The Government of Maharashtra has a unique opportunity to significantly improve the livelihoods of farmers through the proposed Agriculture Commodity Mutual Fund (ACMF) Version 2.0. This project report, which has been directly submitted to the Chief Minister, Agriculture Minister, and Finance Minister, outlines enhanced strategies to empower our farmers.

The ACMF's latest version introduces key enhancements such as Dual Farmer Long-Term Benefit Instruments. These consist of Non-Voting Equity Shares and Profit Participation Certificates (PPC), designed to provide farmers with sustainable and equitable benefits. These instruments ensure that farmers, who are the backbone of our economy, receive fair shares in the agricultural market’s success, without compromising their autonomy or financial security.

Another critical enhancement is the integration of Dual Access Tracks within the project. These tracks are structured to provide accessible and varied avenues for farmers to participate in and benefit from market success. Through these innovations, farmers can engage more holistically with production and commerce activities, paving the way for improved economic outcomes and better quality of life.

Additionally, the project includes the much-anticipated Project Samruddhi Integration. This integration aims to provide a seamless transition into updated systems, optimizing both agricultural output and financial returns, ensuring that the growth is not just robust but also inclusive for all farmers involved.

The ACMF 2.0 offers a revolutionary approach that can transform farmers’ economic futures. By adopting these amendments, we can secure an arrangement that not only enhances our farmers’ roles but also safeguards their future in the global agricultural economy.

I urge all concerned departments to act swiftly and adopt ACMF Version 2.0, as it promises sustainable growth, fair opportunities, and enhanced prosperity for farmers across Maharashtra. It is not just a project; it is a movement for change that each stakeholder can drive forward.

Please sign this petition to support the immediate adoption and implementation of ACMF Version 2.0, which is pivotal for the sustainable agricultural growth in Maharashtra. Your signature can help make a difference and bring much-needed change to our farmers' lives.

 

 

 

Arun Manorkar

Rtd SrAgricultural Engineer 

Maharashtra states Seeds Corporation Akola

8530359051
GOVERNMENT OF MAHARASHTRA

Discover & Incubate – Track 1

Direct Submission to Chief Minister, Agriculture Minister & Finance Minister

 

 

 

ACMF

Agriculture Commodity Mutual Fund

DETAILED PROJECT REPORT — VERSION 2.0

Incorporating: Dual Farmer Benefit Instruments  ·  Dual Access Tracks  ·  Project Samruddhi Integration

 

Version 2.0 — Key Enhancements over Version 1.0

 

Amendment 1:  Dual Farmer Long-Term Benefit Instruments — Non-Voting Equity Shares + Profit Participation Certificate (PPC) + ACMF Commodity Bond (for processors without share capital)

Amendment 2:  Dual Access Track — FPC Mediated Track + Direct Farmer Track (for progressive farmers who grade/pack independently)

Amendment 3:  Project Samruddhi Integration — ACMF formally positioned as Model 2 of Project Samruddhi's five-pathway farmer sale architecture

 

These amendments make ACMF inclusive (all farmer types), legally complete (all processor types), and ecosystem-connected (Samruddhi framework).

 

Parameter
Details
Concept Originator
Shri Arun Shantinath Manorkar, Retired Senior Agriculture Engineer, Mahabeej, Akola — Concept: November 2017
Document Version
Version 2.0 — Enhanced with Three Critical Amendments (2025)
Submission
Direct to Government of Maharashtra — CM, Agriculture Minister, Finance Minister, SEBI, NABARD
Nodal Agency
Maharashtra State Seeds Corporation (Mahabeej)
Pilot Phase
5 Districts: Akola, Jalna, Pune, Nashik, Kolhapur — Year 1–2
Pilot Commodities
Soybean + Tur Dal (non-perishable, exchange-traded) — Phase 1 only
Access Tracks
Track 1: FPC Mediated  |  Track 2: Direct Farmer (NEW in V2.0)
Farmer Benefit Instruments
Non-Voting Shares + PPC + ACMF Commodity Bond (NEW in V2.0)
Ecosystem Context
ACMF = Model 2 of Project Samruddhi (5-pathway farmer sale system)
Phase 1 State Outlay
₹25–40 Crore (warehousing, FPC digitisation, technology platform, AMC MoU)

 

Confidential Policy Submission  |  Government of Maharashtra  |  2025

 

Chapter 0 — ACMF within Project Samruddhi: Ecosystem Context

Important: Read This First

 

ACMF does not exist in isolation. It is the financial engine — Model 2 — of Project Samruddhi, a comprehensive AI-governed taluka-centric agricultural value and security system submitted separately to the Government of Maharashtra.

