The Mission Organic Value Chain Development for North Eastern Region (MOVCD-NER) is one scheme among a host of initiatives implemented by the Central Government of India. Unlike other similar subsidies or programs, the MOVCD-NER focuses exclusively on promoting organic farming and the development of organic value chains in the North East region of India.

Organic Farming in North East India

The programme's focus region includes all eight North-Eastern states of India namely, Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, and Tripura. This distinctive emphasis is a recognition of the fertile and diverse ecosystems that the North East region offers, making it immensely suitable for organic cultivation.

Initiation and Implementation of the Scheme

The scheme was initially put into action in the fiscal year of 2015-16. Since then, it has been progressively implemented across the designated states steadily, helping to create a network of organic farming communities and cultivating eco-friendly farming practices.

Aim and Objectives of MOVCD-NER

The primary aim of the MOVCD-NER is to boost the agrarian economy in the North East regions via the development of certified organic produce. This is set to be achieved by encouraging farmers in these regions to adopt organic farming methods and practices.

The project aims to provide support to organic producers, with a focus on targeted crops. It’s also expected to promote local and indigenous crops, enhancing the biodiversity and the productivity of the agricultural sector in the region.

Benefits of the Scheme

The MOVCD-NER chooses to support sustainable farming methods and eco-friendly practices, which are not only beneficial for the environment but also result in high-quality and nutritious produce. Additionally, the system helps create a self-sustained economy based on organic produce, empowering local farmers and producers and reducing their dependency on conventional forms of farming, which often involve harmful pesticides and fertilizers.

Role of Government and other Institutions

The Central Government of India, in conjunction with the relevant state governments and local authorities, is responsible for the implementation and operationalization of the scheme. These bodies, along with other supporting institutions, play a crucial role in promoting, monitoring and taking care of the logistics involved in implementing the scheme.

Additionally, entities like the Agricultural and Processed Food Products Export Development Authority (APEDA) and National Centre of Organic Farming (NCOF) also play vital roles in organic certification and aiding the farmers in the process.

Conclusion

In essence, the MOVCD-NER is a stellar example of how the Government of India is working diligently to protect the interests of the farmers living in remote regions, while also promoting agrarian practices that are beneficial for both the environment and the economy. The success of this undertaking could soon make India one of the major global exporters of organic produce.

Overview

In a widely engaging venture, a scheme has been designed which targets the creation of 100 Farmer Producer Organizations and Farmer Producer Companies (FPO/FPC) spanning across eight states in India. The idea is to cover a massive expanse of land totaling 50,000 hectares.

Farmers Engagement

With an outward motive to inherently involve the farming community, the initiative has been successful in drawing participation from a whopping 50,000 farmers as of 2018. The intent is to reinforce the farmers' stance in the predominant agricultural landscape of India.

All-round Support to Farmers

The scheme is comprehensive and carries in its fold support for the entire agriculture value chain. It extends assistance through seeds and inputs which are integral for cultivating crops, organic certification that authenticates the produce, and provisions for facilities that will aid in the collection, aggregation, and processing of the produce.

Marketing and Brand Building Initiative

Further, the scheme promotes marketing strategies and encourages brand building programs. The premise is to empower the farmers, enabling them to rival in a competitive market with a stand-alone identity.

Organic Certification

One crucial aspect of the scheme is the organic certification earmarked for the lands under the FPO/FPC. This certification goes a long way validating the authenticity of the agricultural produce, thus adding value to the products. For this, a reliable third-party certification body is employed

Mandatory Certification for Export

Under the National Programme for Organic Production (NPOP), this third-party certification is rendered mandatory for export purposes. NPOP is a government initiative that sets quality control standards for export-oriented organic products.

Impact on Indian Economy

The scheme potentially alters the dynamics of the Indian Economy, impacting both Domestic and International trade. As the Indian farming industry gets equipped with global quality standards, it attracts foreign investment, thus adding volume to the country's GDP. The name-to-face branding promotes rural entrepreneurship and provides a boost to the rural economy.

Overall, this project recognizes the farmers as valuable stakeholders in the Indian Economy and aims to strengthen their role. It is a step towards sustainable agrarian practices that will ensure long term food and economic security in India.

