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Department of Storage and Marketing

1. Genesis
 
NABARD created a new department called ‘Department of Storage and Marketing (DSM)’ on 03 September 2012 to administer the funds allocated by Government of India for supporting the creation of warehouse infrastructure for scientific storage  of food grains in the country.
 
  • Warehouse Infrastructure Fund (WIF)
 
In the Union Budget of 2011-12, a special window under Rural Infrastructure Development Fund (RIDF) was announced under Tranche XVII with a corpus of Rs. 2000 crores to provide dedicated funds for the creation of a robust warehousing infrastructure in the country.
Subsequently, NABARD was also directed to provide direct finance to State Governments for warehouses from this dedicated window. As a sequel to this, a Warehousing Division as a part of Repositioning Department in Head Office was formed in October 2011 to provide focused attention to warehousing sector.
 
  • Food Processing Fund (FPF)
 
The Government of India (GoI) has accorded top priority to the development of the food processing industry in the country.  The Honorable Finance Minister, presenting the Union Budget 2014- 15 in the Lok Sabha on 18 July 2014, announced the setting up of a Special Fund of Rs. 2,000 crore in NABARD for providing affordable credit to food processing units in designated Food Parks.  Subsequently, Reserve Bank of India (RBI) allocated a corpus of Rs. 2,000 crore to NABARD. 
Accordingly, the Food Processing Fund was operationalised in NABARD and is being administered by the Department of Storage and Marketing, with effect from 11 November 2014.
 
2. Core functions of the Department:
 
A. Warehouse Infrastructure Fund (WIF)
 
Provide support for creation of scientific storage infrastructure in rural areas  
 
  • Provide credit and non-credit support for Green field projects of public as well as private sector entities 
  • For renovation/repairs/ modernisation of existing warehouses
  • For upgrading infrastructure/ amenities in the existing warehouses of Primary Agriculture Co-operative Societies (PACS) and other Co-operative Societies to make them storage worthy.
  • Formulate policies/strategies for fulfilling the gap in storage infrastructure in different parts of the country.
  • Assess the existing storage capacity and estimate the requirement and potential for storage infrastructure in different states/ districts in the country.
Provide support for accreditation of warehouses in rural areas 
 
  • Collaborate with Collateral Management Companies (CMCs), State Governments/ State Owned Corporations for upgrading physical infrastructure of small warehouse owners, including PACS and other cooperatives, and leveraging their warehouse assets for increasing their income (with grant assistance for PACS warehouse accreditation).
  • Sensitize and train PACS staff/ warehousemen and cold storage owners and encourage and facilitate accreditation/ registration of their warehouses.
  • Map and identify the existing warehouses/ cold storage in rural areas across the country for updating the Warehouse Directory with assistance from NABARD and Warehouse Development and Regulatory Authority (WDRA).
 Provide post-harvest liquidity to farmers
 
  • Undertake suitable interventions to popularise storage of produce by farmers, avoiding distress sale and giving better price realisation 
  • Promote and popularize issue of Negotiable Warehousing Receipts (NWR) by the accredited warehouses/ cold storages
Improve access of farmers to wider markets 
 
  • Engage with commodity exchanges, both future and spot, for developing suitable framework/ contracts to enable farmers to trade on these exchanges (National Agriculture Markets or NAM).
  • Evolve a mechanism which would ensure aggregation of the produce of farmers to facilitate trading on the exchanges.
  • Identify suitable entities (like a cooperative society, a producers’ organization, NGO, CMCs or any other village level/ community based organization) that could work as aggregators for the farmers. 
Support capacity building initiatives of stakeholders
  • Organise training/ sensitisation programs for NABARD Officers, both at the Head Office and Regional Offices, with a view to acquaint them with various facets of agricultural storage and marketing.