 

Understanding this context is essential: ACMF's Digital Cooperative Platform, Krushi Veer network, and MSP floor protection are shared infrastructure with Project Samruddhi. This DPR covers ACMF's specific financial architecture in full detail — the broader ecosystem is described in the Project Samruddhi DPR.

 

0.1  Project Samruddhi — Five Farmer Sale Models

Project Samruddhi provides Maharashtra's farmers with five transparent, MSP-protected sale pathways — empowering them to choose the most suitable channel rather than being forced into a single route. ACMF is the most financially sophisticated of these five models.

 

Model
Name
Description
ACMF Role
1
APMC + Price Assurance + Value Participation
Farmer sells through existing APMC with MSP advance (same day) + Value Delta sharing when final price exceeds MSP
ACMF provides escrow + settlement infrastructure
2
Agriculture Commodity Mutual Fund (ACMF)
Farmer converts e-NWR to MF Units; AMC manages commodity through exchanges; farmer earns returns beyond MSP + profit share + equity
THIS DPR — primary subject
3
NAFED Procurement + Farmer Samman Stabilisation
NAFED activates as buyer of last resort when prices fall below 95% of MSP for 3+ consecutive days — automatic AI trigger
ACMF corpus can absorb NAFED lots at peak price
4
Farmer Producer Company (FPC/FPO)
Farmers own and operate processing, branding, packaging — capturing entire value chain margin through collective ownership
ACMF provides working capital financing to FPCs
5
System-Assured MSP Floor with Market Crash Protection
Unconditional safety net — every farmer enrolled by default; AI monitors prices; any shortfall absorbed by escrow + state funds
ACMF's Scenario C stress-tested against this floor

 

0.2  ACMF's Unique Position in the Samruddhi Ecosystem

Models 1, 3, 5 protect farmers from downside — they are defensive safety nets
Model 4 (FPC) builds ownership — but requires years of organisational development
Model 2 (ACMF) is the only model that converts produce into a financial asset AND builds long-term wealth (equity/PPC/bonds) AND attracts urban investment capital into rural agriculture
ACMF's Digital Cooperative Platform serves as the technology backbone for all 5 Samruddhi models — a shared infrastructure investment
Krushi Veer / Veerangana serve as ACMF onboarding agents in the field — leveraging Samruddhi's human network

 

0.3  Why ACMF is Submitted as a Separate DPR

ACMF requires a distinct regulatory journey: SEBI (AIF) + WDRA + NABARD — different from Samruddhi's Agriculture Department pathway
ACMF's financial architecture, stress tests, NAV methodology, and governance framework require full standalone treatment
Separate submission allows parallel-track regulatory approvals — ACMF and Samruddhi can move simultaneously without one blocking the other
Both DPRs explicitly reference each other — creating a coherent, connected policy narrative for Government review

 

 

Chapter 1 — The Problem: Maharashtra's Agricultural Crisis

1.1  The Harvest Paradox

The Core Crisis — Real Maharashtra Data

 

Soybean at harvest (Oct):    ₹4,200/quintal  →  85% of farmers sell immediately at distress price

Soybean off-season (Jan):   ₹5,100/quintal  →  trader captures ₹900/quintal (21%) arbitrage

 

Tur  at harvest (Nov):    ₹6,500/quintal  →  forced sale to repay moneylender at 24% interest

Tur off-season (Apr):   ₹8,200/quintal  →  26% more — but the farmer has already sold

 

ACMF's purpose: capture this price arbitrage for the farmer — not the trader.

 

1.2  Structural Challenges

Challenge
Impact
ACMF Solution
Distress Sale at Harvest
30–40% below market peak; forced by moneylender loan repayment pressure
70–75% primary payment within 48 hours → no distress pressure
Post-Harvest Losses
15–20% annually — ₹8,000+ Crore loss in Maharashtra
IoT-monitored WDRA scientific warehousing eliminates spoilage
Middlemen Dominance
Traders capture 60–70% of consumer price; farmer gets 30–40%
Direct AMC-farmer settlement; middlemen margin reduced to 20–30%
Zero Value-Chain Participation
Farmers supply raw material; processors keep all processing profit
Mandatory profit-sharing (5–10%) + equity instruments (NEW V2.0)
FPC Dependency (NEW V2.0)
Progressive farmers blocked if FPC not available or weak in their area
Direct Farmer Track — FPC not mandatory (NEW Amendment 2)
Processor Instrument Gap (NEW V2.0)
Small processors (proprietorship/dal mills) cannot issue equity shares
PPC + Commodity Bond — alternate instruments (NEW Amendment 1)
No Investment Identity
1.5 crore farming families excluded from India's financial markets
ACMF MF Units — every farmer becomes a financial asset holder

