of investment in modernisation (every year) shall be created by the beneficiary APMC. Funds shall be released in tranches. Next tranch shall be released only when satisfactory utilization is verified at the district level and PIU, PCU level.

Financial Management

4 5

Procurement Social and environment safeguards

Will be done as per WM procurement norms. Increase in sale transactions call for higher opportunities for daily work. MOU shall include clause that in such situation the workers shall be given preference. Observance of reforms by APMCs and monitoring of the same by the Dept. of Agricultural Marketing shall create conducive atmosphere for higher levels of transparency and efficiency in implementation.

Other ( for example project specific corruption risk, ownership of project / program, prevalence of failure in similar projects)

62. The governance in APMC management would involve mitigation measures like as follows: (a) Participatory consultation with market users in selection of market investments, (b) Selection process of regulated markets based on predefined selection criteria, (c) Project support for capacity building of APMCs on planning, budgeting and market management. The agencies responsible for these measures would be APMCs, PIU-MSAMB and the SP. The detail governance mechanism in APMC management is described in separate chapter on Governance and Accountability Action Plan (GAAP). XI. Sustainability: 63. The modern infrastructure will attract more arrivals because of reduction in losses, increased revenue from modern infrastructure like godowns, grain cleaning-grading machine which will make the investment sustainable. The infrastructure can also be outsourced for better management and can generate income. 64. The illustrative estimated revenue models for godowns, vermi compost and grain handling unit are given in the following table. The estimated surplus generated from the infrastructure proposed to be developed will make this investment sustainable. Sr. Facility No. 1 Godown (500 MT Capacity, Rent @ Rs. 20/- per Qtl. per month for storage, Cost of Investment Rs. 26.00 Lakh) Revenue For 6 Months = Rs. 6.00 Lakh (50% Capacity utilization in the beginning) Expenditure Management Cost = Rs. 1.00 Lakh. Surplus Rs. 5.00 Lakh available for repayment of installment of principal and interest. Payback period around 6 to 7 years.

145

Sr. Facility No. 2 Food Grain Unit (Cap. 10 MT per Hr., Cost of Investment Rs. 73.00 Lakhs ) Cleaning Grading charges @ Rs. 20/- per Qtl. 3 Vermi Compost (Cap. 5 MT per Day, Total Investment Rs. 20.00 Lakh)

Revenue Daily 8 Hrs. operation only for 200 days in a year = 16,000 MT x Rs. 200 per MT = Rs. 32.00 Lakh With 50% Capacity Utilization for 250 effective market days, 10 days cycle, production of compost will be around 500 MT and @ Rs. 3000/- per MT, total revenue will be Rs.15.00 Lakh.

Expenditure Management Cost 50% i.e., around Rs. 16.00 Lakh.

Surplus Rs. 16.00 Lakh available for repayment of installment of principal and interest. Payback period less than 5 years. Rs. 7.50 Lakh available for repayment of installment of principal and interest. Payback period less than 3 years.

Operational Cost 50% i.e., around Rs. 7.50 Lakh.

65. Post Implementation Operation & Maintenance Arrangements: a. The productive infrastructure will be a source of additional income to the APMC. Such additional income shall be used for the post implementation operation & maintenance of the facilities established under the Project. b. Like wise, the possibilities of out sourcing the operationlization of the facility to a private party shall be explored. The facility shall be out sourced wherever possible on mutually agreeable terms and conditions. This arrangement shall fetch APMC an income at a fixed rate as well as help maintaining the facility in good condition. ***

146

B2.2 UPGRADING LIVESTOCK YARDS

I. Objectives: 1. The farmers for their income heavily depend upon draft animals for agricultural operations as well as they depend on the milch animals for allied agricultural activity. Thus live stock market yards and small ruminant markets are important for acquisition and maintaining an income generating herd. It is therefore pertinent to provide in the live stock markets adequate facilities for farmers. 2. Majority of the Live Stock Markets (LSM) suffer from infrastructural constraints like unavailability of auction sheds for animals, weighing machines, milking machines, drinking water facility for human and animals, waste disposal arrangements. Most of the infrastructure required in LSM is basic in nature and non-productive. The income of these APMCs is only by way of cess. Therefore, APMCs do not get the loan easily from the commercial banks for such development. Many a times, personal guarantee of the directors of the committee is demanded by the banks for the loans of APMCs which is not agreed to by the directors. 3. The APMCs will not normally invest for developing auction shed for animals, tree grove or providing milking machines. Therefore, support from the Project for such activities would encourage the APMCs having cattle market to undertake such activities and will act as push factor. 4. The demand of meat animals for metro-cities like Mumbai and the external trade would need organized market outlets performing sale by weight. Organized trade in live meat animals though not popular yet in Maharashtra, has a great potential to lead to bulk trade / export trade and therefore could result into far better returns to the farmers. With these objectives in view, it is proposed to modernize 20 LSM and 4 Small Ruminant Market yards (SR Markets) out of 196 LSM in the State. II. Outcome and Output Monitoring Indicators: 5. As a result of the project interventions in selected LSM the expected outputs and outcomes are as follows: Sr. Outcome No. 1 Growth in volume of market transactions 2 Farmers, traders and buyers satisfied with modernized infrastructure Sr. Output No. 1 LSM with improved infrastructure 2 Capacity utilization of improved infrastructure in modernized LSM by farmers and traders 3 Management of waste in targeted markets 4 APMC members in targeted LSM trained in improved LSM management practices Monitoring Indicators % increase in number of animals sold in targeted markets % of farmers, traders and buyers satisfied in targeted markets per LSM

Monitoring Indicators % of targeted LSM % Capacity utilization infrastructure per LSM of improved

% increase in income from waste in targeted LSM % of APMC members in targeted LSM trained in improved LSM management practices (record keeping, accounting, use of display boards.) 147

Sr. Output Monitoring Indicators No. 5 APMC LSM where improved The % of LSM where improved management management practices have been practices have been implemented implemented (computerization, record keeping, centralized payment system, payment within 24 hours, accounting, use of display boards) 6 Increase in income because of % increase in income sale on the basis of weight and milk yield The baseline values to be developed by M&E consultant for various LSM will be considered while evaluating the performance. III. Policy and Regulatory Environment: 6. The policy & regulatory environment described under the subcomponent of Upgrading & Modernization of APMCs is applicable to this subcomponent also. An additional reform, viz. "Willingness to accept open auction practice and sale of animals on the basis of weight and milk yield" is proposed in these APMCs by way of amendment in the byelaws besides the other Basic and Additional Reforms, proposed by way of amendment in the byelaws under the subcomponent of Upgrading & Modernization of APMCs. IV. Selection Criteria: 7. Selection of 20 LSM and 4 SR Markets has been done on the basis of following selection criteria: i) Availability of land: The APMC should have land with clear title under its possession (either owned or minimum of 30 years long term lease). This will be the pre-condition for applying further selection criteria for selection of APMC in the modernization programme under the Project. APMC should have an Elected Management, APMC should have full time CEO / Secretary, APMC should have generated Cash Surplus for last 3 years, APMC should not have any loan defaulted, The accounts of the APMC should be audited for the past 3 years and there should be no serious audit observations in audit reports, APMC should be willing to invest in infrastructure in PPP mode, APMC should be willing to undertake reforms mentioned above.

ii) iii) iv) v) vi) vii) viii)

8. APMCs fulfilling these selection criteria were short listed and from amongst those 20 LSM and 4 SR Markets having the maximum average arrival of the animals during last 5 years were identified for implementation of modernization plan under the project. 9. Markets to be modernized and established: The Primary analysis of the market related data and infrastructure related data has been carried out as mentioned below: (i) Market related data: The existing cattle markets have been studied in respect of arrivals, sales, turnover, and collection of cess during the past five years. The average growth rate in turnover, arrivals, sales and cess has been calculated. Higher rating is accorded to the APMCs having higher growth rate of market turnover and cess collection.

148

(ii)

Infrastructure related data: Road connectivity of the selected market yard location is an important criterion. The availability of electricity and telephone connectivity (Landline and Mobile) are also important factors. The livestock markets having the maximum average annual arrivals of animals during the last five years in each district have been identified. However, districts, where the highest average arrival of the last five years is less than 30,000 animals per year, have been excluded. So as to make the list of 20 LSMs, the LSM with next highest average annual arrivals of animals has been included, restricting two LSMs from any one district. This strategy is followed to have equitable spread of LSM development in the State and at the same time to have reasonably large LSMs for development. The list of APMC Cattle Markets and SR Markets that would take part in modernization programme, based on the qualitative ranking and fulfilling the selection criteria is given below:
List of Livestock APMC (Cattle Markets) Sr. No. District 1 Nagpur 2 Bhandara 3 Gondiya 4 Amarawati 5 Washim 6 Yewatmal 7 Buldhana 8 Beed 9 Nasik 10 Ahmadnagar 11 Jalgaon 12 Jalgaon 13 Dhule 14 Thane 15 Pune 16 Satara 17 Solapur 18 Solapur 19 Sangli 20 Kolhapur Name of APMC Savner Lakhani Amgaon Chandur Bajar Karanja Pusad Mehekar Kada Pimpalgaon Basmat Newasa Pachora Amalner Shirpur Vasai Khed Lonand Sangola Akluj Sangli Vadgaon Peth

(iii)

(iv)

Small Ruminant Market Yard: Four identified SR Markets would be developed and locations selected are according to small ruminant population i.e. producing area or hub of small ruminant breeding. The selected locations are given below. These markets have also been identified on the basis of the analysis of data of SR Markets and the selection criteria as mentioned above. Sr. No. 1 2 3 4 Name of APMC Atpadi Karjat Dound Dahiwadi District Sangli Ahmednagar Pune Satara

List of Live Small Ruminants Markets (S.R.Markets)

149

V. Activities to be financed: Illustrative list of investments to be made and its phasing: 10. Illustrative list of investments, to be made in these regulated markets is given below: (a) Livestock Market yard - Investment Details
Sr. No. 1 2 3 4 5 6 7 8 9 10 11 12 Livestock Market yard - Investment Details (illustrative for

costing purpose only)

Development of a Tree Grove in 1 Ha of Land (Plantation and Maintenance Costs for 3 yrs) Bore Well, Overhead Water Tank and Pipe Lines All Weather WBM Road to Ramp Loading and Unloading Ramps and Foot Baths (2 numbers) Drinking Water troughs (four numbers) Weigh Bridge (with Platform & Border Railings): 1.5 MT Capacity along with a shed Milking Machines with accessories with Shed (with AC Sheet Roof) (2 numbers of 10 sq mt) Auction Yard (Shed with AC Sheet Roof) of 10 sq mt Open Shed with AC Roof and Dwarf walls and Resting Room for Farmers (1800 sq ft) along with toilet and showers Land development and Storm / Rain Water Surface Drainage Concrete Platforms for waste deposit along with soak pit Boundary Fence (Barbed Wire: 5 rows and Mild Steel Angles for posts, with gate)

(b) Small Ruminant Market Yard - Investment Details

Sr. No. 1 2 3 4 5 6 7 8 9 10 Small Ruminant Market Yard - Investment Details (illustrative for

costing purpose only)

Open Shed with AC Roof & Dwarf walls (1800 Sq ft ) and Toilets for farmers resting area Weigh Bridge (with platform and Border Railings) 1 MT Capacity Development of Tree Grove in 1 Ha of Land (Plantation & Maintenance for 3 Yrs) Bore well with water tank and Pipe Lines Drinking water Troughs for Animals 2 numbers Loading / Unloading Ramp with approach Road 2 numbers Land Development with Surface Drainage: storm / Rain Water Drainage 2 numbers Waste Management: Concrete Platform with Soak Pit and Approach Road - 2 platforms Boundary Fence (Barbed Wire: 5 rows and Mild Steel Angles for posts, with gate) Desk Top Computer, Peripherals and Accessories with Information Network Facilities.

(c) Capacity building and training: 11. The arrangements of capacity building and training under this subcomponent will be the same as it is under Upgrading & Modernization of APMCs. VI. Estimated costs: 12. Costs will be met from project funding. VII. Institutional and implementation arrangements: 150

a) Institutional Arrangements: 13. MSAMB and Department of Cooperation is responsible for implementing the APMC modernization program for the Livestock markets. Technical help of PIU of Animal Husbandry Department would be taken by MSAMB. The role of PIU-MSAMB would be to liaise with the contractors and the service providers, approve variations and time extension, sample checking and joint verifications of the measurement books, process bills of the contractors and consultants and resolution of any disputes within the contract/s. 14. MSAMB will be responsible for appointing Market Field Engineers on contract for quality control of the civil works. The specific tasks to be carried out by PIU (MSAMB), Dept of Cooperation, APMC and the service provider in the various stages of the project will be similar to those described under the para relating to Institutional Arrangements for the subcomponent of Upgrading & Modernization of APMCs. 15. Implementation Arrangements of this subcomponent would also be similar to the subcomponent of Upgrading & Modernization of APMCs. The implementation of this subcomponent would need SP who will be appointed. 16. Phasing of market modernization: The Livestock APMC modernization programme would be taken on a phased manner as under: Sr.No APMC Markets Yr-1 0 0 0 Yr-2 5 1 6 Yr-3 5 1 6 Yr-4 5 1 6 Yr-5 5 1 6 Yr-6 0 0 0 Total 20 4 24

APMC Livestock Market Yard 1 Cattle Market 2 Small Ruminant Market Total VIII. Funds flow:

17. The funds flow for this subcomponent will be similar to the subcomponent of Upgrading & Modernization of APMCs. As the subcomponent is fully funded by the project funds will flow through BDS upto DDRCS of the district who will make the payments to the contractors by treasury cheques as per bills certified by S.P and authorities and as recommended by the beneficiary APMC. IX. Fiduciary and Safeguards arrangements: 18. Maintenance of records and book keeping: The APMC will maintain the following accounts and registers for the funds received and payment made for every Live stock market. Each record will bear the name, address and the seal of APMC and will be machine numbered: a) Cash Book, b) Bill register, c) Receipt book, d) Cheque register, e) Payment register, f) Register of stock of material, goods, machinery received, used and the balance. 19. The APMC will also maintain the following records, other than those specified under the APMC Act and Rules: a) An up-to-date copy of the Act / Rules / directions and orders from MSAMB / Government, b) Maps showing the boundaries of the market yard and sub yard, c) Registers Asset register, Minutes register General Body, Managing Committee and sub committee meetings, Accounts books relating to MMIP fund received and spent, Register of payment of bills from MMIP fund. 20. Safeguards Arrangements: As the Project implementation involves large number of activities and equally large number of transactions there is a need of strong safeguard measures to mitigate the risks. (i) Internal Checks & Systems and Reconciliation of Accounts: for covering 151

mechanism of crosschecking, (ii) Project Audit Internal Audit & External Audit for validating the transactions by a third party expert, (iii) Computerized Accounting System: for Standardized practices and procedures, thus reducing eventuality of omission and commission, (iv) Periodical Reporting MIS: for monitoring progress in respect of the short term and long term Project Goals. X. Governance Risks and Mitigation Measures: 21. Following are the risks and the risk mitigation measures: Sr. No 1 Risks Technical / Design Description Willingness of the APMC as well as the capability of the institution to enforce the reforms are important for a need based design Capacity building of the personnel of APMC required for performing implementation activities as per WB norms. Infrastructure should be maintainable by the beneficiaries. Funds should be made available in time for maintaining continuity and creating the desired impact. --Increase in arrivals of animals will increase the work load on the conservancy staff. --Risk Mitigation Measures SP, which will be selected through competitive bidding, will do PRA for identifying the needs, defining the resources, prioritizing the needs, and reiterating the FPP in the GB of APMC

Implementation capacity and sustainability

Extensive training to the personnel of the APMCs and the concerned line departments regarding implementation & sustainability point of view is proposed. Separate infrastructure maintenance fund equal to 1% of cost of investment on modernisation (every year) shall be created by the beneficiary APMC. Funds shall be released in tranches. Next tranch shall be released only when satisfactory utilization is verified at the district level and PIU, PCU level.

Financial Management

4 5

Procurement Social and environment safeguards

Will be done as per WM procurement norms. Introduction of waste management system will take care of increase in animal droppings.

Other ( for example project specific corruption risk, ownership of project / program, prevalence of failure in similar projects)

Observance of reforms by APMCs and monitoring of the same by the Dept. of Agricultural Marketing shall create conducive atmosphere for higher levels of transparency and efficiency in implementation.

22. Governance in APMC Management: The governance in APMC management would involve mitigation measures like: (a) Participatory consultation with market users in selection of market investments, (b) Selection process of regulated markets based on predefined selection 152

criteria, (c) Project support for capacity building of APMCs on planning, budgeting and market management. The agencies responsible for these measures would be APMCs, PIU-MSAMB and the SP. The detail governance mechanism in APMC management is described in separate chapter on Governance and Accountability Action Plan (GAAP). XI. Sustainability: 23. The modern infrastructure will attract more arrivals resulting in increased income to farmer and to APMC. Additional income will also be available from modern Waste Handling and Disposal System. The maintenance of the proposed infrastructure is within the means of the APMC, considering 10% rise in the annual cess income due to higher turnover of animals in these markets as a result of improved infrastructure and facilities. 24. As these markets are established under the APMC land, the overall governance of these markets would come under the APMC. The concerned APMC would allocate 1% of the proposed investment cost as Market Maintenance Fund, to be kept in a separate bank account for the use of future maintenance of infrastructure so created. ***

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COMPONENT - C PROJECT MANAGEMENT

C.1. PROJECT COORDINATION UNIT (PCU) & PROJECT IMPLEMENTATION UNITs (PIUs)
1. The MACP involves the participation of three line departments, viz. Agriculture, Animal Husbandry and Agricultural Marketing. Similarly, at the State level there are three departments headed by three Principal Secretaries, viz. (i) Agriculture, (ii) ADF, (iii) Agricultural Marketing. The Principal Secretary (Coop. & Mktg.) is the Nodal Officer for the Project. Each of these departments is required to implement and manage various activities proposed under various components under this project. The process of implementation of all these activities will differ from each activity. 2. For the purpose of management of MACP, a High Power Committee and a Steering Committee (SC) has been constituted. Similarly Project Co-ordination Unit (PCU) of MACP and Project Implementation Units (PIU) for all the three line departments have been established. 3. The components / interventions of the project are implemented by the concerned line departments at various levels. Some of the components function at the village level. There are some interventions/activities that take place at taluka and district places. In order to co-ordinate the interventions at various stages, setting up of PCU facilitates the co-ordination between the line departments. The PCU guides and directs the line departments in the implementation of the project. It acts as an interface between the Steering Committee and the PIU of the line departments. 4. The PIU acts as a link between the PCU and the final beneficiaries. The PIU also gets the assistance of ATMA and the concerned district officer of their department in order to ensure smooth implementation. The officers besides the Nodal Officer in PIU are identified by the head of the department and these officers work in PIU. The PIU periodically reviews the progress in each intervention and provides corrective actions as and when necessary for the effective project implementation. The management of the Project would mean periodical monitoring of the actual level of achievement corresponding to the proposed targets. 5. High Power Committee (HPC) headed by Hon. Chief Minister of Maharashtra has been constituted as an advisory body for implementation of the project. The Minister (Agriculture), Minister (ADF), Minister (Agricultural Marketing) and the Chief Secretary are the members of this committee and the Principal Secretary (Coop. & Mktg.) is the Member Secretary of this committee. The HPC will meet once in a year to review the implementation of the project and give overall advice and policy directives for its smooth implementation. 6. The Steering Committee (SC) at the State level has been set up under the chairmanship of the Chief Secretary of Maharashtra. Principal Secretaries of Planning, Finance, Agriculture, ADF are the members of the Steering Committee. The Principal Secretary (Coop. & Mktg.) is the Member Secretary. The role of this committee is to monitor and coordinate the implementation of the project and also to take policy decisions within the framework of the decisions of HPC. The Cabinet of the State has already authorized the Steering Committee to approve minor changes in the design, budget, and administrative issues involved in implementation of this project. This committee will meet atleast once in 6 months.

