PREFACE

Agriculture sector accounts for almost quarter of the Indian Gross Domestic Product. This sector has a very high importance in the life of the common Indian citizen as almost two third of the population depends on agriculture and related activities. India is number 1 in gross arable lands, 11% of global arable land being in India. India is number 1 milk and fruits producer and number 2 in production of vegetables. But India accounts for less than 2% of global agricultural export. The main reason for such a low export performance is lack of adequate planning and lack of infrastructure. To develop export oriented farming and processing of agricultural products the government has come with a concept of Agri Export Zones. Agri Export Zones tends towards integrated approach to agricultural exports. The AEZs try to strengthen vertical linkages by taking market oriented approach. Farmers, Processors & Exporters try to work in synergy in AEZs to get benefits of vertical linkages. The concept of contract farming is also emphasized in AEZs. To exploit horizontal linkages across farmers, processors and exporters AEZs are providing Shared Facilities to these people. Shared facilities like cold storages and packing houses give opportunity to small farmers and processors to use such advance facilities with affordable charges. Centralized Training centers and R&D facilities will also benefit small farmers and processors to a great extent. In this project I have made a humble attempt to understand the concept of AEZ, its benefit to agriculture sector and response of exporters and processors about the benefits of AEZs with a live case study.

CONCEPT OF AGRI EXPORT ZONE

Setting up of AEZ is a very important step towards providing state of art infrastructure for the export of agricultural production. AEZ's take product specific, approach for identifying potential products in the clusters for exports. AEZ's takes care of total supply chain of identified product from sourcing of desired quality raw material to final export. There are various difficulties encountered at each stage in the process of sourcing to final export. Some of the major difficulties encountered are given below. Availability of good quality produce/product in the required quantity. Wastage due to lack of proper packaging. Lack of market information, both supply side and demand side. Inability of local players to meet international quality standards. Unavailability of credit at right time at reasonable rate of interest. Unavailability of proper storage and transportation facilities. In addition there are many procedural difficulties due to presence of many food and agro related laws. AEZ's try to solve all these difficulties by integrating various institutions involved in trade, legislation and for support. The two basic principles which are at the center of concept of AEZ are; Identification of Potential product for export in a particular geographical area. The good quality products which are having bulk production in a particular geographical area are identified. Example in Karnataka AEZ is established in the regions where Gherkins are available in quantity. Similarly AEZ are set in Uttaranchal for flowers, in Maharashtra for grapes and in UP for Mangoes.

Research and development to produce internationally competitive products.

Special emphasis is given for R&D at each level from sourcing to export. Soil research and farm development for production of high quality raw material; Innovation in packaging materials to increase shelf life; development or procurement of proper technology for processing and marketing research are some important areas of research.

OBJECTIVE OF AEZ
In a fast changing international trade environment, with a view to providing remunerative returns to the farming community in a sustained manner, efforts will be made to provide improved access to the produce / products of the Agriculture and Allied sectors in the international market by setting up of Agri Export Zones. Here one thing should be made clear that AEZ is not a Special Economic Zone. It is not a specific plot of 20 acres or 100 acres with a custom notified boundary. AEZ status is given to particular area like district and all the activities carried out in that area come under AEZ. Four districts Thane, Raigad, Ratnagiri and Sindudurg come under AEZ for Mangoes. Any processor, exporter, farmer in these district who are engaged in export of Mango or products made from Mangoes will get benefit from AEZ. Produce other than Mango will not get benefits of AEZ in these districts. The produce/products are also sold in domestic tariff area.

RESEARCH METHODOLOGY
Problem Definition Study viability of use of shared facilities in Agri export zones. Objective of the Study 1. To evaluate the effectiveness of Agri export zones in strengthening the supply chain of food for exportation. 2. Studied other benefits from the Agri export zone to farmers processors and exporters. Scope of the studies This study of supply chain of food is restricted to Agri export zones. The impact of the shared facilities provided by this special commercial area on the supply chain of food will be studied. The impact of AEZ on procurement, processing & distribution will be studied. And other benefits to farmers, processors and exporter from Agri export zone will also be studied. Benefits of the Study The study will give a clear picture of the benefits of making investments in Agri Export zones. Research Design The research has been divided in two main parts 1. Collection of data through primary & secondary sources. 2. Analysis of the data and interpretation of the findings to come at conclusions.