 

 

Chapter 2 — ACMF Operational Architecture

2.1  System Overview

Stage
Actor
Activity
Output
1
Farmer + FPC(Track 1)ORFarmer Directly(Track 2 — NEW)
TRACK 1: FPC conducts AI-grading, cleaning, sorting, drying, standardised packaging. TRACK 2: Progressive farmer self-grades, cleans, packs to WDRA standard independently — submits directly to warehouse.
Standardised, graded, documented bulk lots ready for e-NWR issuance
2
WDRA Warehouse
IoT-monitored scientific storage; quality assay; blockchain-recorded unique digital lot ID; e-NWR issued under WDRA Act
e-NWR — legally tradeable, Aadhaar-linked financial instrument
3
Farmer + AMC
e-NWR submitted to AMC (via app or FPC service centre); valuation at NCDEX/MCX spot; NAV calculated; MF units allotted; 70–75% primary payment within 48 hours
MF Units in farmer digital folio + immediate liquidity
4
AMC
Commodity managed via MCX/NCDEX spot+futures; mandatory 50% hedging within 72 hours; AI-optimised sale timing; 3-scenario price management
Optimal price realisation + risk-hedged settlement
5
AMC + Processor
Post-settlement delivery to ACMF-registered processors; processor type determines which farmer benefit instrument applies (NEW V2.0)
Processed products entering value chain
6
Processor → Farmer(3 Instruments — NEW)
Based on processor entity type: (A) Non-Voting Equity Shares for companies with share capital, OR (B) Profit Participation Certificate for proprietorships/partnerships, OR (C) ACMF Commodity Bond for cooperatives/govt bodies. Plus mandatory 5–10% profit-sharing for all.
Long-term wealth creation — instrument matched to processor structure

 

 

Chapter 3 — Amendment 2: Dual Access Track Architecture

Why This Amendment is Essential

 

Version 1.0 required all farmers to submit produce through an FPC (Farmer Producer Company). This excluded an estimated 35–40% of Maharashtra's farmers who either: (a) do not have an accessible FPC nearby, or (b) are technically capable of independent grading and packaging but are being denied ACMF access due to a mandatory intermediary requirement.

 

Version 2.0 introduces a Dual Access Track — preserving the FPC pathway as the primary route for small farmers while creating a Direct Farmer Track for progressive, capable farmers. FPC membership is no longer a prerequisite for ACMF participation.

 

3.1  Track 1 — FPC Mediated (Primary Track)

Pathway

Farmer → FPC → WDRA Warehouse → e-NWR → AMC

 

Parameter
Details
Minimum Lot Size
Soybean: 1 MT (10 quintals)  |  Tur Dal: 0.5 MT (5 quintals) — accessible to small farmers
Quality Assurance
FPC conducts AI-machine grading + moisture + purity test BEFORE warehouse submission — dual quality gate
Who Does the Work
FPC's trained staff (Krushi Veer/Veerangana supported) handle all cleaning, sorting, drying, packaging
e-NWR Issued To
FPC account (lot basis) — farmers identified within the lot by digital ID; payment routed to individual farmer accounts
AMC Payment Route
Via FPC coordination account — FPC deducts service fee (maximum 1.5%, ACMF-regulated) before farmer credit
Profit Sharing
Via FPC — distributed pro-rata to individual farmers within the lot
Primary Payment
70–75% of spot value within 48 hours of e-NWR submission
Suitable For
Small farmers (below 2 ha), new ACMF participants, farmers in FPC-strong districts (Akola, Jalna, Vidarbha belt)
FPC Service Fee
Maximum 1.5% of lot value — regulated by ACMF Joint Oversight Committee; transparent, published on ACMF portal

 

3.2  Track 2 — Direct Farmer Track (NEW — Amendment 2)

Pathway

Farmer (self-grades/packs) → WDRA Warehouse (direct) → e-NWR (in farmer's own name) → AMC (direct)

 

Core Principle of Track 2

 

A progressive farmer who has the knowledge, equipment, and capability to clean, grade, sort, dry, and pack produce to WDRA standards should not be forced through an FPC intermediary. Track 2 recognises this farmer's capability and gives them direct, unmediated access to ACMF — with slightly higher payment (no FPC service fee) and stronger financial identity.

