The Mission Organic Value Chain Development for North Eastern Region (MOVCDNER) is basically the government’s plan to help small farmers in the North East get a much better price for their unique crops—like our ginger, turmeric, and chillies—by making them certified organic. It’s not just about stopping chemicals; it’s a “seed-to-market” scheme. It groups farmers into big Farmer Producer Companies (FPCs), gives them cash for organic farming, pays for the organic certificate, and, most importantly, provides huge subsidies (up to 75%) for building their own small factories (processing units) and collection centres. The final goal is to cut out the middlemen and help the FPC sell our processed, packaged organic products directly to big buyers in cities or even abroad under a special North East brand.
Snapshot
- Primary Purpose : To develop certified organic production in a value chain mode, linking growers with consumers and supporting the entire value chain from inputs to marketing.
- Secondary Purpose : To empower producers by organizing them into Farmer Producer Companies (FPCs) and replace subsistence farming with high-value commercial organic enterprise.
- Controlling Ministry : Ministry of Agriculture & Farmers Welfare, Department of Agriculture & Farmers Welfare (DA&FW)
- Launch Year : 2015-2016 (Launched during the 12th Plan period)
- Official Website : https://movcd.dac.gov.in/
- Target Location : State Specific (North-Eastern Region): Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, and Tripura.
Quantification
Scheme Categories
- Financial Livelihood & Income : Support Direct Income Transfer (DBT) (for input support)
- Credit, Loans, & Capital Access : Infrastructure Financing (Credit-linked subsidy for post-harvest units)
- Technology & Farm Modernization : Technology & Mechanization, General Asset Subsidies & Grants
- Infrastructure & Market Access : Post-Harvest & Storage, Market Reforms & E-Trading, Value Chain Integration
- Diversification & Resource Management : Organic & Sustainable Farming, Soil Health & Input Management
Financial Aid & Disbursement Details
- Financial Aid (Farmer Production Support) : ₹46,500 per hectare over 3 years for FPC formation, training, and support.
- Direct Cash Benefit (Input Support) : ₹15,000 per hectare over 3 years is provided to farmers for organic inputs via DBT (part of the total ₹46,500/ha).
- Subsidy/Grant Percentage (Post-Harvest Infra) :
- FPCs : 75% of Total Financial Outlay (TFO)
- Private Entrepreneurs : 50% of Total Financial Outlay (TFO) (Credit-linked)
- Subsidy/Grant Cap (Integrated Processing Unit) : ₹600 Lakh (Maximum subsidy limit for both FPCs and Private Entrepreneurs)
- Disbursement Frequency (Input Support) : Phased over the 3-year project period (DBT for inputs). Infrastructure subsidies are back-ended and released upon completion/utilization.
Qualification
Eligible Farmer Type
- Landholding Size : No specific exclusion, but the focus is on smallholder aggregation within clusters.
- Land Tenure & Labor Status : Owner-Cultivator, Tenant Farmers, Oral Lessees / Sharecroppers (must be part of the certified cluster/FPC).
- Collective & Institutional Structures : FPOs/Cooperatives (Primary beneficiary for value chain support), Farmer Interest Groups (FIGs).
- Socio-Economic Equity : SC/ST Farmers, Women Farmers (Encouraged via FPC formation/membership).
Specific Eligibility Criteria
- Landholding Requirement : Maximum of 2 hectares per farmer is generally allowed for organic certification/support within a cluster.
- Geographic/Crop Criteria : Farmers must be located in one of the eight North Eastern States. The crop/land must be included in a crop-commodity-specific cluster and certified under the National Programme for Organic Production (NPOP).
- Exclusions Checklist : Farmers/land not included in a certified FPC/FIG cluster or those using chemical fertilizers/pesticides in the certified area.
- Prior Benefit Restriction : Not explicitly stated, but the subsidy is tied to a 3-year transition and certification cycle under the scheme.