For collection of secondary data the information will be collected from various government agencies like APEDA, Ministry of food processing, Confederation of Indian Food Trade & Industry etc. Non government agencies like journals, news papers and web sites of institution like Rabo bank will also be used to collect secondary data. Primary data will be collected by direct interviews of people working in units in Agri export zones and the exporters in the Agri export zones. Null Hypothesis of the Study The Agri Export Zones will not make any significant change in the supply chain of food and food products for purpose of exportation. The researcher will try to reject this null hypothesis by proving that AEZ will make a significant change in supply chain of food for exportation. Alternate Hypothesis of the Study The Agri Export Zones will make a significant change in the supply chain of food and food products for purpose of exportation. Limitations The study will be conducted in Maharashtra state alone, with one Agri export zone.

PROVIDING SOLUTIONS THROUGH AGRI EXPORT ZONE

Availability of good quality produce/product in the required quantity: AEZ try to solve this problem by making arrangements of three party contract farming agreements. The three parties are farmers, processors and bank. Detail of this concept is dealt later. The arrangement for duty free importation of good quality seeds, fertilizers and pesticides is also made. Training is provided to the farmers by various agriculture support agencies for growing required crop and for maintaining desired quality. Wastage due to lack of proper packaging: The AEZ provide shared facility of packing house. All the farmer, processors or exporters can sort, grade and pack the products in this shared facility. Shared facility provides this service at a reasonable cost thus making it viable for small user use of such facility. The support agency IIP will also help in developing innovative packaging at low cost or to increase shelf life. Lack of market information, both supply side and demand side: Various institution and agencies like APEDA will provide trade statistics and market potential data. Government will also provide monetary help to the exporters from "Market Access Initiative Fund" as approved by the concerned agency. Information about crop related problem will be provided by various agencies. Information generated by disease forecasting system will be of great help to farmers. Inability of local exporters to meet international quality standards: AEZ will require conformance to Codex quality standards for export of the food products. To achieve this quality availability of high quality input will be made through domestic production or through imports. Importation of capital goods at

concessional rate of duty is allowed. The nodal agency for AEZ will appoint private or government institution to check the quality at every stage. These agencies will provide system for better sanitation and hygiene. Funds are available for this under common quality improvement program (CQIP). Unavailability of credit at right time at reasonable rate of interest: Bank will provide credits to farmers, processors and exporters at concessional rate of interest (10.5%). NABARD in turn will provide these banks the credited amount at 7% interest. Unavailability of proper storage and transportation facilities: AEZ are providing shared facility of cold storage. This facility will help farmers, processors and exporters to reduce wastage and increase usable life of the products. The economies in AEZ will also enable private parties to provide refrigerated transport facilities. Apeda is giving some financial assistance for the purchase of refrigerated vans to private parties. In addition to above benefits AEZ will provide duty free fuel for generation of power when power cost is more than 10% of the product cost.

PARTNERSHIP OF VARIOUS STAKE HOLDERS

All the above solution will be provided through creating a partnership relation between various business, legal and support institutions. Various agencies and their roles are given below.

Agency APEDA Dept. of Food Processing Industry National Horticulture board Ministry of Commerce NCDC Indian Institute of Packaging Banks Horticulture Departments Universities and Research Centers Revenue Dept.

Assistance Provided Market study and market development. Provides import and export data. It is a nodal agency for AEZ Support for contract farming. Equity participation in processing units and post harvest centers. Various schemes for benefits of farmers, processors and exporters. Provide assistance in research and development. It also provide subsidy for infrastructure in AEZ. Scheme like EPCG for importation of capital goods. Duty free importation of inputs. Provide market access funds. Assistance for development of infrastructure. Development of packaging material to increase shelf life and to maintain product quality. As per guidelines of NABARD banks can provide credit at interest rate of 10.5% under refinance scheme. Services in the form of surveillance of crop conditions. Training of farmers and processors. Various researches like soil research and processing technology research. Speedy acquisition of land for processing units and for infrastructure. Facilitates registration of contracts between farmers, processors & bank. Sale tax Exemption for inputs for AEZ. Provide uninterrupted power supply. Easy clearance of application for connection. Identify farmers and entrepreneurs to work in AEZ. Implement promotion activities given by various agencies. Promote contract farming through training of farmers. Look at day to day work & progress of AEZ.

