1. AGrI and FOOD PROCESSING
NABARD Kerala
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2. Indian Food Processing Industry & Potential
Food Processing Sector is the 5th largest Manufacturing Industry
Contributes 9% to the manufacturing sector
Contributes 1.5% to GDP
Indian Food Processing Industry (2012) - Rs. 8 lakh crore
Estimate by 2015 : Rs. 12 lakh crore
Important Segments
Meat, Fish, Fruits, Vegetables & Oils
40%
Dairy Products 5%
Grain Mill Products
10%
Beverages
20%
Other Food Products
25%
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3. Advantage India
FRUITS & VEGETABLES
India is the world’s 2nd largest producer of fruits and vegetables; production to rise from 227MT currently to 377MT by 2021
MILK & MILK PRODUCTS
With 133 MT (P) in FY13, India is the largest producer of milk in the world
MEAT & POULTRY
India is the largest producer of buffalo meat (1.5 MT*) and the second largest producer of goat meat (0.6 MT*)
MARINE PRODUCTS
With 9.1 MT production in FY13, India is the second largest producer of fish in the world
GRAIN PROCESSING
India produced about 259 MT of food grains in FY13
CONSUMER FOOD
Among the fastest growing segments in India and includes (i) Packaged Foods (ii) Aerated Soft Drinks (iii) Packaged Drinking Water and (iv) Alcoholic Beverages
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4. Indian Food Processing Industry
Unorganised Sector
42%
Small scale Industries
33%
Organised Sector
25%
Unorganised sector (includes SSI) contributes 75% by volume and 50% by value.
Value Chain in Food Processing
Inputs
Production
Procurement & Storage
Processing
Retailing
Seeds, Fertilizers, Farm Equipment
Farmers, Cooperatives, Companies
Warehouses, Cold Storages
Primary (cleaning, grading, packing, etc.)
Secondary (product conversion)
Malls
Retail shops
Cash & Carry
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5. Major Food Processed in Kerala
Spices
Marine Products
Cashews
Coconuts
Cocoa,
Coffee and Tea
Fruits like banana and pineapple
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6. Food processing potential identified -Kerala
Coconut Park
Rice park
Activated carbon plant
Modern Cold Storage
Coconut based food processing plant
Modern rice mill
Individual Quick Freezing (IQF) facility
Meat processing unit
Medicinal plants preservation and processing centre
Coconut oil mill and refinery
Mango processing
Marine food park
Ready to Eat (RTE) products
Bioethanol from Cashew Apple
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7. NABARD Support to Processing Sector
Refinance
Rural Infrastructure Development Fund
Umbrella Programme on Natural Resource Management
NABARD Infrastructure Development Assistance
Warehouse Infrastructure Fund
Producer Organisation Development Fund
Off Farm Sector Development
Food Processing Fund
WSSS - UPNRM, BDS – RIDF, under TDF grant
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8. FOOD PROCESSING FUND
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9. Operationalization of Fund
Corpus contributed by Scheduled Commercial Banks
NABARD to finance directly or through consortium financing.
Lending rate and margin on loans to State Governments and Government entities on par with RIDF lending
Loans to private sector at rates not below PLR of NABARD
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10. Eligible Institutions / Entities
State Governments
Entities promoted by State Governments (with or without Government Guarantee)
Entities promoted by Government of India, Joint Ventures, SPVs, Cooperatives, Federations of Cooperatives, Farmers’ Producer Organizations (FPOs), corporates, companies, entrepreneurs, etc.
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11. Designated Food Parks (DFPs)
Food Parks promoted by MoFPI
Mega Food Parks promoted by MoFPI
Food Parks/food processing industrial estates promoted by States
Food processing/ agro processing/ multi products SEZs and de-notified areas of these SEZs
Any area having infrastructure and designated as Food Park by MoFPI
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12. Creation of infrastructure required in the DFPs
Eligible Projects
Creation of infrastructure required in the DFPs
Augmentation of existing infrastructure in the DFPs
New processing units in DFPs
Modernization of existing processing units in the DFPs
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13. Eligible Processing Activities / Units
Activities resulting in value addition and/or enhanced storage life
Units requiring product processing (primary/secondary)
All types of products as per MoFPI guidelines (horticulture, milk, meat, fish, cereals, oilseeds, confectionery, convenience foods, ready-to-eat foods, nutraceuticals, health foods, etc.)
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14. Eligible Project Components
Land (up to a max. of 10% of land cost reckoned towards project outlay)
Site development
All civil works, covering core and non-core buildings, internal roads, fencing / boundary wall, etc.
Plant and machinery, equipment and other fixed assets
Miscellaneous fixed assets
