Question : SETTING UP OF AGRIBUSINESS CENTRES

(a) whether the Government have proposed to set up `agribusiness centres` for rendering services to farmers;

(b) if so, the details thereof; and

(c) the efforts made to invite private participation in the matter?

MINISTER OF STATE IN THE MINISTRY OF AGRICULTURE(SHRI HUKUMDEO NARAYAN YADAV)

(a) to (c): A new Scheme `Establishment of Agri-clinics and Agri-business Centres` has recently been launched in collaboration with National Bank for Agriculture and Rural Development (NABARD). The Scheme proposes to assist agriculture graduates and graduates in subjects allied to agriculture in setting up of around 5,000 Agri-clinics/Agri- business ventures per year in identified activities through Bank finance with refinance from NABARD on self employment basis. Start up training of two to three months in the areas of entrepreneurship and business management as well as for skill improvement in the chosen area of activity will also be provided to agricultural graduates interested in setting up agri-clinics and agri-business ventures. Graduates who propose to avail the benefit of the Scheme will be given bank finance on priority sector lending terms on acceptance of their project proposals. The average cost of an individual venture is estimated to be around Rs. 5 lakhs, with a maximum limit of Rs. 10 lakhs per invidual, and the group ceiling of Rs.50 lakhs for a venture by five or more Graduates. The Scheme envisages provision of extension and consultancy services, soil and input testing services and other support services for the farmers through these agri-clinic and agri-business centres. The agri-clinic and agri-business ventures would start operations after the eligible agriculture Graduates are able to obtain loans from the Banks and set up their ventures.

This Scheme has been given wide publicity and the response to the Scheme from all the States has been encouraging. As on 8.5.2002, 10860 applications have been received under the Scheme from various part of the country and training under this Scheme has already started in various institutions across the country.