Dept. of Sales Tax Electricity Boards State Agriculture support agencies. ( MSMDB in Maharashtra)

CONTRACT FARMING
Contract Farming of different types is already in practice for certain commercial crops like sugarcane, coffee, tea, cotton, etc., and vegetables and grains. There are a number of success stories on contract farming such as Pepsico India in

respect of potato, tomato, groundnut and chili in Punjab, Safflower in MP, Oil Palm in AP, seed production contracts for hybrids seed companies etc., which helped the growers to realize better returns for their produce. Amul and NDDB for milk procurement, sugarcane coops in Maharashtra, etc., are some more success stories of contract farming. The main features of contract farming are that selected crops are grown by farmers under a buy back arrangement with an agency engaged in trading or processing. In India, small farmers are generally capital starved and cannot make major investment in land improvement and modern inputs. Contract farming is encouraged under these situations because production of small farms can be more successfully organized through this mode. ADVANTAGES OF CONTRACT FARMING 1. It envisages that the farmers enter into a forward contract with the Processor / Exporter to supply the produce at a pre-determined price, quantity and quality and the buying company also provides necessary inputs and technology to the farmers so as to ensure a steady supply of quality produce for processing / exporting. 2. It helps the small farmers to participate in the production of high value crops like fruits, vegetables, etc., and benefit from market led growth. 3. While in some cases of contract farming, the farmer assumes the production related risk and transfers price risk to the company, under certain conditions, even the produce risk is taken care of by the company. 4. Risk of non-availability of raw material is reduced with assured quality supply from the farmers. 5. Small and marginal farmers may no longer be competitive without access to modern technologies and support. Contract farming provides this support to these farmers.

ADVANTAGES OF FINANCING UNDER CONTRACT FARMING FOR BANKERS Direct link between the farmer and processor / exporter would provide relatively easy access to market for the farmer. This reduces the cost of supervision in dealing with such accounts.

The chances of post harvest losses of Agri. / Horticulture produce would be much less. This will reduce the risk for the banks on account of various technical reasons which normally affect the production/ cultivation of crop/ commodity concerned.

Contract farming result in realization of remunerative prices by the farmers for their produce. The farmer will be able to get a better surplus which may help the banks in not only realizing their loan in time but also augmenting their resources by way of deposits made with them by the same farmers.

AEZ: A PACK OF BENEFITS

Here various benefits provided by AEZ are listed in brief. a) Fiscal incentives Offer from Central Government Benefit of sourcing capital goods at concessional rate of duty (5%) under the EPCG scheme even for service providers with an enhanced obligation. Duty free fuel for running DG sets. Offer from State Government Exemption of sales tax and other taxes/duties, if any, on all inputs used for export of fresh and processed products from AEZ. b) Financial Package Offer from Central Government Assistance under different schemes from central Government agencies as listed above in the table.

Financial assistance for activities that include o Productivity enhancement o Micro irrigation o Improvement in product quality through R&D o Pre and post harvest training and extension services o Maintaining cool chain o Development of international level packaging material o Market development o Freight assistance for selected products and transport assistance for selected regions o Credit from banks to farmers at concessional rate for purchase of inputs, at par with packaging credit to exporters.