Quickness
Application and Disbursement Process
- Application Method : Primarily through the State Lead Agency (SLA) / State Organic Mission, which is responsible for identifying, forming, and selecting FPCs and the associated farmers/entrepreneurs. Submission is usually offline (Expression of Interest/Detailed Project Report).
- Verification/e-KYC Step Mandatory : Field verification of cluster land, Aadhaar-seeding of farmer bank accounts for DBT, and mandatory NPOP certification process (including Internal Control System – ICS) by an accredited third-party agency.
- Key Application Deadlines : Set by the State Lead Agency (SLA) based on the phase and project component (e.g., Expression of Interest dates for new FPCs).
- Disbursement Schedule : Production Support: Phased DBT to individual farmers over 3 years. Infrastructure Subsidy: Once-off release as a back-ended subsidy after project completion, verification, and proof of investment.
- Disbursement Type : DBT (for farmer input cost component) or Back-Ended Subsidy (for FPC/Entrepreneur infrastructure projects).
- Claim/Loan Processing Time : Varies significantly; processing time is typically determined by the State Lead Agency (SLA) and partner banks (for credit-linked components).
- Status Tracking Method : Direct follow-up with the State Lead Agency (SLA) or the FPC/Cooperative management; scheme-specific online portals for FPO/DBT tracking exist in some states.
Required Documents Checklist
- Identity & Authentication :
- Aadhaar Card : Mandatory for identity proof and completing e-KYC.
- Financial Details :
- Bank Account Passbook : Essential for DBT; account must be Aadhaar-seeded.
- Photographic Proof :
- Passport Size Photograph : Required for the application form.
- Citizenship :
- Proof of Citizenship (if required) : To confirm applicant is a citizen of India.
- Land Ownership :
- Record of Rights (RoR) / Land Records : To verify land ownership/cultivation rights for inclusion in the cluster.
- Farmer Type Proof :
- Tenancy/Lease Agreement : Required for tenant farmers to prove cultivation rights.
- Caste/Category Proof :
- Caste Certificate : Mandatory for SC/ST, women, etc. (if seeking specific benefits).
- Scheme-Specific Documents :
- FPO/FPC Registration Certificate : Mandatory for the institutional beneficiaries seeking value chain support.
- Undertaking for Internal Control System (ICS) : Farmer declaration of commitment to organic practices and compliance for certification.
- Detailed Project Report (DPR) : Mandatory for infrastructure and value chain components (FPCs/Entrepreneurs).
- Organic Certification Documents : Proof of NPOP certification status for the cluster/land.
Questions
What if the money gets stuck? How do we make sure the State office (SLA) or the bank doesn’t hold up our payments or delay the funds we need for our processing units?
A. That’s a huge worry. The good news is that most of your input money (₹15,000/ha) is now sent straight to your bank account (DBT), so the State office can’t hold onto it. For the big stuff like the processing unit subsidies, the scheme uses a Mission Mode structure with specific deadlines. Plus, they hire professional Service Providers to hustle the paperwork and work directly with the FPC, which helps keep things moving faster than if it were just state bureaucracy.
Q. Okay, we grew the organic crop for three years, but once the scheme support ends, who will actually buy it? How do we stop the market from crashing and make sure we have long-term buyers?
A. That’s the real test! The scheme tries to fix this in three ways:
– Build a Factory: The grant money helps you build your own processing units, storage, and packhouses. This means you stop selling raw vegetables and start selling branded, packaged turmeric powder or processed ginger, which brings a higher price.
– Brand Power: They fund a special brand for your products (like ‘NE Organic’) and help the FPC attend big trade shows in Delhi or even abroad. This connects you directly with large buyers, cutting out the middlemen.
– Contract Farming: The goal is for your FPC to sign long-term agreements (contracts) with companies (like exporters or food processors) before you even plant the crop, ensuring a buyer at a fixed price.
Q. Our neighbors might still be using chemicals. How does the FPC protect our organic fields from getting contaminated, especially since our lands are so close together?
A. That’s a valid problem. The certification process handles this with two strict rules:
– Buffer Zone: Every organic plot must have an uncultivated or non-organic ‘buffer zone’ (a safety strip) between your field and the neighbor’s chemical field. This prevents drift.