154

7. For the purpose of management of the Project, a PCU for MACP and PIUs for the respective line departments have been set up. The PCU is headed by a Project Director, who is a senior serving officer of the Government. The Nodal Officers of the PIU is an officer from the respective line departments who will constantly liaise between PIU and PCU. 8. The officers and the support staff in the PCU and the PIUs are selected either taking the officers from the department or selecting the officers and staff from the market and appointing them on contract. 9. The institutional arrangements for project implementation have been prescribed as follows. Project Coordination Unit (PCU): 10. The PCU shall be overall responsible for the implementation and co-ordination of MACP. For the sake of administrative convenience and flexibility in functioning PCU has been created as a part of MSAMB. However, it shall function independent of MSAMB and it has been placed under the direct control of the Principal Secretary (Coop. & Mktg.). The PCU oversees the implementation of the project which is headed by the Project Director, who reports to the Principal Secretary (Coop. & Mktg.), GoM. The head quarter of PCU is kept at Pune as the heads of all the three line departments are located at Pune. PCU, PIU (MSAMB), PIU (Agriculture) and PIU (Animal Husbandry) will work under direct supervision and control of the Project Director of MACP. The PD, MACP will have all powers to visit, inspect and call for any information, reports regarding the project work from all the PIUs and the field officers of the concerned line departments implementing the project. 11. The PCU is headed by the Project Director, who is assisted by a number of experts in various fields, viz. Chief Finance Controller, Finance Specialist, Procurement Specialist, M&E Specialist, MIS Specialist, Social Development Specialist, Environment Specialist, Agribusiness Specialist, Marketing Coordinator, Agriculture Coordinator, and Livestock Coordinator and number of support staff. PCU, PIU (MSAMB), PIU (Agriculture) and PIU (Animal Husbandry) will work under direct supervision and control of the Project Director of MACP. The PD, MACP will have all powers to visit, inspect and call for any information, reports regarding the project work from all the PIUs and the field officers of the concerned line departments implementing the project. Project Implementation Unit (PIU) 12. The PIU of the line department functions under the over all guidance and control of the respective head of the department. It will comprise of Nodal Officer of the rank of Class I officer drawn from the departmental cadre with the support staff. The head of the department will constantly monitor that the activities pertaining to the department are being implemented in accordance with the strict observance of World Bank guidelines and as per schedule of the project. The Nodal officer in each line department keeps constant liaison with the PCU. The PIU MSAMB will function under the over all guidance and control of MD MSAMB. It has the Nodal Officer, Officer in charge (OIC) (APMC), OIC RH, OIC FCSC, Social/ Environmental Officer, Sr. Accounts Officer, Procurement Officer, Civil Engg. Specialist (for Contract Management), IT Expert, Administrative Officer and other support staff. Majority of this staff is taken from MSAMB and some specialist and support staff is either taken on deputation or on contract. The PIU Agriculture comprises of Nodal officer, Agriculture officer and Agriculture Supervisor from the Department of Agriculture. Agricultural supervisior will also be designated as Community Extension Officer responsible for community mobilization, as well as, addressing social and environmental concerns of the subprojects. Besides, PIU Agriculture will take Agricultural Marketing Expert, Procurement Officer, one accountant, one assistant having computer knowledge and two messengers drawn from the department or 155

on contract. The functions relating to accounts of PIU (Agri.) will be looked after by the Accounts Officer from the department. The work of PIU (Agri) will be closely monitored and supervised by Director, Agriculture, (Extension and Training) under the overall control of Commissioner, Agriculture. The PIU AHD has one Nodal Officer, one accountant having computer knowledge and one messenger. Nodal Officer will have the additional responsibility of Community Extension Officer to look after community mobilization, as well as, social and environmental concerns at subproject level for a period of initial one year. If need be, an independent Community Extension Officer will be recruited on contract in PIU (AHD). The Accountant having computer knowledge and one messenger may be taken on contract. The procurement function and the accounting function of PIU AHD will be looked after by the officers from the department who will be designated as Procurement Officer and Accounts Officer for PIU AHD. The exact requirement of staff for various PIUs is shown in organizational chart of PIUs and in cost tables.

Implementation Arrangements: 13. The implementation arrangements in each Department are as follows: a) Agriculture: i) Implemention of activities pertaining to market led technology transfer: Agriculture Department with the help of the field staff located up to taluka level will implement the actvities. The active support and help of all the line departments will be taken. Each ATMA has a Project Director and the District Collector is the Chairman of ATMA which coordinates with all the departments. The Nodal officer from PIU (Agri) liaise with PCU and coordinates the implementation of various activities by VANAMATI, ATMAs, field staff of Department of Agriculture and other relevant entities. ii) Implemention of activities pertaining to Preparation and Implementation of Marketing Strategies: The Department of Agriculture, GOM, is responsible for group formation under ATMA for such farmer groups whose primary reason for coming together is production. The implementation will follow a community-driven approach with active participation of the beneficiaries and other stakeholders (including line departments, NGOs and private sector) in the design, implementation and monitoring of the interventions. iii) The project activities undertaken for strengthening of ATMAs, strengthening of VANMATI, and preparation and implementation of MSS are coordinated, guided and monitored by the PIU (Agri). Regular meetings of the State Level officers of line departments are conducted for smooth and successful implementation of the project. iv) ATMAs: At the district level preparation and implementation of MSS is coordinated by respective ATMA, using the resources of all the participating line departments, KVKs, concerned State Agricultural Universities and participating NGOs and private sector entities. Contractual services of Agricultural Marketing Expert, Accountant and Computer operator are available at district level for each ATMA for preparation of MSS. v) The resource persons at VANAMATI will help in overall coordination of preparation of MSS in close association with the ATMA teams. District and field level staff of line departments - Agriculture, Animal husbandry and Co-operation and Marketing would be responsible for implementation of project activities related to their areas. 156

vi) ATMA acts as a facilitator between Producer Association (PA) and SP. The ATMA appraises the commercialization/ business plan prepared under the guidance of SP, and submits it to PIU (Agri)/ PCU for approval. vii) VANAMATI, the state level apex training institute, is responsible for organizing training to ATMA core team in preparation of MSS to SREP. viii) Procurement of staff for PIU (Agri.) and ATMAs will be carried out by Commissioner Agriculture and for VANAMATI by VANAMATI. b) Animal Husbandry: i) The implementation arrangements for activities pertaining to AHD are handled by the PIU (AHD) with the help of the field officers from the AHD and ATMA. The selection of SP is done by PIU (AHD). c) Agriculture Marketing : i) The MSAMB is the main implementing agency for this subcomponent with the support and active involvement of the field machinery of the Department of Coop. and Marketing. MSAMB will appoint SPs for SMS service, MID, IPP and MIS for implementation of this programme. ii) PIU, MSAMB implements activities pertaining to SMS service, market information display, IPP, MIS through a SP appointed by it. iii) The selection of SP for mobilization of farmers into PGs / PAs is done by PIU MSAMB. The SP prepares business plan for each FCSC which is submitted to PIU, MSAMB for approval. On approval, each FCSC performs community procurement and implements the business plan. The market field engineers and the SP supervise the works undertaken by each FCSC. iv) The program of warehouse receipt development by MSWC warehouses is implemented by MSWC whereas PIU, MSAMB will only oversee the same. However, with regard to APMC the activity is implemented by PIU, MSAMB. The procurement relating to MSWC and APMC is undertaken by PIU, MSAMB. v) The activities pertaining to Rural Haat are implemented by PIU-MSAMB. A SP is appointed by PIU-MSAMB who plans, designs and implements the proposal of the Grampanchayat concerned. The monitoring of the works is handled by Market Field Engineers of PIU-MSAMB with the support of SP and VDO Grampanchayat. vi) The activities pertaining to APMCs, LSM and SR markets are implemented by PIUMSAMB. A SP is appointed by PIU-MSAMB who plans, designs and implements the proposal of the APMC/LSM/SR markets concerned. The monitoring of the works is handled by Market Field Engineers of PIU-MSAMB with the support of SP and Secretary APMC. 14. The funds required to be spent on activities pertaining to the PCU, PIU (MSAMB) and MSWC will be drawn by the DDO in DOCM from treasury and disbursed to the PCU, PIU (MSAMB) and MSWC. 15. The funds flows from the Finance Department of the State to the Cooperation & Marketing, Agriculture and ADF departments and further to the PIU (Agri) & PIU (AHD) through BDS (electronic transfer of funds). The details of the funds flow arrangement has been spelt out in the chapter on Financial Management. 16. The monitoring of the project by PCU and PIU enables the smooth implementation of the project. a) Role of the PCU The role of PCU is as under: 157

i.

The Project Director of PCU is responsible for the implementation and co-ordination of MACP on behalf of the GoM with the help of PCU, PIUs and all the organizations concerned. ii. The Project Director signs all the contracts, MoUs between MACP and various organizations. iii. PCU co-ordinates and facilitates the implementation of the project. iv. It monitors the progress and directs the line departments to attain the proposed physical and fiscal targets thereby ensuring a continuous and steady progress in the project. v. It addressess the difficulties faced during the implementation of the project in the concerned line departments and seeks the guidance from the Steering Committee for more complex issues. vi. It periodically appraises the progress of the project to the Steering Committee. vii. The personnel in the PCU assists and guides the line departments in the matters like procurement, market design, environment, and social development. viii. It gets the records / accounts of the project and line departments audited every year. ix. Any other matter related to implementation of MACP. b) Role of PIUs The role of PIUs is as under: PIU functions under the general supervision, guidance and control of the respective Head of the Department. ii. Nodal Officer of the concerned line department supervises and monitors the development of the project. iii. Every nodal officer appraises the program prepared and implemented in the project to the Head of the Department and the PCU. iv. It prepares annual procurement plans for every subcomponent in the project period. v. The annual procurement plans are supplemented by the timelines of the activities to be undertaken in each sub-component. vi. Supervise and monitor the activities that would be phased out into each Quarter of the respective year. vii. Call for the tenders; finalize the tender with the participation of the implementing agencies as per the World Bank guidelines and which will be issued from time to time in this behalf by the World Bank. viii. Make payments to the contractor for the civil works undertaken wherever responsibility is with PIU. The payments will be made only after the verification of the works so executed. ix. Identify the PGs / PAs / APMCs to be included during the corresponding quarter with the help of Third Party Service Provider. x. Monitoring of training programmes to be imparted by ATMA/ ABPF is done by the concerned PIU of the line department and it co-ordinates with ATMA/ABPF and the beneficiary whenever necessary. xi. It ensures that the physical as well as the fiscal targets for all the interventions are achieved during every quarter. xii. The Nodal Officer of the PIU, may with the approval of Head of Department put forth the issues before the PCU for its redressal. xiii. PIU updates the progress made in their concerned line department to the PCU periodically. xiv. PIU plays the role of the coordinator between the various organizations involved in MACP, ATMA, ABPF and the district officers of the concerned line department. xv. Any other matter connected to implementation of components and sub components falling under the concerned Department. 17. The activities which require funding in the Project for PCU broadly fall as under: 158 i.

a) Investment Costs: The setting up of PCU requires refurbishment and setting up of furniture & fixtures and equipment. In addition to these activities consultants are selected to: (i) Conduct M&E and MIS activity, (ii) Provide training on procurement and finance, (iii) Conduct internal and external audit, and (iv) Conduct Agri Business Promotion Facility. b) Recurrent Costs: These basically include the salary of the personnel, travel expenses, rent-rates-taxes and O&M. 18. Similarly the PIU investment cost includes refurbishment of the office, furniture and fixtures. In addition, cost is incurred by the PIU for appointing Service Provider/ NGOs, providing training, conducting demonstrations, exposure visits, workshops etc. The recurrent costs include the salary on personnel, travel expenses, rent-rates-taxes and O&M. Internal audit of the entire MACP accounts is conducted by a firm of Chartered Accountants (CA) appointed by competitive bidding by PCU. The external audit of accounts that are reflected through the BDS system and that of MSWC are audited by the Accountant General (AG). Further, the external audit of beneficiary accounts maintained at the district level by the DDR are audited by the Chartered Accountant. The details pertaining to audit have been spelt out in the chapter of Financial Management. Procurement Training: Line department staff concerned with procurement activities is being given procurement training. Financial training: Finance team from PCU and PIU will be trained in procurement areas by Procurement Training Consultant and the finance team of PCU and PIU will provide training relating to financial matters, funds flow, accounting, financial reporting to the accountants and the concerned field officers of the line departments. The estimated recurrent costs on PCU would be Rs. 1347.00 Lakh and for PIUs it would be Rs. 2413.80 Lakh. The total estimated cost of PCU is Rs. 3121.88 Lakh and PIUs is Rs. 2562.60 Lakh. These are the estimates for the purpose of calculation of the cost and may undergo some change during the period of implementation. ***

19.

20. 21.

22.

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C. 2 ENVIRONMENTAL AND SOCIAL MANAGEMENT

1. As part of project preparation, an Integrated Environmental and Social Assessment Study (IESA) was undertaken with an aim to provide inputs into the design of MACP in accordance with the World Bank Operational Guidelines through identification of key environmental and social issues arising out of the proposed Project activities and mainstream the social and environmental management measures in all stages of the project cycle. The study developed a Environmental and Social Management Framework (ESMF) to ensure that: i) Environmental and social considerations are fully mainstreamed in project planning, implementation and monitoring; and ii) The potential adverse impacts are adequately mitigated and potential benefits of the project are further enhanced to improve the effectiveness and sustainability of the project. Environmental and Social Perspectives of the Project 2. The overall assessment of the MACP intervention proposals in terms of environmental and social considerations is positive. The assessment shows that while there is very low risk of negative environmental and social impacts, there are high positive social impacts and opportunities to enhance the environmental performance through the project. Summary of the findings are as follows: a) Environmental: i. Majority of the interventions proposed are not new, efforts are to improve the existing practices and consequently spatially and temporally limited impacts may occur. Mitigation measures are proposed in the report to contain / minimize / reverse any adverse impacts. ii. Sites proposed for infrastructure are in close proximity to the centre of production and accessible through all weather roads. iii. Land required for the project does not come under forestland or protected area and any upgrading of existing marketing facilities will not result in any major land use change or disturb any natural habitat outside the protected areas. iv. Improved markets could witness increased farm produce being traded and management of solid / organic waste could be an issue. Measures have been proposed in the report to address management of solid / organic wastes. v. Better access to markets could drive on farm practices that increase yields resulting in increased use of fertilizers and pesticides. An Integrated Nutrient / Pest Management (INPM) strategy has been developed for the project and included as part of ESMF. vi. Opportunities exist to enhance the positive environmental impacts by using alternative and environmentally friendly materials and approaches for conservation of natural resources. b) Social: i. Project interventions do not create issues related to physical displacement and consequently involuntary resettlement. For the first year sub-project sites covered under IESA, the required land is mostly public land (held with line departments / local government or community bodies) and acquisition of private land is not envisaged for the proposed project interventions. However, for any unanticipated adverse impacts measures have been defined in the report for dealing with the Resettlement and Rehabilitation (R&R) issues. ii. The project interventions do not result in any adverse impact on the local communities. However, the proposed environmental and social management framework includes 160

measures to help the local population (particularly the vulnerable among them) to access project benefits. iii. Positive indirect effect on health and education status among primary stakeholders has been brought out in the study. iv. The project interventions will have positive impacts in terms of the increased accessibility to the market infrastructure and marketing facilities. Environmental and Social Management Framework (ESMF) 3. The ESMF is developed to incorporate environmental and social safeguards into the main project planning, execution and operation. It will be applied to all the sub-projects in different stages of the project cycle. The framework has been suggested considering three broad stages of project cycle viz. project preparation, project implementation and project operation. The ESMF also incorporates key issues pertaining to gender equity, tribal development, capability building and institutional arrangement. The framework also includes screening process of sub projects and monitoring measures. i. Preparation At this stage, the activities relate to planning and designing of subprojects are: Surveys and Database Consultation with Stakeholders Preparation of Sub Project Plan Submission of Sub Plan to Environment and Social Cell ii. Implementation This stage activities refer to actual implementation of the subproject plan and these are: Award of contracts Work Execution and Supervision Quality Control iii. Operation This stage refers to actual operation of all subproject components and the key activities are: Strengthening Producer company and inclusion of disadvantaged sections Solid Waste disposal and maintaining hygiene of the area: Monitoring and Evaluation The details of all the ESMF activities and expected outcome in the different stages of subproject are presented below:
Stage s

Preparation

ESMF Activities Surveys and Database: Initial surveys to focus on: Site selection and assessing clear title of the land Presence and creating database on functioning of farmers collective Baseline data collection. Identification of various stakeholders including women, SC/ST, small and marginal farmers Developing construction design blueprints using eco-friendly materials and incorporation of waste disposals and rain water harvesting measures Assessment of logistics involved in construction materials/contractors/labours etc Consultation with Stakeholders: The focus will be on: Workshop with local farmers collective to assess group strength and identify gaps for skill up-gradation and capability building Sharing of project component and building consensus on the project component through a pre-designed workshop

1.

Outcome Identification of sub projects with detailed baseline database on social and environmental indicators Identification and agreement from the stakeholders on their support and participation in the project Finalized sub-project and detailed implementation plan

2.

3.

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Stage s

Implementation

ESMF Activities Ensure participation of women, SC/ST and small and marginalized farmers beside supply chain participants like traders, transporters etc. Incorporate the suggestions Preparation of Sub Project Plan: The plan should include details on the following components: Selected site and overview of project benefits and activities. This should include copy of title of the land Detailed plan for inclusion of women, small and marginal farmers and SC/STs of the area in the various stages of the project activities. Capability building plan for skill up-gradation and capacities of the farmers collective (PG) Award of contracts: Procurement documents, procedures followed, contracts awarded & equipment procured Work Execution and Supervision: Periodic monitoring to ascertain adherence of ESMF especially in conservation of flora and fauna, appropriate measures for waste disposals and construction debris Ensure employment of local people for construction related activities Ensure measures/linkages for spread of communicable disease. Establish linkages with local NGO having expertise in HIV prevention and control Quality Control: Ensure monitoring of day to day work through involving members of producer company/farmers collective and regular visit to the site by members of line departments Progress report and discussion on the site specific issues on a monthly basis

Outcome

1. Implementation and monitoring of social and environmental management plans 2. Enhanced relationship among the officials of line departments and producer company members resulting in active participation in the sub-project implementation 3. Report of the results of social and environmental mitigation measures. This should include record of information like compensation paid, trees fell/planted during implementation, employment provided to SC/ST, women etc Report on the assessment of the farmers collective (PG) / producer companies Report on the skill building programs Practices on waste disposal in place resulting in clean and hygienic environment at the site Completion of sub project activities in conformity with ESMF

Operation

Strengthening Producer company and inclusion of disadvantaged sections: Ensure representation of all section of societies in the executive committee Execution of capability building plan to upgrade the skills of various stakeholders Ensure operationalization of menu of services including graded service charges for disadvantaged sections, women, small and marginal farmers Undertake periodic group strength assessment to assess the functioning and capability building needs of the group Solid Waste disposal and maintaining hygiene of the area: Build linkages with organizations/companies that can reuse the wastes generated out of operations Assess the efficiency of the waste disposal system and ensure separation of degradable and non degradable waste Ensure proper maintenance and utilization of water harvested through rain water harvesting systems Monitoring and Evaluation: Monitor key social and environmental indicators during the course of operation. Document key learnings and incorporate the same for future subprojects

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iv. The various components of ESMF are: Resettlement and rehabilitation (R&R) policy framework Gender development strategy Tribal development strategy Integrated Soil / Nutrient / Pest Management Training and capacity building Conflict resolution Institutional arrangement 4. R&R framework: The following guiding principles will be adopted by the project to address any R&R issue arising under the project a) The project does not envisage acquisition of any private land, however, if any exigencies arise, compensation will be at replacement value. b) Encroachers not affected by the project will not be disturbed and those adversely affected will get support under the project to mitigate the losses. c) All efforts will be made to encourage encroachers to voluntarily surrender encroached lands (required for project interventions) but nobody will be forced out. d) The affected communities will be consulted in planning and implementing R& R activities. e) All those displaced will be socially and economically integrated with the local or host population. Adequate resources including physical, financial, and human will be made available to implement R & R activities under the project. f) Common pool resources, if affected, shall be replaced in consultation with the local community, especially keeping in mind the needs of the poor, and the vulnerable sections of the community. i. R&R entitlement framework: The R&R entitlement framework to support the project affected families is presented in the Table below
Table: Entitlement Framework for the Economic Rehabilitation of PAFs Unit of Entitlement entitlement Titleholders The affected families will have option to choose any one from the following. family and Option 1: Cash compensation as fixed by LA authorities + alternate land at tribal with occupancy price fixed by Govt. The extent of land to be allotted will be as customary per the Part III* of the Schedule of MPAPR Act 2001 + Registration charges. rights Option 2: Cash compensation as fixed by LA authorities + Rehabilitation assistance equal to minimum agricultural wages of (a) 750 days for families losing entire land, (b) 500 days for families losing part land and becoming marginal farmer and (c) 375 days for families losing part land and after loss becoming small farmers. Option 3: Cash compensation as fixed by LA authorities + Option for IGA of Family equivalent amount for regular income. Reimbursement for unexpired lease Family These families are not eligible for any compensation. However, vulnerable 2. Loss of any other immobile asset Owner Cash compensation as fixed by authorities

Type of Impact 1. Loss of Agricultural land with valid title/ customary or usufruct rights

(ii) tenants, share croppers and lease holders (iii) encroachers

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3. Loss of access to Common Property Resources/ facilities a. Rural common Community Replacement/augmentation of common property resources property resources Community Replacement/access to equivalent amenities/services b. Civic amenities and services 4. Loss of standing crops/trees a. With valid title b. Tenant/lessee Family cultivating land For either category, only the cultivator will get compensation at market rate for crops and fruit bearing trees

Note: The relevant pages of Maharashtra Project Affected Persons Resettlement Act are scanned and presented in Appendix N of IESA report.

5. Gender Development and Strategy: The focus group discussions with women groups and stakeholders consultation held in different project locations helped to identify gender issues that are relevant to the proposed project and to formulate measures to enhance their participation and access to project benefits along with others. Key observations from these discussions are: Low / less participation in any development program. Women play significant role in agriculture and other related activities, however these are not recognized by communities. Ownership of agricultural land is generally in the name of men. Women cultivators have problems in accessing markets particularly because of social and economic constraints in reaching nearby markets. Wages to women are generally underpaid and are not at par with male workers for the same type of work.