Technology transfer fee and other consultancy charges
Preliminary and pre-operative expenses
Capitalized working capital for one operating cycle, etc.
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15. Lending Terms (i) State Governments 95%
Sl. No
Borrowing entity
Max. loan
(% of TFO)
Rate of interest
(% p.a)
Security
(i)
State Governments
95%
As applicable for RIDF (Bank Rate less 1.50%)
State Government Undertaking
(ii)
Entities promoted by State Govts. (with Govt. Guarantee)
As applicable for RIDF (Bank Rate less 1.50%)
Primary security, Govt. guarantee and collateral security as acceptable to NABARD
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16. Lending Terms
Sl. No
Borrowing entity
Max. loan
Tenure of loan
RoI
(% p.a)
Security
(iii)
Entities promoted by State Govts. (without Govt. guarantee)
95%
Up to 7 years
PLR** + Risk Premium
Primary security and collateral security as acceptable to NABARD
(iv)
Private Sector *
75%
Entities promoted by Government of India, Joint ventures, SPVs, Cooperatives, Federations of Cooperatives, FPOs, corporates, companies, entrepreneurs, etc. ** Prime Lending Rate
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17. Lending Rate to Private Sector
Linked to PLR of NABARD and Risk Rating of Borrower
PLR of NABARD to be worked out by ALCO quarterly
Risk Rating of the Borrower
Risk premium to be based on Risk Rating
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18. Repayment Borrowing entity Total repayment period Grace period
Nature of installments
Remarks
State Governments
7 years
2 (fixed)
Annual
Each installment of release is a separate loan and has separate repayment schedule
State Agencies (with Govt. Guarantee)
Quarterly / Half-yearly / Annual (as per cash flows)
PLR-based
Up to 7 years
Up to 2 years (based on cash flows)
@ In all cases, interest shall be paid at quarterly intervals, including the moratorium period.
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19. Other Aspects Evaluation Fee Annual Monitoring Fee
No fees for RIDF-based lending
0.25% of Project Cost, subject to a min. of Rs. 2 lakh and a max. of Rs. 30 lakh for PLR-based lending
Annual Monitoring Fee
Expenses on undertaking technical, financial and legal inspections undertaken during the currency of the loan, either by NABARD or through a LIE / LLC appointed for the specific purpose, shall be reimbursed by the borrowing entity to NABARD.
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20. THANK YOU
Picture
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21. UPNRM
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22. Other Aspects A) Core Activities Soil and water conservation
Plantation and horticulture (tree based farming, Bamboo based farming, wadi development,organic farming, energy plantations)
Forestry activities (rehabilitation and management /Community Forest management, biodiversity conservation)‏
Farming systems management (including livestock and aquaculture resources)‏
Climate change adaptation / CDM
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23. Sectors Covered b) Supplementary / support areas
forward and backward linkages and livelihood generating activities; processing, storage, marketing, supply chain
critical rural infrastructure (including rural roads, minor irrigation, drinking water)‏
renewable energy (micro/mini-hydel, biomass based power generation, biofuels, wind-power, solar power)‏
livelihood generating activities (dairy, poultry, fisheries, etc)‏
c) Information & Knowledge Management (IKM) and Capacity Building
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24. UPNRM Guiding Principles
Pro-poor (improves employment, reduces poverty, improves access to credit, information, entitlements)‏
Ensuring sustainability (conserves / augments NRM base of the region, prevents degradation)‏
Good Governance (Equity in ownership and access and use of resources, decentralized decision making, accountability and transparency)‏
Community participation (ownership / management/ empowerment)‏
Integrated approach (need-based and flexible, convergence with other schemes / programmes)‏
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25. Rate of interest on UPNRM loans
Type of funding
Channel Partner
Type of Projects
Rate of interest
Project finance/ bulk finance
NGOs, Cooperatives , MFIs
Corporates
Projects implemented thru’ CBOs (where loan is passed on to rural people directly or through POs); 9% %
Projects implemented directly (without on- lending to people)
9-10%
State Govt
8.5%
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26. UPNRM – Special Features contd…
Investment loan
various NRM measures, associated livelihood activities, related infrastructure and marketing chain management, etc
Working Capital / Revolving Assistance
Value addition and supply chain management
Production of raw material, Procurement and stocking of produce, Processing and packing, Marketing inventories, distribution, etc
Grant support
Proposal development
Capacity building
Community mobilisation
Cost of expertise
गाँव बढ़े तो देश बढ़े /nabardonline Taking Rural India >> Forward

