Overview of Agri Clinic and Agri-Business Centres Scheme (ACABC)

Introduction
India has the second-largest agricultural region in the world and is one of the major players in the global agricultural market. The agricultural sector provides employment opportunities for more than half of the country's population and is also the primary livelihood for approximately 58% of India's population. Thus, farmers become an integral part that provides us with means of sustenance. The Ministry of Agriculture and Farmers’ Welfare, Government of India in association with the National Bank for Agriculture and Rural Development (NABARD), implemented the scheme of “Agri-Clinics and Agri-Business Centres” (ACABC) on 9th April 2002. This centrally sponsored scheme was launched with the vision of taking better farming methods to each farmer across the country.

Agri Clinic and Agribusiness Centres Scheme (ACABC Scheme)
A scheme was introduced by the Ministry of Agriculture and Farmers’ Welfare, Government of India with NABARD, acting as a subsidy channelizing agency. This unique program aims to expertise the available pool of eligible unemployed agricultural graduates with two-month of training, followed by a bank loan and a back-ended composite subsidy to assist them in setting up their own Agri Clinic or Agri-Business Centres and offer professional extension services to innumerable farmers. The Government is providing training in agriculture or any subject allied to agriculture like Horticulture, Sericulture, Veterinary Sciences, Forestry, Dairy, Poultry Farming, and Fisheries, etc, and only those who complete the training are eligible to apply for special start-up loans.

The main objectives of the scheme are as follows: -

• To provide consultation and other services to farmers, either on a payment basis or free of cost, depending on the business model of the agri-entrepreneur, local needs, and affordability of the target farmers.
• To support agricultural development, the government is providing financial assistance of US$ 24,216 (Rs.20 lakhs) for an individual project (US$ 30,270 [Rs.25 lakhs] in case of extremely successful individual projects) and US$ 121,082 [Rs.100 lakhs] for a group project.
• To create employment opportunities for unemployed agriculture graduates, the Government is providing professional training of 45 days that is offered free of charge and is offered nationwide by selected institutions.

Progress Of Agri-clinics and Agribusiness Centres Scheme (01-04-2002 to 18-11-2022)
The below table represents the number of beneficiaries benefitting from the scheme state-wise. The total number of candidates trained is 82,776, and the number of Agri ventures established is 36,265. Maharashtra ranked at the top in terms of trained candidates and number of ventures established with 21,823 and 11,209 respectively. Uttar Pradesh was in the second position with 18,196 trained candidates and 8,763 ventures established.

Business Loans
The scheme is sponsored by NABARD, an apex banking institution for the development of the rural and agriculture sector of the country. NABARD released subsidies to 232 beneficiaries through different banks in the financial year 2021-2022 for different agri-ventures. Also, the scheme has a liaison with a few public and private banks (like NABARD, State Bank of India, Bank of India, Bank of Maharashtra, Industrial Development bank of India, Union Bank of India, Bank of Baroda, Central Bank of India, and Indian Overseas Bank) for smooth functioning.

Only after the professional training coordinated by the National Centre for Management of Agricultural Extension (MANAGE), individuals would be eligible for financial assistance loans i.e., US$ 24,216 (Rs. 20 Lakhs) (US$ 30,270 [Rs 25 lakhs] in special cases) for individual projects and a limit of US$ 121,082 (Rs 1 crore) for group projects. If the amount required is above US$ 6,054 (Rs 5 Lakhs), a margin money of 10-15% of the total cost is demanded along with collateral security. The subsidy can range from 36-44% and the time limit for repayment is 5-10 years with a grace period of 2 years.

Status of the Projects Sanctioned by Various Banks from 2002 to 2022
The total number of projects sanctioned by the bank under the ACABC Scheme is 908 since the year 2002. The largest number of projects that have been approved is 110 projects by the State Bank of India. The below table represents the total number of projects that have been sanctioned under the scheme.

Potential of Agribusiness
Agribusiness entails much more than agriculture, as it represents the entire value chain including the supply of agricultural inputs, the production and transformation of agricultural products, and their distribution to final consumers. This sector is a major generator of employment and income worldwide and contributes to food security and nutrition. The global markets are currently undergoing a rapid transformation driven by urbanization, globalization, concentration, diet diversification, and expansion of food markets and trade, among other underlying trends. Coping with these changes requires a unified agri-food value chain coordination which cannot be done without embracing agribusiness development.

The significance of Agribusiness is as follows:  

• It positively impacts poverty reduction and women's empowerment in countries where agri-food is of high value.
• Creates non-agricultural employment opportunities in rural agro-industrial enterprises to improve the income of rural households through wage employment and spillover effects
• Creates the necessary link between agriculture and manufacturing, acting as a catalyst
  in the development of a broader manufacturing industry by providing raw materials for food processing, textiles
  and biofuel.
• Increases employment opportunities in rural areas in poor countries as they are often the main source of non-agricultural employment.

As it is evident that the agribusiness space can be seen as a growth engine.

• The agribusiness trends can launch the use of Internet of Things (IoT) technology to help the supply chains in becoming more efficient and more sustainable. According to a market research report by Meticulous Research, the global agriculture IoT market is expected to grow at a Compound Annual Growth Rate (CAGR) of 15.2% from 2019 to 2027 to reach a value of US$ 32.7 billion by 2027. Drones can be used to spray or utilize smart greenhouses or use smart sensors to maximize yields, etc.
• According to Food and Agriculture Organization (FAO), more and more people are turning to plant-based alternatives to reduce the carbon footprints of their meals. The global vegan fast-foods market size was valued at US$ 17 billion in 2020 and is projected to reach US$ 40.3 billion by 2028, growing at a CAGR of 11.4% between 2021 and 2028, according to Verified Market Research
• With steep population rates, the world’s population is expected to grow from 7.8 billion in 2020 to 9.7 billion in 2050. Almost, 2.4 billion people did not have access to adequate food due to an increase of 320 million people in just one year in 2020 during COVID-19, according to the United Nations (UN) projections. This was an eye-opener for international agencies to future-proofing global food supply chains making agribusiness a key item agenda in 2022.

The Road Ahead
India, being the second largest global agricultural products exporter, is also one of the fastest-growing economies in the world. The Agribusiness sector has a lot of opportunities along with many constraints. And during these changing times, this flagship program, Agri Clinic, and Agribusiness Centre Scheme would assist India in building a huge skilled force along with better quality products that would expedite a better and stronger position in the global economy. This scheme surely has been able to support the underprivileged section of society by creating self-employment, reducing regional imbalances, providing a standard of living, and reducing economic inequalities.