While it is unrealistic to expect that the project will address all issues and concerns of women, a right approach would be to focus on specific issues that could address those that are most relevant to the project outcome. Following this approach, the gender development strategy of the project includes specific activities including identifying infrastructure needs and facilities for women members at the market, working with women Self Help Groups (SHG) and helping them to actively participate in the project activities. The proposed gender development strategy is given below. Gender Development Strategy
Stages Preparation Procedures Identify gender concerns/issues in relation to the project activities through PRA exercises Inform about the project activities and benefits Activities List issues and prioritize Special attention should be made to identify infrastructure needs and facilities for women members at the market Organize women stakeholders meeting Outcome Identify issues that could be addressed under the project

No. of consultations Minutes of the meetings signed by participants. Feedback from these consultations No. of meetings held No. of participants

Sensitize other stakeholders on gender concerns/issues

Organize workshops on gender sensitization

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Stages

Implementation

Procedures Identify key areas of constraints that impact womens involvement in the project Ensure women participation in project activities

Activities Organize workshops meetings with women of the sub-project area

Outcome List concerns and constraints

Work with women SHG Help SHGs to actively participation in the project activities

Ensure equal wages for equal work in all construction related works under the project

Ensure no women harassment under the project

Operation

Ensure women participation in the working of the market

Capacity building of women members and skill up-gradation Employment generation for women in sub project activities

Maintain a Wage register at the site and ensure it is filled on a daily basis. Monitor wage payment Try involve local SHGs in the construction activities Constitute an Anti harassment cell comprising of members from Market committee, PRIs and line departments to address women harassment issues. Complaint register to be maintained at the market level and to be checked periodically by the Market Monitoring Committee. Ensure quick redressal of women abuse related issues Organize training for active participation of women members in the committee Ensure that women members attend all meetings of the Market committee or Producer Company / Association. Training calendar to be prepared and accordingly training to be organized Involve SHGs Source out some of the activities to women

Monitor women representation in Market committee Record no. of women involved in construction activities Actual wages paid to women No. of complaints on wage payment

No. of meetings of Antiharassment Cell No. of complaints registered No. of cases resolved

Monitor that women producers get a fair share of their price

No. of trainings undertaken Number of women members trained No. of women members employed No. of activities undertaken by SHGs

6. Tribal Development and Strategy: There are some sub-projects that are located in areas predominantly inhabited by tribal. The key issues and concerns related to tribal vis--vis the project are summarized below: Tribal communities continue to practice traditional agricultural practices and hence little exposure to improve agricultural practices and use of farm inputs Limited exposure to emerging markets Limited access to institutional credit, farm inputs and agricultural extension services Poor leadership quality and inadequate representation/participation in the decision-making process To address these issues, the tribal development strategy of the project, presented below, aims at increasing active participation of tribal and their access to project benefits at par with the rest of the communities.

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Tribal Development Strategy

Stages Preparation Procedures Identify concerns/issues in relation to the project activities through PRA exercises Organize consultation with tribal to inform about the project activities and benefits Identify key areas of constraints that may be improved through the project and develop detailed plan for tribal development Implemen-tation Ensure participation of tribal in monitoring Employment to members from tribal community in carrying out actual construction work Ensure representation of tribal members in decision making body of the producer company Capability building of tribal members and skill up-gradation Employment generation for tribal in related sub project activities Help build linkages with major government schemes for tribal development particularly skill enhancement and technology up-gradation Activities & Outcome List issues Number of consultations held List areas of constraints Number of consultations & signed minutes List of activities specifically targeting tribal development Representation of members from tribal communities in monitoring committee Number of tribal employed

Operation

Number of tribal members in the executive committee Training calendar to be prepared Number of trainings undertaken Number of tribal members trained Number of women members employed undertaking various activities Number of projects linked in the sub project locations

7. Integrated Soil / Nutrient / Pest Management: While the project only envisages procurement of limited agricultural chemicals (fertilizers and pesticides) for the purpose of demonstration, successful outcomes and the possibilities of better marketing opportunities could drive up use of these in areas where project would be introduced and demonstrations held. An integrated strategy for managing soil / nutrients and pesticides would address the concerns related to overuse of agricultural chemicals. The strategy takes into account the broad principles of achieving maximum production with minimum inputs that minimize environmental pollution and manage pests below the economic threshold level. The strategy also includes IPM for the livestock sector. More specifically, the strategy provides a year-wise roadmap for sensitization, awareness building, training, demonstration and capacity building of relevant stakeholders to adopt INPM approach. 8. Training: The basic tenant for success of any project is competent and skilled human resource. It is desirable and therefore proposed that the concerned officials of line departments and other stakeholders of the project are adequately trained and capacitated to undertake project responsibilities. Following are the indicative lists of skills and competence requirements at sub project level.
Stakeholders Officials of MSAMB Competence and Skill requirement Identification, documentation and planning of Social and Environmental indicators at sub project level Monitoring and evaluation of social and environmental indicators Training in documentation and data management Ability to solve problems on a day to day basis Effective communication to build and develop relationships with stakeholders particularly women and tribals Institutional analysis and knowledge on relevant laws Training on documentation and data management Training on solid waste disposals and management of rain water harvesting systems Extension skills Ability to solve problems on a day to day basis

Field employees and officials of line departments

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Stakeholders Executive members of producer companies / producer association Beneficiaries and community members including women and tribal

Competence and Skill requirement Awareness on social and environmental indicators and its impact Awareness on rules and regulations of the company Leadership and ability to operate in a democratic and transparent way Relevant business and management skills Knowledge on accounting and other administrative functions of the company / producer association Improved farm management practices, sustainable use of water, integrated pest management measures etc Importance of better sanitation and hygiene including health of animals/cattle Addressing environmental and social issues and its mitigation measures

For the purpose of providing ESMF arrangements an amount of Rs. 50.00 lakhs has been provided in the project which is included in the cost table of PCU. 9. Conflict Resolution Mechanism: There is a need for a well defined conflict resolution mechanism as a number of issues may arise around equity, inclusiveness, participation and transparency issues become potential sources of conflicts, especially in context of collective action like the Producer Association (PA). Community Level conflict resolution mechanisms are fairly strong. Each producer group / farmer group has both formal structures, like Executive Committee (office bearers like president, secretary and treasurer) and General Body to take a call on conflict situation. The proposed Producer Associations (PAs) of the Farmer Groups (FGs) will form the Cluster Level mechanism for conflict resolution. The process, time period for resolution and responsibility for different levels of conflict management are prescribed. Monitoring and Evaluation: The project will have both internal and external monitoring mechanisms which will also cover ESMF activities under the project. In addition, the project will have provision for a mid-term evaluation of ESMF activities by a third party in collaboration with the project to get an independent validation of the progress, and take corrective measures mid way through the project. The learning from Monitoring and Evaluation of indicators would be built into project implementation processes for improving project performance. Institutional arrangement: The project will have a social and environmental cell in PCU with at least one Environmental officer and one Social expert. Considering the fact that all the major infrastructure activities are being implemented by the PIU MSAMB, there will be one officer to look after both social and environmental concerns of the project in PIU MSAMB. Agricultural Supervisior in PIU (Agricultural) is designated as Community Extension Officer and the Nodal Officer in PIU (AHD) will look after the additional work as Community Extension Officer responsible for community mobilization, and environmental and social aspects of the subprojects. In PIU (AHD), after initial one year of the project an independent Community Extension Officer may be appointed on contract for the project period, if need be.

10.

11.

12. Consultation Workshops under IESA: In order to make the contents of the IESA Report better known to the public and all the stakeholders, district level workshops are planned at all the district places in the Phase 1 districts. In these workshops the representatives of the public and all the stakeholders have been invited and they will be provided with: (i) the project document reflecting the current, revised scope of the project in the local language, (ii) the executive summary of IESA and ESMF (including R&R framework, Tribal Development Strategy, Conflict Resolution Mechanism), (iii) the dissemination note about public disclosure of IESA report, (iv) the brochures, posters and other dissemination material relating to IESA Report. The results of these workshops will be documented and will be shared with all the stakeholders and disclosed in the public domain. 13. Disclosure in public domain the IESA Study findings: The final report of the IESA Study (including R&R framework, Tribal Development Strategy, Conflict Resolution Mechanism), 167

the Executive Summary of the report of the IESA Study, along with the summary of the key material changes, the Marathi translation of the Executive Summary of the report of the IESA Study has been put in the public domain for the knowledge of all the stakeholders and the public at large by publishing the same on the website of MSAMB (www.msamb.com) on 14th May 2010, after the same was duly cleared by the World Bank.

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C.3 PROCUREMENT
1. The implementation of MACP involves the participation of the department's viz. Agriculture, Animal Husbandry, and Agricultural Marketing. For policy decisions and advice HPC under the chairmanship of Chief Minister of the State has been constituted. Likewise, the Steering Committee headed by the Chief Secretary has also been established. The Principal Secreatary (Coop. & Mktg.) is the Nodal Officer for the Project. PCU headed by the Project Director and PIUs under the heads of the departments involved in the Project have been created for coordination and implementation of the Project. 2. During the implementation of the project various activities will be conducted by the concerned Line Departments. These activities involve procurement in the areas viz. works, goods / equipments, and consultancy services. 3. All procurements under the MACP to be carried out by PCU, various PIUs and beneficiary institutions, would be done as per the World Banks procurement procedure. 4. Procurement of all goods, works and services will be carried out in accordance with the World Banks "Guidelines: Procurement Under IBRD Loans and IDA Credits" dated May 2004, revised October, 2006 (Procurement Guidelines); and "Guidelines: Selection and Employment of Consultants by World Bank Borrowers" dated May 2004, revised October, 2006 (Consultancy Guidelines) and the agreed procedures described in the Legal Agreements. In case of a discrepancy between the contents of this manual and the provisions of the above Guidelines, the provisions in the Guidelines will prevail. 5. A Procurement Manual for the project has been prepared stating in detail the procedures to be followed during the procurement of goods, works and services along with the thresholds for each category. The Procurement Manual has been prepared, and will be given to all the PIUs and beneficiary institutions and all stakeholders in order to guide them on issues of procurement. The Procurement Manual will be translated in Marathi and the Marathi version of Procurement Manual will be given to all the line departments and all stakeholders. 6. Details of Component wise Activities and Implementing Agency.
Component Component A- Intensification and Diversification of Market Led Production A1 (i) Institutional Strengthening for Market-led Agri. Technology Transfer A1(ii) Preparation & Implementation of Marketing Strategies A2 Agri-Business Promotion Facility (ABPF) A3 Market Information Services A4 Live Stock Support Services Component B- Improving Farmer Access to Markets B1 Promoting Alternative Markets B 1.1 Product Aggregation and Sale through Producers Association B 1.2 Warehouse Receipts Development B 1.3 Rural Haats Markets B 1.4 Introducing E-Marketing Platforms B2 Modernizing Existing Markets Upgrading Market Infrastructure B 2.1 Modernizing Wholesale Markets B 2.2 Upgrading Livestock Yards Component C- Project Management C (i) Project Coordination Unit (PCUs) C (ii) Project Implementation Units (PIUs) Implementing Agency ATMA-Agri Dept ATMA/Agri Dept PCU PIU-MSAMB AH Dept

PIU-MSAMB PIU-MSAMB PIU-MSAMB PIU-MSAMB PIU-MSAMB PIU-MSAMB PCU PIU

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7. The Thresholds for Procurement Methods for PCU and PIUs and Review Conditions By Bank, for Civil Works, Goods, Community Procurement and Services would be as indicated below :a. Civil Works
Value (threshold**) per contract a) Civil works estimated to cost more than US$ 10 million [> INR 500 million] equivalent b) Civil works estimated to cost more than US$ 50,000 [> INR 2,500,000.00] and less than or equal to US$ 10.0 million [<= INR 500 million] equivalent Procurement Method International Competitive Bidding (ICB) National Competitive Bidding (NCB) Contracts Subject to Prior Review / Post Review** Prior review by the Bank First two works contracts under NCB regardless of value and all subsequent contracts costing more than US$ 500,000 equivalent each will be prior reviewed by the Bank. All other contracts by post review Post review only Expenditure Category Civil Works by PCU and PIU

c) Civil works estimated to cost the equivalent of US$ 50,000 or less (<= INR 2,500,000.00)

Shopping (at least three quotations from qualified contractors)

** If a transaction comprises several packages, lots or slices, the aggregate, estimated value of contracts determines the applicable threshold amount

b.

Goods
Value (threshold**) per contract Contracts estimated to cost more than US$ 300,000(>INR 15.0 million) Contracts estimated to cost more than US$ 50,000 and <= US$ 300,000 equivalent (>INR 2.5 million but < INR 15.0 million) Procurement Method Contracts Subject to Prior Review / Post Review** Prior review by the Bank

Expenditure Category Goods/ Equipment/ Machines by PCU and PIUs Goods/ Equipment/ Machines by PCU and PIUs

International Competitive Bidding (ICB)

National Competitive Bidding (NCB)

Equipment/ Materials/ Tools by PCU and PIUs

Shopping (includes issue of supply orders under DGS&D rate contracts. State Rate Contracts are not to be considered as alternative to DGS &D Rate Contracts. However, state Rate Contracts can be considered as one of the 3 quotations for shopping procedure) Direct Contracting, if the conditions of direct contracting are met ** If a transaction comprises several packages, lots or slices, the aggregate, estimated value of contracts

Contracts estimated to cost less than or equal to US$ 50,000 equivalent (<= INR 2.5 million)

First two contracts under NCB regardless of value and all subsequent contracts costing more than US$ 300,000 equivalent each will be prior reviewed by the Bank. All other contracts by post review Post Review only

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determines the applicable threshold amount

c.

Community Procurement
Value in (threshold**) per contract US$ 20,000 (INR 1,000,000) Procurement Method Contracts Subject to Prior Review / Post Review** Post Review

Expenditure Category Goods, Equipment and raw Materials Civil Works

US$ 50,000 (INR 2,500,000)

US$ 50,001 to 100,000 Post Review (INR 2,500,000 to 5,000,000) ** If a transaction comprises several packages, lots or slices, the aggregate, estimated value of contracts determines the applicable threshold amount

Shopping / DGS&D Rate Contract Based on Unit Cost Database9 Shopping/ Force Account10 Local Bidding11

Post Review

d.

SERVICES by PCUs and PIUs

Expenditure Category

Value (threshold**) per contract

Procurement Method

Services, Service Provider Contracts, Third party Supervision services, Research and evaluation contracts, professional services, training, workshops & fellowships etc. By PCU and PIUs

(a) More than US$ 200,000 equivalent [>INR 10.0 million]

Quality and Cost Based Selection (QCBS International Shortlist, if the value is above US$500,000)/ Single Source Selection (SSS)12

Contracts Subject to Prior Review / Post Review** Prior Review by the bank. first two contracts regardless of value and all subsequent contracts valued above US$ 300,000

(b) Contracts estimated to cost more than US$ 50,000 (>INR 2,500,000 ) and less than or equal to US$ 200,000 equivalent (<= INR 10.0 million)

(c) Contracts estimated to cost more

9

Quality- and Cost-Based Selection (QCBS)/Consultant Qualification (CQS) /Least Cost Method (LCM)/ Fixed Budget Selection (FBS)/Single Source Selection (SSS). Short list may comprise entirely of national consultants Quality and Cost Based

Post Review by the bank, however ToRs needs to be pre agreed with Bank

Post Review by

This method is used for equipment and machinery when there is a need to adopt certain minimum standards of specification, technology or a repeat order. To facilitate consistent standards and comparable price ranges, the contract price agreed upon should be based on established estimates by PCU/PIU as shown in a Unit Cost Database. These databases will be maintained by the PCU/PIU after carrying out a Floating of Enquiry (FOE). The UCDs should be kept updated and valid and can be useful for communities in the preparation of proposals and in assessing whether a specific supplier is offering a fair price. 10 Under a community force account, the community implements the subproject using its own resources (skilled and unskilled labor, materials, equipment), and may subcontract part of the subproject. This approach offers several advantages. It is community driven and cost effective (inputs can be provided by the community at belowmarket costs), and it injects funds into the community (e.g., through the payment of wages and materials).
11

This method and value threshold is applicable only for Haats. In Local Bidding, open tendering procedures should be limited to local advertising using local newspaper and posting notices at strategic places. Essentially this is like NCB except it is not mandatory to advertise in a newspaper of national circulation and bidding documents are simpler. Target suppliers and contractors are often those within the vicinity of the beneficiary community. The request for bids spells out the works details, the criteria for selection, and the deadline for submission of bids. Bids are opened in a public ceremony. The bids are normally evaluated by the Procurement committee. Bids are examined to determine whether they meet the minimum specifications mentioned in the bidding documents (experience, quality of works, equipment, services offered, and delivery dates). Bids that meet the minimum requirements specified in the bid invitation are retained for further evaluation and among the qualified bids, the lowest cost is selected. Accordingly, for Rural Haats the DPRs and the bidding documents will be prepared by the Service Provider to be engaged by PIU (MSAMB). After approval of the DPR & bidding document, the Rural Haat community procurement committee will float bids and take decision on the bid evaluation report, which will be prepared with the help of the concerned service provider. In case, the bid price of the lowest evaluated responsive bidder exceeds 5% of the updated estimated/ DPR cost, the Rural Haat community procurement committee will obtain written concurrence of the PIU, before award of contract
12

Single Source Selection is subject to meeting the conditions as detailed in Consultancy Guidelines. Regardless of the value, every single source selection should be submitted for prior review by the Bank with a detailed justification note.

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Expenditure Category

Value (threshold**) per contract

Procurement Method

Selection QCBS/ Quality Based Selection (QBS)/Consultant Qualification (CQS)/ Least Cost Method (LCM), Fixed Budget Selection (FBS). /Single Source Selection (SSS) and individual consultant (d) Less than or equal to US$ 5,000 Single source / Least Cost Post Review by equivalent [<= INR 250,000] selection of firms/ Bank Consultant Qualifications Method Hiring of individuals ** If a transaction comprises several packages, lots or slices, the aggregate, estimated value of contracts determines the applicable threshold amount

than US$ 5,000 (>INR 250,000 ) and less than or equal to US$ 50,000 equivalent (<= INR 1,000,000)

Contracts Subject to Prior Review / Post Review** the bank

8.

Procurement Plan - The PCU/ PIU of every line department will identify and finalize the procurement activities that will be undertaken in each subcomponent. Accordingly the phasing of such activities will be prepared for goods, works and services for all the activities put together. The Procurement Plans for 18 months initially and for every successive year will be prepared considering the packages for goods, works and services. The procurement plan for first 18 months has been prepared and the steps to procure goods and services required during the first phase of the project have been initiated. The Plan will be updated by the PCU in consultation with the PIUs every year and submit to the Bank for approval. Procurement Committee: A procurement committee has been constituted in PCU, and all concerned PIUs to compare, give advice and recommend to the competent authority regarding the quality and price of goods to be procured. These committees will be responsible for: Preparing a Procurement Plan. Approving what to buy, and when to buy? Finalize technical specifications and terms of references for goods / civil works and services respectively. Evaluation of bids , with the help of Service Providers, wherever applicable. Over sight and supervision of the procurement and contract management.

9.

10. The composition of the procurement committee at PCU, PIUs, RHs, / FCSCs / Demonstration Units / PAs would be as follows :i) Procurement Committee at PCU (a) Project Director, (Chairperson) (b) Chief Finance Controller - Member, (c) concerned technical specialist/ Coordinator in the PCU [ i.e the related specialist in MIS / M&E/ Agri-Business/Livestock/Agriculture/ Marketing] - Member (d) A chairperson of beneficiary institution or representative13 Member, (e) Procurement Specialist- Member secretary. This committee will perform the procurement actions of the entire requirements of Goods, Works & Services under the PCUs domain. The representative of concerned Service Provider for APMCs will always be an invitee for procurement of APMC Markets only. This Committee will also prior review and approve the bid documents and bid evaluation reports for all goods & works valued above $100,000 per contract relating to
13

In case of packages where more than one beneficiary institution is involved, a nominee from each beneficiary institution should be invited for evaluation

172

procurements of PIUs (Agriculture /Animal Husbandry/ MSAMB). Like wise the short lists, RFPs and technical & combined (technical & financial) evaluation reports of all services valued above $100,000 per contract in respect of PIUs (Agriculture /Animal Husbandry/ MSAMB) will be prior rewiewed and approved by this Committee. However, wherever applicable, the prior review and clearance of the World Bank will be obtained. ii) Procurement Committee at PIU (a) Commissioner / Director of the Concerned Line Department (Chairperson) (b) Technical Specialist in the PIU, wherever available Member, (c) Nodal officer of PIU Member, (d) A chairperson of beneficiary institution or representative Member, (e) Accounts officer, PIU Member, (f) Procurement Officer - Member Secretary. iii) Procurement Committee for RHs: Procurement at RH will be Community Procurement. The procurement committee consists of (a) Sarpanch of the Village Panchayat (Chairperson) , (b) DDR or his representative - Member, (c) Two members from Haat Management Committee - Members (d) Representative of concerned Service Provider (design supervision consultant) for Rural Haats - Member (e) Village Development Officer (VDO) Panchayat - Member Secretary. This procurement committee will undertake procurement of civil works upto US $ 50,00014- and of goods upto US $ 20,000 only and, above this limit and up to US $ 100,000 by following Local Bidding Procedures. iv) Procurement Committee for Farmers Common Service Centre (FCSC) Procurement at FCSC will be Community Procurement. The committee will comprise of (a) Chairperson/President of the FCSC-Chairperson, (b) Three Members of the elected management Committee of the FCSC - Members, (c) ARCS of the concerned Taluka Member, (d) Manager of the FCSC- Member Secretary. The FCSC will undertake procurement of civil works upto US $ 50,000 and of goods, equipments and services upto US $ 20,000. v) Procurement Committee for Goat Demonstration Unit - Procurement under this component will be Community Procurement. The committee consists of (a) Sarpanch of Grampanchayat Chairperson, (b) Three identified small ruminant farmers Members, (c) Livestock Development Officer of Panchayat Samittee Member Secretary. The Livestock Development Officer will be responsible for handing over of purchased goats to identified small ruminant farmers. The Committee will undertake procurement of goods, equipments and services upto US $ 20,000. vi) Procurement Committee of Producer Groups (PGs) under SR Development programme - Procurement under this component will be Community Procurement. The committee will comprise of (a) President of PG - Chairperson, (b) Livestock Development officer of Panchayat - Member, (c) Two members of PG - Members, (d) Secretary of PG - Member Secretary. The Committee will undertake procurement of goods, equipments and services upto US $ 20,000. 11. Roles and Responsibilities and Contract Management Information: Roles and responsibilities of various project implementation bodies are detailed below:

14

The threshold to be revised based on performance during the Mid Term Review

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a.