27. financing cold chain infrastructure under warehouse infrastructure fund
गाँव बढ़े तो देश बढ़े /nabardonline Taking Rural India >> Forward

28. Eligible Projects Cold chain for Horticulture Products
Pack houses / Integrated Pack houses (washing, grading, waxing, packing, etc.)
Pre-cooling Units (with / without staging cold rooms)
Standalone cold storages / CA Storages / MA Storages
Refrigerated vehicles (reefer vans/ reefer trucks)
Freezing / Individual Quick Freezing Units
Integrated Cold Chain Projects
गाँव बढ़े तो देश बढ़े /nabardonline Taking Rural India >> Forward

29. Eligible Items of Project Cost (indicative)
Land (up to a max. of 10%)
Civil works (core and ancillary)
Plant and Machinery
Equipment and Miscellaneous Fixed Assets
Technical consultancy charges
Preliminary and pre-operative charges
Interest during construction
Cost contingencies
Capitalized working capital for one operating cycle
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30. dsm@nabard.org /dsm.fpf@Nabard.org
Sectors eligible
17 April 2017
Sectors prioritized by GoI.
Loans to Public and Private Sector.
Private Sector* includes all agencies without Govt. guarantee.
Loans to State Govts. & Govt undertakings with State Government guarantee on RIDF terms.
Loans to Private Sector – PLR based interest rate.
* - Central Government /State Government undertakings (without guarantee), Joint ventures, SPVs, Federations of Cooperatives, FPOs, Corporates, Companies, Entrepreneurs etc.,
bnke
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31. WIF – 2014 -15- Financing terms and conditions
4/17/2017
WIF – Financing terms and conditions
Type of Borrower
Maximum Quantum of Loan
(% of TFO)
Tenor of loan (Years)
Rate of Interest
(% p.a.)
Security/ Documentation A
Loans with RIDF rate of interest 1
State Governments (loans to Finance dept. under article 293(3) ) 95 07
Prevailing RIDF rate of interest
Government undertaking. 2
State Owned Corporations (loans outside article 293(3)
Government Guarantee + Primary & Collateral Security, etc.
13 Oct 2014
bnke
गाँव बढ़े तो देश बढ़े /nabardonline Taking Rural India >> Forward

32. WIF– 2014 -15- Financing terms and conditions ………
4/17/2017
WIF– Financing terms and conditions ………
Type of Borrower
Max. Quan. of Loan
(% of TFO)
Tenor of loan
(Years)
Rate of Interest
(% p.a.)
Security/ Documentation B
Loans with interest rates based on Prime Lending Rate ( PLR) 1
State/Central Govt. Owned/Assisted Entities (without Government guarantee)/ Cooperatives, FPOs, SPVs set up under PPP mode, etc., 95 07
PLR*+ RP*
Primary & Collateral Security, Assignment of rentals receivable and any other unencumbered receivables, Debt Service Reserve etc.
7 years
PLR+ RP+TP* 2
Private Companies/ Corporates/ Individual Entrepreneurs etc. 75
> 7 years
ABOVE SEVEN YEARS APPLICABLE ONLY FOR WIF LOANS
*- PLR – Prime Lending Rate, RP – Risk Premium, TP – Tenor Premium.
bnke
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33. Producers Organisation
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34. DEFINITION OF PRODUCER ORGANIZATIONS
Formed and owned by a group of producers for either farm or non-farm activities
It is a registered body and a legal entity
Producers are shareholders in the organization
It deals with business activities related to the primary produce/product.
It works for the benefit of the member producers
Portions of profit are shared amongst the producers and the balance goes to the share capital or reserves
ഗ്രാമീണ ഭാരതത്തോടൊപ്പം പുരോഗതിയിലേക്ക് Taking Rural India >> Forward