Offer from State Government Available financial assistance scheme of states.

c) Legal Benefits Amendments and state statutes to give benefits to entrepreneurs e.g. removal of market cess. d) Administrative Benefits Availability of administrative machinery like staff for extension services. Involvement of officials for control and monitoring of AEZ activities, web based online Activity Tracking System through wwww.apeda.com. Upfront association with Agriculture Universities and Research Institution for research activities. Immediate power connection from SEBs and need based power supply to post harvest facilities, packhouses and processing units. Immediate permission will be granted to the units to generate their own electricity

without any minimum charges and above all, a visible commitment form Central & State Government to provide all possible support. government. e) Focus on important issues Facilitation comes through focus on issues like tariff and non-tariff barriers in the importing countries domestic laws and regulations which inhibit free flow of exports. f) Socio Economic Benefits Development of state economy Generate employment Improve product quality Reduction in cost of product Assistance for development of infrastructure Extra foreign exchange earning Accelerate the exports growth Improvement of road network in AEZ by the state

We have seen above how AEZ is trying to improve overall growth of agro export by being a complete business package. But there is always some difference in what we want to do and what is actually happening. For this purpose I have done a case study on the shared facilities provided by Maharashtra State Agricultural Marketing Board in Vashi to promote export of fruits and vegetables.

POTENTIAL OF AEZ TO IMPROVE EXPORTS

Gherkins in Bangalore Year Export in M.T 1999-2000 35242 2-3 years of setting AEZ 300000 5 years of setting AEZ 750000

Lychie in Ramnagar, Uttaranchal Year Exports M.T 1999-2000 N.A 2-3 years of setting AEZ 500 5 years of setting AEZ 1000

Pineapple in Jalpaiguri, West Bengal Year Export M.T 1999-2000 N.A 2-3 years of setting AEZ 5500 5 years of setting AEZ 15000

Onion in Maharashtra Year Export M.T 1999-2000 N.A 2-3 years of setting AEZ 7000 additional 5 years of setting AEZ 20000 additional.

Thus from above figures we have seen that AEZ can increase export to a great extent. Further rate of growth of exports is also very high. Now we will see various benefits of AEZ in brief.

CASE STUDY OF SHARED FACILITIES PROVIDED BY MSAMB IN VASHI

State government agency Maharashtra State Agricultural Marketing Board (MSAMB) in cooperation with Central government agency Agricultural & Processed Food Export Development Authority (APEDA) has set up shared facilities in sector 19, APMC vegetable market, Vashi under AEZ for Mangoes. The shared facilities consist of: Pre cooling chamber Cost of Facility Usage charge * ** 0.6 Rs/Kg for 6 hrs 1 Rs/Kg for 12 hrs * Minimum require quantity 1 ton Cold storage Capacity Cost of Facility Usage charge* 25 tons ** 0.15 Rs/Kg for 24 hrs * Minimum require quantity 16 ton ** Cost of both the facility taken together is 80 lacs rupees. The facilities are procured from Loyds. Grading Machine Capacity 1 ton per hour Cost of Facility 15 lacs Usage Charge 1 Rs/Kg Area 600 sq. feet Area 400 sq. feet Capacity 25 tons Area 400 sq. feet

Grading machine is a unit which takes Mangoes at one side. Various operations like washing by spray of water, cleaning by brush, drying by sponge are done by machine. Then the mangoes enter a weighing machine where mangoes are graded by weight. That is how grading take place. Packing house Space of about 600 sq. feet is provided for packaging of material. If exporter use grading machine he gets this area free of cost for packaging purpose. Packing is done manually.

 Vapor Heat Treatment System (VHTS) VHTS is a facility required by the exporter in case the importing country has some norm for presence of impurity in the form of harmful insects and residual chemicals. VHTS uses hot water and steam to remove such impurities. It operates in three and half hour batch. Capacity Cost of Facility 1.5 tons per batch 400 lacs Usage Charge 3 Rs/Kg Area 200 sq. feet

These facilities are available to the exports after payment of usage charges as fixed by MSAMB. The exporters are using these facilities to benefit themselves. The survey of exporters was carried out to know the use of these facilities to them. These exporters were also interviewed at the same time about their knowledge of AEZ.

SURVEY OF EXPORTERS TO TEST THE EFFECTIVENESS OF SHARED FACILITIES

The exporters were interviewed with a structured questionnaire the copy of which is given in the appendix with the list of exporters.