 

Parameter
Details
Minimum Lot Size
Soybean: 5 MT (50 quintals)  |  Tur Dal: 3 MT (30 quintals) — larger than Track 1 to ensure quality accountability
Quality Assurance
WDRA warehouse conducts the ONLY quality gate — warehouse may reject non-compliant lot; farmer bears full responsibility for rejection
Who Does the Work
Farmer himself/herself — cleaning, grading, sorting, drying, WDRA-standard packaging — farmer is 100% responsible
e-NWR Issued To
Individual farmer directly — e-NWR in farmer's own Aadhaar-linked name; strongest possible financial identity for the farmer
AMC Payment Route
Direct to farmer's bank account — no intermediary, no FPC service fee deduction
Primary Payment
72–76% of spot value within 48 hours — slightly higher than Track 1 (no FPC fee deducted from farmer's share)
Profit Sharing
Direct to farmer — no routing through FPC; simpler, faster, fully transparent
Eligibility Conditions
(1) ACMF Direct Farmer registration — one-time KYC + land record verification  |  (2) Minimum lot size compliance  |  (3) WDRA quality assay pass  |  (4) Self-certification of grading/packing compliance via ACMF app
Suitable For
Progressive/large farmers (2+ ha), technically capable farmers, farmers in areas with weak or no FPC coverage
Quality Failure Consequence
Warehouse rejection — farmer must take lot back and remediate. Three rejections in one season: farmer reverts to Track 1 for that season

 

3.3  Track 2 Support Infrastructure

Quality Preparation Guide — Built into ACMF App

Marathi-language video tutorials: moisture testing, cleaning standards, WDRA-approved packaging specifications
AI self-assessment tool: farmer photographs lot sample → AI estimates quality pass probability before going to warehouse
'Am I Track 2 Ready?' checklist — 12-point verification before warehouse visit
Nearest WDRA warehouse locator + appointment booking via app — eliminates wasted trips
One-time Track 2 orientation by Krushi Veer — explains standards, common rejection reasons, documentation required

 

3.4  Dual Track Comparison

Parameter
Track 1 — FPC Mediated
Track 2 — Direct Farmer (NEW)
Minimum Lot
1 MT (Soybean), 0.5 MT (Tur)
5 MT (Soybean), 3 MT (Tur)
Quality Responsibility
FPC — shared accountability
Farmer 100% — full accountability
e-NWR in Name of
FPC (lot basis)
Individual Farmer directly
Primary Payment
70–75%
72–76% (no FPC fee)
FPC Service Fee
Maximum 1.5% deducted
Zero — no intermediary
Payment Route
Via FPC coordination account
Direct to farmer bank account
Profit Sharing Route
Via FPC, then individual farmers
Direct to farmer
ACMF Financial Identity
Indirect — through FPC folio
Direct — personal ACMF folio
Best Suited For
Small farmers, new ACMF users
Progressive, capable, larger farmers
FPC Requirement
Mandatory — FPC must be Tier 1
Not required — fully independent

 

3.5  ACMF Act Provision — Dual Track (Legal Basis)

Proposed Section — ACMF Act: Access Tracks

 

'Agricultural produce may be submitted to ACMF through either of the following access tracks:'

 

Track 1 (FPC Mediated): Through a registered, Tier 1-certified Farmer Producer Company — minimum lot 1 MT for soybean, 0.5 MT for tur dal.

 

Track 2 (Direct Farmer): By an individual farmer directly — subject to: (a) minimum lot size as prescribed per commodity, (b) WDRA warehouse quality compliance at submission, (c) ACMF Direct Farmer registration with KYC and land record verification, (d) self-certification of grading standards via ACMF platform.

 

No farmer shall be compelled to use Track 1 where Track 2 eligibility conditions are met. FPC membership shall not be a prerequisite for ACMF participation under any circumstance.'

 

 

Chapter 4 — Amendment 1: Dual Farmer Long-Term Benefit Instruments

Why This Amendment is Essential

 

Version 1.0 proposed Non-Voting Equity Shares as the long-term wealth instrument for farmers after 3 years of consistent supply. However, this assumes all processors have share capital — which is incorrect.

 

Reality of Maharashtra's processing industry in pilot districts (Akola-Jalna belt):

  ·  Type C (Proprietorships/Partnerships — small dal mills, oil expellers): 55–60% of processors — NO share capital

  ·  Type D (Cooperatives/Government bodies — PACS, sugar mills): 15–20% of processors — different legal structure

  ·  Type A/B (Companies with share capital): only 20–25% of processors

 

Version 2.0 introduces a three-instrument framework matched to processor entity type — ensuring NO processor can opt out of farmer wealth creation.

