Agriculture cooperatives have been playing a significant role in stepping up the growth of agriculture production in the country through supply of farm inputs and other technical services to the farmers. Cooperatives also provide post-harvest services for procurement, grading, processing, storage and marketing of farmers’ surplus produce. These cooperatives are rendering an equally useful service by maintaining the supply-line and distribution of consumer articles including essential commodities in rural areas.
To undertake these functions effectively, cooperatives require adequate captive storage capacity of their own at the village, mandi and rail head centres. To meet this requirement, the National Cooperative Development Corporation (NCDC) has been assisting primary and marketing societies functioning at the village, mandi, district, regional, state and national levels for construction of godowns of their own to create storage facility,and repair/ renovation of existing capacity of godowns under Central Sector Schemes and Corporation Sponsored Scheme.
ELIGIBLE COOPERATIVE SOCIETIES:
NCDC provides assistance to primary, district and state level cooperatives, either directly or through State Governments.
CONSTRUCTION/ RENOVATION/ EXPANSION OF GODOWNS
Under the Central Sector Schemes and Corporation Sponsored and, cooperative societies are assisted for constructionand repair /renovation of godowns depending upon the potential.
For developing primary cooperatives into growth centres at the village level, NCDC assists for construction of an office room, a shop for sale of consumer articles and a residence for the Secretary or Manager wherever required with the godown. The Corporation also encourages primary cooperatives to prepare business development plans to expand their non-credit business and for fuller utilisation of godowns
ASSISTANCE PROVIDED BY NCDC UPTO 31.3.2019:
The Corporation, since its inception in 1962-63, has been making systematic and sustained efforts to assist in the creation of scientific storage facilities at various levels in cooperative sectors. As a result of concerted efforts, the storage capacity assisted by the Corporation and owned by cooperatives has increased from about 11 lakhs tonnes in 1962-63 to 169.58 lakh MT comprising of 57611 rural and 10382 marketing godowns by the end of March, 2019. A total amount of Rs.1075.82 crore has been provided by the Corporation under its various storage programmes towards construction /renovation/expansion of godowns.
GOVT. OF INDIA SCHEMES FOR COOPERATIVE STORAGE
Central Sector Integrated Scheme on Agricultural Cooperation (CSISAC)
NCDC has also been providing financial assistance for construction & renovation of godown under Central Sector Integrated Scheme on Agricultural Cooperation (CSISAC). The scheme stipulates grant-in-aid 25% for projects located in cooperatively least developed states, 20% for projects located in cooperatively under-developed states and 15% for projects located in cooperatively developed states for projects related to weaker sections/women cooperatives and labour cooperatives. The scheme is available on the NCDC website www.ncdc.in
Agricultural Marketing Infrastructure (AMI) sub scheme of Integrated Scheme for Agriculture (ISAM)
During the period of 10th Five Year Plan i.e. 2002-07, subsidy was provided by Govt. of India under Gramin Bhandaran Yojana, a Capital Investment Subsidy Scheme for Construction and Repair/Renovation of Rural Godowns. NCDC has been one of the implementing agencies to provide funds to the cooperative societies. The required term loan is funded by Corporation from its own resources.
The scheme was continued during 11th Five Year Plan i.e. from 2007-2012. During 12th Plan i.e. from 2012-2017, the credit linked subsidy was continued under Central Sector Agriculture Marketing Infrastructure Scheme (AMI) sub scheme of Central Sector Integrated Scheme on Agriculture Marketing (ISAM) upto 06.08.2014. Subsequently, credit linked subsidy was continued for new projects of SC/ST category and for all categories in NER upto 31.10.2016 and later upto 31.12.2016.
Department of Agriculture Cooperation & Farmers Welfare (DAC&FW) has issued Operational Guidelines for Agricultural Marketing Infrastructure (AMI) sub scheme of Integrated Scheme for Agriculture (ISAM) w.e.f. 22.10.2018 to 31.03.2020. These revised Operational Guidelines of Agricultural Marketing Infrastructure (AMI) sub-scheme of ISAM is also available on the websites www.agricoop.nic.in and www.dmi.gov.in.
Assistance for Boosting Seed Production component under Sub-Mission for Seed and Planting Material (SMSP) of National Mission on Agricultural Extension and Technology (NMEAT)
NCDC is also implementing of Central Sector Scheme on Assistance for Boosting Seed Production component under Sub-Mission for Seed and Planting Material (SMSP) of National Mission on Agricultural Extension and Technology (NMEAT), providing credit linked back ended capital subsidy at the rate of 25% of the project cost subject to a maximum limit of Rs.25.00 lakh per unit on seed infrastructure development. Private Sector Companies, individuals entrepreneurs, self help groups, partnership firm and Cooperative Societies are eligible to get assistance under this scheme. The scheme is implemented through National Seed Corporation (NSC) is the nodal agency for implementation and monitoring of this schemes.
CORPORATION SPONSORED SCHEME
Under the scheme, the loan assistance is provided upto 90% of the project cost for construction/ repair/ renovation of godowns. The member’s contribution should be minimum 10%.
ELIGIBILITY CRITERIA AND PROCEDURE INVOLVED
For financing through State Govt.
The eligible societies will have to apply to the Registrar of Cooperative Societies (RCS) for assistance for construction/ repair/ renovation of godowns. The prescribed application forms are available at the offices of the State Cooperative Departments, Regional Offices of NCDC and on NCDC’s website www.ncdc.in Based on the recommendation received from the State Govt, NCDC approves the programme and sanctions assistance for construction/repair/renovation of godowns.
For financing under Direct Funding
The information on eligibility criteria, application form and application procedure are available at NCDC’s website www.ncdc.in
Mode of Funding
Financial assistance is provided through the State Govt. or directly to the eligible cooperatives.
Quantum of Assistance and Pattern of Assistance
Varies from activity to activity and upto 90-95% of the total cost for the most of the activities. However, in case of strengthening of share capital base/margin money/working capital assistance, the quantum of assistance can be upto 100%.
The scheme stipulates subsidy 25% of the project cost subject to subsidy ceiling of ₹ 187.50 per MT of storage capacity for renovation of storage projects by cooperatives.
For detailed pattern of assistance please click [PDF, English, 23.2KB] at the link provided.
Yuva Sahakar - Cooperative Enterprise Support and Innovation Scheme
To encourage newly formed cooperatives take advantage of innovative ventures, especially by societies with new/innovative idea, NCDC has introduced a new scheme titled, “Yuva Sahakar - Cooperative Enterprise Support and Innovation Scheme” linked to a Cooperative Startup and Innovation Fund created by NCDC.Please click [PDF, English, 23 MB]for details of the Scheme
Norms for direct funding
Cooperatives operating for minimum three years & broadly fulfilling following criteria are eligible:
- Net worth should be positive
- There should be no erosion in share capital.
- Cash profit in last three years and net profit in two years
- Should be in a position to provide 1.25 to 1.5 times security.
Common Loan Application Formfor availing assistance under the scheme of NCDC can be downloaded from NCDC’s website.
For further details, please contact or write to:
- Storage Division
National Cooperative Development Corporation,
4, Siri Institutional Area, Hauz Khas,
New Delhi – 110 016
PABX No.: 26567475, 26569246
Fax: +91-011-26962370, 26516032
- Regional Directorates of NCDC:Bengaluru, Bhopal, Bhubaneswar, Chandigarh, Chennai, Dehradun, Gandhinagar, Guwahati, Hyderabad, Jaipur, Kolkata, Lucknow, Patna, Pune, Raipur, Ranchi, Shimla, Thiruvananthapuram