The facilities are provided for exporter under Agri export zone for mangoes so only exporters exporting mango or mango products were surveyed. The duration of each interview was around half hour. Most of the question was dichotomous. The exporters who were not aware about agri export zones were made aware during the course of interview and then asked question about benefits of such policies. Thirteen exporters were surveyed as identified by the researcher, the exporters who were potential exporters of mangoes. The findings of the research are as under: Awareness About Agri Export Zone 6 out of 13 exporters were not aware that four districts Thane, Raigad, Ratnagiri and Sindudurg are under AEZ for mangoes. So we see that almost half of the exporters surveyed are not aware about AEZ.

Awareness about AEZ

7 6 5 4 3 2 1 Aware Not Aware Awareness

Awareness About Facilities In Vashi

All 13 respondents are aware about facilities provided in Vashi, i.e. 100% respondents are aware of facilities in Vashi. Trial Of Facilities Pre Cooling: 8 out of 13 respondents tried this facility. So we see 61% exporters surveyed are has tried this facility. Cold Storage: 8 out of 13 respondents tried this facility. So we see 61% exporters surveyed are has tried this facility.

Number of Exporters

Similarly grading house and packing area are also tried by 8 exporters. Vapor Heat Treatment System: None of the exporter ever used this facility. Current Usage Of Facility

3 out of 13 exporters are currently using Pre cooling, cold storage i.e. 13%. 3 out of 13 exporters are currently using Grading and Packing area i.e. 13%. No one is using VHT unit. Reasons For Not Using Facilities

The exporters who have never tried the given facilities 5 exporters who have never tried cold storage and pre cooling either have their own facility or they never use any cold storage, pre cooling. Most exporters use hand grading in their own premise. VHT is require only for export to US and Japan which is currently banned. The exporters who tried but do not use now They stopped using cold storage and pre cooling due to following reasons. o Improper maintenance of the facility spoils the quality of the food preserved. o Attitude of staff is not cooperative o Charges are high. Although they tried the provided grading unit but most of them still stick to hand grading.

Overall Utility Of Facility

To confirm whether the facilities are effective or not researcher asked about the utility of given facility to exporters. Whether it is needed or not needed. Surprisingly 12 out of 13 exporters responded that, all such facilities are important especially for small exporters.

Effectiveness of facilities

15 No. of Exporters 10 5 0 Required Not Required

Here the answer to the research problem can be given. Although only 3 out of 13 exporters are using the facilities of cold storage and pre cooling the facilities are very essential and help exporters. Same 3 exporters are using grading and packing units but 12 out of 13 exporters feel that such facility is required. VHT system is not useful today as it is used only in case of export to US and Japan so its utility can only be realized only after ban from US and Japan is removed. So we cannot comment on it further. For rest of the facility we can say that their shared usage is desirable and also viable. As per MSAMB respondent on and average 10 tons capacity of pre cooling out of 25 tons and 15 tons capacity of cold storage out of 25 tons is utilized. This is satisfactory performance as seen by them.

SUPPLY CHAIN OF FOOD PRODUCTS FOR EXPORT AND EFFECT OF AEZ

Above we have seen that the only half the exporters are aware about concept of AEZ and their benefits. After they were made aware about the concept of AEZ

they were asked if such AEZ are implemented properly whether they will improve the supply chain for exports. All 100% respondent said that if all the institutions, farmers, processors and exporters are properly integrated the supply chain will definitely improve. If same shared facility as discussed above are made available near farms the quality will improve, cycle time will reduce, wastage will reduce and proper supply of material will be maintained. Thus here we reject the null hypothesis: The Agri Export Zones will not make any significant change in the supply chain of food and food product for purpose of exportation. And we accept the alternate hypothesis: The Agri Export Zones will make a significant change in the supply chain of food and food products for purpose of exportation.