PCU: The state PCU will be responsible for the overall procurement planning, implementation, procurement oversight and supervision and responsible for meeting projects compliance with procurement methods / procedures as agreed between the project and the World Bank. PCU shall have a Procurement Unit with a Procurement Specialist and a Procurement Officer reporting to the head to ensure the proper implementation of the World Bank guidelines and procedures mentioned and agreed upon with the Bank. The Procurement Unit of PCU will procure the goods, services and works for the project planned at the state level and will have prior and post review responsibilities beyond certain ceilings at the PIU level. Its key activities include: Preparation and updating, as required, the procurement manual based on World Bank guidelines for implementation of the project. Consolidate, Review and approve all procurement plans of all the PIUs and procurement recommendations of PIU established in all the line departments. Support PIUs in undertaking large value procurements. Procure the goods, services and works required at PCU level. Train the PIUs and other staff in procurement with due diligence. Build the procurement capacity at all levels. Guide and monitor the process of procurement in PIUs and Community Procurement. Prior review and clear bid documents and bid evaluation reports for all goods and works procurement planned by PIUs valued above $100,000 per transaction within 7 days of receipt. Prior review and clear, short lists, RFPs and technical and commercial evaluation reports of all services planned by institutions valued above $100,000 per transaction within 7 days of receipt. Prepare Unit Cost data Base and Item bank detailing & tender specification, names of respective manufacturers, indicative range of machinery / equipment etc. Undertake or commission and manage yearly post review of at least 10% of contracts issued by PIUs and community procurement carried out by beneficiary institutions. Maintain a Procurement Management Information System (MIS) on all key indicators to be agreed with the Bank and generate and share reports with all stakeholders. A Contract Register will be maintained and updated periodically. Procurement Specialist will be the Member Secretary of the Procurement Committee.

b)

PIUs: At PIU level, there will be one Procurement officer to manage the procurement process. The procurement officer in the PIU would be reporting to the head of the PIU to ensure the proper implementation of the World Bank guidelines and procedures adopted by the institutions. Develop and Consolidate the annual procurement plan for PIU and organisation under the PIU. Train the institutional staff in procurement with due diligence. Build the procurement capacity at all levels. Guide and monitor the process of procurement. Prepare and submit all cases for prior review to the PCU and coordinate for clarifications and clearances

174

c)

Undertake yearly post review of at least 10% of contracts issued by institutions under the department. Act as the intermediary between PCU procurement section and institutions. Post review at least 10% of contract issued by community organisation. Prior review of first contract for civil works, goods and services issued by community organizations Maintain a Procurement Management Information System (MIS) on all key indicators to be agreed with the Bank and generate and share reports with all stakeholders. A Contract Register will be maintained and updated periodically Procurement Officer will be the Member Secretary of the Procurement Committee

Community Procurement - Community Organization like Rural Haats, Farmer Common Service Centers for horticultural crops and foodgrains and identified small ruminant farmer from demonstration unit of Animal Husbandry Department, would be included under the community procurement activity. These organizations would be undertaking procurement on their own. Item activities include (i) Prepare procurement plan and carry out procurement, (ii) Get post review of 10% of contract from the concerned PIU, (iii) Perform the procurement within the World Bank guidelines and procedures. The assets created by the organization like Rural Haats, FCSCs under Community Procurement will be verified by the Service Provider.

d)

Service Providers (SP) - The SP would be finalised by the PIUs for the activities within the subcomponents related with the concerned PIUs. Such finalised SP, while preparing bidding documents and bid evaluation reports for works and goods would be required to follow the World Bank procedures for procurement of goods and equipments and Standard Bidding Documents agreed between the Project and the World Bank.

12. Agriculture Department: Commissioner Agriculture, will be the project implementing authority for Agriculture Dept. PIU, Agriculture will be the overall implementing agency for Component-A relating to Agriculture sub-components. Various works, goods and servicess to be procured under PIU Agriculture by various agencies are given below:
Sr. No 1 2 3 4 5 6 7 8 9 10 Item Renovation of Nodal office including furniture for agri. nodal unit Computer and Hardware for PIU agriculture Laboratory and training equipments required by Horticultural Processing Training Institute(HPTI) Computer and Hardware for ATMA at each district level Computer, printer, projector, furniture for farmers information and advisory centre(two at each district) Seeds, pesticides, fertilizers, micronutrients and any other material required for demo of various crops Need based training equipments for VANAMATI Staff required for PIU Agriculture Staff required for strengthening of VANAMATI Staff required for strengthening of ATMA Procurement Agencies PIU Agriculture PIU Agriculture PIU Agriculture DSAO, ATMA DSAO,ATMA DSAO,ATMA VANAMATI PIU Agriculture VANAMATI PIU Agriculture

13. Animal Husbandry Department (AHD) - Commissioner of Animal Husbandry Department (AHD) will be the project implementing authority for Animal Husbandry. Various items of major procurement under PIU AHD are as given below:

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Sr. No 1 2 3 4 5 6 7

Item

Procurement Agencies Experts & staff in Market Intellegence Cell in AHD PIU AHD Need based training equipments for AHD Training Center PIU AHD Office furniture for PIU PIU AHD Equipments like computers, xerox machine, fax, telephone for PIU PIU AHD Vaccination kit for lady link worker PIU AHD Medicine, mineral mixtures, vitamins required for animal health check up PIU AHD camp Fodder seeds and fertilizers for demonstration unit PIU AHD

14. MSAMB - The Managing Director (MD) of MSAMB will be implementing authority for Agricultural Marketing. Procurement Officer within the PIU-MSAMB will assist the MD in the matters of procurement. The bidding documents will be prepared by PIU-MSAMB with the help of SP. The EOI and advertisement for applications will be sought by PIU-MSAMB. The finalization of the agency will be done by the Procurement Committee PIU MSAMB. The award of civil work contract will be given by the concerned beneficiary institution. The procurement to be carried out by PCU / PIU as per the limits prescribed above.
Sr. No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Item Service Providers Civil Works (Except FCSCs, Rural Haats) Goods and Equipments (such as Food grain Pulses Cleaning Grading Unit, Electronic Auction Hall Machinery and other items) Civil works for APMCs markets, LSM Refurbishment and renovation of PCU Office Equipments required for Computerised Auction System, Electronic Auction Hall and E-Trading of perishables Tally software required for standardized accounting system of APMCs and regular accounting system of spending units (Except the offices of DDRCS) Office furniture and equipments for PCU Equipments for central data centre for IPP and hardware required for field level for IP and MIS Staff required for PCU Office furniture, Equipments like computers, fax, xerox and software for equipments and drawing for PIU Repairing of warehouses for MSWC Repairing of Godowns of APMCs Computer hardware required for Standard Accounting system and e-trading platform at APMC level Electronic weigh bridge 40 MT capacity for APMCs, electronic weigh bridge of 1.5 MT, 1 MT for LSM and SR market, Milking machines with accessories, desktop computers and peripherals for live stock markets and SR markets Setting up of laboratory, need based equipments, computers, hardware for MSWC and APMCs godown Staff required for PIU (HO and Field) Agencies PIU PIU PIU/ PCU PIU/ PCU PCU PIU/ PCU PIU/ PCU PCU PIU/ PCU PCU PIU MSWC APMC DDR PIU

16 17

PIU PIU

15. Methods & Procedure of Procurement for goods and works MACP would follow the procedures as laid down in the procurement manual prepared for the project and annexed to this PIP. 16. Service Providers (SPs) The average number of SPs per phase of the Project would be around 35. As the number of the agencies would be hired as service providers under the project is large, the various tasks for SPs will be clubbed as shown below.
Sr. No. 1 Subcomponent for which SP is proposed No. of Units under the Subcomponent 100 No. of units per SP 6 (1 SP for 2 Total no. of SPs 17

Upgrading & modernization of APMCs. (PIU)

176

Sr. No.

Subcomponent for which SP is proposed

No. of Units under the Subcomponent 24 300

No. of units per SP district) 6 12 to14 (1 SP for 2 district) 12 to14 (1 SP for 2 district) (1 SP for each activity)

Total no. of SPs

2 3

Upgrading & modernization of LSMs. (PIU) Upgrading & modernization of RH. (PIU)

4 24

FCSC (Food grains and F&V). (PIU)

400

32

At PCU level: (i) SP for Procurement Training, (ii) SP for M&E, (iii) SP for Commodity Profiles (iv) SP for ABPF (v) SP for Internal audit, (vi) SP for External audit, (vii) SP for Study of 20 Value Chains, (viii) SP for Study of New Business Models, (ix) SP for Study of Dairy Marketing Development, (x) SP for Study of Fisheries Marketing Development, (xi) SP for Study of Agricultural Insurance, (xii) SP for Meat Trade Study for Pune City, (xiii) SP for Community Asset Verification, (xiv) SP for study of Geographical Identification of Important Crops ( xv) SP for MIS system xvi) SP for SMS impact study xvii) SP for finance, policy and e-trading xviii) study of modern design of markets xix) SP for study of Agri. Business At PIU-MSAMB level: (i) Training of Trainers of NIPHT, (ii) Electronic Auction Hall, (iii) Study of Electronic Trading of Perishables, (iv) SP for Computerized Auction System, (v) SP for IPP vi) SMS services (vii) MID (viii)Virtual market study, At PIU-Agriculture: (i) NGO for CIG / FIG / PG formation, (ii) Training modules of the training of agric service provider At PIU Animal Husbandry: (i) Economic & Market Intelligence Cell in AHD, (ii) SR Development. Total SPs

--

19

--

(1 SP for each activity)

--

(1 SP for each activity) (1 SP for each activity)

--

108

b. As the number of consultants / SPs is reasonably large monitoring & management of these SPs will be done through (i) Regular reporting of the progress of work by SP to PIU / PCU, (ii) Analysis of the reports received, (iii) Monthly review of work, progress, payments, problems, complaints redressed, (iv) Corrective steps by suitable instructions, guidance, actions. For doing this function effectively Contract Monitoring & Management Cell will be created in each PIU of the line departments and in PCU. c. Contract Monitoring & Management Cell in PIUs: Commissioner / Director of the line department - Chairperson Procurement Officer Member Technical Officer (Civil) - Member Account Officer (PIU) - Member Nodal Officer, PIU (Member Secretary) The PCU will call the Nodal Officers of the PIUs for the SP Monitoring & Management Cell review meetings. Project Director Chairperson Chief Finance Controller - Member 177

M & E Specialist - Member Procurement Specialist - Member Marketing Coordinator - Member Technical Officer Civil - Member Secretary

17. Training & Support a. Procurement Training will be given to the concerned staff of the PCU/PIU/line departments including the district level officers. This will be done through a consultant in the initial period of 6 months. b. The PIU of the line department will co-ordinate with the concerned Beneficiary Institutions and communicate to them their role in the procedures of procurement including Community Procurement. A list of persons/ employees of Beneficiary Institutions who are involved in the process of procurement will be identified and workshop / training will be conducted to make them understand the procurement procedure to be followed. Personnel from the concerned PIU and PCU will also participate in the workshop/ training. This training will be conducted by Procurement Specialist from PCU and Procurement Officer from PIU. c. SPs for APMCs, RH and LSM will be provided training through workshop by World Bank expert. 18. Disclosure of Information about Tendering and Award of Contracts on the website: For all procurements conducted by PIU, information on pre-qualification of the contractors and award of contracts would be posted on the MSAMBs website. In general the following information would be put on the MSAMBs website. The information which would preempt the bidder to quote to the level of estimate or near the estimate shall not be disclosed. Making publicly available, all annual procurement schedules promptly after finalization. Posting all bidding documents and requests for proposals. Making available to any member of the public, promptly upon request, shortlist of all the consultants and in case of pre-qualification, list of all pre-qualified contractors and suppliers. The information on all pre-qualified applicants and award of contracts. Posting annual progress and mid-term review reports of the project. In order to deal with the complaints received from the contractors/ suppliers effectively, a complaint handling mechanism would be available at the Central/ State/ PCU level, and immediate action would be initiated on receipt of complaints to redress the grievances. All complaints on receipt would be entered in a register. These complaints would be addressed within 30 days and mentioned in the evaluation report of the tender. If a complaint is received after award of contract, its enquiry / investigation would be conducted and its report would be communicated to the concerned departmental head and the PD. Complaint Handling Mechanism: All complaints would be handled at a level higher than that of the level at which the procurement process is being undertaken and the allegations made in the complaints would be enquired into. If allegations are found correct, appropriate remedial measure would be taken by the higher administrative authorities. ***

d.

19. Grievance Management Mechanism:

e.

178

C. 4 FINANCIAL MANAGEMENT
1. The implementation of the MACP will be by three line departments and autonomous bodies. The three line departments are the Dept. of Co-operation & Marketing, the Dept. of Agriculture, and the Dept. of Animal Husbandry. The Dept. of Co-operation and Marketing is the Nodal Department. The autonomous bodies involved are viz.: (i) MSAMB Maharashtra State Agricultural Marketing Board (under Dept. of Co-op. & Mktg.) (ii) MSWC Maharashtra State Warehousing Corporation (under Dept. of Coop. & Mktg.). (iii) ATMAs Agricultural Technology Management Agency, one in each of 33 districts (under Dept. of Agriculture). (iv) Other Training Institutions: VANAMATI and ( under Dept. of Agriculture), NIPHT (under MSAMB) Funds Flow: 2. The entire funds flow structure is clearly documented below and depicted in Charts I to IV at the end of this chapter. It explains how funds will flow from the GOM, to the concerned line departments, PCU and PIU in MSAMB and MSWC. 3. Funds from the World Bank will be made available to the Government of Maharashtra through the GoI under the standard terms of on-lending between GoI and the States. The Bank will provide an initial advance, which will be transferred to GoM. The advance will initially be around US$ 5.00 million, and every quarter this balance will be replenished to the extent of amount spent out of this advance as evidenced by the consolidated quarterly Interim Unaudited Financial Reports (IUFRs) furnished by the PCU to the Bank in pre-agreed formats. The basis of preparation of these quarterly IUFRs will be the project accounts. The Bank will finance 90 percent of the project expenditures excluding beneficiary contribution under a single disbursement category comprising works, goods, consultants services, training, and operating costs. The balance 10.% will be borne by the Govt. of Maharashtra. The Government of Maharashtra will pass on the funds (both Bank finance and own contribution) to project implementing agencies through budgetary grants. 4. The project funds will be budgeted in GoMs budget, as an identifiable budget head, under the Major Head 4435 Capital Outlay on Agricultural Programmes (under Marketing and Cooperation Department) and, under the subhead Maharashtra Agricultural Competitiveness Project. The project components and sub-components as sub-heads. The Finance Department of the GoM will provide the funds to Dept. of Co-operation and Marketing based on approved annual budget, which will further reallocate the funds based on the annual work plan and budget to Dept. of Agriculture and Dept. of Animal Husbandry through the BDS system. Funds Flow to Agriculture Department: 5. The Dept. of Agriculture will further allocate budgetary grants through BDS to Commissioner Agriculture. PIU Agriculture will be part of the office of Commissioner of Agriculture. The budget allocation order for Agriculture Department will specify the funds provided for activities to be implemented by the Dept. of Agriculture under MACP, viz. (i) Line department wise training / demonstration programs and activities under ATMA (Allocation to Agriculture Dept. programmes and Animal Husbandry Dept. programmes under ATMA would be clearly specified in this order), (ii) Training under VANAMATI and Horticulture Training Institute, (iii) Foreign Training, (iv) PIU Agriculture Expenses.

179

Activities of PIU - Agriculture: 6. The DDO in the office of Commissioner Agriculture will draw funds through BDS for the following expenses, viz. (i) PIU Expenses, (ii) Service Provider expenses, (iii) Foreign tours of Officers, (iv) Buyers Sellers meet (State level) Funds to ATMA 7. ATMA is a district level autonomous body (registered Society), which is a convergence of line departments like Agriculture, Animal Husbandry, Dairy, Fisheries, and Sericulture etc. For the MACP project, funds to ATMA for training and demonstration programs will be released for two line departments, viz. Dept. of Agriculture and Dept. of Animal Husbandry. So the budgetary grants which are received by the Commissioner Agriculture through BDS will explicitly mention in the budget release order the grants under Agriculture and Animal Husbandry departments. After the Dept. of Agriculture in Mantralaya releases grants through BDS to the Commissioner Agriculture, the DDO in the office of Commissioner Agriculture will access the BDS and submit bill to the treasury. After passing of the bill, the treasury will transfer the funds to the bank account of the ATMAs through a system of Electronic Funds Transfer (EFT). The ATMA account for MACP Project would be jointly operated by the DSAO who is the ex-officio Project Director of ATMA and the DDO in his office. This grant allotment will be based on the budget release order as mentioned above to carry out the activities of ATMA scheduled for that year as per the Annual Plan. Activities of ATMA under Agriculture Department: 8. For the activities of ATMA under Agriculture Department, including payment of staff of ATMA taken on contract for MACP activities, the DSAO would release the cheques to the contractors for the following activities, viz. (i) Preparation of Marketing Strategy Supplements, (ii) Mobilization of farmers into CIGS / FIGS, (iii) Training of officers, (iv) Training of farmers / field extension functionaries /Agriculture Service Providers, (v) Demonstrations, (vi) Exposure visits, (vii) Innovative pilots, (viii) Buyers sellers meet (district level), (ix) Strengthening of growers association, (x) Procurement of computers. Activities of ATMA under Animal Husbandry Department (AHD) 9 . For the activities of ATMA under Dept. of Animal Husbandry, the Project Director, ATMA (DSAO) will issue a funds through core banking to DDO bank accounts of DAHO for the activities of training and demonstrations under AHD. The DAHO will use the same for activities as and when required. The activities of AHD under ATMA are as follows, viz. (i) Mobilization of farmers and SR farmers into CIGs, (ii) Training of farmers from the area of LSM & SR markets, (iii) Demonstrations for animal management techniques and fodder production technology, (iv) Exposure visits to goat demonstration units / LSM markets. Funds flow to VANAMATI 10. As far as the grants for the training institution VANAMATI is concerned, the DDO in the office of Commissioner Agriculture will draw funds through the BDS and submit bill to Treasury. After passing the bill, the treasury will transfer the funds to the Bank account of VANAMATI through a system of Electronic Funds Transfer (EFT). Grants to Horticulture Processing Training Institute, Aurangabad (HPTI): 11. HPTI is the institute of Agriculture Department which works under the control of Regional Joint Director Agriculture (RJDA), Aurangabad. Funds will be disbursed by the Commissioner, Agriculture under BDS to Regional Joint Director Agriculture, Aurangabad. RJDA, Aurangabad will draw funds from Treasury and pay cheques to the contractors of HPTI, Aurangabad. HPTI will submit accounts to RJDA, Aurangabad, who in turn will submit accounts to PIU Agriculture. 180

Release of Funds to Training Institutions and Demonstrations based on standard rates prescribed 12. The release of funds for Training Institutions and demonstrations of ATMA will be based on standard unit costs prescribed for these activities under State level programs. Disbursement of funds to ATMA will be in the form of advances and in tranches on the basis of the work program to be undertaken. Each ATMA will have to submit quarterly Interim Un-audited Financial Reports (IUFR) in agreed formats within 15 days of the end of quarter . The quarterly reports will have to be submitted for the earlier tranche for the release of the next tranche of funds. The monitoring of these training programmes will be robust and will be carried out by M & E Specialist from VANAMATI with the help of field staff of line departments concerned. Funds Flow to Co-operation & Marketing Department 13. The Co-operation and Marketing Department in Mantralaya will release grants to MSAMB for (i) PIU MSAMB, (ii) PCU MSAMB. The MSAMB shall maintain two separate project bank accounts one for PCU and the other for PIU-MSAMB. The PCU-MSAMB Account will be jointly operated by the Project Director / Chief Financial Controller and Accounts Officer of PCU. From this account the following expenses of PCU will be incurred, viz. (i) expenses for ABPF, (ii) expenses for internal and external audit, (iii) expenses for consultancies, and, (iv) PCU expenses. The PIU account will be jointly operated by the MD, MSAMB and Accounts Officer of PIU. From this account the following expenses of PIU will be incurred, viz. (i) expenses for market intelligence, (ii) expenses for training at NIPHT, (iii) expenses for various service providers (iii) PIUMSAMB expenses. NIPHT however, will be also one of the accounting center and it will maintain all accounts and records of funds received and expenditure incurred by it. Funds Flow to District Deputy Registrar C. S.: 14. The Director of Marketing gives funds through BDS to DDRCS for components of APMC Markets, RH, and FCSC. The office of the District Deputy Registrar Cooperative Societies (DDRCS) will be the major spending unit for activities under Subcomponents Promoting Farmer Common Service Centres, Modernisation of wholesale markets and Upgrading Rural Haats Expenditures on all these three subcomponents will be shared by the Government of Maharashtra and the Beneficiary concerned in pre-determined ratios.
Sr No

Component & Subcomponent

Project and GoM Contribution%

Beneficiary Contribution %

Promoting Alternative Markets 1 Product aggregation through Farmers Groups/Farmers Service Centers -- Stage-I Investments 75.0 25.0 -- Stage-II Investments 50.0 50.0 2 Rural Haats Markets -- Basic Infrastructure (Stage I) 90.0 10.0 -- Productive Infrastructure (Stage II) 75.0 25.0 Modernizing Existing Markets 3 Modernizing of Wholesale Markets(APMCs) -- Basic Infrastructure 50.0 50.0 -- Productive Infrastructure 25.0 75.0 GoMs share for these will be redistributed15 by the Director of Marketing and Cooperation through BDS to the district level DDRCS office for payment of contractors / suppliers. The
15

After the Director of Marketing receives the grants through BDS from Co-operation & Marketing Department

