This initiative is an agri-business venture for establishing warehousing facilities of 1,000 tonne of onion at each of the 25 locations.
The joint venture between the National Agricultural Marketing Federation of India (Nafed) and Maharashtra Farmers Producer Co (MahaFPC), MahaOnion, has announced the launch of India’s first onion storage and marketing infrastructure through the public-private-partnership (PPP) model.
This initiative is an agri-business venture for establishing warehousing facilities of 1,000 tonne of onion at each of the 25 locations. This will benefit farmers by giving them access to centralised infrastructure to help reduce post-harvest losses as well as assured market linkages.
Of 25 locations, in the first phase, 5 sites are operational and 9 are in final stage of construction, a statement said. MahaFPC is the apex body of farmer producer companies in Maharashtra.
Yogesh Thorat, MD, MahaFPC, said the PPP model has been adopted across sectors. This will help FPCs meet their need for modern infrastructure for onion storage and market linkages. This venture is a year-long assignment that involves tripartite agreements with farmer producer companies.
Since there is lack of adequate infrastructure for onion storage in the country, Nafed has decided on a PPP model to provide infrastructure, Thorat said. The total project is estimated at Rs 25 crore. MahaFPC and Nafed will each bear 26.2% of costs, while the Maharashtra government will bear 47.6% of the cost as part of the Rashtriya Krishi Vikas Yojana (RKVY).
MahaFPC has entered into long-term leases for the land required for the project from member farmers. Farmers will be able to get short-term receipt finance through financial institutions under the Warehousing Development & Regulatory Authority scheme.