Summary of Contents
Scheme Snapshot
Full Scheme Breakdown
The Mission Organic Value Chain Development for North Eastern Region (MOVCDNER) is a pivotal Central Sector Scheme designed to empower farmers across the eight North Eastern States by converting their traditional practices into a profitable, certified organic commercial enterprise. This is an end-to-end value chain approach, ensuring that every effort—from seed to supermarket—benefits the farming community directly.
Why Is This Scheme Crucial for Indian Farmers?
This scheme is the key to unlocking the economic potential of the North East’s agricultural wealth, which is naturally predisposed to organic production.
Massive Financial Backing: MOVCDNER provides crucial financial support for capital-intensive infrastructure, which is often a barrier for rural entrepreneurs. It offers a significant credit-linked capital subsidy of up to 75% of the total project cost (up to a ceiling of ₹600 Lakh for Integrated Processing Units) for FPCs. This makes projects like integrated pack houses, cold storage facilities, and processing plants financially feasible.
Securing the Organic Premium: For generations, local farmers practiced organic methods but lacked formal certification, forcing them to sell their high-quality produce at conventional rates. MOVCDNER addresses this by funding the entire three-year conversion and certification cycle (using globally recognized NPOP or domestic PGS standards). This validation is what allows your produce to command a premium price in domestic and international markets, finally rewarding your sustainable stewardship of the land.
Ownership and Wealth Creation: The mission’s structure is built on the principle of producer ownership. By mobilizing farmers into Farmer Producer Organizations/Companies (FPOs/FPCs), it ensures that capital for post-harvest activities—like processing, branding, and packaging—is invested in and controlled by the farmers themselves. This allows the community to capture the value-addition profit, shifting power away from external intermediaries.
Who is Eligible? Understanding the Full Criteria
The MOVCDNER scheme’s benefits are channeled primarily through collective organizations to ensure scale and sustainability.
- Geographical Scope: The scheme is strictly limited to the eight North Eastern States: Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, and Tripura.
- Farmer Beneficiaries: Individual farmers must join a Farmer Interest Group (FIG), which, in turn, is federated into a larger FPO/FPC. This collective participation is mandatory for accessing most of the scheme’s benefits, including input subsidies and certification support.
- FPO/FPC Eligibility:
- The FPC must be a legally registered entity (under the Companies Act or relevant Cooperative Act).
- It must have a minimum number of farmer members (often 100 in Hilly/NE regions) and operate on a contiguous cluster area (e.g., 500+ hectares) focusing on a specific commodity (like turmeric, ginger, or large cardamom).
- Infrastructure Eligibility (Component B):
- FPCs/FIGs: Receive the highest subsidy rate (75% of the Total Financial Outlay, TFO).
- Private Entrepreneurs: Are also eligible for a 50% subsidy but must clearly demonstrate in their Detailed Project Report (DPR) how their unit will integrate with and service the MOVCDNER-supported organic clusters.
How Will We Get The Financial Aid?
The flow of funds is transparent and specific, depending on the scheme component:
- Direct Farmer Support (Production Component): Assistance for on-farm input production infrastructure (like vermicompost tanks) and off-farm organic inputs (like bio-fertilizers) is delivered via Direct Benefit Transfer (DBT). The funds are released by the State Lead Agency (SLA) directly into the Aadhaar-linked bank accounts of the individual beneficiary farmers. For instance, assistance is given as a fixed amount per hectare over the three-year conversion period.
- Infrastructure Support (Processing/Marketing Component): This aid is a Credit-Linked Capital Investment Subsidy.
- Mechanism: The FPC or entrepreneur first applies for a Term Loan from a Commercial Bank or Financial Institution for the project cost (e.g., integrated processing unit).
- Intervention: The subsidy amount is routed by the central government, through its designated financial partner like the North Eastern Development Financial Corporation Ltd (NEDFi), directly to the lending bank.
- Result: The subsidy is used by the bank to adjust and reduce the FPC’s principal loan amount upon the project’s successful completion and verification, thereby reducing the financial burden on the farmers.
What is the Step-by-Step Process to Apply?
The application process is managed at the state level by the designated State Lead Agency (SLA) (e.g., State Organic Mission) under the supervision of the State Level Executive Committee (SLEC).
- Farmer Mobilization: Farmers are organized into FIGs/SHGs by Resource Agencies and aggregated into a registered FPO/FPC for a specific crop cluster.
- Plan Submission (CAP): The FPC and the SLA prepare a detailed Comprehensive Action Plan (CAP) which includes the area, crops, farmer list, and the infrastructure needed. This plan must be approved by the SLEC.
