Tamil Nadu govt. has launched Supply Chain Management Scheme to benefit farmers directly without any agent or middlemen. Under this SCMS scheme, govt. would set up warehouse infrastructure, primary processing centres (PPCs) and cold storage. In the initial phase, the state govt. will implement this scheme in 10 districts with an outlay of Rs. 398.7542 crore.
Supply Chain Management Scheme is a first of its kind in India and has already been sent to the National Bank for Agriculture and Rural Development (NABARD) for its approval. NABARD will see the proposal of SCMS scheme through the process of an internal assessment.
The produce of farmers will be aggregated at 487 collection points, processing would be done at 58 PPCs and logistics support such as transportation and storage to take the produce to terminal markets would also be provided.
Tamil Nadu Supply Chain Management Scheme
As per the reports of Department of Agricultural Marketing and Agri Business of Tamil Nadu, the state govt. will start SCMS scheme in 10 districts on a hub and spoke model. These districts are Krishnagiri, Dharmapuri, Coimbatore, The Nilgiris, Tiruchirappalli, Dindigul, Theni, Ramanathapuram, Thoothukudi and Tirunelveli. The total cost for the implementation of TN Supply Chain Management Scheme is Rs. 398.7542 crore. The primary objective is to setup warehouse infrastructure, primary processing centers with advanced machinery for processing of vegetables and fruits like bananas and cold storage units.
Out of the total cost for the implementation of SCMS scheme, NABARD Warehouse Infrastructure Fund will give term loans amounting to Rs. 378.8165 crore and the contribution of the state govt. will be Rs. 19.9377 crore. Farmer producer organisations (FPOs) would be setup in each identified district. Once the scheme get grounding, the whole setup will be handed over to the farmers to run the operations.
TN SCMS scheme will ensure that farmers fetch good remunerative prices for their agricultural produce. Moreover, the strengthened supply lines will also ensure timely transportation of fresh fruits, vegetables and other perishables items to the consumers. The state govt. expects that this SCMS scheme will be grounded by the month of March in FY 2019.
TN govt. will provide post harvest infrastructure like pack houses, cold storage, irradiation plant, individually quick-freezing (IQF), grading and packing facilities, storage godowns, e-auction, shops, processing lines, hot water / vapour heat treatment plant, farmers training centres, etc. will be created in the PPCs.
The state govt. will establish backward linkages to ensure an uninterrupted supply of horticulture commodities to PPCs and forward linkages to get long term returns. National Institution for Transforming India (NITI Aayog) will be approached to facilitate technicalities for the implementation of the SCMS scheme.
Initially, SCMS scheme will be implemented in Coimbatore and Krishnagiri districts on public-private partnership (PPP) mode. This would enable investors to invest on design, build, finance, operate and transfer (DBFOT) basis. Supply Chain Management Scheme is in the preliminary stage and NABARD will study its feasibility in meeting of the financial committee which approves such schemes.