INCENTIVES TO FARMERS


1. For organic conversion and on-farm and off-farm inputs

1.1. Financial assistance to farmers shall be provided as incentive for eco-system service and for procurement/ management of organic inputs. Necessary funds under the head shall be released directly to the farmer beneficiaries as Direct Benefit Transfer (DBT) in their bank accounts.

1.2. On-farm inputs can be like composting, green manuring etc. and Off-farm inputs like organic seeds, manures, vermicomposts, biofertilizers, biopesticides, neem formulations, PROM, waste decomposer, botanical and physical and biological plant protection agents etc. can be considered.

1.3. States can issue necessary guidelines and suggest inputs as recommendatory measures. Farmers can choose inputs out of the recommendations as per their choice. In any case farmers should not be forced to buy the recommended inputs by the implementation Department and professional support agencies. Farmers will also be free to utilize the assistance fully for creation of on-farm input production infrastructure.

2. For marketing, common packaging, branding, space rent, transport –

2.1. Financial assistance will be given for direct marketing by the groups and clusters including procuring common packing material, printing of packing material, brochures, leaflets, preparation of labels, holograms, transportation expenses to local markets, hiring spaces on rent for specific organic markets and branding of organic products.

2.2. PGS India Green logo may be used for area under conversion and PGS India Organic logo may be used for completely converted organic area. Regional Council/ service providers in consultation with the State Governments will design the label and branding for the clusters. The labeling must include name of cluster, district and unique product packing used for branding organic produce.

2.3. If required for marketing, States can adopt any mode of certification as required by the buyer within the allocated budget.

3. For Value addition infrastructure creation through FPC/FPO:

3.1. Clusters can develop their own post-harvest, value addition and processing facilities, preferably under their institutions such as FPOs/ FPCs for creation of facilities for following:

3.2. Creation of collection and aggregation/postharvest process center (one between every 5-10 groups)

3.3. Creation of storage facility

3.4. Transportation infrastructure/ costs

3.5. Cold store/ pack house

3.6. Processing unit for drying, grinding, milling, packaging etc.

3.7. Any other facility deemed necessary for completing value chain.

3.8. Financial assistance to meet the expenses for procuring processing units, storage, grading, packaging, branding, labeling, transportation, market linkage with FPO/ SME including the cost of organic fare to be provided on submission of appropriate proposal to the EC on case by case basis.

4. Brand building, trade fairs, exhibitions, local publicity, organic fairs/ melas, local marketing initiatives, participation in national trade fairs:

4.1. States in consultation with service providers shall draw a comprehensive marketing strategy and plan at state level for brand building of state specific organic products. Cluster leaders can also be exposed to national and international trade fairs within the country, running publicity campaign etc.

4.2. State Governments can also hire spaces in high end markets during weekends for promotion of PGS certified organic produce and can organize state level exhibitions, trade fairs and seminars/ conferences far facilitating direct market linkages with retail chains.

4.3. Setting up of Integrated Processing Unit is linked with the area already brought under organic farming or is proposed for conversion to organic. It must be ensured that adequate raw material is available from grower groups in close vicinity.

4.4. It also to be ensured that facilities are created in such a way that different commodity can be processed under single roof facility and the unit can run for at least 8- 10 months a year.

4.5. These projects should be preferably Farmer institutions driven or under Private and farmer Institution partnership mode and are established mainly to cater the value addition requirement of the PKVY cluster produce.


4.6. Funds under this component will be provided on specific proposal on case by case basis by DAC&FW.