- Certification Initiation: The FPC hires a Service Provider (often supported by scheme funds) to initiate the Internal Control System (ICS) and begin the three-year organic certification process (NPOP/PGS).
- DPR Preparation for Infrastructure: If capital support is required (Component B), the FPC prepares a Detailed Project Report (DPR). This document must clearly outline the technical feasibility, market prospects, and financial viability.
- Loan and Subsidy Application: The FPC submits the DPR and the prescribed MOVCDNER Subsidy Application Form (Annexure IV) to their chosen Commercial Bank/Financial Institution. The SLA must recommend the proposal before final submission.
- Sanction and Disbursement: The bank appraises the project and sanctions the Term Loan. After the physical construction or purchase of machinery is complete, a Joint Inspection is conducted by representatives from the Bank, the SLA, and NEDFi. Upon successful verification, the subsidy is released to the bank, concluding the process.
Why Was My Application Rejected?
Rejections usually indicate a mismatch between the FPC’s proposal and the scheme’s strict eligibility and financial compliance requirements.
- Rejection: Lack of Credit Linkage: The most common reason for infrastructure subsidy rejection is failing to apply for or secure the Term Loan first. The subsidy is contingent on the loan.
- Solution: Ensure the FPC has secured a Letter of Intent for the Term Loan from a commercial bank for the minimum required share of the project cost before submitting the final subsidy application to the SLA/NEDFi.
- Rejection: Non-Aligned Project: The proposed unit (e.g., a cold storage) is generic and does not explicitly integrate with the MOVCDNER certified organic cluster.
- Solution: The DPR must demonstrate the project’s direct role in the MOVCDNER value chain—showing linkages with the FPC’s certified farmers, the specific organic commodity, and the branding/marketing strategy.
- Rejection: Land Tenure Issues: The project land is not securely held, or the lease tenure is too short.
- Solution: For projects like processing units, ensure the FPC/Entrepreneur has the land’s ownership documents or a Registered Lease Deed (not just a simple agreement) for a minimum duration of 10 to 15 years, as required by the guidelines.
Where Can I Check My Status or File a Complaint?
Status Check: The primary source of information for farmers is their FPC Board of Directors and the appointed Service Provider. For specific financial milestones (loan sanction, subsidy release), the Commercial Bank and the State Lead Agency are the key authorities to contact.
Filing a Complaint: All formal complaints regarding implementation, delays, or grievances should be directed through the established mission hierarchy:
- First, approach the State Lead Agency (SLA) (e.g., the State Organic Mission office) in your state.
- If unresolved, escalate the grievance to the State Level Executive Committee (SLEC).
- For final intervention, approach the Integrated Nutrient Management (INM) Division of the Ministry of Agriculture and Farmers Welfare, Government of India.
Future Outlook: Scheme Updates
The Mission Organic Value Chain Development for North Eastern Region (MOVCDNER) is a pivotal Central Sector Scheme driving the future of agriculture in the eight North Eastern States. As it moves beyond its foundational phases, the focus is now sharply on establishing a profitable, end-to-end commercial organic enterprise for farmers.
What Major Updates or Changes Can Farmers Expect Soon?
The Mission is transitioning into an advanced, market-driven phase (Phase IV onwards), focusing on high-value enterprise development and global reach.
Massive Scaling and FPO Empowerment: The scheme targets a major expansion, including the coverage of an additional 50,000 hectares and the formation of at least 100 new Farmer Producer Organizations (FPOs). The focus shifts to making these FPOs fully self-sustainable business entities.
Establishment of Organic Parks/Zones: A key new development is the creation of specialized “Organic Parks” or “Organic Zones.” These integrated hubs will house capital-intensive infrastructure like large-scale processing units, integrated pack houses, cold storage facilities, and quality testing labs, enabling collective value addition and export preparation for specific commodities.
Digital Integration and Transparency: While Direct Benefit Transfer (DBT) is already in place for financial assistance to farmers, the mission is working towards enhanced digital integration to track product origins (traceability) from farm to fork. This provides an audit trail for international organic buyers and ensures consumer trust in North Eastern organic brands.
Export and Branding Focus: There is an explicit mandate to leverage the region’s unique, traditional crops (like King Chilli, Ginger, Turmeric, Black Rice, and Mandarin Orange) for export markets. The scheme provides support for developing and promoting high-quality regional brands and labels, owned by the FPOs, to secure premium prices domestically and globally.
