Gramin Agricultural Markets Current Affairs - 2020

NABARD launches Scheme: Rs 5,000 crores allocated to computerise PACS

The National Bank for Agriculture and Rural Development (NABARD) has launched a refinance scheme for financial institutions and banks. It has allocated Rs 5,000 crores for the scheme.

Highlights

Under the scheme, the Primary Agricultural Credit Societies are to be turned into multi-service centres. The fund allocated under the scheme is to be made available to financial institutions and banks to lend to the beneficiaries in 2,150 water shed development projects.

About the projects

The scheme will mainly focus on watershed development projects. These projects are spread over 2.3 million hectares of watershed, tribal development and rainfed areas.

Computerisation of PACS

NABARD has also launched the scheme to computerise PACS (Primary Agricultural Credit Societies). Under the scheme, 5,000 PACS are to be upgraded in the initial phases, 15,000 by 2022 and another 15,000 by 2023.

Significance of PACS

PACS support farmers in post-harvest and marketing activities. Also, it plays key role in supply chain activities by acting as spokes to the upcoming Gramin Agriculture Markets.

Gramin Agriculture Markets

The Gramin Agriculture Markets are village level markets in India. There are 22,000 rural agricultural markets in the country. These markets are to be linked with E-NAM. This will help organize the agriculture market sector and help farmers sell at best prices. Hence, the initiative will help India achieve its target of doubling farmers income by 2022.

CCEA approves 3rd phase of PMGSY

Cabinet Committee on Economic Affairs (CCEA) chaired by the Prime Minister Narendra Modi has approved 3rd phase of Pradhan Mantri Gram Sadak Yojana (PMGSY) to consolidate 1,25,000 km of roads in the states.

Key Features of PMGSY-III Scheme

The 3rd phase of PMGSY (or PMGSY-III) involves consolidation of through routes and major rural links that connects habitations to Gramin Agricultural Markets (GrAMs), hospitals as well as Higher Secondary Schools.

Financial Implications-

Cost: An estimated cost of PMGSY-III would be Rs 80,250 crore over next five years out of which Central Share-Rs 53800 crore and State Share- Rs 26450 crore.

Fund: to be shared in ratio of 60:40 between Centre and State for all States except for 8 North Eastern and 3 Himalayan States (Jammu & Kashmir, Himachal Pradesh & Uttarakhand) for which it is 90:10.

Implementation-

Project Target period: 2019-20 to 2024-25.

Parameter for Road Selection: A candidate road selection is based on sum total of marks obtained by particular road on basis of parameters of population served, educational and medical facilities, market, etc.

Construction of Bridges: up to 200 m in Himalayan and NE States and 150 m in plain areas proposed from existing provisions of 100 m and 75 m in Himalayan and NE States and plain areas respectively.

Memorandum of Understanding: States shall be asked to enter into MoU before launching of PMGSY-III in concerned State for providing adequate funds for maintenance of roads constructed under PMGSY post 5-year construction maintenance period.

Background

PMGSY-III scheme was announced by Union Finance Minister in Budget Speech for year 2018-19.

CCEA in its meeting held on 9th August, 2018 approved continuation of PMGSY-I & PMGSY-II beyond 12th FYP Plan and covering of balance eligible habitations under PMGSY-I by March 2019, PMGSY-II, and habitations under identified LWE blocks (100-249 population) by March 2020.

Progress under PMGSY: Under the scheme a total of 5,99,090 Km road length has been constructed since inception till April, 2019 inclusive of PMGSY-I, PMGSY-II and Road Connectivity Project for Left Wing Extremism Area (RCPLWEA) Scheme.