35. What POs can offer – End to end solutions !!
Supply of seeds, fertilizers, pesticides, agri implements, etc
Input Supply Services
Provides/facilitates for loan for crops, purchase of agri implements, etc
Financial Services
Promote best farming practices, marketing information System, skill upgradation, etc.
Technical Services
ഗ്രാമീണ ഭാരതത്തോടൊപ്പം പുരോഗതിയിലേക്ക് Taking Rural India >> Forward

36. What POs can offer – End to end solutions !!
Various insurance like Crop Insurance, Life insurance, etc
Insurance Services
Procurement, storage, marketing, value addition and packaging
Procurement & Packaging Services
Direct marketing to reduce income leakages
Marketing Services
Making channels for information (product specification, market prices, etc
Networking Services
ഗ്രാമീണ ഭാരതത്തോടൊപ്പം പുരോഗതിയിലേക്ക് Taking Rural India >> Forward

37. NABARD COMPREHENSIVE SUPPORT PROGRAMME
NABARD COMPREHENSIVE SUPPORT PROGRAMME
Credit support
In the form of loan to POs
Term loan
Working Capital Term Loan
Composite Loan (term loan + working capital)
II. Assistance to Implementing Agency for on lending to PO
Credit Support to implementing agencies like NGOs, Vas, Trusts (instrumental in forming SHGs, Farmer federations, clusters, other cooperatives/POs) and financial institutions including , subsidiaries like ABFL, ADFT and NABFINS participating in value chain process, for on-lending to POs, farmers/artisans groups or clusters such as SHGs, JLG, federations and farmers clubs.
B. Credit plus support – in the form of grant, subject to a cap of maximum 20% of loan amount
Capacity Building: Includes Human resource development and organizational development.
II. Market Linkages
III.Others (DPR preparation, administrative expenses etc)
ഗ്രാമീണ ഭാരതത്തോടൊപ്പം പുരോഗതിയിലേക്ക് Taking Rural India >> Forward 37 37

38. NABARD COMPREHENSIVE SUPPORT PROGRAMME
NABARD COMPREHENSIVE SUPPORT PROGRAMME
III. Lending to Producer Organisations for Contribution to Share Capital
Model –I: Lending to Producer Organisations for Contribution to Share Capital
Model – II: Lending to the promoting agency which in turn can lend to the members of the PO
Features:
Capital: loan would be at 1:1 basis.
Cap on loan amount would be Rs. 25 lakh.
Further cap of Rs /- per member
Repayment 5-7 years with 1-2 years moratorium period. `
ഗ്രാമീണ ഭാരതത്തോടൊപ്പം പുരോഗതിയിലേക്ക് Taking Rural India >> Forward 38 38

39. DETAILS OF FINANCIAL ASSISTANCE
Quantum
Limited to 90% of total financial outlay
Mode
Loan for taking up of economic activity along with grant or loan or a blend of both for capacity building
RoI -As decided by ALCO
Present range: % based on collaterals provided
10.25 % in case of 100% collateral
ഗ്രാമീണ ഭാരതത്തോടൊപ്പം പുരോഗതിയിലേക്ക് Taking Rural India >> Forward

40. ELIGIBLE INSTITUTIONS
PARTNERSHIP WITH CORPORATES, LINE DEPARTMENTS, NGOS, CBO
Support to Supply Chain from Primary producer to retailer/ultimate consumer
Support to value addition
Encourage feeder/suppliers to retailer chains like Big Bazar to form/promote POs avail assistance under PODF.
Subsidiaries/Ancilliaries of larger entities/corporate business houses can promote POs and avail assistance under PODF
ഗ്രാമീണ ഭാരതത്തോടൊപ്പം പുരോഗതിയിലേക്ക് Taking Rural India >> Forward