 

4.1  Instrument A — Non-Voting Equity Shares

Applicable To: Type A (Listed Companies) + Type B (Unlisted Private Limited Companies with share capital ≥ ₹1 Crore)

 

Parameter
Details
Trigger Condition
3 consecutive years of supply to ACMF + minimum quality compliance score of 85% per season
Share Type
Non-voting equity shares — farmer receives economic rights (dividend) but no voting rights in company management
Issuance Method
Processor issues shares; recorded in farmer's ACMF digital folio by AMC/designated depository
Quantity Basis
Pro-rata to farmer's share of total lots supplied to that processor over 3 years
Dividend
Annual dividend as declared by processor — credited directly to farmer bank account via AMC platform
Liquidity
Shares held in ACMF folio; tradeable after 5-year lock-in on ACMF-designated platform
Wealth Creation
Share value appreciates with processor company growth — intergenerational wealth for farm household
Eligible Companies
Share capital ≥ ₹1 Crore; registered under Companies Act 2013; ACMF Act registered processor

 

4.2  Instrument B — Profit Participation Certificate (PPC) [NEW]

Applicable To: Type C — Proprietorships, Partnerships, and Companies with share capital below ₹1 Crore

 

What is a Profit Participation Certificate (PPC)?

 

A PPC is a legally binding certificate — issued under the ACMF Act — that entitles the holder (farmer) to a defined percentage share of the processor's net annual profit, for a specified period, irrespective of whether the processor has share capital or not.

 

It is enforceable under Contract Law + ACMF Act statutory provisions. It does not require the processor to have share capital, undergo valuation, or list on any exchange. It is the simplest, most practical long-term wealth instrument for the majority of Maharashtra's small processing businesses.

 

Parameter
Details
Trigger Condition
3 consecutive years of supply to ACMF + minimum quality score 85% per season — same as Instrument A
Profit Share Rate
1–3% of processor's net annual profit — lower than equity dividend but broader coverage; exact rate fixed at registration
Duration
5-year PPC (renewable for another 5 years if farmer continues supply) — total potential benefit period: 10 years
Legal Basis
Issued under ACMF Act statutory framework + standard contract law; court-enforceable without requiring company shares
Calculation Method
Based on processor's audited annual accounts — AMC verifies calculation; independent CA audit mandatory for ACMF-registered processors
Payment Method
Automatic digital deduction from processor's ACMF settlement account — paid within 90 days of financial year close
Default Consequence
Non-payment triggers automatic processor deregistration from ACMF + penalty equal to 2x outstanding PPC amount
Eligible Processors
Proprietorships, partnerships, LLPs, Pvt Ltd companies with share capital < ₹1 Crore — registered under ACMF Act
Farmer Protection
PPC amount cannot be below ₹5,000 per year per farmer — minimum floor regardless of processor's profit

 

4.3  Instrument C — ACMF Commodity Bond [NEW]

Applicable To: Type D — Agricultural Cooperatives, APMC Bodies, Government Processing Units

 

Why Cooperatives and Government Bodies Need a Different Instrument

 

Cooperative societies (sugar mills, PACS, dairy cooperatives) and government processing units cannot issue equity shares or profit participation certificates in the conventional sense — their legal structure, governance rules, and financial reporting are fundamentally different from private companies.

 

The ACMF Commodity Bond is specifically designed for these entities: a fixed-return, NABARD-guaranteed financial instrument that gives farmers a secure, predictable income stream from their long-term supply relationship.

 

Parameter
Details
Instrument Type
Fixed-return bond issued by the cooperative/government processing unit under ACMF Act provisions
Trigger Condition
3 consecutive years of supply + quality compliance — same trigger as Instruments A and B
Return Rate
8–10% per annum — fixed, transparent, pre-agreed at processor registration; higher than bank FD
Tenure
7-year bond — providing long-term, stable income to farmer household beyond active farming years
NABARD Guarantee
Optional NABARD guarantee (70%) available for cooperatives — significantly reduces farmer risk
Issuance Method
Cooperative/government body issues bond certificates; recorded as units in farmer's ACMF digital folio
Payment Frequency
Annual interest payment — directly to farmer bank account via AMC platform
Maturity
Principal returned at end of 7 years — provides capital for farmer household investment or next generation
Eligible Entities
ACMF-registered agricultural cooperatives (sugar, dairy, PACS), APMC processing units, Maharashtra government processing bodies

 

4.4  Three-Instrument Decision Matrix

Processor Entity Type
Instrument Assigned
Legal Basis
Default if Non-Compliant
Listed Company / Large Pvt Ltd (share capital ≥ ₹1 Cr)
Instrument A: Non-Voting Equity Shares
Companies Act 2013 + ACMF Act
ACMF deregistration + penalty = 3x unpaid value
Proprietorship / Partnership / Small Pvt Ltd (share capital < ₹1 Cr)
Instrument B: Profit Participation Certificate (PPC)
ACMF Act + Contract Law
Auto-deduction from settlement account + deregistration
Agricultural Cooperative / APMC Body / Govt. Processing Unit
Instrument C: ACMF Commodity Bond
ACMF Act + Cooperative Societies Act
NABARD guarantee claim + cooperative audit trigger
Any processor refusing all three instruments
PPC issued automatically by AMC on behalf of processor
ACMF Act Section [XX] — mandatory compliance
Permanent ACMF deregistration + public disclosure

