AGRI EXPORT ZONES

(AEZs)
IN MAHARASHTRA
 AEZs IN MAHARSHTRA
Announced in 2001-02 budget speech and
later incorporated in the EXIM Policy.

Objective : To increase the export of

identified commodities with economies of
scale and providing remunerative returns to
the farming community in a sustained
manner through the convergence of
interventions of various agencies.
 AEZs IN MAHARSHTRA
Activities envisaged in AEZs
SIdentifying a potential zone based on agro-
climatic requirements for a crop
SPromoting the crop so that abundant raw
material is available at low cost through
contract farming for processing
SIntegrating various assistance, programmes of
Central and State Government agencies and
providing fiscal incentives to exporters
SImplementing through private and public
partnership
S Integrating all the activities till the produce
reaches the market.
 AEZs IN MAHARSHTRA
Financing in AEZs by banks involves:
i.Financing farmers directly for crop
production [Banks to ensure that the
exporters /processors have made
arrangement with farmers & overseas in
buyers.].
ii.Financing processors/exporters who in turn
would provide all inputs & technical know how
with a buy back arrangement to farmers and
iii Financing processing companies for
investment in P & M
To provide higher than the normal scale of
finance whereever required
 AEZs IN MAHARSHTRA
Fund requirement for Agri Export Zones
(Amount in Rs crore)
Central Govt. - 42.59
State Govt. - 45.55
Private investment – 50.86
Total investment required – 161.98
26 Districts covered
Five AEZs - Nasik
Four AEZs – Pune and Ahmednagar
Three AEZs – Sangli, Solapur
Two AEZs – Three districts
 AEZs IN MAHARSHTRA
Other developments
In the case of EPCG licenses issued to units in
AEZs, the "fulfillment" of export obligation is
to be reckoned over a 12 year period
 Agro units in the AEZ will also be given the
flexibility to move or install the capital good
imported under the EPCG scheme in any area
within the AEZ. The units in the AEZ are
further exempt from furnishing bank
guarantee and they need to only give a legal
undertaking or bond.
 AEZs IN MAHARSHTRA
NABARD Refinance Scheme for AEZs
Terms and Conditions of refinance by NABARD
i. Eligible Institutions :All scheduled commercial
banks, SCBs, RRBs, SCARDBs
ii Extent of Refinance : 100% refinance
iii Rate of Interest on Refinance:
Up to Rs 50000/ - : 6.00 % p.a
Above Rs 50001/- : 6.25 % p.a.
iv Rate of Interest to be charged by banks to the
ultimate borrowers : As per RBI directives.
 AEZs IN MAHARSHTRA
Terms and Conditions of refinance by
NABARD
v Mode of Refinance :
Refinance will be extended under
schematic approach under Automatic
Refinance Facility [ARF] as well as
schemes with prior sanction. For
availing of refinance under ARF, the
outer limit of the project cost would be
Rs. 30 lakh and the refinance limit per
unit /borrower will be Rs 20 lakh.
 AEZs IN MAHARSHTRA
Terms and Conditions of refinance by NABARD
vi Security & margin : As per RBI norms
vii. Repayment period of refinance to NABARD
Banks will be provided refinance as a term
loan repayable over a period of 3 years for
crop loans & for activities requiring repayment
more than three years the repayment period
can be fixed for a longer tenure as per the
requirement.
viii Insurance:
Adequate insurance cover shall be obtained
for the entire period of loan as stipulated by
RBI from time to time.
 AEZs IN MAHARSHTRA
Disbursement of Refinance under AEZs
2002-03 - Rs.4539.520 lakh
2003-04 - Rs.6445.220 lakh
2004-05 - Rs.7881.077 lakh (18% of all-India)
for Grapes (Rs.6532.858 lakh), Alphonso
mango (Rs.396.289 lakh), Onion (Rs.255.310
lakh), Pomegranate (Rs.683.19 lakh) and
Flowers (Rs.13.430 lakh)

Total - Rs.18865.817 lakh ( 22.85 % of all-India)

 AEZs IN MAHARSHTRA
Initiatives taken by NABARD
i. Workshops : 8 workshops
ii. Formulation of an Area Development Project
(ADP) on grapes
iii. Loan utilisation studies under AEZs 4.
iv. Potential under AEZs in PLPs
v. DLC Meetings at Nashik and Pune
vi. Separate scale of finance has been fixed for
grapes for export purpose in respect of Pune
and Nasik districts. Scale of finance for
oranges has also been revised
 AEZs IN MAHARSHTRA
Initiatives taken by NABARD
vii. Incorporation of AEZ refernce material
in the book on “Enhancing credit flow
to Agriculture and Allied Sectors in
Maharashtra”.
viii A booklet titled “AEZs in Maharashtra
– Programme and Perspectives” has
been prepared and is under print.
 AEZs IN MAHARSHTRA
ADP on Grape
Seven contiguous districts of the State,
namely Nashik, Pune, Sangli,
Ahmednagar, Sholapur, Osmanabad
and Latur have been covered.
Programme of ADP
Area expansion by 8532 ha
setting up of 38 new post harvest
centres and 1465 raisin production
units
 AEZs IN MAHARSHTRA
Suggestions / Constraints
Revision of unit costs by NABARD where
ever necessary. Banks/ Department may
forward proposals for the revision. Unit cost
for grape cultivation and rose under
polyhouse have already been revised/
introduced. Mango , Pomegranate under
revision. Wine grapes being introduced

Revision in scale of finance for AEZ crops at

district level considering high inputs
required for crops meant for export.
 AEZs IN MAHARSHTRA
Suggestions / Constraints
Standard parameters for AEZ crops for
export purpose along with package of
practices have to be prepared by a
Committee of concerned agencies for the
guidance of farmers. This could be done in
local languages.