B. Food Processing Fund (FPF)
 
Provide support for creating infrastructure and promoting Food Processing industries:
 
  • Provide credit for establishing infrastructure in Designated Food Parks and processing units therein.
  • Formulate policies/ strategies for augmenting the processing infrastructure, creating awareness for value addition, and developing forward linkages for the farmers’ produce directly.
  • Promote modernization of existing processing units in the designated food parks resulting in technology upgradation, automation, increase in efficiency, improvement in product quality, reduction in cost etc.
  • To assist Ministry of Food Processing industries (MOFPI), Government of India, in the effective implementation of Mega Food Park Scheme and the scheme for Cold Chain, Value Addition and Preservation Infrastructure by being a member in the respective Inter Ministerial Approval Committees.
3. Broad achievements of the Department at a national level:
 
A. Warehouse Infrastructure Fund 
 
Considering the success of the fund, an increased allocation of Rs. 5,000 crore under a special window was made by GoI during 2012- 13 for financing State Governments and State-owned agencies to increase the scientific food grain storage requirements towards food and nutritional security. 
 
GoI further allocated Rs. 5,000 crore each in 2013- 14 and 2014- 15 for providing affordable credit to the public as well as private sector to facilitate the creation of warehousing infrastructure.  
 
The brief details of sanctions and disbursements for the fund (as on 30 June 2017) are given below:
  • Total allocation: Rs. 10,000 crore
  • Total sanctions as on: Rs. 7781 crore
  • Total number of projects sanctioned: 5754
  • Cumulative disbursement : Rs. 3616.38 crore
  • A total of 2759 projects were completed with a capacity creation of 2.7 Lakh MT 
B. Food Processing Fund (FPF)
 
Following are the details of the sanctions made from the fund and the processing infrastructure created therein:
  • Total Allocation: Rs. 2,000 crore
  • Total  number of projects sanctioned (as on 30 June 2017):  12
  • Loan disbursed (as on 30 June 2017): Rs. 173.49 crore
  • An area of about 745 acres would be developed in these 10 mega food park projects which act as Central Processing Centres (CPCs). 
  • These 10 CPCs would be supported by 37 Primary Processing Centres (PPCs) and several Collection Centres (CCs) to be established at suitable places in the catchment zone of the respective mega food parks. These centres will help in sourcing of agricultural produce directly from the farmers by the processing units to be established in the mega food parks, thereby creating a direct marketing access to the user industry.  
  • These projects when completed would result in providing diversified and much needed core and processing infrastructure, which  will include:
  • 1,48,000 MT of dry warehouses for storing raw material and finished goods (for non-perishable products)
  • 81,000 MT of silos for bulk storing of agricultural raw material
  • 47,000 MT of cold storage capacity for storing perishable finished products
  • 11,000 MT of freezer capacity for storing finished products requiring freezing temperatures
  • Individual quick freezing capacity of 9.5 MT per hour for producing Individually Quick Frozen (IQF) fruit and vegetable products 
  • Sorting and grading capacity of 120 MT of fruits and vegetables per hour
  • Controlled ripening capacity of 2040 MT 
  • Pulping and aseptic packing of 36.50 MT of fruit pulps per hour
4. On-going projects and schemes
 
  • Warehouse Infrastructure Fund 
The Fund for supporting creation of infrastructure for storage of agricultural 
commodities is available during 2016-17 also. 
  • Food Processing Fund
The Special Fund to make available affordable credit to agro-processing units being designated as Food Parks is available during 2016-17 also. 
 
Additional Information
 
A. Warehouse Infrastructure Fund (WIF)
 
B. Food Processing Fund (FPF)
 
 
Contact Information
 
Shri Shankar Panday
Chief General Manager
NABARD, Head Office Mumbai
8thFloor, 'C' Wing, C-24, 'G' Block
Bandra-Kurla Complex, Bandra (East)
Mumbai 400 051 
Tel: (91) 022 26524207
Fax: (91) 022 26523895
E-mail: dsm@nabard.org