 

4.5  Universal Provisions Applicable to All Three Instruments

5–10% mandatory annual profit-sharing applies to ALL registered processors regardless of instrument type — this is separate from and additional to the long-term instrument
All three instruments are recorded in the farmer's ACMF digital folio — single dashboard showing MF units + instrument value + profit share + payment history
AMC platform manages all instrument distributions digitally — no manual paper-based processing; smart contract automation for PPC and bond payments
Instrument type is determined at processor registration under ACMF Act — reviewed every 5 years if entity structure changes
No processor registered under ACMF may opt out of all three instruments — the ACMF Act makes at least one instrument mandatory for every registered processor
Instrument value visible to farmer in real-time on ACMF mobile app — complete transparency

 

4.6  ACMF Act Provision — Farmer Benefit Instruments (Legal Basis)

Proposed Section — ACMF Act: Farmer Long-Term Benefit Instruments

 

'Every processor registered under this Act shall, upon trigger conditions being met (3 consecutive years of qualifying supply, quality compliance score ≥ 85%), provide to qualifying farmers ONE of the following instruments as determined by the ACMF Joint Oversight Committee based on processor entity type:'

 

(a) Non-Voting Equity Shares — for companies with share capital exceeding ₹1 Crore

(b) Profit Participation Certificate (PPC) — for proprietorships, partnerships, and companies with share capital below ₹1 Crore

(c) ACMF Commodity Bond — for cooperative societies, APMC bodies, and government processing units

 

No processor registered under this Act may refuse all three instruments. Where a processor fails to issue the applicable instrument within 180 days of trigger, the AMC shall automatically generate a Profit Participation Certificate on the processor's behalf and deduct equivalent value from the processor's settlement account.'

 

 

Chapter 5 — Commodity-Specific Trading Strategy

5.1  Phase 1 Commodity Rationale — Non-Perishables Only

Phase 1 focuses on two non-perishable commodities where warehouse receipt financing, futures hedging, and price arbitrage are all operationally proven. This is a deliberate risk-management decision.

 

5.1.1  Soybean — Primary Commodity

Parameter
Details
Exchange
MCX (primary) + NCDEX (secondary)
Mandatory Hedging
AMC hedges ≥50% of warehouse stock value via NCDEX futures within 72 hours of e-NWR receipt
LTV Ratio
75% of spot value (safety margin — revised from 80% in V1.0)
Track 1 Min Lot
1 MT via FPC  |  Track 2 Min Lot: 5 MT direct
NAV Floor
90% of NCDEX 3-month futures price at time of e-NWR submission
Processing Linkage
Edible oil extraction; soy meal export; food-grade soy products — all three instrument types present
Maharashtra Position
~45 lakh MT/year — India's largest producer; established MCX/NCDEX delivery in Akola, Latur

 

5.1.2  Tur Dal (Pigeon Pea) — Secondary Commodity

Parameter
Details
Exchange
NCDEX (primary); e-NAM for spot reference
Special Feature
MSP-backed NAV floor — farmer guaranteed minimum MSP value regardless of market price
LTV Ratio
75% of spot OR 80% of MSP (whichever is higher) — double protection
Track 1 Min Lot
0.5 MT via FPC  |  Track 2 Min Lot: 3 MT direct
Processing Linkage
Dal milling (predominantly proprietorship/partnership → PPC instrument applies); export pulse processors
Maharashtra Position
35%+ of India's tur production; Akola-Jalna belt is national pulse hub

 

5.2  Perishable Commodities — Phase 1 Exclusion

Commodity
Why Excluded
Future: PCMF Pathway
Onion
Partial storability; no active futures at scale; extreme price volatility
Dehydrated Onion ACMF — separate PCMF design post Phase 1
Grapes
7-10 day shelf life; no commodity futures; export-linked pricing
Raisin/Wine forward contract model — PCMF Track 2
Sugarcane
Must crush within 48 hours; FRP/SAP government price; no e-NWR possible
Sugar/Jaggery/Ethanol ACMF — cooperative mill model
Vegetables/Flowers
Ultra-perishable; localised pricing; no exchange mechanism
Cold-chain e-NWR with 48-hour settlement — dedicated PCMF