181

DDRCS will release a pre-numbered recipt / give a sequential inward number from the Inward Register of the DDRCS office, to the supplier/contractor on submission of invoice. The payments for the Government share towards expenditures incurred on the above-mentioned activities will be released from the treasury once treasury bills are raised by the DDRCS office within seven working days after submission of contractors / suppliers invoices recommended by the respective APMC, designated Service Provider and Market Field Engineer of MSAMB based on terms of contract and physical progress. The Treasury will issue a cheque in the name of the concerned contractor or supplier / DDRCS on receipt of cheque from treasury will deposit the same in his account and make that payment to contractor by electronic transfer to the account of the contractor. This will mitigate corruption and fraud risk. Separate Bank Account for Beneficiary Contribution: 15. In order to achieve the objectives of Parts B.1 and B.2 of the Project, it shall be ensured that no activity shall be undertaken under Parts B.1.1 and B.1.3 of the Project unless the Beneficiary shall have first opened a bank account in a commercial bank and deposited therein an amount equivalent to its full share of the cost of carrying out the activity, and, under Part B.2.1 of the Project unless the Beneficiary shall have first: (a) opened a bank account in a commercial bank and deposited therein an amount equivalent to one third (1/3) of its full share of the cost of carrying out the Activity; and (b) entered in to a loan agreement with a reputable lender pursuant to which the said lender shall make available to the Beneficiary an amount equivalent to two third (2/3) of Beneficiarys full share of the cost of carrying out the Activity. 15. The beneficiary contribution supposed to be collected upfront from APMCs covered under modernisation program of MACP will be deposited in a separate bank account opened for this purpose at district level in Bank. The beneficiary contribution from all the APMCs identified for modernisation from that district will be deposited in this account. This account will be a joint account of the concerned DDRCS and the DDO in the office of DDRCS. The cheques will be issued by the joint signatures of the concerned DDRCS and the DDO in the office of DDRCS, only after receiving contractors/suppliers invoices checked by designated service provider and field engineer of MSAMB based on terms of contract and physical progress and recommendated by the Chairman & the Secretary of the respective A.P.M.C. There would be a single account at the district level having separate ledgers for each APMC which shall be maintained by DDRCS with the help of accountant. The expenses incurred from this account are to be made towards contractors & suppliers of APMCs. Funds flow for FCSC & RH 17. It has been decided to do the procurement in FCSC & RH by following the method of community procurement. The beneficiaries would follow either shopping or force account method. In view of this FCSC & RH are not required to deposit their contribution in the beneficiary account of DDRCS. The FCSC & RH will open the accounts with Bank for project funds. Initially these beneficiaries will deposit their contribution in these accounts. These institutions after spending from their own contribution will submit photocopy of passbook of account, photograph of work completed, invoices and muster roll (in case of force account) and utilisation certificate duly signed by Chairman and SP of the concerned beneficiary to the DDRCS with a request to release further advance. Advance of 25% and 30% of the total cost of work in case of FCSC & RH respectively will be released by DDRCS to the concerned beneficiary within 7 working days either by treasury cheque or by core banking method amount which will be deposited in the account of the beneficiary. The proposal for release of II advance will be submitted by the beneficiary to the DDRCS after spending 50% of the I advance with the documents stated above. Similar procedure will followed for third advance. After receipt of the proposal for advance, DDRCS shall release the same within 7 working days from the date of receipt of the proposal. After completion of the work, utilisation certification of the last advance & completion certificate duly signed by Chairman and SP and the invoices and copy of 182

passbook of account will be submitted to DDRCS. DDRCS with the help of accountant provided under the project shall keep all the records, accounts & documents relating to FCSC & RH for each works seperately. Funds flow to MSWC 18. MSWC, being an autonomous body and being outside the BDS system, the DDO in the DOCM will draw funds from the treasury and issue cheques to MSWC. MSWC will also have a separate bank account named MSWC-MACP which will be operated by MSWC. The expenses to be incurred from this account will be for (i) Repairs of MSWC godowns, (ii) Providing lab equipments in MSWC godowns, (iii) Connectivity with Commodity exchanges. Funds flow to Animal Husbandry 19. The Animal Husbandry Department in Mantralaya will reallocate budgetary grants through the BDS to the office of Commissioner, Animal Husbandry. The budget allocation order will specify the funds provided for activities to be implemented by the AHD under MACP. DDO from Commissioner AHD will draw funds as per BDS from treasury and give to PIU for expenses of the following: (i) Market Development Cell, (ii) Grants to training center of AHD, (iii) Providing vaccination kits to lady link workers and (vi) PIU AHD Expenses. However for two activities, the Commissioner AHD will further reallocate the budgetary grants through BDS to the district level functionaries of AHD of 6 districts namely Beed, Yavatmal, Sangli, Satara, Pune, Ahmednagar. These activities are i) Supply of bucks and rotary chaff cutters to farmers in goat demonstration units (Goat as high value enterprise: (for 4 districts Sangli, Satara, Pune, Ahmednagar ) and (ii) Supply of bucks to SR farmers (Support to SR federation: for 2 districts Beed, Yevatmal). Deputy Commissioner of AHD who is a district level functionary for AHD will submit the bill to treasury and the treasury will issue cheques in the name of contractors/ suppliers for activities under the project. Preparation and Approval of Budget 20. Preparation of budget is a bottom-up exercise. All the participating agencies will prepare annual budget based on the activities planned to be implemented under MACP during each financial year. Preparation of the Annual Budget will be guided by the Work plan and Procurement Plan of each participating agency under MACP. The spending units will submit their budget proposals to the respective departments in Mantralaya. Each PIU will submit consolidated budget to PCU which in turn will prepare consolidated budget for the project after due consultation with all stakeholders. The consolidated budget with department wise provision will be considered by the Planning and Finance Department with the concurrence of DOCM. The consolidated budget for the project will then be placed before legislature for approval. In the State budget document the entire budget for MACP will be shown under the budget of DOCM with a break up for components and subcomponents. After approval of the budget by the State Government, the Dept. of Planning & Finance, GOM will allocate provisions as per the budget to the Department of Cooperation and Marketing. 21. Once the budget is approved by the State Government, the DOCM will allocate provisions as per the budget to the respective line departments. The copies of the Budget allocation order will be given to the Secretaries of line Departments, PCU, PIUs. The PIUs will in turn allocate it to the District Offices of all concerned line departments. This order will also be published on Website of MSAMB. 22. The Drawing and Disbursing (DDO) officer of the DOCM (Under Secretary) will draw and disburse funds as per the budget to PCU, PIU-MSAMB and MSWC as these agencies operate through commercial bank accounts and not the treasury system. The orders regarding the changes if any in budget provisions, instructions etc. in this behalf will also be copied to all concerned mentioned above & published on the project website. 183

Administrative Setup for Finance Management: 23. The Finance function in the PCU will be led a by the Chief Financial Controller who is on deputation from the State Finance Department. He will be responsible for overall coordination, monitoring and control of the financial matters of the MACP. He will be assisted by a team of four people a Finance Specialist who is a qualified CA who will oversee the audit arrangements, an Accounts Officer, an accountant and a Cashier. A computer literate accounts graduate (Accountant with computer knowledge) with at least three years experience of maintaining accounts will be hired in all the Accounting Centers except MSWC, NIPHT, HPTI, Dist. Dy. Commissioner (AHD). 24. There is a Drawing & Disbursing Officer (DDO) in each of the Head Office - the Dept. of Cooperation & Marketing, Dept. of Agriculture, and Dept. of Animal Husbandry. Besides these, there are designated officers from the Regional Offices of various line departments, and, the district Offices of DDR carry out functions of the DDO. A customized training module for project financial management will be developed and training imparted to all DDOs/HODs before implementation begins. Similar training for accountants hired from the market should be completed within 3 months after effectiveness. This training activity will be undertaken by the Finance Team of PCU, MACP. 25. The financial management training will be conducted by the Finance Team in PCU & PIU to all the concerned officers, accountants and staff in implementation in respect of keeping of accounts, preparation of IUFR, submission of claims to World Bank and all other financial matters. Internal Control Framework: 26. A Financial Management Manual has been prepared which documents in detail the financial management processes namely, budgeting, funds flows, internal control, significant accounting policies, financial reporting and audit arrangements. This will serve as a reference manual and ensure uniformity across participating agencies. The FM Manual has been translated in the local language Marathi and will be available with all the implementing agencies. The manual, both in Marathi and in English, will also be available on the MSAMBs Website. 27. For each spending unit the applicable framework would be the delegation of financial and administrative powers laid down through State Financial Rules /government orders. Additionally this will be supported by the approval process for specific project activities outlined in the project FMM/COM. The FMM will be a living document. It will be reviewed periodically to ensure that it remains valid and adequate during project implementation and may be amended as per requirements on the ground. However every change will need to be approved by the Project Director and Financial Controller and the Bank. Some of the other key control parameters are as follows: Each project accounting unit will furnish quarterly unaudited interim financial reports and to PCU. Spending units operating commercial bank accounts will prepare bank reconciliation statements on a monthly basis. Spending units operating through the treasury will reconcile accounts with the State Accountant General (A&E) on regular basis. This is in line with the existing control framework laid down by the State Financial Rules. Service standards will be laid down regarding release of payments, approval of bills etc. Payments will be made through EFT/RTGS wherever possible.

184

Almost 70% of the Project funds are estimated to be spent on civil works. The Project design provides for technical supervision by MFEs of all civil works which will reinforce assurance on the end-use of funds. The Internal control framework will be strengthened by periodic internal audit. Internal auditors will do physical verification of assets on a sample basis. An annual external audit of financial statements will be conducted for all participating agencies. An M&E Framework for the Project will be developed by an external M&E Agency in consultation with PCU and PIUs. The external M&E agency will also conduct the Baseline Survey for project; a computerized Project Monitoring Information System (PMIS) will be developed for monitoring all MACP Project activities. Six-monthly M&E reports to the PCU

Accounting and Financial Reporting 28. The accounting centers are the offices where the basic accounting in respect of financial transaction for the project activities shall be carried out. These accounting centers shall be responsible for maintaining the relevant vouchers and supporting documents pertaining to project related transactions in a separate file up until 1 year after the submission of the last project external audit report to the Bank. They are also responsible for timely submission of accounts as well as, annual audited financial statements & submission of financial records for audit. Detailed guidelines for on significant account in policies, financial reporting structure including frequency of reporting are provided in the Financial Manual. 29. The States mainstream accounting system maintained by the State Accountant General /monthly Drawing and Disbursement Officer (DDO) accounts will be used to account for expenditures incurred through the State Treasury system. Where separate bank accounts are maintained, accounts will be maintained on Tally software. The accounting system will be a cash based system as followed by the State Government. There are 80 accounting centers as per the funds flow arrangement for various components and sub components under the Project.
30. Summary of Accounting Centers

No. of A.C. 36 37 7 Total 80 Consolidated interim unaudited financial reports (IUFRs) shall be submitted to the World Bank on a quarterly basis within 45 days of the end of the quarter. The reporting formats of IUFRs will be agreed upon and included in the FM Manual. Audit Arrangements External Audit: 31. The external audit of the project accounts outside BDS, except MSWC, will be conducted by the firm(s) of CA. External audit of MSWC and BDS accounts under the Project will be conducted by CAG. For this audit the concerned DDOs will submit annual accounts to AG on or before 30th June of the folloing year. If the C&AG Audit Report is not received by 30th September of thet year, the Project will get external audit done by appointing Chartered Accountant(s), who shall be appointed as per TOR agreed by the Bank. Audit of expenditures incurred by ATMAs and the expenditures from beneficiary contribution will be conducted by private firm of Chartered Accountants. It was agreed that consolidated unaudited financial 185

Department Agriculture Department Co-operative and Marketing Department Animal Husbandry Department

statements of the expenditures incurred by the departments under the project will be submitted to the C&AG latest by June 30th which will provide three months to CAG to undertake audit. Following this, in case if the C&AG is unable to submit the audit report by due date (i.e. September 30th), the project may, after seeking confirmations as may be required under the laws of the land, assign the audit of the departmental expenditures to a private chartered accountant firm which is independent and acceptable to IDA. Audit by C&AG will be conducted in accordance with generic criteria agreed with the C&AG for audit of bank financed projects. Audit by private CA firm(s) will also be conducted in accordance with pre-agreed TORs. The CA firm(s) would be appointed based on a competitive process and meet minimum criteria established in the FM Manual. 32. In addition, an audit report by the C&AG for the designated account held at GoI would also be submitted in the usual manner. Thus, the following audit reports will be submitted to the Bank within six months from the end of each financial year, subject to what has been stated in the above para. Implementing Agency All Implementing agencies except ATMAs, VANAMATI, NIPHT, Beneficiary Contribution Accounts, and MSAMB ATMAs , VANAMATI, NIPHT, and Beneficiary Contribution Accounts, and MSAMB DEA / GOI Internal Audit 33. The project will appoint, within six months of effectiveness, independent firm(s) for carrying out internal audit of the project. The firm would be appointed based on a competitive process and meet minimum criteria established in the FM Manual. Project Audit Review Committee: 34. A constant monitoring of the audit programme is absolutely essential for regular and timely completion of the external and the internal audit. For this purpose, the Project Audit Review Committee headed by the Project Director has been constituted in the PCU-MACP with the following members: (i) Chief Financial Controller (PCU), (ii) Finance Specialist (PCU), (iii) Nodal Officer PIU (MSAMB ), (iv) Nodal Officer PIU ( Agriculture ), (v) Nodal Officer PIU ( AHD ), (vi) Accounts Officer, PIU (MSAMB), (vii) Accounts Officer, PIU (Agriculture), (viii) Accounts Officer, PIU (AHD), (ix) Representative of AG, (x) Representative of CA firm assigned with internal audit, (xi) Accounts Officer (PCU) (member secretary). This Committee will consider the key audit issues and monitor timely follow-up and corrective actions. The Audit committee will appraise the Principal Secretary (Co-operation & Marketing) and the State Government, every six months, about the significant audit issues and actions taken. The audit committee will hold quarterly meetings to carry out the above functions. Audit of Consolidated Financial Statements of the Project except for ATMAs, VANAMATI, NIPHT, Beneficiary Contribution Accounts, and MSAMB. Compiled Financial Statements Auditors State AG (Audit)

Private CA Firm

Special Account

Comptroller & General of India

Auditor

186

Chart I Funds Flow for Agriculture Department

Finance Department

Co-operation & Marketing Department

Agricultural Department in Mantralaya

BDS

Commissioner Agriculture PIU Unit PIU Expenses Foreign training SP Expenses Buyer Seller Meet (State level)
Through core banking Through core banking VANAMATI

BDS

Joint Director Agri. Aurangabad

Cheque
Contractors of HPTI

ATMA (Separate Bank A/c) Cheque

Bank A/C DAHO

Agri. Component
Contractual staff of ATMA Preparation of Marketing Strategy Supplement, Mobilisation of farmers into CIGs / FIGs, Procurement of computer, Training for officers & farmers, Demonstrations, Exposure visits, Innovative pilots, Buyers sellers meet (district level), Strengthening of grower association

AHD Component
Training to farmers of livestock & SR markets. Exposure visits of LSM , SR market and Goat demonstration unit. Demonstration on livestock management and fodder production technology

187

Chart II Funds Flow for Co-operation and Marketing Department

Finance Department
BDS

Co-operation & Marketing Department

BDS

Cheque

Director of Agricultural Marketing

BDS

PCU MSAMB Bank A/C 1

PIU MSAMB BankA/C 2

MSWC

DDRCS

PCU Expenses ABPF Audit (Internal & External ) Consultant Expenses for M & E Procurement training

PIU Expenses Market Intelligence Service Provider

Repairs of godowns Lab equipments Connectivity with commodity exchanges

Separate bank A/C for Beneficiary Contribution3

NIPHT For Contracts APMC Rural Haat Farmer Common Service Centers (food grain / Horticulture crop )

-PCU MSAMB A/C jointly operated by Project Director and Chief Finance Controller & Accounts Officer 2 -PIU MSAMB A/C jointly operated by M.D., MSAMB and PIU- Accounts Officer 3 -Beneficiary A/C operated by DDRCs and DDO from the DDRCs office on recommendation of the bill by concerned beneficiary

188

Chart - III Funds flow for Animal Husbandry Department

Finance Department
BDS

Co-operation & Marketing Department

BDS

Animal Husbandry Department in Mantralaya (ADF)

BDS

Commissioner of Animal Husbandry PIU unit

PIU Expenses Service Provider Market Development Cell Training Centre of AHD Supply of bucks and rotary chaffs cutters to farmers in goat demo. units Supply of bucks to SR farmers Vaccination kits to lady link workers

189

Chart IV The Fund Flow Chart under MACP (Summary)

Finance Department
BDS

Agricultural Department in Mantralaya

BDS

BDS

Co-operation & Marketing Department

BDS

BDS

Animal Husbandry Department in Mantralaya

BDS

Commissioner Agriculture PIU Unit PIU expenses Foreign training SP expenses Buyer Seller meet (State level)
BDS

Director of Agricultural Marketing Cheque

BDS

Commissioner of Animal Husbandry PIU unit

Through core banking

PCU MSAMB A/C 1

PIU MSAMB A/C 2

MSWC
Repairs of godowns Lab equipments Connectivity with commodity exchanges

DDRCS
PIU Expenses Service Provider Market Development Cell Training Centre of AHD Supply of bucks & rotary chaffs cutters to farmers in goat demonstration units Supply of bucks to SR farmers Vaccination kits to lady link workers

RJAD
Aurangabad

ATMAs
Separate Bank A/C

VANAMATI
PCU Expenses ABPF Audit Internal & External Consultant Expenses for M & E Procurement training DAHO
PIU Expenses Market Intelligence Service Provider

Separate bank A/C for Beneficiary contribution 3

Cheque
Contractors of HPTI Aurangabad DSAO

Cheque

NIPHT

Agri. Comp. Contractual staff on ATMA Preparation of Marketing Strategy Supplement, mobilization of farmers into CIGs/FIGs, Procurement of computer, Training for officers & farmers, Demonstrations, exposure visits, innovative pilots, buyers sellers meet (district level),

AHD Comp. Training to farmers of livestock & SR markets. Exposure visits of LSM , SR market and Goat demonstration unit. Demonstration on livestock management 190 and fodder production technology

For Contracts APMC Rural Haat Farmer Common Service Centres (foodgrain / Horticulture crop)

strengthening of grower association

-PCU MSAMB A/C jointly operated by Project Director /Chief Finance Controller & Accounts Officer. 2 -PIU MSAMB A/C jointly operated by M.D, MSAMB and PIU- Accounts Officer 3 -Beneficiary A/C operated by DDRCs and DDO from the DDRCs office on recommendation of the bill by concerned beneficiary

Maharashtra Agricultural Competitiveness Project

C. 5 MONITORING AND EVALUATION

1. The project monitoring and evaluation (M&E) will contain the following distinct but interrelated aspects: i) The Implementing Departments / Implementing Agencies will regularly monitor and report on the Projects physical and financial inputs and outputs. ii) The M&E consultant will concurrently monitor and evaluate project processes, approaches, institutions and quantify short term outputs and outcomes. The M&E agency will also carry out the baseline survey and the evaluations of the projects outcomes and impacts at mid-term and prior to project completion. 2. The Project M&E mechanisms will emphasize stakeholder participation, and, will be designed to facilitate rapid identification of shortcomings and problem areas, and, facilitate the mid-term corrections, where necessary, to project design and / or implementation arrangements to enhance the prospect of the project meeting its development objectives. 3. M&E Reviews: There will be two major reviews to be carried out jointly by GoM and the Bank. The first major review would be at the time of the 2 nd Mid Term Review (MTR) of the Project, and, the second major review around the time of the Project completion. The first review would include an impact assessment of the project to date, but will also focus on procedures; implementation processes and recommend adjustments in the project design and / or implementation arrangements to overcome identified bottlenecks. The second major impact evaluation review would be a comprehensive overall impact assessment including quantitative and qualitative assessment of progress against project development objectives. To enable comparative assessment of a with / without project situation (as opposed to the more standard before / after project situation), the impact assessments and analysis will also collect and use statistically robust comparable data from control (non-project) areas. 4. Project Co-ordination Unit (PCU) and Project Co-ordination Units (PCUs): There are three line departments involved in the Project (the Department of Agriculture, the Department of Animal Husbandry, and the Department of Agricultural Marketing). All of these departments have established their respective Project Implementation Unit (PIU) that is responsible for implementation of activities carried out by their respective departments. The Project Co-ordination Unit (PCU), headed by the Project Director, has been established to facilitate coordination across the various line departments for the Project implementation. PCU and all PIUs will work under direct supervision and control of PD, MACP. 5. M&E Responsibilities of the PCU: The PCU has the operational responsibility for planning and coordinating M&E activities for the entire Project. A full-time senior M&E specialist recruited in the PCU is responsible for overseeing all activities related to M&E. The PCU is responsible for: (i) Analysis of all project-level M&E information and generation of regular six-monthly M&E reports; (ii) Updating key performance indicators by consolidating information provided by the different implementing agencies and the external M&E agency; (iii) Conducting independent field visits to monitor implementation and outputs of selected project activities; (iv) Commissioning special M&E studies as needed; (v) Identifying bottlenecks and corrective actions, if needed; (vi) Documenting success stories; (vii) Regular reporting to the Project Steering Committee; 191

