TERMINAL MARKET

• Post harvest losses in perishable like fruits and vegetables are upto 30 to 40 %.
• The National Horticulture Mission (NHM) was launched during 2005-06 by the Government of India.
• Terminal Market concept has been conceptualized to give more remunerative returns to the farmers from NHM by reducing post harvest losses of the fruits and vegetables of the farmers and reducing the middlemen.
• Terminal Markets will be established in the big cities and these markets will be linked to the production areas by means of collection centers.
• The perishable horticultural produce will be cleaned at the collection centers and by removing the waste at the Collection Centers it will be transported to the terminal markets.
• Terminal Markets and the Collection centers will be connected by means of reefer vans thereby reducing post harvest losses.
• It is proposed that horticultural produce arriving in the terminal market will be graded and by pre-cooling, it will be stored in the cold storage.
• The produce in the terminal market will auctioned by way of electronic auction system. It is proposed that the horticultural produce will be sold in the domestic market as well as it will be processed.
• Export of horticultural produce is also expected from the terminal market.
• It is proposed to establish modern marketing infrastructures like electronic auctioning facility, pre-cooling, cold storage, ripening chambers, grading packaging facilities, processing units and other allied infrastructures like banks, post office etc.
• Terminal Markets will be established in a Public Private Partnership (PPP) mode.
• The terminal market would operate on a Hub-and-Spoke Format wherein the
  Terminal Market (the hub) would be linked to a number of Collection Centres (CC) (the spokes).
• The commodities to be marketed by the Terminal Market will include all perishables, interalia, fruits, vegetables, flowers, aromatics, herbs, meat, poultry etc. Non perishables can also be handled in the Terminal Market. However, the proportion of Non-Perishables shall not exceed 15% of the total through put of the market. Similarly, the proportion of non horticultural products within the perishable commodities shall not exceed 15% of the total through put of the market.

Objectives -

• To reduce post harvest losses due to present marketing system.
• To link the farmers directly to the markets and provide more alternatives to sell their produce and reduce the number of intermediatories.
• To use modern technologies in the marketing system and establish a cold chain with the help of private players.
• To bring transparency in the market transactions.
• To promote export of horticultural produce.
• To promote processing in the state.
• Terminal Market would be built, owned and operated by the selected Private Enterprise (PE) through Competitive Bidding process.
• PE includes individuals, Group of Farmers/Growers/Consumers, Partnership/ Proprietary firms, Companies, Marketing Boards, Corporations, Co-operatives, Producer Organizations and Self Help Groups. The PE could also be a consortium of entrepreneurs from, inter-alia, agri-business, cold chain, logistics, warehousing, agri-infrastructure and related background.

Role of State Government

• To decide location of the terminal markets and provide government land where ever it is possible.
• To give related permissions and appoint financial institutions to select private entrepreneur.

Service Charges-

• The PE has full freedom to fix the service charges based on commercial and viability considerations. The service levels as prescribed in the OMDA agreement will have to be met by the PE.

Government of India participation

• Central Government would provide equity assistance upto 49% of project equity, returnable at market/fair value to be decided at appropriate time.
• Assist the State governments in fixation of throughput per day and yearly handling capacity of the terminal market complex for the detailed project reports (DPR).

Status of Terminal Markets -

• Government of India initially decided to set up 8 terminal markets in various states and later on 21terminal markets have been proposed.
• Terminal markets will be set up at Mumbai, Nashik and Nagpur in the State.
• Mumbai Terminal Market.
  • The estimated project cost is Rs 200 -250 Crore.
  • Estimated Handling capacity per day is 3000 MT
  • Area required is 125 acres. Government land has been identified at Babgaon, Tal- Bhivandi, Dist – Thane. The State Cabinet has taken a decision to hand
  • Over the concerned land to the Maharashtra State Agricultural Marketing Board (MSAMB). MSAMB has the taken the possession of 92 acres of land.
  • Proposal has been submitted on 15/11/2007 to the Collector, Thane for acquiring the remaining land.
• Nashik Terminal Market.
  • The estimated project cost is Rs 60 Crore.
  • Estimated Handling capacity per day is 1000 MT
  • Area required is 100 acres.
• Nagpur Terminal Market.
  • The estimated project cost is Rs 55 Crore.
  • stimated Handling capacity per day is 750 MT
  • Area required is 100 acres.
• State Level Executive Committee has been set up by the Government of Maharashtra under the Chairmanship of Hon’ble Minister for Marketing. The Nodal Officer for this MTM is the Principal Secretary for Co-operation and Marketing and the Additional Nodal Officer is the Director of Marketing, Maharashtra State.
• The State Level Committee has selected the following institutions as Financial Institution for the Modern Terminal Markets in the State.
  



No	Modern Terminal Market	Name of Institution
1	Mumbai (Thane)	YES Bank Ltd
2	Mumbai	NABARD Consultancy Services Private Ltd
3	Nagpur	APITCO Ltd, Hyderabad.



• The selection of the PE for each terminal market will be made on competitive bidding, following two-bid system i.e. Request for Qualification (RFQ) and Request for Proposal (RFP). Global Tender Notice for all three markets has been published in Economic Times on 18th January 2008 and it was requested to submit the proposals upto 7/3/2008.
• Request for Qualification (RFQ) stage has been completed and 5 firms for Mumbai MTM, 4 firms for Nashik MTM and 4 firms for Nagpur MTM have been qualified for Request For Proposal (RFP) stage.
• Request for Proposal stage has been started on 9th June 2008.
• The Request for Proposal and OMDA has been issued to the qualified applicants from RFQ stage on 9th June 2008.
• As per the above schedule the actual process of setting up of infrastructure will commence from 15th January 2009.
• As per the operational guidelines of MTM the entire infrastructure is to be completed within 24 months from the date of signing of Agreement.