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Processing

India being an agrarian economy, processing of agricultural produce is of vital importance. It not only helps in value addition, but also in employment generation and exports of agri-produce. NCDC has been promoting cooperatives involved in processing of Foodgrains, Plantation Crops and Oilseeds, by providing financial assistance through State Governments, as well as directly to the processing societies, to meet the needs of these cooperatives.

Eligible Cooperative Societies:

NCDC provides assistance to primary, district and state level cooperatives, either directly or through State Governments.

Activities Assisted:

  • Establishment of new processing units.
  • Expansion/modernisation/rehabilitation/diversification of existing units.
  • Strengthening of Share Capital base.
  • Margin money/working capital to Commodity Cooperative and State-level Commodity Federations for expansion of their business activities.

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%.

For detailed pattern of assistance please click 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 for details of the Scheme.

Norms for direct funding:

Cooperatives operating for minimum three years & broadly fulfilling following criteria are eligible:

(i) Net worth should be positive.

(ii) There should be no erosion in share capital.

(iii) Should be in a position to provide 1.25 to 1.5 times security.

(iv) Financial /operational performance of the cooperative should be at satisfactory level of NCDC.

For detailed norms of Direct Funding please click at the link provided.

NCDC is a implementation agency for the following Centrally sponsored/ Central sector Scheme:

Central Sector Integrated Scheme for Agriculture Cooperatives (CSISAC):

NCDC has been providing financial assistance for establishment/expansion of processing units for processing of Fruits & Vegetables, Oilseeds, Plantation Crops and Oilseeds under 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

Mission for Integrated Development of Horticulture (MIDH) / National Horticulture Board (NHB) / National Horticulture Mission (NHM):

Mission for Integrated Development of Horticulture (MIDH) is a Centrally Sponsored Scheme for the holistic growth of the horticulture sector covering fruits, vegetables, root & tuber crops, mushrooms, spices, flowers, aromatic plants, coconut, cashew, cocoa, and bamboo. Under MIDH,while primary/ minimal processing units will be promoted under NHM, large scale processing units will be promoted by Ministry of Food Processing Industries (MFPI), out of their ongoing Schemes. However, food processing units in Himachal Pradesh, Jammu & Kashmir and Uttarakhand will be promoted under HMNEH sub scheme of MIDH.

Credit linked back ended subsidy @ 35% of project cost in general areas and @ 50% of project cost in Hilly, North East & Scheduled Areas, is provided under MIDH/NHB/NHM schemes for undertaking primary processing activities.

The details of cost norms, pattern of assistance, operational guidelines, etc. may be seen at websites like www.midh.gov.in, www.nhb.gov.in.

PM Formalisation of Micro Food Processing Enterprises Scheme (PM FME Scheme):

In order to provide necessary thrust to the unorganised food processing segment of the country, Ministry of Food Processing Industries (MoFPI), Government of India, has launched ‘PM Formalisation of Micro Food Processing Enterprises (PM FME) Scheme’. It is a landmark initiative under Aatma Nirbhar Bharat Abhiyan to support Micro Level Food Entrepreneurs, FPOs/SHGs/ Cooperatives. The scheme would formalize 2,00,000 Micro Food Processing Enterprises with an outlay of Rs.10,000/- Crore, over five years from 2020-21 to 2024-25. The National Cooperative Development Corporation (NCDC) is a partner Institution under PM-FME Scheme.

The Scheme has provisions for supporting cooperatives involved in food processing sector through a credit-linked grant @35% of the eligible project cost, for capital investment for upgradation of their existing processing activities and also for establishing new units for processing of ODOP product.

The scheme will be implemented through state governments and it offers huge opportunities to producer cooperatives to develop forward and backward linkage in the agro value chain and connect with national and international markets. This will not only help in enhancing income of the farmers but will also create employment opportunities for local youths.

Further details regarding operation guidelines of PM FME scheme can be checked from the MoFPI’s website www.mofpi.nic.in and www.pmfme.mofpi.gov.in.

National Beekeeping and Honey Mission (NBHM):

Keeping in view the importance of beekeeping and to achieve the goal of “Sweet Revolution” Ministry of Agriculture & Farmers Welfare has launched a new Central Sector Scheme “National Beekeeping and Honey Mission (NBHM)” for overall promotion & development of scientific beekeeping and production of quality honey & other beehive products is being implemented through National Bee Board. NCDC is the implementing agency for cooperatives in beekeeping and production of honey.

The NBHM has following sub-schemes/ three Mini Missions:

(a) Mini Mission-I: Under this Mission, thrust will be given on production & productivity improvement of various crops through pollination assisted by adoption of scientific beekeeping;

(b) Mini Mission-II: This Mission will concentrate on post harvest management of beekeeping/ beehive products including collection, processing, storage, marketing, value addition, etc. with a thrust to develop requisite infrastructural facilities for these activities; and

(c) Mini Mission-III: This Mission will concentrate on Research & Technology generation for different Regions/ States/ Agro-Climatic and Socio-Economic conditions.

Cost norms have been fixed under various components for providing grants under NBHM scheme. Further details regarding operation guidelines of NBHM scheme and cost norms can be checked from the National Bee Board’s website www.nbb.gov.in

Common Loan Application Form for availing assistance under the scheme of NCDC can be downloaded from NCDC’s website.

For further details, please contact or write to:

Processing Division
National Cooperative Development Corporation
4, Siri Institutional Area, Hauz Khas
New Delhi – 110 016
PABX No.: 26567475, 26569246
Fax: +91-011-26962370, 26516032
Website: www.ncdc.in Email: mail@ncdc.in

Regional Directorates of NCDC: Bengaluru, Bhopal, Bhubaneswar, Chandigarh, Chennai, Dehradun, Gandhinagar, Guwahati, Hyderabad, Jaipur, Kolkata, Lucknow, Patna, Pune, Raipur, Ranchi, Shimla, Thiruvananthapuram