Maharashtra Agricultural Competitiveness Project

and (viii) Six-monthly reporting to the World Bank on the Project status. The six-monthly reports would include, inter alia, (a) An up-to-date physical and financial expenditure data compared to annual and end-project targets; (b) An updated indicator of project performance compared to annual and end-project targets; (c) The successes and the problems encountered during the reporting period with suggested remedial actions; and (d) The socio-economic and environmental impacts of the project. 6. M&E Responsibilities of the PIUs and VANAMATI: The Nodal officers in each of these PIUs are responsible for monitoring of the implementation of the individual activities of the sub-component within the purview of the respective departments. The data would be consolidated and validated by the relevant PIUs and PCU. In addition to the PIUs, the VANAMATI will play a role in training ATMAs in M&E, as well as, facilitating the M&E data collection for field activities implemented by the ATMAs. A full-time senior M&E specialist recruited in the VANAMATI is responsible for overseeing all activities related to M&E in the field, especially, related to the ATMAs. The PIUs and the VANAMATI are responsible for: (i) Consolidating and analyzing all M&E data provided by District and Taluka officers, ATMAs, APMCs, MSWC warehouses and Service Providers, as relevant; (ii) Validating M&E data in the MIS entered at the District / Taluka / APMC level and entering additional data as required; (iii) Monitoring field level activities and identifying corrective actions, if needed, as well as documenting success stories; and, (iv) Providing monthly reports to the PCU. Implementing agencies, through their District and Taluka offices or APMCs/MSWC warehouses would assume the primary responsibility for collecting data to update the input/output indicators. 7. The implementing agencies, through their District and Taluka offices or APMCs / MSWC warehouses, would assume the primary responsibility for collecting data to update the input/output indicators. The data would be consolidated and managed by the relevant PIU and PCU. In addition to the PIUs, VANAMATI will play a role in training ATMAs in M&E as well as facilitating M&E data collection for field activities implemented by the ATMAs. 8. M&E Responsibilities of the External M&E Agency: Responsibilities for the external M&E agency include creating an M&E framework for the entire MACP project in consultation with the PCU and PIUs. This will include defining key process and performance monitoring indicators, data collection frequencies, and formats for collecting the relevant information. 9. All aspects of the project including technical, institutional, environmental, social, economic, financial, and procurement status will be monitored to help indicate actual achievement compared to the plans in the PIP, Environmental and Social Management framework, Procurement and Financial Management guidelines, Project Operations Manuals and other relevant documents. The M&E framework will clearly specify data collection responsibilities of the different implementing agencies and the external consultants. The external M&E agency will be responsible for collecting data for their independent monitoring of both process and performance indicators. 10. The external M&E agency will also: (i) conduct the Baseline Survey for project; (ii) develop a computerized Project Monitoring Information System (PMIS) for monitoring all MACP Project activities; (iii) monitor and evaluate the progress in the provision of critical project inputs and activities; (iv) undertake participatory monitoring and evaluation for relevant activities through the use of community score cards, focus groups, and participatory social auditing.; (iv) evaluate progress in achieving the project outputs and outcomes and evaluate the projects impact at key junctures during the project period 192

Maharashtra Agricultural Competitiveness Project

to assess progress towards achieving projects objectives; (v) strengthen the capacity of the project implementing agencies to monitor project impacts and use the PMIS by providing on-the-job training; (vi) provide six-monthly M&E reports to the PCU which would summarize achievements of the preceding six months, cross-cutting issues and recommendations, and updated project indicators and (viii) provide three comprehensive reports - the baseline survey and two impact evaluation assessments at the time of the project midterm review and project completion. 11. Baseline Survey: For each subcomponent under MACP, baseline figures have been taken on the basis of the available data and considering the possible growth under each activity targets for each project year have been worked out. The results of the activities will be measured in terms of reference framework and the targets fixed will be used to monitor the implementation and evaluate the performance of various activities under the project. 12. The baseline survey will need to measure baseline values of all the indicators in the project Arrangement for Result Monitoring as well as values of additional indicators as agreed with the PCU. Baseline values will need to be compiled for performance indicators for every component and sub-component of the project. 13. In order to enable an impact evaluation of the project it is critical that the sample design for the baseline survey includes controls. The controls will include markets, villages and households in Talukas where no MACP activities are being implemented. The consultants will be responsible for determining the final breakdown of treatment versus control markets and households to ensure statistically meaningful comparison can be made. Control markets and villages should have similar socio-economic characteristics to the treatment sample. Propensity score, or other matching methods, will need to be used to assess the validity of the controls in the analysis of the baseline data. Probability sampling must be used to select a sample such that it will allow statistically robust estimates of difference in key parameters of interest. 14. Specific tasks related to the baseline survey: i. Developing an appropriate sample design (this will include developing the sampling methodology, sampling stages & strata, the sample frames, the system for selecting the sampling units and the procedures for the calculation of the expansion factors for the sample to the universe); ii. Develop and finalize baseline survey questionnaires; iii. Arranging for the questionnaires to be translated into relevant languages (Marathi) iv. Field test the questionnaires; v. Incorporating revisions to the questionnaire after field testing the questionnaires; vi. Hiring and training the field supervisors and enumerators; vii. Planning the field work logistics; viii. Conducting a pilot survey and revising the questionnaire based on the findings of the pilot survey; ix. Preparing survey implementation and questionnaire documentation; x. Supervising survey implementation and ensuring quality control; xi. Developing the data entry program, supervising the project database and arrange for data cleaning and entry

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xii. Analyze and report the findings of the survey and provide datasets and final documentation. 15. Draft Report on the Sampling Strategy: The consultants will need to prepare a draft report on the sampling strategy including details on the proposed methodology and the sample frame and how the sample design will be implemented in the field and the methodology (formulas) for the calculation of expansion factors for the sample to the universe. The draft report will need to be discussed in detail with the MACP PCU. Once the report on the methodology for the sample design is finalized and cleared by the MACP PCU the consultants will develop the sample frame and select the sampling units. Once the sampling units have been selected, an initial set of expansion factors should be computed. A final report on sample design will be prepared with all details of the sampling methodology, development of the sample frame and calculation of expansion factors. The final report on sample design will need to be cleared by MACP PCU before commencement of the field survey. 16. Draft Survey Instrument: The consultants will finalize the data to be collected in the baseline survey after discussion with the PCU and PIUs. The draft survey instrument (in English) will be shared with the PCU and cleared before the field testing. After the field testing, the questionnaire should be translated into Marathi and piloted in the field. Some representatives of the MACP PCU may participate in the field testing and pilot as observers. After the pilot, final revisions will need to be made to the questionnaire and cleared with the PCU before the actual survey can be implemented in the field. 17. Fieldwork Progress Reports: The SP will prepare the brief fieldwork progress reports for the PCU at the end of each month. The report will include the number of surveys competed, problems encountered and how they were resolved (for example, the number of replacement households and why they were necessary) and the number of questionnaires entered in the data entry software. Replacement households/traders will be identified during the sample design. No deviation from the sample design will be permitted in the selection of replacements. 18. Sample Surveys of Markets with respect to Transaction Costs: The M&E Agency will undertake sample surveys of the markets of the existing transaction costs, both official and unofficial, in APMCs. The agency will carry out these surveys at baseline, at MTR and at project end in order to establish whether additional regulation, transparency and competition have reduced these transaction costs. (IFPRI Delhi have developed the survey and analysis techniques for measuring the transaction costs within APMCs from their work in markest in Bihar and Uttarakhand Contact Bart Minten at B.Minten@cgiar.com. M&E Consultant may use the results of this study while designing the survey.) 19. The firm will be responsible for all data entry, data cleaning, database management, as well as coding open-ended questions, and verification of the data. An ASCII version of the data as well as a complete data set including all variable names, descriptions and value labels prepared in a commonly used software package (either STATA or SPSS) will be provided to GoM within 1 month of the end of field work. Data from the GPS readings should be provided in a GIS shape file. 20. The Project Development Objective (PDO) and overall objectives of MACP: The Project proposes to improve the productivity and quality of produce in agriculture and allied sector by various interventions. The objective of better and reasonable returns to the farmer of his produce can be achieved if the farmer access to the markets is improved.

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Maharashtra Agricultural Competitiveness Project

This has been proposed to be achieved by infrastructure development and creating alternative marketing channels. The Project Development Objective (PDO) is To increase agricultural productivity, profitability and market access of the farming community of Maharashtra. 21. Components and Sub-components Component A: Intensification and Diversification of Market led Production A1: Market-led Agriculture Technology Transfer A2: Agri Business Promotion Facility A3: Market Information Services A4: Livestock Support Services Component B: Improving Farmer Access to Markets B1: Promoting Alternative Markets B1.1: Product Aggregation and sale through Producers Association B1.2: Warehouse Receipts Development B1.3: Rural Haat Markets B1.4: Introducing e-Marketing Platform B2: Modernizing Existing Markets B2.1: Modernizing Wholesale Markets B2.1: Upgrading Livestock Yards 22. Indicators to be measured in Baseline Survey are enumerated below. There are the following six core indicators identified for M&E: The share of wholesale and retail price received by the farmer. Changes in crop yields. Compliance with business standards by Office of Director of Marketing (e.g. no. of days required for issuance of licenses). Number of farmers utilizing the Market Information Services via SMS. Volume and value of sales of market transactions in APMCs and Rural Haats (RHs). Change in lease value of RHs. (i) Project Outcome Indicators: The share of wholesale and retail price received by the farmer. Changes in crop yields. Compliance with business standards by Office of Director of Marketing (e.g. no. of days required for issuance of licenses). Degree of price integration across markets in Maharashtra. Changes in farmers house hold income in real terms. (ii) Intermediate Outcome Indicators: Component A: Intensification and Diversification of Market led Production. A.1 Market led Agricultural Technology Transfer Farmers adopting improved production techniques and management practices in agriculture. Increase in farm diversification. A.2 Agri Business Promotion Facility Number of agri-preneurs and PAs (FGs, if available) accessing government schemes. A.3 Market Information Services - Number of farmers utilizing the Market Information Services via SMS. A.4 Livestock Support Services 195

Maharashtra Agricultural Competitiveness Project

- Increase in number of goats in the target area. Component B: Improving Farmer Access to Markets B.1 Promoting Alternate Markets B1.1 Product Aggregation and sale through Producers Associations Commodities aggregated through FGs and FCSCs. B1.2 Warehouse Receipts Development Number of farmers obtaining warehouse receipts. B1.3 Rural Haat Markets Volume and value of sales of market transactions in Rural Haats (RHs). Change in lease value of RHs. B1.4 Introducing e-Marketing Platforms - Volume and Value of sales of products traded through the E-trading pilots. B.2 Modernizing Existing Markets (APMCs & LSMs) - Volume and value of sales of market transactions in APMCs. (iii) Social and Environmental Indicators Volume of organic waste generated at targeted mandis Representation of women and tribals in market management committees 23. A well designed Management Information System (MIS) will be used for the reporting system of the progress and achievement under different activities. The online flow of information through MIS from the beneficiary organization and the District Officer of the implementing department to PIUs and from PIU to PCU would help to monitor the execution of the projects and also to evaluate the project results, periodically. 24. Audit of all the activities under the project from lowest level to PCU will be conducted regularly. There will be two systems of Audit viz. internal audit and external audit. The arrangements of audit have been described under the chapter on Financial Management. The number of external auditors to be appointed will be decided by the PCU in consultation with the M & E Consultant. 25. The whole process of monitoring and evaluation will thus involve number of important steps and there will be internal evaluation and external evaluation to carry out all the steps under M & E, an expert Consultant organization will be appointed at the start of the project, so that M & E Consultant will be able to start from the stage of carrying out baseline survey, fix the benchmarks, review the targets fixed and revise if necessary, develop MIS, decide the terms and conditions of selection, of the internal auditors and external auditors and will review the work of the project at every stage and give evaluation reports to the PCU regularly. ***

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C. 6 GOVERNANCE AND ACCOUNTABILITY ACTION PLAN

1. For the success of any project which is externally aided it is required to "ensure that the proceeds of any loan are used only for the purpose for which the loan was granted, with attention to consideration of economy and efficiency and without regard to political or other non-economic influences or consideration". The Borrower for such projects would be required to formulate procedures and institutional controls to guide project staff in guaranteeing that loan funds are not misused, and that the Borrower takes appropriate actions to reduce the chances of corruption. These procedures and controls also seek to balance anticorruption objectives with the need to ensure that the cost of doing business does not go up unnecessarily. 2. It must be underlined that anti-corruption work is not about grand strategies, but about management support for discrete and consistent measures. Key is close monitoring and follow-through, to ensure that, the projects systematically incorporate what is being learnt. The PCU & PIUs needs to take each specific project situation into account to prioritize and sequence actions. They also need to establish procedures that avoid possible misuse and maximize value for money. Careful supervision is required to ensure that agreed procedures are complied with in letter and in spirit, as also to track the achievement, output and outcomes. PCU & PIUs would also introduce anticorruption and demand-side measures to prevent problems in existing projects. Better controls and detection naturally bring more irregularities to the surface. Additionally, as communities come to trust the project, they will complain and demand more. These pressures must be anticipated and accepted as part of the price that must be paid for creating a more efficient system. Project Design Principles & Implementation and Grievance Redressal Mechanism 3. The project realizes that the one tool which can make a marked influence on good governance is free and wider access to information by the community and this can also ensure that the principles governing implementation are not subverted at any level by any individual. Accordingly, the project intends to adopt, suo-moto disclosure of information as its guiding principle in its endeavor to ensure transparency. Similarly the authorities responsible for the implementation will also be spelt out. Experience shows that success of a project is very closely associated with an efficient and responsive Grievance Redressal Mechanism which is based on a responsive administration. Such a system would be in place in the Project. In addition to this, the project, in line with the requirement of the Right to Information Act (2005) (RTI Act) shall provide on demand information as prescribed by law. 4. Grievance Redressal Mechanism: The project intends to implement a robust and responsive grievance handling mechanism at various levels by putting in place specific persons who shall be entrusted the responsibility for the same, with provisions of online tracking and monitoring of the deliverance on this score. The entire objective of the GAAP is to put in place systems which are transparent in functioning, information that is accessible by all and above all a governance mechanism which delivers as per the designed principles of the Project. For this purpose Administrative Officer in the PCU and the Nodal Officers of PIUs of all line departments will be appointed. Similarly, PD in PCU and the Heads of the Departments would be the Appellate Authorities to decide upon the appeals pertaining to RTI. All the names of these officers will be displayed on the projects website. All the line departments have already information officers and Appellate officers functioning in their 197

Maharashtra Agricultural Competitiveness Project

offices and institutions under their control assisted by the Govt. from Taluka level to State level. Regional information Commissioners and State information Commissioners are appointed under RTI Act, who function as state level appellate authorities. 5. To prevent corrupt officials and contractors from siphoning off public works funds by creating fake beneficiaries and underpaying real ones, activists first use the Right to Information Act to obtain all records relating to the program (muster rolls, measurement books, technical sanctions and utilization certificates) and publicly share and verify these with scheme participants. Additionally, they together with scheme participants and other members of local community visit worksites, interview field assistants/ other officials, and cross-check implementation reports. A key objective is to seek out ghost beneficiaries and inflated numbers of days worked, as also to ensure that officials are meeting the Act's other commitments. To ensure proper education of the APMC stakeholders in this regard, the implementation of the reforms and their expected benefits to the stakeholders will be given wide publicity in the APMC area. Contact persons & their contact addresses / phone nos. will also be displayed prominently for the knowledge of the farmers, traders, commission agents, hamaals, and tolaaidars, etc. Project Management Systems facilitating Transparency and Public Disclosure: 6. Civil society / Beneficiary Organization can be a valuable partner to both the project teams and the beneficiaries in ensuring that projects work well. Most often, it is the Civil society / Beneficiary Organization that organizes and builds beneficiary capacity to avail effectively of government programs, prevent irregularities, and gives vital feedback to the relevant authorities. At the same time, it serves as an objective check on all the project actors in reducing collusion and enhancing outcomes. Civil society / Beneficiary Organization can also support the project team in tackling other major challenge - that is, identifying project beneficiaries and those whom they trust to represent them. 7. Right from the outset, it is thus important to regularly consult and share project information with key Civil society / Beneficiary Organization groups. A proactive, wellstructured and ongoing engagement with Civil society / Beneficiary Organization can build generalized goodwill and insulate the project from a variety of negative internal and external influences. The implementation of the reforms, which form essential part of MMIP of APMCs, will be made known to all the stakeholders via prominent public display. The mechanisms by which to build civil society / Beneficiary Organization project oversight and involvement might be (i) Enhanced disclosure, (ii) Systematic monitoring of the project by beneficiaries and the media, (iii) Improved complaint handling systems, (iv) User satisfaction surveys, and (v) Soliciting feedback from the bidding firms. The GAAP of the project will be developed with these elements which will be integrally built in the project structure. (i) Regular reporting of project information: 8. The project information will be shared with the stakeholders from the commencement of the sub-project. This includes procurement and financial management records from the stage of planning & designing and implementation. The quality of the implementation will be ensured under the overall guidance of the M&E Consultant (PCU) and M&E Specialists (one each in PIU Agriculture and PIU MSAMB). 9. The Right to Information Act (2005) (RTI Act) presents a sound regulatory framework in which to situate the regular reporting of project-related information to the public. Full compliance in letter and spirit is thus suggested for all new projects, especially with the proactive disclosure provisions of the Act that touch on procurement and financial

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management information. Every public entity is required to "maintain all its records duly catalogued and indexed in a manner and the form which facilitates the right to information under this act and ensure that all records that are appropriate to be computerized are, within a reasonable time and subject to availability of resources, computerized and connected through a network all over the country on different systems so that access to such records is facilitated." (ii) Monitoring by Civil society / Beneficiary Organization 10. While enhanced information disclosure will facilitate systematic project monitoring by the public, civil society / Beneficiary Organization will, in any case, gather its own information to hold authorities and programmes accountable. It may thus be both useful and strategic to proactively incorporate mechanisms for ongoing civil society / Beneficiary Organization monitoring into the project design. 11. The members of beneficiary institutions, viz., APMC, RH, LSM, FCSCs along with the prominent personalities of the village where Project interventions are undertaken would be involved quarterly to get the feedback of the activities undertaken in the Project. The details of feedback would cover the following: (a) quality of the work performed, (b) misappropriation of allocated funds, (c) the progress of work compared to the timelines of the Project, (d) dissemination of the Project details, and (e) transparency in the conduct of the Project activities. 12. The district officer of the concerned line dept. would collect the data of feedback from such villages by sending personnel to such villages on quarterly basis and submit the data so collected to the concerned PIU through PMIS. The format for the feedback would be devised by the respective PIU and sent to all the district offices of the concerned line depts. (iii) Complaint handling mechanisms 13. Since an effective complaint mechanism energizes public vigilance against irregularity, it is provisioned for in project design. Also, once the project is effective, it would be constantly assessed for efficacy. Most essential though, is to ensure that whistle-blowers are completely protected since they often play the greatest role in anticorruption efforts. For this reason, it will be ensured, that all complainants would be assured of strict confidentiality and professionalism, and that no actions are taken against innocent people. Additionally, complaints against project staff should be handled by an independent entity for the system to be credible. 14. All the district level offices of the line depts., viz. Coop. & Mktg. Dept., Agriculture Dept. and Animal Husbandry Dept., will designate one senior officer, in each district office, as the Grievance Redressal Officer, who will receive any complaint relating to any matter relating to the project. The District Head of the concerned line departments will be designated as the Appellate Authority relating to the grievance redressal. The names and contact details of these officers will be published on the website of MSAMB. The details of the scope and nature of complaints, procedure for handling complaints, designated authorities at district level, public disclosure are mentioned in the subsequent para on the Grievance Redressal Mechanism. The nature of complaints which may be envisaged to be received by the Grievance Redressal officer at the district level can be enlisted as follows: (i) Procurement related complaints, (ii) Quality of material used in constructed related complaints, (iii) Quality of construction related complaints, (iv) Measurement of work completed related complaints, (v) Completion Certificate related complaints, (vi) Payment of the bill related complaints, (vii) Quality of delivery related complaints.