Overview of the Scheme

The scheme is a systematically devised structure that has been segmented into various stages called 'value chain components'. These stages include - 'Production', 'Processing', and 'Marketing'. Here, the farmer or the Farmer Producer Organization (FPO) gets support in different forms such as organic inputs, organic certification, storage infrastructure, and processing support.

Breakdown of Value Chain Components

Production Stage

The initial stage is production, where the scheme provides organic inputs. These include but are not limited to, soil and clean water that is free from any chemical or synthetic component which could potentially degrade the quality of the crop or reduce its yield.

Processing Stage

The second stage of the value chain is 'Processing', in which the scheme assists the farmer or FPO with organic certification. This certification signifies that their farming methods and practices adhere to strict organic standards, validating their claim of being organic producers.

Marketing Stage

The final stage, 'Marketing', is where the scheme supports the farmers and FPOs by providing vital processing and storage infrastructure. This helps maintain the quality of the products and also extends their shelf life, improving the chances of a successful sale.

Value Chain Processing – Subsidy Provisions

The scheme operates under the umbrella of the 'Value Chain Processing' component. In this specific module, financial incentives in the form of subsidies are extended to Farmer Producer Organizations (FPOs) and private investors. These subsidies are meant to aid in building a solid infrastructure for various processing and post-harvest activities.

Given the infrastructural demands in the post-harvest stage, the subsidies can be used for establishing integrated processing units, setting up collection centres, and developing grading and sorting centres. Furthermore, they can also assist in building cold storage units and procuring refrigerated transport systems.

Subsidy Distribution Structure

The intensity of the subsidy is not uniform across the board. The scheme provides subsidies of up to 50% to private investors as their capital investment capabilities are generally stronger. On the other hand, for FPOs the scheme provides a higher rate of subsidy of up to 75%. This disparity is due to the fact that FPOs typically require more support to build robust infrastructure given their lesser financial firepower.

The successful implementation of this scheme would entail a more efficient agri-value chain in the Indian economy, supporting the growth of FPOs and providing farmers with the tools and resources necessary for organic farming, thus contributing towards a sustainable and self-reliant agricultural sector.

Simplified Analysis of Indian Government Subsidies

In order to facilitate the collection, grading, and sale of organic products in the North-East of India, the Indian government is offering subsidies worth Rs. 15 lakh. This amount accounts for around 75% of the total cost, making organic farming more attractive business in these regions. The government recognizes that these infrastructural developments are much needed for an effective supply-chain mechanism in place.

Support for Farmer Producer Companies

The Indian government is also providing substantial financial aid to Farmer Producer Companies (FPCs). A total financial outlay (TFO) of Rs. 600 lakh or more, limited to 75% of the overall cost, is being offered as a credit-linked back-ended subsidy, making it easier for these companies to grow and become profitable. In essence, this policy allows for the money to be paid off after the venture has begun earning profits.

Encouragement to Private Entrepreneurs

On the same lines, private entrepreneurs are also being supported by the government. They can avail themselves of up to 50% of the TFO as a credit-linked back-ended subsidy, enabling private individuals and companies to contribute to India's economic growth.

Boosting Logistics Infrastructure

To help with transport logistics, a subsidy of up to 50% is being provided for a TFO of up to Rs. 12 lakh for 4-wheeler transport vehicles. This will substantially reduce the burden of transportation costs for businesses.

Upgradation of Storage Facilities

Furthermore, the government is promoting the upgrade of storage facilities by offering a subsidy of 75% to FPCs and 50% to private entrepreneurs for the purchase and installation of refrigerated transport vehicles, pre-cooling units, cold stores and ripening chambers. This subsidy can be availed for a TFO of up to Rs. 25 lakh. This initiates a positive step in reducing post-harvest losses and offering better storage facilities, especially critical for the preservation of perishable goods.

This comprehensive package of subsidies highlights the Indian Government's commitment towards supporting farmers, private entrepreneurs and improving the overall infrastructure of agricultural operations. The primary focus is to modernize infrastructure in the organic farming sector and promote sustainable and profitable food production.