There is a need for improved coordination

among the various agencies (Departments,
nodal agencies, growers’ association,
corporates, NGOs, banks etc).
 AEZs IN MAHARSHTRA
Suggestions / Constraints
Active involvement of Growers Associations
in identifying beneficiaries and coordination
with banks for encouraging institutional
finance.

NABARD can provide consultancy services

for preparation/ appraisal of projects on AEZ
crops through Nabcons

Banks to give preferential treatment in terms

of interest rate at the level of ultimate
borrower.
 AEZs IN MAHARSHTRA
Suggestions / Constraints
Plan of action for developing respective AEZ
crops by the concerned nodal agencies and
the possible role of financial institutions.

 Identification of implementable area based

cluster programmes for promotion of
identified AEZ crops.
Possibility of linking of MSFAC with AEZ
schemes involving production, processing
and marketing with arrangement for input
supply and technology/ crop management
support.
 AEZs IN MAHARSHTRA
Suggestions / Constraints
To extend insurance cover for AEZ
crops. Presently only Onion crop is
included under National Agricultural
Insurance scheme. Horticultural crops
are provided insurance on individual
basis at present.
 AEZs IN MAHARSHTRA
Contract Farming :
All contract farming arrangements (excluding
loans granted to sugarcane growers) are
also eligible for refinance assistance.
Scope for activities under contract farming
i. Banana
ii. Hybrid seed
iii. Floriculture
iv. Wine grape
v. Medicinal and aromatic plants
 AEZs IN MAHARSHTRA
Model Agreement for Contract Farming

Annexures of ADP grapes

Models for grape , raisin making, Poly

house – Carnation and capsicum
 AEZs IN MAHARSHTRA
i. AEZ- GRAPE AND GRAPE WINE
 Wine parks - Vinchur in Nasik & Palus in
Sangli ( Krishna and Godavari wine park)
 24 grape wine units (11- Nasik, 6 – Sangli, 5-
Pune & 2 – Solapur) in the State and 10 more
units in pipeline.
ii. AEZ - Alphonso MANGOES
 Spongy tissue research project at a cost of Rs.
9.9 lakhs to IIHR, Bangalore
 Pest risk analysis project to NRC, Pune - Rs.
13.20 Lakhs.
 Booklet on mango in Marathi by MSAMB .
 AEZs IN MAHARSHTRA
Eight AEZs in Maharashtra out of 60 AEZs

5. Onion - Nasik, Ahmednagar, Pune, Satara and

Solapur, Jalgaon – MSAMB

6. Pomegranate- Solapur, Sangli, Ahmednagar,

Pune, Nasik, Osmanabad & Latur – MSAMB

7.Banana - Jalgaon, Dhule, Nandurbar,

Buldhana, Parbhani, Hingoli, Nanded, Wardha
MSAMB
8. Orange - Nagpur, Amravati - MSAMB
 AEZs IN MAHARSHTRA
Eight AEZs in Maharashtra out of 60 AEZs

1. Grapes and grapewine - Nasik, Sangli, Pune,

Satara, Ahmednagar, and Solapur - MIDC

2. Flowers – Pune, Nasik, Kolhapur and Sangli –

MIDC
3. Alphonso Mango - Ratnagiri, Sindhudurg,
Raigad and Thane – MSAM

4. Kesar Mango- Aurangabad, Jalna, Beed,

Latur, Ahmednagar and Nasik - MSAMB
 AEZs IN MAHARSHTRA
APMC,Vashi - Vapour treatment machine and
pack house by APEDA
Pre cooling & cold storage units established by
MSAMB at Jamsande in Sindhudurg dist. and
Nachane in Ratnagiri dist.

iii. AEZ KESAR MANGOES

 Booklet on mango in Marathi by MSAMB .
 Pre cooling & cold storage unit stablished at
Jaikisan, Aurangabad by MSAMB
One unit in Jalna, Jalna dist. is also proposed.
 AEZs IN MAHARSHTRA
v. AEZ - ONION
Model pack house at Indapur, Pune
Booklet in Marathi has been prepared by
MSAMB
vi. AEZ- POMEGRANATE
NRC is coming up in Solapur on the lines
of NRC - Grapes.
 Pre-cooling and cold storage unit is
planned for establishing at Baramati.
 AEZs IN MAHARSHTRA
iv. AEZ - Flowers
 Floriculture auction cente in two years by
MAIDC at Goregaon, Mumbai.
 Floriculture park : Export Oriented Hi Tech
Floriculture Park at Talegaon with all
international standard facilities
86 growers have been given plots
 19 units are under construction and two units
have already started production. Three anchor
tenants for post harvest services (one) and
propagation nursery (two) have been selected.
The progress is slow due to certain
constraints which are being looked into by
MIDC.