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iv) User Satisfaction Surveys (concurrent with M&E Reports) 15. Independent User Satisfaction surveys are now becoming a commonly used tool for public monitoring and feedback. PCU & PIUs would conduct such a survey with the assistance of the SP for M&E, since findings often help to pinpoint areas of vulnerability that may have been missed during the mapping exercise. These surveys will be conducted by the SP for M&E at the end of II year and IV year concurrent with the submission of the M&E Report. The parameters will mainly comprise of no. of farmers satisfied with the improved infrastructure, no. of private players satisfied with the introduction of reforms, no. of PPP enterprises that have reached their break even point (BEP). The universe for the survey will be the area of operation of the APMCs and the RHs selected for the development & implementation of Modernization & Improvement Plans. The construction of the survey questionnaire (and its translation in local language, Marathi) will be done by the SP in consultation of the PCU. The results of the survey will be disclosed on the project website. v) Feedback from bidding firms 16. Periodic feedback from firms would provide valuable insights into the behaviour of the implementing agencies during the procurement process. For this reason, feedback from rejected bidders, as also from reputed firms that chose not to bid for supply, construction, or other contracts in the project would be invited. Participatory Management: 17. MACP is built upon the basic principle of Participatory Management which envisages that the project is to be primarily driven by the beneficiary / community at all levels. This logically implies that the beneficiary / community shall have oversight over the project during the entire phase which includes planning, implementation and consolidation. In the post consolidation phase the project shall be self sustainable and therefore the activities therein would be replicable. 18. To translate this principle into reality, the project has provided for, that the beneficiary organization shall decide on the entire planning of the project viz. the identification of activities to be undertaken, infrastructure that need to be erected and the same will be approved by the GB of the Co-operative society / APMC / Producer Association. The procurement at the level of Producers Associations, for the infrastructure necessary for establishment of FCSCs, will be through community procurement as per the guidelines of the WB. For the execution of all these activities the PCU shall provide all necessary assistance to the PIU during the entire project. 19. The project will also have many activities which shall have to be implemented by the PIU and farmers organizations / implementation agency, which may include civil works or livelihood activities. Since there will be dual implementation mechanism in shape of the PIU and the farmers organization / implementing agencies, that the project design has ensured that there are adequate safeguards and controls built in to provide control and monitoring of the project components to both the implementing partners. 20. Accordingly the project has provided for, that in all the tenders which will be finalized by the PIU, there shall be the President of the concerned beneficiary organization (APMC/ Panchayat / FCSCs) or his representative as a member of the Tender Committee, who shall be present during the tender opening and finalization if the said member chooses to do so and sign the tender proceedings. However, the absence of the concerned member from the tender meetings will not be a reason for postponement of decision making. Similarly, before any payments are made to the contractors, it will be mandatory for the PIU to obtain a certificate from the Chairman / Chief Executive Officer of the concerned 200

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beneficiary organization to the effect that the work has been executed as per the design and estimate. Designated Officers under the RTI Act 2005 and Designated Officers under Grievance Redressal Mechanism: 21. The safeguard arrangements under the Project, which comprise of implementation under the provisions of the RTI Act 2005 and Grievance Redressal Mechanism, are as under. The contact details will be disclosed on the project and MSAMB websites and will be updated regularly. (a) RTI Act: The Information Officer and the Appellate Authority for seeking information under RTI Act for various sub-components in the project are given below:
Sr. No. 1 (i) (ii) Activity Time Period Component A: Strengthening Market Support Services Market led Agriculture Technology Transfer ATMA Activities Information Officer Appellate Authority Time Period

2 3 4

5 6 7 8

Line Deptt. Training Institutes (Vanamati, Horti. Proc. Trg. Instt., AH Trg. Instt., NIPHT) Agri-Business Promotion Administrative As per Facility Officer, PCU RTI Act Market Information and Manager (IT), As per Intelligence MSAMB RTI Act Livestock and Animal Livestock As per Health Development Development Officer RTI Act Component B: Improving Farmer Access to Markets Promoting Alternate Markets FCSCs (Food grain / Secretary/Manager As per Horticulture) RTI Act Warehouse Receipts Manager, Warehouse As per Godowns of MSWC RTI Act Upgrading Rural Village Village Development As per Haats Officer RTI Act Electronic Marketing Secretary APMC As per Pilots (E-trading / Virtual RTI Act Markets)

Deputy Director in Office of SAO Principal of Institute

As per RTI Act As per RTI Act

Superintending Agriculture Officer Superintending Agriculture Officer

As per RTI Act As per RTI Act

Project Director Nodal Officer, PIUMSAMB Deputy Commissioner Animal Husbandry

As per RTI Act As per RTI Act As per RTI Act

Asst. Registrar C. S. Deputy manager, MSWC Asst. Registrar C. S. District Deputy Registrar C. S. (for B class APMCs) Asst. Registrar C. S. (for C class APMCs)

As per RTI Act As per RTI Act As per RTI Act As per RTI Act

Modernization of Wholesale Markets Upgrading and Secretary APMC Modernization of APMCs

As per RTI Act

10

Modernization of LSMs and SR Markets

Secretary APMC

As per RTI Act

District Deputy Registrar C. S. (for B class APMCs) Asst. Registrar C. S. (for C class APMCs) District Deputy Registrar C. S. (for B class APMCs) Asst. Registrar C. S. (for C class APMCs) Project Director

As per RTI Act

As per RTI Act

11

Component C: Project Management Project Co-ordination Administration Unit (PCU) Officer, PCU

As per RTI Act

As per RTI Act

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Sr. No. 12 13

Activity Project Implementation unit (PIU - MSAMB) Project Implementation unit (PIU - Agriculture) Project Implementation unit (PIU - Animal Husbandry)

Information Officer Nodal Officer, PIU MSAMB Nodal Officer, PIU Agriculture Nodal Officer, PIU Animal Husbandry

Time Period As per RTI Act As per RTI Act As per RTI Act

Appellate Authority Director of Marketing, MS, Pune Director (Extension), O/o Comm. (Agri.), MS, Pune Commissioner (Animal Husbandry), MS, Pune

Time Period As per RTI Act As per RTI Act As per RTI Act

14

(b) Grievance Redressal Mechanism: The Grievance Redressal Officer and the Appellate Authority for the addressal of the grievances for various sub-components in the project, along with the time period stipulated for addressing the complaints finally, are given below. The contact details will be disclosed on the project and MSAMB websites and will be updated regularly.
Sr. No. 1 (i) Activity Grievance Time Redressal Officer Period Component A: Strengthening Market Support Services Market led Agriculture Technology Transfer ATMA Activities Deputy Director in 30 Days Office of SAO Line Deptt. Training Institutes (VANAMATI, Horti. Proc. Trg. Instt., AH Trg. Instt., NIPHT) Agri-Business Promotion Facility Market Information and Intelligence Livestock and Animal Health Development Deputy Director in Office of SAO 30 Days Appellate Authority Time Period

(ii)

Superintending Agriculture Officer Superintending Agriculture Officer Dist. Dy. Registrar Coop. Socys. Dist. Dy. Registrar Coop. Socys. Deputy Commissioner Animal Husbandry

30 Days

30 Days

ARCS (Adm.) in the office of DDRCS ARCS (Adm.) in the office of DDRCS Livestock Development Officer

30 Days

30 Days

30 Days

30 Days

30 Days

30 Days

Component B: Improving Farmer Access to Markets Promoting Alternate Markets FCSCs (Food grain / ARCS (Adm.) in 30 Days Horticulture) the office of DDRCS Warehouse Receipts ARCS (Adm.) in 30 Days the office of DDRCS Upgrading Rural Village ARCS (Adm.) in 30 Days Haats the office of DDRCS Electronic Marketing Pilots ARCS (Adm.) in 30 Days (E-trading / Virtual the office of Markets) DDRCS Modernization of Wholesale Markets Upgrading and ARCS (Adm.) in 30 Days Modernization of APMCs the office of DDRCS

Dist. Dy. Registrar Coop. Socys. Dist. Dy. Registrar Coop. Socys. Dist. Dy. Registrar Coop. Socys. Dist. Dy. Registrar Coop. Socys. Dist. Dy. Registrar Coop. Socys.

30 Days

30 Days

30 Days

30 Days

30 Days

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Sr. No. 10

Activity

11 12 13 14

Grievance Redressal Officer Modernization of LSMs ARCS (Adm.) in and SR Markets the office of DDRCS Component C: Project Management Project Co-ordination Unit Administrative (PCU) Officer Project Implementation unit Nodal Officer, PIU (PIU - MSAMB) - MSAMB Project Implementation unit Nodal Officer, PIU (PIU - Agriculture) - Agriculture Project Implementation unit Nodal Officer, PIU (PIU - Animal Husbandry) - Animal Husbandry

Time Period 30 Days

Appellate Authority Dist. Dy. Registrar Coop. Socys. Project Director, PCU Project Director, PCU Project Director, PCU Project Director, PCU

Time Period 30 Days

30 Days 30 Days 30 Days 30 Days

30 Days 30 Days 30 Days 30 Days

Governance Risks & Mitigation Measures: 22. As implementation of any activity has a certain element of risks involved in it, the project has identified some of the major risk elements which can have an adverse bearing on the success of the project. The list below is not necessarily a comprehensive one and it is very likely that some more may be encountered during the project implementation stage. The project realizes that Financial and Procurement Management and Actions of any level of implementing partners which subverts the principles of implementations as designed in the PIP, are the key elements which can have an adverse bearing on the motivational level of the stakeholders and thereby on participation which has a direct bearing on the success of the project. Accordingly, the project has come up with a General Risk Assessment and a Procurement Risk and Mitigation Plan. Disclosure on the Project Website and MSAMB Website 23. The disclosure policy of the project envisages that all information, except such information which is likely to preempt the bidders to quote close to the estimate or as per estimated cost, will be made available to the community at the State, District and the IA level. To deliver this policy, the project plans to put all information on MSAMB web site, in English & in local language, which shall have all information relating to the commencement of the Project, its objectives, dept. involved, project design, the implementation plan, procurement plan, and all assessment study reports. Apart from these, copies of all Govt. orders which have a bearing on the Agri. Marketing System and various project activities shall also be put on the website in English and Marathi. The strategy would be to provide quarterly information like:
i. ii. iii. iv. v. vi. vii. viii. ix. x. xi. xii. xiii. xiv. xv. xvi. Project component and sub-components, Procurement plan excluding the details of costs, Details of tender notices, Award of contracts and value thereof, Details of the contractor, Details of the officials implementing the project at various level, Their roles and responsibilities, Details of Grievance Redressal Mechanism and Contact Nos. Powers and functions, the procedures as per the PIP, Details of civil works undertaken and work in progress, Stipulated period of completion of work, Details of civil works completed. IESA Report and Annexures. Procurement Manual. Financial Manual. Community Operations Manual.

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The Suo Moto Disclosure Matrix gives the details of information that will be provided at the various levels and the method of dissemination. The project will develop an Integrated Project Portal to strengthen project MIS systems. This will include the development of external and internal websites. The information from any project related document likely to preempt the bidder to quote close to the estimated cost or at estimated cost will not be disclosed on the website. External website: Information in external website will include Project Information, Components Details with Activities and Budgeted Funding, Details of target beneficiaries under each component, Details of Procurement Progress, Details of Physical Progress, Details of Financial Status under each component, Details of targets and performance indicators, Details required under RTI, Complaint Management & Grievance Reporting. Internal website: Information in internal website will include: Internal MIS Reports for Component Activity planning and monitoring, Reporting on M&E Indicators, Procurement and Financial Management Systems including the use of Budget Distribution System (BDS), Asset Management System for all assets created under MACP.

Governance and Accountability Action Plan (GAAP): 24. The GAAP has been integrated into the project design to ensure that project funds are used effectively and efficiently and key stakeholders are provided the mechanisms to give feedback and enable their grievances to be addressed in a responsive and accountable manner. During project preparation, a review of potential risks for corruption was conducted and measures to mitigate these risks were formulated and integrated into the project design. These are summarized in GAAP below, including the identified risks and mitigation measures implemented by the project and responsibilities envisaged at different levels. (i) Procurement: 25. Procurement capacity and procedures: To enhance the procurement capacity in the implementation agencies, the project is providing for a Procurement Specialist in the PCU and Procurement Officer in PIU-MSAMB, PIU-Agriculture. All the officers will be trained on World Bank procurement procedures. A Procurement Manual describing World Bank standards has been developed to be used across the project. In addition to the Bank prior review process, the MSAMB procurement unit will also conduct prior review of the architectural plans and designs, bids and shortlists of contractors / suppliers, evaluation reports and final recommendation for the market construction activities. 26. Transparency in procurement: To ensure transparency in procurement processes several measures have been incorporated. A procurement committee will be established in every producer / farmer association to ensure the soundness of the procurement process and ensure appropriate disclosure among the community. 27. Procurement Committees: The following committee in PCU will look after the procurement costing more than US $ 100,000 and above per item for PIU MSAMB (for beneficiary institutions under Agriculture Marketing Dept.), as well as, the procurement for PCU. The composition of procurement committees at PCU / PIU-MSAMB / MANDIS / HAATS level will be as follows:

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PCU At State PCU level the procurement committee will comprise of the (a) Project Director, (Chairperson) (b) Chief Finance Controller - Member, (c) concerned technical specialist/ Coordinator in the PCU [ i.e the related specialist in MIS / M&E/ Agri-Business/Livestock/Agriculture/ Marketing] - Member (d) A chairperson of beneficiary institution or representative - Member, (e) Procurement SpecialistMember secretary. Note: With regard to procurement of PIU (Agriculture Marketing) only, the PCU will perform the procurement of works & goods above US $ 1.00 lakh.

PIU At PIU level the procurement committee will comprise of the (a) Commissioner / Director of the Concerned Line Department (Chairperson) (b) Technical Specialist in the PIU, wherever available Member, (c) Nodal officer of PIU Member, (d) A chairperson of beneficiary institution or representative Member, (e) Accounts officer, PIU Member, (f) Procurement Officer - Member Secretary. Note: The PIU (Agriculture Marketing) will perform the procurement of goods & works pertaining to Agriculture Marketing upto US $ 1.00 lakh. For the other PIUs the entire procurement process of good, works & services would be undertaken by the respective PIU only.

Markets At Rural Haats the procurement committee will comprise of the (a) Sarpanch of the Village Panchayat (Chairperson) , (b) DDR or his representative Member, (c) Two members from Haat Management Committee - Members (d) Representative of concerned Service Provider (design supervision consultant) for Rural Haats - Member (e) Village Development Officer (VDO) Panchayat - Member Secretary. Note: The market will undertake procurement of civil works upto US $ 30,000- and of goods upto US $ 10,000 only.

Community Procurement - Community Driven Development (CDD) is tool to provide social and infrastructure services to the poor people. It empowers poor people to organize the economic activities and manage locally available resources. It improves their governing capacity and provides security. Thus CDD gives control of decision and resources to community groups. The formation of Farmers Common Service Centre (FCSC) is community driven development. The procurement of civil works, goods and services required for the development of Farmers Common Service Centre (FCSC) will be handled by the procurement committee of the FCSC and also the procurement of goats for identified small ruminant farmer under demonstration programme of Animal Husbandry Department (AHD) will be carried out by procurement committee of demonstration unit. Note: The procurement of civil works, goods and services required for the development of Farmers Common Service Centre (FCSC) will be governed by the threshold limits given in the Procurement Manual (which will be provided, in Marathi, to all the beneficiary institutes and all other stakeholders). Procurement Committee of Farmers Common Service Centre (FCSC) - The committee will comprise of (a) Chairperson/President of the FCSC-Chairperson, (b) Three Members of the elected management Committee of the FCSC - Members, (c) ARCS of the concerned Taluka Member, (d) Manager of the FCSC- Member Secretary.

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Note: The FCSC will undertake procurement of civil works upto US $ 30,000 and of goods, equipments and services upto US $ 10,000. Procurement Committee of Demonstration Unit under AHD- The committee will comprise of (a) Sarpanch of Grampanchayat Chairperson, (b) Three identified small ruminant farmers Members, (c) Livestock Development Officer of Panchayat Samittee Member Secretary. The Livestock Development Officer will be responsible for handing over of purchased goats to identified small ruminant farmers. Note: Livestock Development Officer will be responsible for handing over of purchased goats to identified small ruminant farmers. 28. Disclosure of Procurement Information: All tender notices, bid documents, status of contracts at the state and district level will be posted in the MACP project website. Information on contracts awarded, works to be executed, and the schedule of completion will also be displayed at the project sites (e.g. markets, haats, FCSCs). Databank including information on items, rates will be set up at the PIUs through periodic market surveys to provide standard specifications and indicative price ranges for commonly used items. Appropriate mechanisms for compliance with the RTI Act for suo moto disclosure will also be in place. The information from any project related document likely to preempt the bidder to quote close to the estimated cost or at estimated cost will not be disclosed on the website. 29. Technical Quality Control and Verification: The project will involve a significant amount of construction activities in the market infrastructure improvement and modernization subcomponent. During implementation, the project will provide for Quality Control of all civil works in the APMCs, through MFEs, and in the Rural Haats. Post review and verification of physical assets will also be undertaken by internal auditors. 30. Quality Assurance of the Civil Works: The quality of the implementation will be ensured under the overall guidance of the M&E Consultant (PCU) and M&E Specialists (one in VANAMATI with the help of PIU Agriculture, and, one in PIU MSAMB). Taluka field officers will undertake quality check by sample testing 5% of the physical outputs. The procedures will be developed by the M&E Consultant (PCU) and M&E Specialists for quality check of the output by sample testing. The quality of the civil works will be ensured by a market field engineer (MFE) to supervise and monitor all the works on sample basis. The bill claims from the civil contractors will be verified prior to the release of amount.
SP raises a bill for civil construction reg. MMIP in APMC Market Field Engineer (MFE) verifies the bill Upon satisfactory verification, Chairman APMC endorses payment DDRCS, upon receiving endorsed bill, initiates action for payment

(ii) Financial Management: 31. Financial management capacity: The project funds would be received through the State Government budgetary allocations. The key objectives of the budgeting system are to: (a) Ensure budgeting control, (b) Provide an estimate of the funds needed for the project and the time when such funds are required, (c) Set target, analyze variance and fix accountability, (d) Provide a basis for periodical monitoring. To enhance the financial management capacity in the implementing agencies, the project is providing a Chief Financial Controller, a Financial Specialist and an Accounts Officer in the PCU, and,

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Maharashtra Agricultural Competitiveness Project

Accountants, one each at the DDRCS office (33) and ATMA (33) for agricultural marketing and agriculture dept. activities respectively. The project will provide financial management training to be completed during the first 6 months of the project. Standard software (TALLY - 9) will be used to ensure uniformity across spending units. A Financial Management Manual has been developed for the project which will lay down fund flow arrangements, delegation of financial powers at all levels, internal control framework, financial reporting arrangements and audit arrangements. This manual will serve as a reference manual for all spending units. 32. Financial management oversight: Oversight will be strengthened by recruiting an independent audit firm to conduct an external audit. The project will also have internal audit to ensure that internal controls are operating as intended. The internal audit will include physical verification of assets on sample basis. Almost 70% of the Project funds are estimated to be spent on civil works, goods & equipments. The Project design provides for third party technical supervision of all civil works which will reinforce assurance on the end-use of funds. A disclosure policy has been worked out to enhance transparency and accountability in the Project. Banks supervision will be strengthened by periodic SOE Reviews. Payments for the market modernization will be processed only after the certification from the SP, beneficiary institutions and technical support personnel of PIU-MSAMB has been received. 33. Project Audit Review Committee: Audit will comprise of both external and internal audit. The Project Audit Review Committee, headed by the Project Director, is constituted in the PCU, MACP, with the following members, for regular and timely external and internal audit of the project accounts: (i) Chief Financial Controller, PCU, (ii) Finance Specialist, PCU, (iii) Nodal Officer PIU (MSAMB ), (iv) Nodal Officer PIU (Agriculture), (v) Nodal Officer PIU ( AHD ), (vi) Accounts Officer, PIU (MSAMB), (vii) Accounts Officer, PIU (Agriculture), (viii) Accounts Officer, PIU (AHD), (ix) Representative of A.G., (x) Representative of the C.A. firm assigned with internal audit, (xi) Accounts Officer, PCU (Member Secretary). The Project Audit Review Committee will be responsible for timely audit and timely follow up of the rectification / corrective measures on the basis of audit reports. It will also attend to the following: (i) Periodical review of progress of internal and external audit, (ii) Review of rectification of audit observations, (iii) Corrective steps on audit observations, (iv) Give necessary instructions to the field staff of line departments and various institutions covered under MACP, to extend necessary support to audit teams and complete the record writing regularly, (v) Appraise the Principal Secretary (Cooperation & Marketing) / State Government, every six months about the progress and other matter of audit. The audit committee will hold quarterly meetings to carry out the above functions. 34. Disclosure of Audit Information: All the information regarding audit will be posted in the MACP project website, which will include: information on audit due, audit completed, and the executive summary of audit report/s. (iii) NGO Contracting: 35. Experience in other projects has pointed to weaknesses in the selection of NGOs to implement various project activities resulting in the mis-use of funds. Non-government Support Organizations (SOs) will be contracted as consultants in the Project to assist with community mobilization and capacity building. However, no project funds would flow through them. The project has formulated a set of predefined selection criteria and a transparent selection process agreed with the GoM which takes into account, among

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others, past experience, audited reports of NGOs, availability of infrastructure and human resources, and feedback from past clients. 36. As the Project implementation involves large number of activities and equally large number of transactions, the following safeguard measures to mitigate the risks are envisaged: (i) Internal Checks & Systems and Reconciliation of Accounts: for covering mechanism of crosschecking, (ii) Project Audit Internal Audit & External Audit: for validating the transactions by a third party expert, (iii) Computerized Accounting System: for Standardized practices and procedures, thus reducing eventuality of omission and commission, (iv) Periodical Reporting MIS: for monitoring progress in respect of the short term and long term Project Goals. (iv) Monitoring & Evaluation: 37. Regular feedback on project performance would be obtained from (i) Bi-annual monitoring reports (drawing from randomly selected field verification), (ii) Baseline, Mid-term and Final impact evaluation reports produced by an external M&E agency, who would independently collect information on various project aspects through primary surveys in project areas. Project M&E mechanisms will emphasize stakeholder participation. They will be designed to facilitate rapid identification of shortcomings and problem areas. They will facilitate mid-term corrections, where necessary, to project design and / or implementation arrangements to enhance the prospects of the project meeting its development objectives. The project would be subjected to two major reviews to be carried out jointly by GOM and the Bank, i.e., the first review would be at the time of the second Mid-term Review (MTR) of the project, and, the second review around the time of project completion. Safeguards: 38. There would be a separate Environment & Social Cell (ESC) within the PCU. This cell will have one Social Development Specialist and one Environment Specialist and will be responsible to coordinate with the participating Project Implementation Units (PIUs). At PIU-MSAMB there is a Social / Environment Officer who will be responsible to coordinate community mobilization, as well as, addressing social and environmental concerns at the sub-project level. The Agricultural Supervisior in PIU (Agriculture) will be designated as Community Extension Officer and the Nodal Officer, PIU (AHD) will be given additional responsibility of Community Extension Officer for attending to safeguards aspects under the project. To address the issue of lack of capacity amongst the implementing agencies, a capacity development and training programme will be undertaken for which provision has been made under PCU cost tables. To avoid the delays in implementation of the Resettlement Action Plan necessary steps will be taken. Grievance Redressal Mechanism: 39. The implementation of the various subcomponents of the project involve interaction between stakeholders and the service providers, mainly, implementation civil works in MMIP. Apart from procurement, there are a large number of other issues related to the implementation of the various subcomponents. The implementing agencies will exert to ensure the implementation as per the WB norms, but the contingency of emergence of any untoward incidence and any of the party getting aggrieved due to it, cannot be overruled. Therefore, at the district level each Implementing Agency, and their respective parent department, shall designate a senior officer as the District Grievance Redressal

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Officer. The Head of the District Office of the Department shall be the Appellate Authority. 40. Types of Complaints: The nature of complaints which may be envisaged to be received by the Grievance Redressal officer at the district level can be enlisted as follows. The complaints may relate to procurement, contract, work, payment, or any other matter touching to MACP. Grievance Redressal Officer will have to deal with these complaints. (i) (ii) (iii) (iv) (v) (vi) (vii) Complaints related to the procurement. Complaints related to the quality of material used in construction. Complaints related to the quality of construction. Complaints related to the measurement of work completed. Complaints related to the Completion Certificate. Complaints related to the payment of the bill. Complaints related to the quality of delivery.