IMPROVEMENT OF EXPORTS
The question was asked to exporters, in which area they think they will benefit from AEZ. The responses from various exporters were on the same lines. Training of farmers Most exporters believe that training of farmer for producing right quality products is one of the most important benefit they will get. They feel that training and guidance to farmer for pre harvest crop maintenance and post harvest quality maintenance are very important for their business. Cold chain from farmer to exporter Establishment of cold chain from farmer to exporter is very important. The product must enter pre cooling within 8 hrs from time of harvest. So it is very important that cold chain should start at farm level. It generally take more than 12 hrs for a product to reach Mumbai. After reaching Mumbai if product is stored in cold storage, effectiveness of cooling reduces to a significant extent. So there should be sufficient cold storage space near farms and refrigerated vans should be available at affordable rate to bring these products to Mumbai. Contract farming Contract farming is currently prevailing between exporters and farmers but to small extent. Exporters believe that contract farming can be increased to a great extent with the help of institutions in AEZ. Some exporters have showed their willingness to pay 10% premium to farmers above market price if they are ready to enter contract for supply of particular quality and quantity of products. Increased export to Europe US & Japan Export for Europe US and Japan need certain quality standards. As said by the exporters AEZ will help in maintaining these standards.

 Market Reach With the help of agencies like Apeda the exporter feel that they will be able to get better market reach. Sahara Air Cargo Complex The case of facilities in Vashi has been studied here. Similar facilities are built at Air Cargo Complex in Andheri. Exporters feel that they will benefit from these facilities to maintain cool chain upto the point where cargo is loaded.

MAJOR DEMAND FROM EXPORTERS

To the surprise of researcher the most important demand from exporters was training and development of farmers. Few exporters feel that shared facilities at farm level where chain starts is more important than at air cargo complex where it ends. Some exporters have reported that material handling facilities at Air Cargo Complex is poor and there is an immediate need to improve that. Almost all the exporters were very much concerned about Air Freight Charges which they believe are obnoxiously high. This lead to reduction in cost competitiveness of Indian products abroad. As suggested by them the exporters need subsidy in Air Freight of Rs. 7 per Kg. for Gulf, Rs. 15 per Kg. for Europe and Rs. 20 per Kg. for Canada. Some exporter demanded removal of excise duty of 1% which is levied on them. Half percent by Apeda and half per cent by ICAR. The perishable are generally not insurable and in case insurable premium is very high. Exporters demanded introduction of proper insurance policy for

perishables. They also said that the coverage should be given by Export Credit Guarantee Corporation. Excise duty of 16% is levied on packaging material the benefits of DEPB should be given to them and total 16% duty should be refunded contrary to 2% given at present. Above demands have two most important aspect reduction in transaction cost and reduction in cost of other inputs like packaging material.

PROCESSOR
To get better understanding of Agri Export Zone a researcher conducted a interview of one of the processors in Ratnagiri. As per his response processors are not getting any benefits like shared facility, research or quality assistance currently. But he was very optimistic about times to come. He feels that AEZ will give various benefits to processors which are required to increase the competitiveness of their products in international market. He currently get his research done at CFTRI Mysore, he say research facility if provided in Kokan will benefit him very much. Questionnaire for the processor is given in appendix.

OVERALL SCENARIO OF AEZ FOR MANGOES IN FOUR DISTRICTS

There will be significant increase in the export of Alphonso Mangoes with this AEZ. Following table give us a fair idea. Country Europe United Kingdom Others South East Asia Singapore Hong Kong Japan Middle East U.A.E. Saudi Arabia Other middle east countries Exploration of new Australia countries New Zealand Total Source MSAMB The table shows a increased benefit through AEZ is around Rs. 78 crores (@ Rs. 40 per Kg.) from seventh year onwards. Better realization in the overseas markets will result in better remuneration to the farmers. PRODUCTION ENHANCEMENT There will be an overall increase in quality and productivity of Alphonso Mangoes through various interventions proposed in AEZ. Even an increase in productivity by 2 tons per hectare in the target area of 1 lacs hectare will increase production by 2 lacs tons. This is around 400 crore Rs. of crop annually as per domestic wholesale price. Quantities in MT 1st year 3rd year 5th year 7th year 500 500 500 2000 200 500 500 500 50 50 5300 500 500 1000 3000 300 700 700 700 100 100 7600 700 700 2000 5000 500 1000 1000 1000 200 200 12300 1000 1000 4000 7000 1000 2000 1500 1500 250 250 19500

