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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. It is revised in 2009 and changed the equity model to subsidy model.
  • 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.
  • To give related permissions and appoint financial institutions to select private entrepreneur.
  • 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.

Government of India participation

A floor subsidy of 25% of respective project cost may be offered to private entrepreneur for setting up Terminal Market Complex. During competitive bidding, all bidders will be eligible to quote bid subsidy from 25% up to 40% of their respective project cost with maximum subsidy of INR 50 crore.

Bidding Process

The selection of the Private Entrepreneur (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).

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 said land has been handed over to the Maharashtra State Agricultural Marketing Board (MSAMB). To take possession of land has begun.
  • The said land has been handed over to the Maharashtra State Agricultural Marketing Board (MSAMB). To take possession of land has begun.

Nashik Terminal Market.

  • The estimated project cost is Rs 60 Crore.
  • Estimated Handling capacity per day is 1000 MT
  • Area required is 100 acres.
  • Process of government land at Pimpri Saiyad is under progress.

Nagpur Terminal Market.

  • The estimated project cost is Rs 70 Crore.
  • Area required is 100 acres.
  • Land of 100 acres at Mouje kaldongri Tal. Dist Nagpur has been identified and decision taken by Government of Maharashtra to transfer of land to MSAMB.
  • To take possession of land has begun.