Backward and Forward Linkage Scheme

Strengthening Agri-business: Haryana's Backward and Forward Linkages Scheme for Rural Development and Market Integration

Introduction :

The Haryana Government has launched the "Backward and Forward Linkages Scheme" as part of the Haryana Agri-business and Food Processing Policy 2018. This scheme is aimed at developing primary processing centers and collection centers in rural areas, replacing an earlier grant aid scheme and expanding the support to include a wider range of food products.

Objectives and Quantum of Assistance :

The objective is to create effective and seamless backward and forward integration for the processed food industry by establishing primary processing and collection centers at the farm gate and distribution hubs at the front end. The scheme covers perishable horticulture and non-horticulture produce including fruits, vegetables, dairy, meat, poultry, and fish. The scheme offers up to 50%capital investment subsidy, limited to INR 3.5 crores for projects in rural areas in 'C' and 'D' category blocks, aiming to fund a maximum of 20 projects during the policy period.

Eligibility Criteria :

The scheme is applicable to perishable horticulture and non-horticulture produce, aimed at linking farmers to processors and markets. Eligible sectors include horticulture, milk and milk products, meat, poultry, and fishery, as well as ready to eat and ready to cook food products.

Application and Documentation :

Applicants need to submit their proposals electronically, including detailed project reports, financial plans, and evidence of compliance with agricultural and food safety regulations. The scheme encourages applications from a broad range of organizations including cooperatives, SHGs, and private companies.

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Procedure for Disbursement and Appeals :

Funding is disbursed based on project milestones, with a rigorous inspection and verification process to ensure compliance. The State Level Committee for Food Processing evaluates and approves proposals. Appeals can be made against rejections within the governance structure of the scheme.

Penalties and Recourse :

If it is discovered that the subsidy was claimed through false information, the applicant must repay the subsidy with a 12% interest rate per annum and may face further legal action. Additionally, if the project is not completed within the specified time, penalties may apply, including potential reduction in the granted funds.

Conclusion :

The "Backward and Forward Linkages Scheme" is a critical component of Haryana's strategy to enhance the competitiveness of its agricultural sector. By financially incentivizing the creation of infrastructure that supports the efficient and effective processing of agricultural produce, the state aims to improve the economic conditions of its rural areas and ensure more stable, profitable market linkages for its farmers.

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Rapid Consulting's Role in Facilitating the Process :

Rapid Consulting provides expert services to assist enterprises in Haryana with the 'Backward and Forward Linkages Scheme' as part of the Haryana Agri-business and Food Processing Policy 2018. They guide businesses through understanding the scheme's eligibility requirements, preparing and submitting applications, and ensuring compliance with the scheme’s guidelines to maximize financial support for creating efficient supply chains for agricultural products.

Impact of the Scheme on Haryana's Industrial Growth :

The scheme supports Haryana's agricultural sector by providing financial assistance for the establishment of primary processing and collection centers at farm gates and distribution hubs. This enhances the supply chain for perishable horticultural and non-horticultural produce, promoting better market linkages and ensuring fair pricing for farmers' produce, thereby fostering overall economic growth in the agricultural sector.

Future Prospects and Enhancements :

Future enhancements could include broadening the range of eligible agricultural products, increasing the financial incentives to attract larger scale projects, or extending the scheme's duration to align with evolving market and technological advancements. Integrating this scheme with other agricultural development programs could also amplify its effectiveness and sustainability.

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FAQs? 

What is the Backward and Forward Linkages Scheme?

This scheme aims to establish efficient supply chains for perishable agricultural products through financial support for infrastructure development like processing centers and refrigerated transport.

Who is eligible for this scheme?

Eligible entities include producers, entrepreneurs, and various groups such as cooperatives, Farmer Producer Organizations (FPOs), and others involved in the agricultural supply chain.

How does an enterprise apply for this scheme?

Enterprises must submit their applications online through the designated state portal, accompanied by required documentation.

What are the financial benefits of participating in this scheme?

The scheme offers up to 50% capital investment subsidy on eligible project costs, with additional support for specific infrastructure components.

What happens if incorrect information is provided in the application?

Providing incorrect information can lead to penalties, including the repayment of the subsidy with interest and potential exclusion from future incentives.

How does Rapid Consulting assist in this process?

Rapid Consulting helps enterprises navigate the application process, ensures compliance with all requirements, and maximizes the financial and infrastructural benefits available under the scheme.