REDUCTION IN LOSSES BY USES OF POST HARVEST INFRASTRUCTURE The post harvest infrastructure will handle around 50 000 tons of produce annually. A saving of losses to the tune of even 10% will save around 5000 tons of produce valuing at Rs. 10 crores per annum. TECHNOLOGY IMPROVEMENT The demonstration of better agronomical practices like pre harvest, post harvest and logistics will bring general awareness and motivation to the farmers of the area to adopt modern technology and practices. EMPLOYMENT AND BENEFICIARIES The project will benefit at least fifty thousand farmers and create direct employment for about fifteen hundred to two thousand people in collection/facilitation center and other facilities to be created under AEZ. The working diagram and other important information are given in the annexure attached below.

Questionnaire for measuring effectiveness of shared facilities provided by MSAMB and for measuring awareness about AEZ. Firm: Contact Person: Phone:

1. Are you aware that central govt. in partnership of state govt. has set up Agri Export Zones? Yes No 2. Are you Aware of the facilities available in MSAMB (Marketing Board)? Pre Cooling Cold Storage Packing Area Grading Unit Vapor Heat Treatment Unit Yes Yes Yes Yes Yes No No No No No

3. Have you ever used these facilities? Pre Cooling Yes Cold Storage Yes Packing Area Yes Grading Unit Yes Vapor Heat Yes Treatment Unit 4. Are you still using these facilities? Pre Cooling Cold Storage Packing Area Grading Unit Vapor Heat Treatment Unit Yes Yes Yes Yes Yes

No No No No No

No No No No No

5. Please give reason for using these facilities?

6. Please give reason for not using these facilities?

7. Do you feel that AEZ will improve your exports? Yes No 8. In what way do you feel AEZ will improve your exports?

9. What more benefits you desire from AEZ?

QUESTIONNAIRE TO CHECK BENEFITS OF AEZ TO FOOD PROCESSORS 1. Are you aware that Thane, Raigad, Ratnagiri and Sindudurg district are under AEZ for Mangoes? 1 Yes 2 No 2. Do you use shared facilities available in AEZ? Cold Storage 1 Yes 2 No Grading & Packaging 1 Yes 2 No Research & Development 1 Yes 2 No

3. Do you get any special benefits for marketing your products? 1 Yes 2 No 4. If yes then please give details?

5. Are you able to reduce cost due to facilities provided by AEZ? 1 Yes 2 No 6. Does the infrastructure in AEZ provide some tangible benefits? 1 Yes 2 No 7. How do you procure your raw material? Directly from farmers ______% From 1st intermediary______% From 2nd intermediary______%

8. Does AEZ help you procure material directly from Farmers? 1 Yes 2 No 9. Do you get energy at subsidized rate? 1 Yes _____% subsidy 2 No 10. What benefits you desire from AEZ?

Terms and Conditions of refinance by NABARD : i. ii iii iv Eligible Institutions Extent of Refinance Rate of Interest on Refinance Rate of Interest to be charged by banks to the ultimate borrowers Eligibility Norms All scheduled commercial banks 100% refinance on the eligible amount of bank loan. 7% p.a. Not exceeding 10.5 % p.a.

vi

Mode of Refinance

vii viii ix

Security Margin Money Repayment period of refinance to NABARD Insurance

Eligibility to draw refinance by banks will be determined as per instructions issued by NABARD from time to time. Refinance will be extended under schematic approach- under Automatic Refinance Facility [ARF] as well as schemes with prior sanction depending upon the project outlay and amount of refinance. For availing of refinance under ARF, the outer limit of the project cost would be Rs. 30 lakh and the refinance limit per unit /borrower will be Rs 20 lakh. As per RBI norms As per RBI norms The banks will be provided refinance as a term loan for lending under the scheme repayable over a period of 3 years Adequate insurance cover shall be obtained for the entire period of loan as stipulated by RBI from time to time. 1. The banks shall satisfy themselves regarding the economics of the project viz. financial viability, bankability etc. 2. The banks shall also ensure that satisfactory arrangements exist / have been made by the company for supply of high quality inputs/raw materials including

xi

Others :

