“Navigating the Government Connect: Unlock Grants, Subsidies, Policy Alignment & Zero-Cost Growth Opportunities”
Budget 2025-26: MINISTRY OF AGRICULTURE AND FARMERS WELFARE; DEMAND NO. 1; Department of Agriculture and Farmers Welfare…
5. Market Intervention Scheme and Price Support Scheme (MIS-PSS):..Market Intervention Scheme (MIS) is being implemented for procurement of agricultural and horticultural commodities which are perishable in nature and for which MSP is not declared by the Government. The objective of intervention is to protect the growers of these commodities in the event of a bumper crop during the peak arrival period when the prices tend to fall below economic levels/cost of production.
Part 1: Salient Features of MIS-PSS (2025-26)
• Target Commodities:
o Horticulture: Apples, onions, potatoes, tomatoes
o Plantations: Copra, turmeric, ginger
• Intervention Triggers:
o Price falls >10% below 3-year average
o Production increase >20% over normal year
• Procurement Model:
o State Govt. implements → Centre reimburses 50-100% losses
o NAFED/NCCF act as nodal agencies
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Part 2: Startup Opportunities Linked to MIS-PSS
1. AI-Powered Price Prediction Platforms
o Opportunity: Forecast price crashes using mandi data + weather patterns to trigger MIS interventions faster
o Alignment: Reduces price volatility impact on 12M+ smallholders
2. Decentralized Procurement Tech
o Opportunity: Mobile apps for FPOs to organize collective bargaining & bulk sales to NCCF/NAFED
o Alignment: Cuts wastage of perishables (currently 25-40%)
3. Blockchain Traceability for MIS Claims
o Opportunity: Digitize procurement records to prevent fraud in loss reimbursement claims
o Alignment: Ensures transparency in ₹2,800Cr+ annual payouts
4. B2B Agri-Logistics Networks
o Opportunity: On-demand cold chain solutions tailored for MIS procurement windows
o Alignment: Addresses post-harvest losses (key scheme pain point)
5. Alternative Processing Hubs
o Opportunity: Mini-processing units near farms to convert surplus into shelf-stable products
o Alignment: Creates additional demand channels beyond MSP
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Part 3: Founder's Action Plan
1. AI Price Prediction Platforms
• Step 1: Partner with AGMARKNET for real-time mandi data feeds
• Step 2: Pilot with Maharashtra Horticulture Board for onion price alerts
• Step 3: Monetize via SaaS to state agri-departments
2. FPO Procurement Apps
• Step 1: Integrate with e-NAM for bid discovery
• Step 2: Train FPOs via SFAC empaneled agencies
• Step 3: Charge 1% transaction fee on NCCF procurements
3. Blockchain Traceability
• Step 1: Develop smart contracts using IndiaChain framework
• Step 2: Pilot with NAFED's turmeric procurement in Tamil Nadu
• Step 3: Expand to other schemes like PM-AASHA
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Cross-Cutting Strategies
• Regulatory: Get listed on NAFED's tech vendor portal
• Funding: Apply for PMFME grants for food processing tech
• Pilots: Target states with high wastage (UP, West Bengal)
Pro Tip: Position solutions as "MIS 2.0 enablers" in pitches to state governments.
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Let me know if you'd like to:
1. Add financial allocation details (if budget document provides)
2. Include success metrics from past MIS implementations
3. Expand on specific commodity opportunities (e.g., tomato vs apple value chains)
Ready to adapt as needed!
Here are three innovative startup models to explore under MIS-PSS, aligned with your interest in surplus management, storage, and processing – all designed to work with nodal agencies (NAFED/NCCF/State Agencies) while creating sustainable revenue streams:
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1. "Surplus Procurement as a Service" (SPaaS)
Concept:
Startup acts as an on-demand procurement partner for nodal agencies during gluts, with tech-driven efficiency.
Execution Plan:
• Step 1: Sign MOUs with State Horticulture Boards to be listed as "Authorized Procurement Aggregator"
• Step 2: Deploy mobile procurement units with:
o AI-powered quality grading tools (computer vision)
o Instant e-payments to farmers via UPI
• Step 3: Monetization:
o Fee per kg procured (e.g., ₹0.50/kg for tomatoes)
o Data monetization (supply trends sold to food processors)
Why Nodal Agencies Will Partner?
• Reduces their operational burden during sudden gluts
• Cuts wastage losses (current 25-40% in perishables)
Example:
Startup "HarvestGuard" could handle onion procurement in Nashik during 2025 glut, stabilizing prices within 15 days.
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2. "Pay-per-Use Distributed Storage Network"
Concept:
Startup builds modular CA (Controlled Atmosphere) storage units near farms, leased to NCCF/State agencies.
Execution Plan:
• Step 1: Deploy 50 MT portable CA containers (solar-powered) in 10 high-glut districts
• Step 2: Offer dynamic storage pricing:
o ₹100/tonne/day (peak season) → ₹50/tonne/day (off-season)
• Step 3: Integrate with e-NAM for automated release when prices rebound
Revenue Streams:
• Storage fees (break-even in 2 years)
• Price arbitrage profit-sharing (e.g., 15% of gains when NCCF sells stored apples)
Tech Edge:
• IoT sensors provide real-time spoilage alerts to agencies
Example:
"StoreGrid" could prevent potato price crashes in Agra by holding 10,000 tonnes for 60 days.
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3. "Mobile Processing Pods for On-Site Value Addition"
Concept:
Startup operates truck-mounted processing units that convert procured surplus into shelf-stable products at procurement centers.
Execution Plan:
• Step 1: Partner with NAFED to co-locate at MIS procurement hubs
• Step 2: Offer 3-tier processing:
o Tier 1: Basic (drying/dehydrating tomatoes → powder)
o Tier 2: Intermediate (cold-pressed mango pulp)
o Tier 3: Premium (freeze-dried mushroom slices)
• Step 3: Revenue via:
o Processing fees from agencies
o B2B sales of processed goods (e.g., to HUL for Kissan ketchup)
Why Agencies Prefer This?
• Turns ₹10/kg loss-making procurement into ₹50/kg revenue from processed products
• Fits MIS's goal of farmer price stabilization without long-term storage costs
Example:
"FarmToShelf Pods" could process 300 tonnes of Kinnow oranges in Punjab into juice concentrate during 2025 surplus.
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Comparative Edge for Startups
Model Capital Needed Agency Pain Solved Scalability
SPaaS Low (₹2-5Cr) Rapid response to gluts Pan-India via partnerships
Storage Network High (₹10Cr+) Reduces distress sales Cluster-based expansion
Processing Pods Medium (₹5-8Cr) Cuts procurement losses Replicable unit economics
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How to Get Started?
1. Pilot Funding: Apply for PMFME Scheme's ₹10L-25L grants for food tech
2. Regulatory Cover: Get empaneled under NAFED's "Tech for MSP" initiative
3. First Customer: Target states with recurrent gluts (e.g., Maharashtra for onions, Karnataka for tomatoes)
Pro Tip: Structure contracts as outcome-based – e.g., "We'll stabilize prices to ₹X/kg for 30 days in exchange for ₹Y/tonne procurement fee."
Would you like me to draft a sample proposal template for startups to pitch these models to NCCF/State Agencies?