– Cluster Power: By grouping many farmers together (50 hectares or more) into one big cluster, you create a large organic island. This minimizes the outer boundary where contamination is a risk, making it easier for the FPC’s Internal Control System (ICS) team to patrol and manage.
Q. If our FPC messes up the farming records or accidentally uses a banned input and loses its organic certificate, will we lose the subsidy money and everything we built?
A. Losing certification is a serious risk because all future market and production support is tied to being certified organic. If the FPC loses the certificate, the financial support component linked to production and certification stops. The contingency is focused on prevention:
– The scheme provides dedicated money for intensive training and hiring a Service Provider to manage the documentation and quality checks for the entire three years.
– If certification is lost, the FPC must immediately take corrective steps and often repeat part of the conversion period to regain the NPOP status. The physical infrastructure (the processing unit) is still yours, but without the organic tag, you lose the premium market access.
Q. Our FPC directors are good farmers, but they don’t know how to run a big business, do accounting, or deal with banks. How do we learn the business side of things to keep the factory running after the subsidy runs out?
A. That’s a crucial point—a successful FPC needs businessmen, not just farmers.
– Business Training: The scheme mandates specific training for the FPC directors and CEOs on business planning, financial management, accounting, and legal compliance.
– Credit History: By involving banks in the infrastructure subsidy (it’s often ‘credit-linked’), the FPC is forced to start building a relationship and credit history with the bank. This makes it much easier for them to secure regular business loans (working capital) later on to buy raw material and pay staff.
Q. Is the cash for seeds and manure given directly to me, the farmer, or does the FPC boss hold onto it and buy things for the whole group?
A. The cash for inputs (₹15,000 per hectare over 3 years) comes straight to you. This is done through DBT (Direct Benefit Transfer), meaning it goes directly into the bank account that is linked to your Aadhaar card. The FPC manages the collective money for things like training, certification, and shared equipment, but the individual input money is yours.
Q. The State Lead Agency chose the land and the crops. If I’m a farmer in that cluster, can I change the crop to something else I think will sell better, like black rice or king chili?
A. Generally, no, not during the initial phase. The scheme works by creating a “commodity-specific value chain.” This means all farmers in your cluster must grow the same primary crop (like ginger or pineapple) so you have enough quantity for the FPC’s processing unit to run efficiently. You are expected to stick to the crop chosen for your specific cluster’s Detailed Project Report (DPR).
Q. What is the process for getting the land officially recognized as ‘Organic’ (the NPOP certificate), and do I have to pay the third-party inspector who comes to check the fields?
A. You, the farmer, do not pay this fee. The scheme covers the full cost of the NPOP certification for the entire group.
– Process: Your FPC sets up an Internal Control System (ICS), and the Service Provider guides the farmers for 3 years, making sure records are perfect. At the end, an accredited Third-Party Inspection Agency (the NPOP agency) is hired (paid by the scheme) to inspect the fields and certify the FPC’s entire cluster.
Q. We need to build a small collection center and buy a truck. If the government gives us a 75% subsidy, do we have to take a bank loan for the remaining 25%, or can we pool our own money to cover it?
A. You don’t necessarily have to take a bank loan. The subsidy is called ‘credit-linked’ because it encourages you to use the bank, which is helpful for your FPC’s credit history. However, you are usually allowed to fund the remaining 25% share through your FPC’s own equity or contributions from the members. The key is that the entire project must be completed and accounted for before the scheme releases the back-ended subsidy.
Q. My land is only 1.5 hectares. Can I still be part of the FPC cluster and get the support, or is there a minimum or maximum land size?
A. Yes, you can! The MOVCDNER scheme is mainly focused on helping small and marginal farmers like yourself. While the scheme supports a maximum of 2 hectares per farmer for subsidy calculation, there is no minimum size for your individual plot to be included in the cluster. As long as you are a member of the certified FPC cluster, you are eligible for support.