Target Sectors in Haryana :

The Haryana Backward and Forward Linkages Scheme is part of the Haryana Agri-business and Food Processing Policy 2018. It aims to provide effective and seamless backward and forward integration for the processed food industry, particularly targeting perishable horticulture and non-horticulture produce like fruits, vegetables, dairy, meat, poultry, and fish. The initiative enhances the connectivity between farmers, processors, and markets, ensuring remunerative prices for agricultural products.

Eligibility for Existing Businesses and New Ventures :

Eligibility is granted to food processing units and entrepreneurs desiring to enter the food processing supply chain. This includes groups of producers such as cooperatives, Farmer Producer Organizations (FPOs), and Self-Help Groups (SHGs)that are linked to or wish to set up minimal processing/value addition centers.

Integration with Other Subsidies and Incentives :

The scheme integrates with the Haryana Agri-business and Food Processing Policy but specifies that beneficiaries cannot concurrently avail similar incentives under other schemes like the Government of India's SAMPADA Yojana for the same project components.

Application Process :

The application process involves online submission with detailed documentation, including project reports and financial statements. The scheme requires compliance with various terms and conditions, including the submission of a detailed project report and proof of the applicant's financial and operational capabilities.

Geographical Preferences in Haryana :

The scheme is specifically applicable to rural areas across Haryana, with additional incentives for projects in 'C' and 'D' category blocks. This focuses on enhancing food processing infrastructure in less economically developed regions of the state.

Summary :

The Backward and Forward Linkages Scheme under the Haryana Agri-business and Food Processing Policy 2018 offers significant incentives to support the establishment and expansion of food processing units. By facilitating the development of primary processing centers and distribution hubs along with necessary transportation infrastructure, the scheme aims to strengthen the agricultural supply chain in Haryana, ensuring higher incomes for farmers and reducing wastage of perishable products.

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Why Choose Rapid Consulting?

Specialized Expertise:

Our team at Rapid Consulting boasts in-depth knowledge of subsidy scheme, ensuring you get the most out of your investment.

End-to-End Assistance:

From initial assessment to final application, we manage the entire process, making it seamless and hassle-free for your business.

Maximized Benefits:

We ensure that you fully leverage the financial incentives available, boosting your company's growth and profitability.

Our comprehensive assistance includes:

Consultation and Assessment:

Rapid Consulting conducts comprehensive consultations with clients to understand their goals and project requirements. We assess eligibility criteria and evaluate potential subsidy benefits under the scheme.

Documentation Preparation:

The firm assists clients in preparing all necessary documentation required for subsidy applications. This includes compiling project proposals, financial statements, and other relevant documents, ensuring compliance with scheme guidelines.

Application Management:

Rapid Consulting manages the entire application process on behalf of clients, ensuring accurate completion of forms and timely submission of documents to relevant authorities. We navigate the application process efficiently to streamline approval procedures.

Negotiation and Follow-up:

Skilled negotiators from Rapid Consulting advocate for favorable subsidy terms on behalf of clients. We engage with government agencies, leveraging expertise to expedite the approval process and secure optimal outcomes.

Subsidy Disbursement:

Upon approval of subsidy applications, Rapid Consulting facilitates the disbursement of funds to clients. We ensure prompt processing of payments and assist in navigating administrative procedures associated with subsidy disbursement.

Post-Subsidy Support:

Rapid Consulting continues to support clients post-subsidy disbursement. We offer guidance on utilizing funds effectively, monitoring project progress, and addressing any challenges that may arise during the implementation of the Backward and Forward Linkage Scheme.

In summary, Rapid Consulting provides comprehensive assistance to facilitate the utilization of capital subsidies for the Backward and Forward Linkage Scheme for Processed Food Industries and Cold Chain in Haryana. Our services cover consultation, documentation preparation, application management, negotiation, subsidy disbursement, and post-subsidy support, ensuring clients maximize benefits for sustainable growth in these sectors.

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How to Reach Us: 

Website :

Visit our official website for detailed information, service offerings, and to schedule an online consultation.

Direct Contact:

Call us at +91-9467248028/9416506136or email info@rapidconsulting.in to discuss your needs directly with our experts.

Office Visit :

Our offices are open for in-person consultations at 134, Rapid Consulting, First floor Below Paysam Restaurant, Near Samsung Care. Lajpat Nagar, Rajgarh Road Hisar, Haryana-125001.

Here, you can meet with our consultants who can provide personalized guidance tailored to your business's specific circumstances. Engage with Rapid Consulting today to leverage their expertise in enhancing your business's financial and operational performance through the Collateral Free Credit Guarantee Scheme and other beneficial state initiatives. Whether online, over the phone, or in person, Rapid Consulting is ready to assist you in advancing your business goals in Haryana.