Product Diversification: Beyond traditional crops, the scheme encourages FPOs to engage in high-value contract cultivation and value-added product development, such as specialized spices, processed fruits, essential oils, and nutraceutical ingredients.
How Does This Scheme Align with India’s Broader Agricultural Goals?
MOVCDNER is fundamentally aligned with several national policy objectives aimed at transforming India’s agricultural landscape, particularly in the North East.
- Doubling Farmers’ Income (DFI): The core objective is to replace traditional, low-return subsistence farming with a high-value commercial organic enterprise. By supporting the entire value chain—allowing farmers (through FPOs) to aggregate, process, brand, and directly market their produce—the scheme helps them capture greater value, bypass middlemen, and realize the premium price associated with certified organic goods, directly contributing to the DFI goal.
- National Mission for Sustainable Agriculture (NMSA): MOVCDNER is implemented as a Sub-Mission under NMSA. It directly addresses the NMSA goal of promoting climate-resilient and environmentally sustainable agriculture by supporting the transition to organic farming practices, which conserve soil health, biodiversity, and water resources, and reduce dependence on chemical inputs.
- Act East Policy (AEP): By focusing exclusively on the North Eastern Region, the scheme strategically positions the region as a hub for high-quality organic exports. This effort leverages the shared border and trade potential with neighboring Southeast Asian countries, making the NER an economic gateway and a key component of India’s AEP to enhance economic engagement with its eastern neighbors.
Does This Scheme Converge with Other Schemes?
MOVCDNER ensures maximum resource leveraging by fostering strong convergence with other major Central and State government schemes.
- Agriculture Infrastructure Fund (AIF): FPOs under MOVCDNER can utilize the AIF to secure term loans for setting up large post-harvest infrastructure (like warehouses, cold storage, and processing units). This is highly advantageous as MOVCDNER provides a direct capital subsidy (up to 75% for FPOs) on the unit cost, while AIF provides an additional benefit of 3% interest subvention on the loan component.
- Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA): Convergence with MGNREGA is utilized for on-farm and cluster-level asset creation. Funds and person-days are leveraged for essential organic farming infrastructure such as digging vermicompost pits, constructing boundary fencing, land development, and setting up water harvesting structures.
- National Rural Livelihood Mission (NRLM): The mission works with NRLM and the Mahila Kisan Sashaktikaran Pariyojana (MKSP) to mobilize and empower women farmers. NRLM’s established structure of Self Help Groups (SHGs) serves as a ready base for forming Farmer Interest Groups (FIGs) which eventually federate into FPOs under MOVCDNER.
- Pradhan Mantri Kisan Samman Nidhi (PM-KISAN): Although MOVCDNER does not directly offer a convergence scheme with PM-KISAN, the two schemes work in parallel. PM-KISAN provides direct income support, which helps buffer the farmer’s income during the three-year transition period to certified organic farming, complementing MOVCDNER’s efforts to increase revenue from market sales.
FAQs
Q: What is the main objective of MOVCDNER?
A: The main objective is to establish an end-to-end value chain for certified organic products in the North Eastern Region, linking organic growers (organized into FPOs) directly to domestic and international consumers to ensure better price realization and sustainable livelihood.
Q: How do farmers participate in the MOVCDNER scheme?
A: Farmers must organize themselves into Farmer Interest Groups (FIGs), which are then federated into a larger Farmer Producer Organization/Company (FPO/FPC) at the block or district level. All scheme benefits—from financial aid to training and certification—are channeled through these FPOs.
Q: Is the organic certification provided free of cost to the farmer?
A: Yes, the MOVCDNER scheme provides financial support to the FPO to cover the entire cost of cluster organic certification, typically under the National Programme for Organic Production (NPOP) standards, for the initial three years.
Q: What kind of infrastructure support is given to FPOs?
A: The scheme provides significant financial assistance (subsidies) for creating critical infrastructure, including:
– Integrated Processing Units
– Collection, Grading, and Sorting Units
– Integrated Pack Houses
– Refrigerated Transportation Vehicles
– Custom Hiring Centres for organic farm machinery
Q: How can private entrepreneurs get involved in MOVCDNER?
A: Private entrepreneurs or enterprises can receive financial assistance (a lower subsidy percentage compared to FPOs) for setting up processing and post-harvest infrastructure that supports the organic clusters developed under the Mission. They must present a detailed project report and comply with scheme guidelines.
Q: Where can I get more information or apply for the scheme?
A: Farmers should contact the designated State Lead Agency (SLA), which is usually the State Organic Mission or the Department of Agriculture/Horticulture in their respective North Eastern state. They can provide details on current application phases, eligible crops, and required documentation.