Horticulture Cluster Development Programme



  • India is the second-largest producer of horticulture crops globally, accounting for approximately 12% of the world’s production of fruits and vegetables.


  • Due to its high remunerative capability, the horticulture sector has emerged as one of the potential agriculture enterprises that will accelerate the growth of the Indian economy.


  • With a view to enhance the global competitiveness of the Indian horticulture sector, the Ministry of Agriculture and Farmers Welfare (MoA&FW), Government of India, has announced the Cluster Development Programme (CDP) for the horticulture sector.


  • It is a Central Sector programme implemented by the National Horticulture Board (NHB).


  • Horticulture cluster is a regional/geographical concentration of targeted horticulture crops, offering scope for specialisation in pre-production, production, post-harvest management, logistics, marketing and branding.


  • These clusters provide growth and development opportunities to stakeholders including farmers/producers, traders, aggregators, agribusiness enterprises, logistic players, retailers, processors, exporters and other public and private operators.


The programme envisages following outputs



  • Adoption of Good Agricultural Practices and Global Best Practices leading to better quality and reduction in the cost of produce


  • Increased productivity and production through the availability of true-totype planting material and promotion of new varieties


  • Infrastructure development to improve shelf life and reduce post-harvest losses


  • Development and Adoption of multimodal transport (road, railways, sea and air) system, resulting in lower transit time and efficient evacuation of the produce


  • Creation of distinct ‘Cluster Brands


  • Increase in quantum of exports


  • Climate-resilient horticulture production


  • Increase in investments in the sector through private sector participation


  • The identified clusters for implementation of CDP in the first phase include Shopian (J&K) and Kinnaur (Himachal Pradesh) for apple; Lucknow (UP), Kutch (Gujarat) and Mahbubnagar (Telangana) for mango; Anantpur (AP) and Theni (TN) for banana; Nasik (Maharashtra) for grapes; Siphahijala (Tripura) for pineapple; Solapur (Maharashtra) and Chitradurga (Karnataka) for pomegranate and West Jaintia Hills (Meghalaya) for turmeric. Based on the learnings from the pilot project, the programme will be scaled up to cover all the 53 clusters in the next 5-7 years.


Objectives



  • Address the concerns of horticulture value chains in an integrated manner to accelerate competitiveness in the domestic and export markets.


  • Reduce harvest and post-harvest losses by developing/expanding/upgrading the infrastructure for post-harvest handling of produce, value addition and market linkages.


  • Facilitate introduction of innovative technologies and practices that will help to enhance the global competitiveness of focus cluster crops.


  • Facilitate the dovetailing of resources, including the convergence of various government schemes, to entrench stakeholders in the global value chains.


  • Build capacity of stakeholders and enhance farmers’ income through cluster-specific interventions including brand promotion


Key Features



  • Key Features


  • Pre-production and Production Support capacity-building of farmers and farm proximate interventions covering crop lifecycle, including planting material, cropcare practices and farm mechanisation until the harvest of the crop.


  • Post-harvest Management and Value Addition


  • Support interventions at the cluster level, ranging from post-harvest handling of the produce during transportation to storage, value addition and packaging.


  • Logistics, Marketing and Branding


  • Support interventions to link cluster produce with consumption markets and seamless logistics for efficient evacuation, cluster branding and outreach in the domestic and export markets.


The implementation structure of the programme is detailed below:



  • The implementation structure of the programme is detailed below:


  • NHB shall provide financial assistance and supervise the overall implementation of the programme.


  • A government/public sector entity, recommended by state/central government, shall be appointed as a Cluster Development Agency (CDA) for each identified cluster for the implementation of CDP.


  • CDA will establish a Cluster Development Cell (CDC) with a dedicated team of officers within the CDA for smooth implementation of the programme.


  • CDAs shall select the Implementing Agency(ies) (IAs) by floating Call for Proposals in an open and transparent manner for the all three identified verticals of the Cluster Development Programme.


  • PMU shall provide technical assistance to NHB and CDA for the effective implementation of CDP


Coverage and Pattern of Assistance



  • Coverage and Pattern of Assistance


  • Cluster Category Parameter Area* of cluster in Hectares Amount of financial assistance admissible per cluster (INR in crore)


  • 1 Mega More than 15,000 Up to 100


  • 2 Midi 5,000-15,000 Up to 50


  • 3 Mini Up to 5,000 Up to 25


Implementing Agency (IA)



  • Implementing Agency (IA)


  • Any entity selected for implementing the programme will be considered as an Implementation Agency (IA). Entities eligible for becoming IAs include Farmer Producer Organisations (FPOs/FPCs) and their Federations, Cooperatives/Societies, Partnership and Proprietorship Firms, Companies, State Agriculture and Marketing Boards and Federations and other Public Sector entities of Central/ State Governments.


  • Applicant entity should have a net worth of a minimum of two times of the proposed equity contribution as per the latest audited balance sheet.


  • Applicant should contribute at least 20% of the eligible project cost as promoters’ contribution.


  • Applicant must bring at least 20% of the eligible project cost as a term loan from scheduled commercial banks/RBI approved Financial Institutions (FIs).


  • In-principle or final term loan sanction by the bank along with the bank appraisal note.


  • Applicant must have relevant experience as an agri/horti input supplier/producer/ aggregator/trader/food processor/ exporter/retailer/logistics provider, etc., depending on the vertical applied for


Expected Outcome



  • Expected Outcome INR 10,000 crore


  • (INR 3,300 crore scheme outlay + INR 6,700 crore private investment)


  • Development of ‘Cluster Brands’


  • ~ 20% Expected increase in exports


  • 80 lakh MT Quantum of produce to be handled *35% of coverage considered in the 53 clusters identified


  • 10 lakh farmers To be benefitted