One of the important objectives of formation of State level Agribusiness Consortiums is to promote commercialisation of agriculture. Kerala with agro-climatic conditions suited for growing a wide variety of agricultural and horticultural crops has enormous opportunities for commercialisation and agribusiness. Formulation of appropriate technically feasible, economically viable and ecologically sustainable projects is crucial for commercialisation of agriculture. Aspiring entrepreneurs need help in this area. The agricultural Consultancy sector has a very crucial role in promoting agri-entrepreneurship. The agricultural Consultancy sector, both private and public is very weak in Kerala compared to our neighbouring states like Tamil Nadu, Karnataka, and Andhra Pradesh. In the Industries Sector, organisations like KITCO (Kerala Industrial Technical Consultancy Organisation) DIC etc. are offering consultancy and project preparation assistance. There is no such organisation in the agricultural sector. SFAC proposes fill this gap.
SFAC with its meagre staff may not be able to impart project preparation & consultancy assistance all by itself. Therefore SFAC proposes to utilise the services of empanelled consultants. The rich pool of expertise of the scientists of Kerala Agricultural University , Retired officials etc are proposed to be tapped for this purpose.
Methodology
The SFAC will function as a consultancy organization for agro-based ventures extending assistance for project preparation to prospective farmers and entrepreneurs.
The following guidelines are proposed to be followed for the operation of the programme
• The farmers/entrepreneurs/organizations approaching SFAC for getting the project prepared will have to pay a fee at the rate of 5% of the project cost or Rs. 50,000/- whichever is lower. SFAC will issue a letter to the beneficiary stating the total fees to be paid towards project preparation. 50 % of the fees will have to be remitted in advance by the beneficiary to commence project preparation. The balance amount will be collected after completion of the project report. The beneficiary will have to execute an agreement accepting all the conditions (time limit, remittance of balance portion of consultancy fee, refund of fee collected etc.) prescribed by SFAC pertaining to the project preparation.
• The services of the empanelled consultants will be utilized in project preparation. When the services of empanelled consultants are availed, the consultant will be paid honorarium @ 2 % of the project cost or Rs. 20,000/- (Rupees Twenty Thousand), whichever is lower. If more than one consultant is utilized, the eligible honoraria will be equally divided among the consultants.
• The selection of the consultant will be done by the Managing Director, Small Farmers' Agribusiness Consortium after discussions with the consultants.
• Whenever the consultants have to travel in connection with the project preparation, their actual travel expenses will be reimbursed.
• Whenever meetings are held in connection with the preparation of project, the consultant will be paid an honorarium of Rs. 500/- per day. However not more than 2 sittings will be allowed per project, one sitting for preliminary discussion on the project and the second one for finalization of the project.
• Projects which have to be submitted by the beneficiaries under various schemes of the government will be given preference under the programme.
• When SFAC itself prepares the project without availing the services of empanelled consultants, no honorarium will be admissible.
• While the projects will be prepared and delivered as early as possible, a maximum time limit of 3 months will be adhered for the preparation of the project. However if the project preparation does not proceed satisfactorily, the SFAC will have the freedom to return the money received from the entrepreneur/organization within 1 month without any interest.
• SFAC will be strengthened for implementation of the programme. SFAC will subscribe journals like ‘Financing Agriculture', Agriculture today, Floriculture today, Agriculture journal etc. SFAC will also acquire consultancy reports prepared and published by reputed organizations like ITCOT, (Industrial Technical Consultancy Organization of Tamil Nadu), etc and also technical books and reports.
• The services of the empanelled consultants will also be utilized for preparing readymade project profiles on important crops and potential ventures suitable for Kerala.
• Since only experts from a few areas (Plant Pathology, Agronomy, Agricultural Engineering, Agricultural Extension etc.) more number of consultants will be empanelled in other areas like Horticulture, Apiculture, Food processing, Biotechnology, etc.
• No honorarium is admissible to an empanelled consultant under this programme just for mere empanelment. Honorarium will be paid only when a particular task is entrusted.
• The empanelled consultants in service (experts from KAU) will lend their services without any hindrance to their normal duties and functions for which concurrence of their controlling officers will be obtained.
• SFAC will have the freedom to entrust the tasks committed by it to other consultancy organizations like NABCONS, AFC etc if there is no other alternative.
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