 

 

Chapter 6 — Financial Architecture & Viability

6.1  Interest Rate Corridor

Component
Rate
Paid By
Received By
Farmer/FPC Loan Interest (gross)
9%
Farmer / FPC
ACMF Fund Pool
Government Interest Subvention
2%
Central/State Government
ACMF (on farmer's behalf)
Effective Farmer Cost
7%
Farmer / FPC (net)
—
Infrastructure Bond Yield
7–7.5%
NABARD / SPV
ACMF Fund Pool
Investor Return (Phase 3+)
6.5–8%
ACMF Fund Pool
Unit Holders
AMC Management Fee
0.5%
Fund Revenue
AMC (fixed)
AMC Performance Fee
0.2%
Fund Revenue
AMC — ONLY if FBI score > 80
Farmer Welfare Reserve
Residual
Fund Surplus
Insurance / Compensation

 

6.2  Three-Scenario Stress Test (Mandatory — Published in SID)

Scenario
Market Condition
Price
Farmer Outcome
Investor Return
A — Optimistic
Normal harvest; off-season demand
+15–21%
Full profit share; 12–22% income increase; all instruments activated
7.5–8% p.a.
B — Base Case
Flat commodity prices; no movement
0%
Primary payment secured (70–75%); no profit share; PPC/bond still pays
5.5–6% p.a.
C — Adverse
Commodity price crash
-10%
Protected: 75% LTV buffer + NABARD guarantee; no farmer loss; PPC/bond unchanged
5% minimum (NABARD backstop)

 

Viability Conclusion

 

ACMF is viable in ALL three scenarios. Worst case: investor earns 5%, farmer is fully protected. Base case: investor earns 5.5–6%, farmer gets primary payment + long-term instrument income. Best case: investor earns 8%, farmer earns 22% more.

 

Critically: Instruments B (PPC) and C (Commodity Bond) continue to pay farmers REGARDLESS of commodity price movement — they are fixed contractual obligations.

 

 

Chapter 7 — Legal & Regulatory Framework

7.1  Regulatory Pathway — AIF First

Phase 1–2: Category III AIF (12–18 months approval)

Phase 3+: Dedicated ACMF Mutual Fund Category (built on 3-year AIF track record)

 

Rationale: SEBI has never classified agri-credit as MF asset class (5–8 year process). AIF Category III is proven, faster, and operationally equivalent for Phase 1 institutional investors. Full MF status follows after track record is established — exactly as REITs were built in India.

 

7.2  Legislative Requirements

Legislation
Key Provisions (V2.0 Enhanced)
Timeline
Maharashtra ACMF Act — NEW (Priority)
e-NWR as MF/AIF instrument; DUAL ACCESS TRACKS (both legally recognised); THREE FARMER BENEFIT INSTRUMENTS (Equity Shares + PPC + Commodity Bond — all mandatory framework); mandatory 75% farmer corpus allocation; three-tier grievance system; processor registration and compliance; joint oversight committee
Draft Y1; Enact Y2
Maharashtra APMC Act — Amendment
FPC-ACMF pipeline; APMC levy exemption for ACMF lots; Direct Farmer Track clearance at designated collection points
Y1 amendment
Cooperative Societies Act — Amendment
ACMF Commodity Bond issuance by cooperatives; farmer bond folio management; NABARD guarantee linkage for cooperative bonds
Y1 amendment
SEBI AIF Coordination
Category III AIF registration; e-NWR as eligible underlying asset; mandatory commodity futures hedging compliance
12–18 months
GST & Tax Concessions
Zero GST on e-NWR transactions; tax relief on profit-sharing, PPC income, and bond interest for farmers; Section 80C benefit request for SIPs (Phase 3)
Budget Y1
WDRA Amendment
Provisional NWR category for ACMF-vetted warehouses; Direct Farmer Track documentation standards; Track 2 quality rejection protocol
Central coordination

 

 

Chapter 8 — Technology Architecture (AI for Agriculture 2025)

