A Game-Changer by the Agricultural Marketing Board: Farm Produce to Reach Every Corner of the Country!

Inter-State Market Access for Farmers through the ‘Road Transport Subsidy Scheme’

The farmer of Maharashtra is a symbol of tireless hard work. The sweat on his brow not only yields grains but also provides sustenance to the entire nation. Yet, despite such dedication, agricultural produce often spoils before it can reach the market. The reason is not just unpredictable weather but something more critical — high transportation costs.

Perishable produce like onions, tomatoes, bananas, grapes, pomegranates, mangoes, oranges, sweet limes, ginger, and other vegetables often fail to reach other states on time due to unaffordable transport. As a result, farmers miss out on opportunities or incur losses instead of earning profits. Addressing this pressing issue, the Maharashtra State Agricultural Marketing Board has launched a revolutionary initiative: the Road Transport Subsidy Scheme for Inter-State Agricultural Trade. Under this scheme, Farmer Producer Companies (FPCs) and cooperative institutions will receive a 50% subsidy on transport costs. The scheme will be valid until March 31, 2026 and is expected to give a significant boost to domestic trade.

A Direct Road to the Market

Getting the right price for produce is just as important as its cultivation. If perishable items like fruits and vegetables don’t reach the point of sale on time, 20 to 30% losses can occur. Taking this into account, the state government has decided to assist farmers with transport costs to link them directly with markets across India.

Under the scheme, registered Farmer Producer Companies and cooperative institutions will be encouraged to send their members’ farm produce to other states for sale.

Scheme Guidelines and Eligibility

• Applicable only for inter-state road transport of agricultural produce from Maharashtra.
• Only registered Farmer Producer Companies (FPCs) and cooperative institutions are eligible.
• Only produce grown by their own members is eligible for subsidy.
• Applies to perishable crops like mango, banana, pomegranate, grapes, orange, sweet lime, onion, tomato, ginger, and vegetables.
• For other perishables, prior approval from the Board is required.
• Subsidy is granted only after the produce is sold.
• Applicable only for transport costs; no subsidy for packaging, loading, or service charges.

Subsidy Slabs (Based on Distance)

(Whichever is lower between 50% and the maximum cap.)

Key Highlights of the Scheme

• No subsidy for distances below 350 km.
• Annual cap of ₹3 lakh per institution.
• Transport charges must be paid via bank transaction.
• At least 3 members’ produce must be sent in a single trip.
• No subsidy if sale doesn’t occur; the Board will not be responsible.
• Application for subsidy must be submitted within 30 days of the sale.

Required Documents

For Pre-Approval:

• Application form
• Registration certificate
• List of members
• 7/12 extracts (land documents)
• Bank passbook copy
• Audit report

For Subsidy Claim:

• Pre-approval letter
• Transport bill and receipt
• Sales invoice
• Bank transaction proof

This scheme is not just about saving on transport costs, but an opportunity to expand market access nationwide. If farmer producer companies adopt it in a structured way, they can secure competitive markets beyond Maharashtra. With the aim to transform agriculture from mere livelihood to enterprise, this scheme marks a significant milestone.

For Information and Assistance:

Institutions in Nashik, Ahilyanagar, Dhule, and Jalgaon districts should submit proposals to:

Deputy General Manager
Maharashtra State Agricultural Marketing Board
Panchavati Market Yard, Dindori Naka, Nashik – 422003
Phone: (0253) 2512176
Email: divnsk@msamb.com