technical know how to the contracted farmers at reasonable charge and enter into forward contract with the farmers for procuring the produce of predetermined quality at mutually agreed prices. They should also satisfy about the company's ability to provide required transportation facilities for lifting the produce from the farmer's fields. 3. When financing individual farmers entering into contracting arrangements with processing/export units, banks should enter into tripartite agreement with farmers and processing/export units i. to ensure supply of inputs, extension service, etc. to farmers by processing /export units, ii. for purchasing produce from farmers by processing /export units, and iii. for routing the payment to contracted farmers by the processing/export unit through the bank. 4. All other terms and conditions, banking procedures and lending norms as are normally applicable to project lending and schematic refinance will be applicable mutatis mutandis for financing the activity under the scheme. Source NABARD

Agri Export Zones in India Sr.No.

Product State Districts covered 1 Pineapple West Bengal Darjeeling, Jalpaiguri, Uttar Dinajpur, Kooch Bihar & Howrah 2 Gherkins Karnataka Tumkur, Bangalore Urban, Bangalore Rural, Hassan, Kolar, Chitradurg, Dharwad and Bagalkot 3 Lychees Uttaranchal Udhamsingh Nagar and Nainital 4 Cutflowers Tamil Nadu Dharamapuri Grape & Grape Wine Maharashtra Nasik, Sangli, Pune, Sholapur, Satara and Ahmednagar 5 Mango Pulp & Fresh vegetables Andhra Pradesh Chitoor (Kuppam Food Park, GD Nellore, Tavanampalle, Bangarupalem, Irala, Pakala, Palamaner, Pootalapattu, Punganur, Rama Kuppam, Shantipuram, Vkota, Gudipalle Mandals) 6 Pineapple Tripura Kumarghat, Manu, Melaghar, Matabari and Kakraban Blocks 7 Mangoes Maharashtra Ratnagiri, Sindhudurg, Raigad, Thane and Aurangabad

8 Apples Jammu & Kashmir Srinagar, Baramulla, Anantnag, Kupwara, Kathua and Pulwama 9 Potatoes, Onions and Garlic Madhya Pradesh Malwa, Ujjain, Indore, Dewas, Dhar, Shajapur, Ratlam, Neemach and Mandsaur 10 Cabbage, Broccoli, Okra, Peas, Carrot, Baby Corn, Green Chillies, Green Beans, Tomatoes Punjab Fatehgarh Sahib, Patiala, Sangrur, Ludhiana and Ropar 11 Potatoes Uttar Pradesh Agra, Hathras, Farrukhabad, Kannoj, Meerut, Baghpat and Aligarh 12 Mangoes Uttar Pradesh Lukhnow, Unnao, Hardoi, Sitapur and Barabanki 13 Mangoes Uttar Pradesh Saharanpur, Muzaffarnagar, Binaur, Meerut, Baghpat and Bulandshahar 14 Potatoes Punjab Singhpura, Zirakpur, Distt. Patiala and Satellite Centres at Rampura Phul, Muktsar, Ludhiana and Jullundar 15 Kesar Mangoes Maharashtra Approved on 5.3.2002 Draft Mou sent to State Govt. and APEDA, awaiting their concurrence 16 Flowers

Maharashtra Approved on 5.3.2002 Draft Mou sent to State Govt. and APEDA, awaiting their concurrence 17 Walnuts Jammu & Kashmir Approved on 5.3.2002 Draft Mou sent to State Govt. and APEDA, awaiting their concurrence 18 Lychee West Bengal Approved on 5.3.2002 Draft Mou sent to State Govt. and APEDA, awaiting their concurrence 19 Lychee Bihar Approved on 5.3.2002 Draft Mou sent to State Govt. and APEDA, awaiting their concurrence 20 Mango Andhra Pradesh Ranga Reddy, Medak and Mehboobnagar 21 Mango and Vegetables Gujrat Ahmedabad, Khaida, Anand, Vadodara, Surat, Navasari, Valsad and Bharuch 22 Potatoes West Bengal Hoogly, Budhwan, Midnapur, Uday Narayanpur, Howrah 23 Flowers Uttaranchal Dehradun and Pantnagar