Oriantation on warehouse financing

Mr. Uthappa Gollapalli Program officer WASSAN has briefed the ongoing program of CMSS in Rayalaseema. Has given interdiction over Cycle of CMSS and functioning’s of MVK’s. He admitted that this system developed up on ideas and collective efforts from Dept. of Agriculture, APSEEDS, and NGOs. MVKs acts as intermediate agency between public sector and farmers. Has given the orientation over warehouse financing and season handover to the officials of NeRL Mr. Arun Business Development Manager for NERL has given brief elaboration about the functioning of NERL & warehouses and financial support towards NGO&MVK/FPO’s.NERL will give credit support for the commodities those are placed in the CWH&SWH’s (Central warehouse and state ware houses) with collaboration of 24 National level Banks gives 60%-70% of loan for the commodities with minimum rate of interest. The farmers have in KCC (KISSAN credit card) card can get 7% rate interest and non KCC farmers will get 8%-9% rate of interest. And explained the processor steps of account opening and required documents for individual and farmer Group accounts. He explains following NERL SERVICES • Access to Farmers & VCPs for Institutional Finance. • Electronic record keeping of Warehouse Receipts • Traceability of warehouse receipts • Connectivity with Commodity Exchanges • Connectivity with e-Auction platform • Access to FIs for lien creation • Other Value added services And explained the processor of getting Gowdan licenses those are present in rural area and specifications required to be registered as a warehouse. Mrs. Shobarani DM APSEEDS has expressed financial support to MVK’s and given brief elaborate about rules and regulation. Mr. Yellappa APDMP narrated the existing seed supply system. Ground nut Seed supply is difficult task as it involves high volume seed. Seed distribution through biometric system was initiated in Ananathpuram dist on pilot basis. Aadhar card, and thumb impressions were taken for identification. After confirming the candidature, coupon was issued to collect the seed from stock point. Impact of e-distribution is evident in the district that in-eligible candidates were eliminated. He explained the roles played by different institutions at different level. FA will support the CBO to establish the MVK i.e community level seed systems to cater the needs of the farmers. NGO/ FA actively working in the area with capacity to organize farmers, capacitate them to establish and manage their seed systems and provide linkages with Department of Agriculture, Agriculture Research and other institutions. Mr.Sri Habeeb Basha garu JDA Ananthapuram shared their experience in ware house financing. At the event, it was announced that I would do everything I could on behalf of the government to help the CMSS farmers and NGO / MVK / FPO. NGO’s/MVKs, CMSS farmers, you must plan to reach the Target you set your plans for achieving your target. I will do my best to ensure that the subsidy from the government comes at the right time. MVK‘s should be ready to supply the demanded quanta’s of seed to their GP’s. Mr.Sudhakar Program Officer WASSAN has explained to the MVK’s that they should prepare GP-wise seed demand with the help of village volunteers and village secretariat staff, which should be completed by March 15 and the seed should be placed only afterwards. Feed back from NGO/MVK/FPO Represents Mr.Veeranjaneyulu Haritha NGO CEO shared their experience with CMSS and MVK. When and how it was initiated, what was motivation, who were inspiring people, who were partners? What were the difficulties faced during the program implementation? He said that this warehouse financing process is difficult for the CMSS program, which is why in the panchayat level there is no registered warehouses generally MVK’s have using private(farmers house,panchayathi,school buildings)warehouses.And also don’t know the para meters of warehouse financing like how much we get the loan from 1sft what are proceedings. Mr.Hanumanth reddy GVS This financing scheme is good for those who have warehouses available, but would be better if they could offer up to 75% instead of 50%-60% of the total purchase price. But these seem to be a little more difficult, as well as risky, compared to the APSEEDS. If the warehouse is not at the GP level, it is still better to lend on the basis of stock position papers issued by government officials. Mrs.Bhanuja REDS she has expressed warehouse financing concept is very expensive Mrs.Nirmala reddy CARD she has demand’s at least 70% credit loan is good for achieving target, She explain the details the various costs at the time of Procurement. Mr.Ramappa Pass He said that it is better to lend 75% of the sale price than the total cost of procuring the seed. And he is asked to facilitate seed distribution wherever there is a demand. And explaining Federation formation details and what we are doing in coming days APDMP Coordinator (NP Kunta) He said that Seed is hard to find right now, and all of the farmers have already sold it, so it would be better if a quick decision on the working capital could help you get started. CMSS-WEB Page: Mr.Venkat MIS WASSAN has presented CMSS Webpage made by WASSAN Networks, and he explained how we track CMSS data and information through the web.And this CMSS-Web page will play a critical role to record all the data and information related to CMSS program and help us in monitoring progress.Venkat explained the process of obtaining the data and what information is available to them at Division officials and district officials,NGO/MVK level and how it can help them. Mr. Yellappa APDMP concluding remarks: • MVK/NGO’s raised the demand for utilizing Govt warehouses and their official’s permissions for stock positioning. • MVK’s demanding at least 70% credit of their procure cost • MVK’/Ngo’s Represents proposed Mandal wise UC’s submission system • Rabhi-2019-20 subsidy amount • Department should actively involve in labeled certification. • Procurement Cost 6100 was not sufficient • Seed sample