41. Complaint/s through Complaint Boxes: The aggrieved parties (stakeholders or SPs) can forward the complaints to the respective District Grievance Redressal Officer by writing to the authority. There will be Complaint Boxes in each of the offices of the Implementing Agencies. The Complaint Boxes will be opened by the District Head of the Office and District Grievance Redressal Officer on a specific day in a week. The District Head of the Office will take note of the complaints in the complaints register, give interim reply to the complainant, take action on the complaint/s, and, provide final reply to the complainant. The details of the arrangement regarding Complaints Boxes will be as follows:
Sr. No. Office where the Complaint Boxes will be provided District Deputy Registrar Coop. Societies Persons responsible for opening the Complaint Boxes DDRCS & District Grievance Redressal Officer in O/o DDRCS Further action to be taken on complaint/s by the Head of the Office receiving the Complaint/s

District Superintending Agricultural Officer (DSAO)

DSAO & District Grievance Redressal Officer in O/o DSAO

Deputy Commissioner Animal Husbandry

DCAH & District Grievance Redressal Officer in O/o DCAH

(i) Register the complaint in the complaints register & provide unique code no. to the complaint, (ii) Provide interim reply to complainant in 7 days, (iii) Take necessary action and provide final reply to complainant in 30 days, (iv) In case, any complaint pertains to higher authority, forward the complaint in 7 days to appropriate higher authority, under intimation to the complainant. (i) Register the complaint in the complaints register & provide unique code no. to the complaint, (ii) Provide interim reply to complainant in 7 days, (iii) Take necessary action and provide final reply to complainant in 30 days, (iv) In case, any complaint pertains to higher authority, forward the complaint in 7 days to appropriate higher authority, under intimation to the complainant. (i) Register the complaint in the complaints register & provide unique code no. to the complaint, (ii) Provide interim reply to complainant in 7 days, (iii) Take necessary action and provide final reply to complainant in 30 days, (iv) In case, any complaint pertains to higher authority, forward the complaint in 7 days to appropriate higher authority, under intimation to the complainant.

42. Complaint Boxes will also be provided at APMCs, Rural Haats and the HQs of the Producers Associations (operating the FCSCs). The CEO of the organization (Secretary of APMC / VDO of the GP / Secretary of the PA) will be responsible for taking note of the complaints received in the complaint boxes and taking further necessary action/s on

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them. (The complaints, if any, regarding the PAs / FCSCs in the association formative stage, will be received by the District Grievance Redressal Officer in O/o DDRCS). 43. In order to take prompt action/s on the complaint/s, the Complaint Boxes at all the above locations will be closely monitored through Project Management Information System (PMIS). Each complaint will be given a unique code number, and, the opening of the complaint boxes regularly on the specified days, the total no. of complaints received, no. of complaints to which interim replies have been provided, no. of complaints resolved finally, pending complaints and the reasons thereof, etc. will be monitored by the PCU and the PIUs through the PMIS. The PCU and PIU will also review the performance of the complaint redressal arrangements through Complaint Boxes, and, take further steps, including punitive action/s on the persons found responsible, if necessary, to minimize the frequently occurring complaints. 44. Complaint/s received over Telephones: The aggrieved parties (stakeholders or SPs) can also forward the complaints to the respective District Grievance Redressal Officer on telephone. The PCU will have dedicated phone line to receive the complaint/s. The Implementing Agencies (IAs) will give appropriate publicity to the PCU telephone number/s and the telephones of the District Grievance Redressal Officer for receiving the complaints, which will be operated during the office hours by an authorized person. The details of the complaints will be registered by the District Grievance Redressal Officer, in the complaints register maintained for this purpose. The complaints received on telephone shall be addressed by the District Grievance Redressal Officer in the same manner as in the case of written complaints. The information about the redressal of the complaints received will be published and disclosed on the project website and the website of the MSAMB. 45. District Grievance Redressal Officers: All the concerned district level offices of the concerned line Departments (Agriculture, AHD, and, Co-operation & Marketing) will have one designated Grievance Redressal officer and the Head of that concerned district will be designated as appellate authority for this purpose. The details of designated officers are as follows. The names and the contact details of the District Level Office of the Implementing Agency, District Grievance Redressal Officer and, Appellate Authority will be disclosed on the project website. This information will be updated regularly.
Department Agriculture Department AH Department District Level Office of the Implementing Agency Superintending Agricultural Officer (SAO) Deputy Commissioner AH (DC) of & District Deputy Registrar Coop. Societies (DDRCS) District Grievance Redressal Officer Deputy Director (DD) in the office of SAO Livestock Development Officer (LDO) in the office of DC (AH) Asst. Registrar Coop. Societies (ARCS) in the office of DDRCS Appellate Authority Superintending Agricultural Officer (SAO) Deputy Commissioner AH (DC) District Deputy Registrar Coop. Societies (DDRCS)

Department Co-operation Marketing

46. Timeline for Grievance Redressal: Timeline for the grievance redressal at District Grievance Redressal Officer level will be as follows: (i) Any complaint will be given interim reply within 7 working days of its receipt, (ii) Within 30 working days of receipt detailed reply and proposed line of action of any, will be communicated to the complainant, (iii) Within 2 months of receipt of the complaint, proposed action (if any) will be completed and will be communicated to complainant. 210

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47. Appeals and Appellate Authority: In case complainant is not satisfied with action taken by the Grievance Redressal Officer, he / she may file an appeal before the concerned authority mentioned in the above para. The appellate authority will dispose of the appeal within 30 working days. The appellate authority may take the any one of the following action/s, as deemed fit: (i) Enquire into the original complaint and the action taken by the Grievance Redressal Officer, (ii) Appoint appropriate person to enquire as above, (iii) Remand back the complaint to the Grievance Redressal Officer for review. 48. Actions on Complaints/ Grievance: There may be following types of actions proposed as the result of enquiry / appeal: (i) Administrative Action Appropriate action will be taken in view of the legality of nature of the complaint and the result of the enquiry will be communicated to the complainant, (ii) Disciplinary Action Appropriate Disciplinary action (light / severe) will be taken against the defaulting officer / staff in accordance with the Conduct Rules. The same will be communicated to the PCU / PIU for taking further appropriate action at their level, (iii) Action on Serious fraud Appropriate action will be taken to lodge police complaint against the person found guilty. 49. Reporting about Grievance Redressal: The information about the grievance handling will be disclosed on the project website and will be updated periodically. Periodic returns will be submitted to World Bank authorities through MIS in prescribed format for communicating the status of the complaint received and actions taken. Community Operations Manual (COM) 50. The COM has been prepared to provide the requisite information about MACP to all the stakeholders at a single source. The manual details out in simple manner various elements of MACP Project. It facilitates greater participation from community members by explaining the project components to them and clarifying their role in the project. The project information is presented in simple, lucid manner and in local language. It includes information about project design, project development objectives, and, various components of the project. All the details of each of the components, their implementation arrangements, funds flow, M&E arrangements, output / outcome indicators, community procurement aspect, and, involvement of community in project implementation. COM contains information about complaint redressal mechanism, and, contact details of the District Grievance Redressal Officer where a person can lodge her / his complaint/s. 51. The COM (in Marathi) is made available on the website of MSAMB and printed copies of COM booklets (Marathi) are made available to all implementing agencies, all beneficiary institutions, and, all other stakeholders. ***

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Governance and Accountability Action Plan

Issue Mitigation Measures Agency Responsible Timing / Duration (a) Project life

Procurement Procurement (a) Project providing for dedicated Procurement Specialist and (a) PCU, PIUs capacity a Procurement Officer in PCU and one Procurement Officer in each PIUs. (b) Training of all project procurement staff on World Bank (b) PCU, PIUs procurement procedures (c) Orientation to top management in all entities on linkages (c) PCU, PIUs between adherence to project plan for project outcomes and oversight requirements (d) An online Help Desk facility by a resource agency for (d) PCU capacity building for first 6 months Procurement (a) A Procurement manual meeting Bank requirements, with (a) PCU, PIUs procedures standard bidding documents, evaluation templates to be used across the project (b) In addition to Banks prior review process, MSAMB (b) MSAMB procurement unit also to perform prior review of architectural plans and designs, bids, short lists of contractors / suppliers, evaluation report and final recommendation for market construction activities (c) Appropriate thresholds to ensure higher extent of prior (c) MSAMB/ reviews in first phase of project Bank Transparency (a) Procurement Committee in every producer / farmer (a) PIUs in procurement associations to ensure soundness of the process and decisions disclosure requirements among the community (b) Item / Rate Banks set up by PIUs through periodic market (b) PIU survey to provide standard specifications and indicative price ranges for the common user items (c) Mandatory record keeping through maintaining data and (c) PCU, PIUs records for all contracts at state and district level (including through computerization of procurement data) (d) Disclosure of all tender notices, bid documents, status of (d) PCU, PIUs contracts, on the MACP project website (e) In project supported markets (mandis, haats), public display (e) All agencies of updated information on contracts awarded, works to be executed, schedule of completion. (f) Compliance with Right to Information Act for suo moto (f) All agencies disclosure (indicative list of information to be disclosed at state, district). Technical (a) Evaluation process during market modernization, selection (a) PIUQuality process to ensure technical quality of mandi market MSAMB Control/Verifi modernization plans cation (b) Project will provide for Third-party Quality Control through (b) PIUMFE of all civil works in the APMCs and in the Rural haats MSAMB improved (c) PCU (c) Post review and verification of physical assets by the Internal Auditors (d) Bank (d) Enhanced post-reviews by Bank, including during supervision missions Financial Management Financial (a) Project providing support for additional Financial (a) PCU, PIUs Management Management staff (3) at the PCU and Accountants (33) at (b) PCU, Capacity the district level. PIU-MSAMB & (b) Providing training of project FM staff PIU-Agri.

(b) 2 programs of 5 days duration (c) 4 programs in first year, repeat in 2nd year (d) For 6 months (a) In the beginning (b) Project life

(c)Project life (a) Project life

(b) Once in every year (c ) Project life

(d) Project life (e) Project life

(f)Project life

(a) Project life

(b) Project life (c) Project life (d) Project life

(a)

Project life

(b) First 6 months of project

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Issue Record keeping

Mitigation Measures

(a) Improving accounting through use of double entry using Tally software (b) MIS strengthened to include financial management records (b) PCU, PIUs (a) Payment processed for market modernization only after certificate of recommendation from the SP and the beneficiary institutions concerned is received. (b) Establishing service standards, e.g. payment must be released within 15 days of receipt of order for payment

Agency Responsible (a) PCU, PIUs

Timing / Duration (a) Project initiation

Payments

Auditing

(a) External audit by independent agency to conduct external audit (AGs Audit for BDS Accounts & MSWC Accounts. CAs Audit for non-BDS Accounts) (b) Internal audit by PCU (Firm of CA) NGO Contracting (a) Non-government Support Organizations (SOs) to be contracted as consultants for assisting with community mobilization and capacity building but no project funds would flow through them (b) Transparent SO selection criteria and process agreed which takes into account, among others, past experience, audited reports of SOs, availability of infrastructure and human resources, and feedback from past clients Monitoring and Evaluation Data collection (a) In addition to government produced progress reports, and system to regular feedback on project performance would also be track project obtained from (i) bi-annual monitoring reports (drawing implemenfrom randomly selected field verification), (ii) baseline, tation mid-term and final impact evaluation reports produced by an external M&E agency who would independently collect information on various project aspects through primary surveys in project areas; (b) Development of an Integrated Project Portal to strengthen project MIS systems (c) Development of project external and internal websites. Information in external website to include Project Information, Components Details with Activities and Budgeted Funding, Details of target beneficiaries under each component, Details of Procurement Progress, Details of Physical Progress, Details of Financial Status under each component, Details of targets and performance indicators, Details required under RTI, Complaint Management & Grievance Reporting. Information in internal website to include: Internal MIS Reports for Component Activity planning and monitoring, Reporting on M&E Indicators, Procurement and Financial Mgt Systems including the use of Budget Distribution System (BDS), Asset Management System for all assets created under MACP (d) Reports produced by Third party Quality Control consultants (MFEs) (e) Web disclosure in Marathi and in English (a) At the district level each Implementing Agency, and their respective parent department, shall designate an officer as District Grievance Redressal Officer. (b) The Head of the District level Office of the Department

(b) Project life (a) DDRCS (a) As required under intimation to PIU-MSAMB (b) DDRCS (b) As required under intimation to PIU-MSAMB (a) PCU (a) Annual (b) PCU (b) Continuous

(a) PIUs

(a) Project life

(b) PIUs

(b) Project life

(a) PCU

(a) Project life

(b) PCU, PIUMSAMB (c) PCU, PIUs

(b) Project life (c) Project life

(d) PCU, PIUMSAMB, (e) PCU, PIUMSAMB,

(d) Monthly (e) Monthly

Complaints handling and resolution mechanisms

(a) PCU, PIUs (b) APMCs, PIU-

(a) Project life (b) Project life

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Agency Timing / Duration Responsible shall be the Appellate Authority. MSAMB, (c) The complaints may relate to procurement, contract, work, DoM payment, or any other matter touching to MACP. (c) Haat (c) Project life (d) The aggrieved parties (stakeholders or SPs) can forward the Committee, complaints to the respective District Grievance Redressal PIUOfficer in writing (or telephonically) to the authority. MSAMB, (e) There will be Complaint Boxes in each of the offices of the (d) DDRCS (d) Project life Implementing Agencies. office (f) Complaint Register will be maintained to register complaints received in writing (or telephonically). Other Governance issues Governance in (a) Participatory consultation with market users in selection of (a) APMCs, (a) At market APMC market investments Haats, design phase Management (b) Selection process of regulated markets to be supported Producers (b) At market includes criteria on commitment of Agricultural Produce Associations selection Management Committee to adopt management reforms , SP phase including: (i) public display of market income & (b) PIUexpenditure, tender documents, (ii) adopting computerized MSAMB and standard accounting procedures, preparation of annual reports as per standard accounting norms; (iii) public display of price information in the market through multiple price display boards, (iv) adopt model byelaws as prescribed by MSAMB. (c) APMCs, (c) At project (c) Public Display of all the reforms to ensure implementation initiation phase of reforms. (d) PIU(d) At project (d) Project will support capacity building of APMCs on MSAMB initiation phase planning, budgeting and market management ATMAs (a) Approval of Annual Action Plans by ATMA Governing (a) DOA, (a) Once a year Board having representation of farmers and other ATMA stakeholders (b) Participatory consultation with farmers in the preparation of (b) DOA, (b) Through out district marketing strategy supplement (MSS) and strategic ATMA MSS and research and extension plan (SREP) SREP preparation (c) Organization of field days for farmers at demonstration (c) ATMA (c) Once per crop sites to assess productivity gains from the demonstrated season technologies Project Preparation Assessment (a) As part of project preparation a study titled Maharashtra (a) State Project (a) Project and mitigation Governance Action Plan was carried out through preparation preparation of fraud and independent consultants; based on the findings of the study team, Bank corruption which identified potential areas of fiduciary and governance risks weaknesses, a Governance and Accountability Action Plan has been prepared which forms part of the borrowers Project Implementation Plan. Project Supervision Field (a) Bank supervision missions would visit randomly market (a) Bank (a) Project life verification of and ATMA sites to assess and physically verify work project financed under the project. These site visits would include implementation in-depth interaction with market users, including market committees, farmer interest groups, and non-government support organizations assisting with community mobilization and capacity building. Areas to be visited will take in to account the following criteria: (i) random selection from district-wise list of markets/ATMAs under the project; (ii) special emphasis on regulated markets supported by the project and those markets/ATMAs identified by the complaint handling system. Issue Mitigation Measures

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LIST OF ABBREVIATIONS

ABBREVIATION ABPF ACP ADF AES AGMARKNET AHD AHEO AM APEDA APMC AR/ ARCS ATMA BDO BDS BMC BMP BoQ BOT BTT CA CBO CCI CD CDD CEO CIFA CIGs CII CSC CVC DAC DAPMS DDO DDR /DDRCS DGSD DMI DoM DPR DROA DSS DSR EMD EMIC EoI

DETAILS Agri Business Promotion Facility Annual Credit Plan Animal Husbandry, Dairy and Fishery Agriculture Extension Staff Agricultural Marketing Information Network Animal Husbandry Department Animal Husbandry Extension Officer Agri Mart Agriculture & Processed Food Products Export Development Authority Agriculture Produce Market Committee Assistant Registrar/ Assistant Registrar of Co-operative Societies Agricultural Technology Management Agency Block Development officer Budget Distribution System Bulk Milk Cooler Better Management Practices Bill of Quantity Build Operate & Transfer Block level Technology Team Chartered Accountant Community Based Organizations Chamber of Commerce Compact Disk Community Drive Development Chief Executive Officer Central Institute of Fresh Water Aquaculture Common interest groups Confederation of Indian Industry Common Service Centers CENTRAL Vigilance Commission Department of Agriculture and Co-operation District Agricultural Production and Marketing Strategy Drawing and Disbursing Officer District Deputy Registrar/ District Deputy Registrar of Co-op. Societies Directorate General of Supplies & Disposals Director of Marketing and Inspection Director of Marketing Detailed Project Request District Rural Development Agency Decision Support System District Scheduled Rates Earnest Money Deposit Economic & Market Intelligence Cell Expression of Interest

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ABBREVIATION ESC ESMP FAC FCSC FICCI FIAC FIGs FMC FPO FPP FRP FWM GAP GB GDP GIS GIS GMP GO GoI GoM HACCP HMC HPTI IA IBRD ICB ICM ICT IDA IDWG IESA IFB IIM INM INPM IPP IPM IT KMS KVKs LCD LDO LEO LED LLPD LLLW

DETAILS Environmental and Social Cell Environmental and Social Management Plan Farmers Advisory Committee Farmers Common Service Center Federation of Indian Chamber of Commerce & Industry Farmer Information and Advisory Centers Farmer Interest Groups Fund Management Committee Food Processing Order Full Project Proposal Fiberglass Reinforced Plastics Fish Wholesale Market Good Agricultural Practices General Body Gross Domestic Product Geographical Information System Galvanized Iron Sheet Good Manufacturing Practices Government Orders Government of India Government of Maharashtra Hazard Analysis Critical Control Point Haat Management Committee Horticulture Processing Training Institute Implementing Agency International Bank for Rural Development International Competitive Bidding Integrated Crop Management Information and Communication Technology International Development Agency Inter Departmental Working Group Integrated Environmental and Social Assessment Invitation for Bidding Indian Institute of Management Integrated Nutrient Management Integrated Nutrient & Pest Management Integrated Project Portal Integrated Pest Management Information Technology Knowledge Management Systems Krishi Vigyan Kendra Liquid Crystal Display Livestock Development Officers Livestock Extension Officers Liquefied Electronic Display Lakh Liters Per Day Lady Link Livestock Workers

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ABBREVIATION LPD M&E MACP MANAGE MAVIM MCCIA MCX MDP MID MII MIS MMIP MMIP MoU MSAMB MSS MSWC MT MTR MWSIP NABARD NADP NATP NBHC NCB NCDC NCDEX NFSM NGC NGOs NHB NHM NHRDF NIPHT NMCE O&M OHP PA PACS PAD PC PCN PCU PD PERT PG PHM

DETAILS Liter Per Day Monitoring and Evaluation Maharashtra Agricultural Competitiveness Project National Institute of Agricultural Extension Management, Hyderabad Mahila Arthik Vikas Mahamandal. Maratha Chamber of Commerce Industry & Agriculture Multi Commodity Exchange Management Development Progrmmes Market Information Display Market Information and Intelligence Management Information System Mandi Modernization and Improvement Plan Market Modernization and Improvement Plan Memorandum of Understanding Maharashtra State Agricultural Marketing Board Marketing Strategy Supplements Maharashtra State Warehousing Corporation Metric Tonne Mid Term Review Maharashtra Water Sector Improvement Project National Agriculture Bank and Rural Development National Agricultural Development Programme National Agricultural Technology Project National Bulk Handling Corporation National Competitive Bidding National Co-operative Development Corporation National Commodity & Derivatives Exchange Limited National Food Security Mission New Generation Co-operative Non Government Organizations National Horticulture Board National Horticulture Mission National Horticultural Research and Development Foundation National Institute of Post Harvest Technology National Multi Commodity Exchange Operations and Maintenance Over Head Projector Producer Associations Primary Agriculture Credit Cooperative Society Project Appraisal Document Producer Company Project Concept Note Project Coordination Unit Project Director Project Evaluation & Review Technique Producer Groups Post Harvest Management

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ABBREVIATION PIU PMC PMIS PPP PPR PRA QCBS R&R RAMETI RFP RHMIP RML RP RTI SAO SAU SC SEMF SHG SMES SMS SOP SP SR SREP TOR ToT TPD TNA VANAMATI VDO VGF VLLW VLW VOs WB WBM XI FYP ZP

DETAILS Project Implementation Unit Project Management Committee Project Monitoring Information System Public Private Partnership Preliminary Project Report Participative Rural Appraisal Quality and Cost Based Selection Resettlement & Rehabilitation Regional Agriculture Management & Training Institute Request For Proposal Rural Haat Modernization & Improvement Programme Reuters Market Light Resettlement Plan Right to Information Superintendent Agriculture Officer State Agriculture University Steering Committee Social and Environmental Management Framework Self Help Group Small & Medium Enterprises Subject Matter Specialist /Short Message Service Standard Operation Procedures Service Provider Small Ruminant Strategic Research and Extension Plan Terms of Reference Training of Trainers Tonnes Per Day Training Need Assessment Vasantrao Naik Agriculture Management & Training Institute, Nagpur Village Development Officer Viability Gap Funding Village Lady Link Workers Village Level Worker Village Organizations World Bank Water Bound Macadam XI Five Year Plan Zilla Parishad

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