8.1  Technology Stack

Technology
ACMF Application
V2.0 Enhancement
AI / Machine Learning
FPC-level AI grading; daily price forecasting (MCX/NCDEX + global); fraud detection in e-NWR; Track 2 quality pre-assessment tool
Track 2 self-assessment AI module (NEW)
IoT Sensors
Warehouse monitoring: temperature, humidity, CO₂, pest — every 15 minutes; alert on deviation
No change from V1.0
Blockchain
e-NWR tamper-proof record; PPC and Bond smart contracts for automatic payment; lot traceability
Smart contracts for PPC + Bond payment (NEW)
WDRA-NWR API
Real-time authentication; valuation; release authorisation; Track 2 direct submission protocol
Track 2 direct submission API (NEW)
ACMF Mobile App
6 languages; live NAV; lot status; profit share; equity/PPC/bond value; grievance filing; Track 2 quality guide
Track 2 prep guide + quality AI + instrument dashboard (NEW)
Digital Co-op Platform
Shared infrastructure with Project Samruddhi — all 5 sale models accessible; farmer single digital identity across all models
Samruddhi integration — farmer portal (NEW)
UPI-SIP Integration
Phase 3 retail investors: ₹500 SIP; instant unit allotment; Jan Dhan linkage
No change from V1.0

 

 

Chapter 9 — Governance & Risk Management

9.1  ACMF Joint Oversight Committee

11-Member Board — Farmer Voice Guaranteed

 

3 seats  —  FPC / Farmer Representatives (elected by ACMF-borrower FPOs — mandatory quorum required)

1 seat   —  Direct Farmer Track Representative (elected by Track 2 registered farmers — NEW V2.0)

2 seats  —  AMC / Fund Management Professionals

1 seat   —  NABARD Nominee (ex-officio)

1 seat   —  SEBI Nominee (ex-officio)

1 seat   —  Maharashtra Agriculture Secretary

1 seat   —  WDRA Representative

1 seat   —  Independent Director (Agri Economics / ESG)

 

Mandatory Quorum: Minimum 3 of 4 farmer/farmer-track representatives must be present for ANY loan allocation, corpus reallocation, instrument framework change, or fee structure decision.

 

9.2  Risk Register — V2.0 Enhanced

Risk
Level
V2.0 Mitigation
Commodity Price Crash
HIGH
75% LTV buffer + mandatory 50% MCX/NCDEX hedging + NABARD 70% guarantee + Scenario C floor 5%; PPC/Bond instruments insulate farmers from price risk
SEBI Regulatory Delay
HIGH
AIF Category III pathway — 12–18 months; full MF category built on 3-year track record (REIT precedent)
FPC Capacity Failure
HIGH
Track 2 (Direct Farmer) provides alternative — FPC failure does not shut down ACMF in that geography; Tier 1 FPC prerequisite maintained
Processor Non-Compliance on Instruments
HIGH
NEW V2.0: Three-instrument framework covers ALL processor types; no processor can claim inability; automatic AMC-generated PPC as default fallback; deregistration + penalty enforced
Track 2 Quality Failures
MEDIUM
NEW V2.0: WDRA quality assay is sole gate; AI pre-assessment tool on app; three-rejection rule reverts farmer to Track 1; warehouse rejection protocol published
Warehouse Infrastructure Gap
HIGH
'Warehouse First' strategy; WDRA Provisional NWR category; e-NAM mandi integration; Phase 1 restricted to 5 districts with existing warehouse density
Agricultural NPA Risk
MEDIUM
NABARD 70% guarantee mandatory; PMFBY crop insurance linkage; state-wise 5% NPA cap; 75% LTV provides collateral buffer
AMC Incentive Misalignment
MEDIUM
NABARD as Phase 1 AMC sponsor; 0.2% performance fee linked to FBI > 80; 40% sub-mandate for farmers below 2 ha; 5-year contract + 24-month exit notice

 

 

Chapter 10 — Implementation Roadmap

Phase
Coverage
Timeline
Key Milestones (V2.0)
Phase 1 — Pilot
5 Districts: Akola, Jalna, Pune, Nashik, Kolhapur
Year 1–2
ACMF Act drafted; AIF registration; AMC MoU; 50 Tier 1 FPCs + 500 Direct Farmer Track registrations; 100 WDRA warehouses; Soybean + Tur Dal; first profit-sharing + PPC/Bond issuance cycle; Track 2 pilot with 500 progressive farmers
Phase 2 — Expansion
18 Districts
Year 3–4
ACMF Act enacted; 500+ FPCs + 5,000+ Direct Farmer registrations; 5+ commodities; non-voting shares first issuance (large processors); PPC second cycle; SEBI full MF application filed
Phase 3 — Full Rollout
All 36 Districts
Year 5–6
Full ACMF MF approval; retail ₹500 SIP; PCMF proposal filed (perishables); 10 lakh+ farmers across both tracks; Samruddhi full integration; national replication model

 

10.1  Phase 1 Quarterly Schedule

Quarter
Activity
Responsible
Q1 — Y1
Govt approval + GO; Mahabeej designated nodal agency; ACMF Act drafting (incl. Dual Track + Triple Instrument provisions); SEBI AIF pre-consultation; advisory committee with Shri Manorkar
Govt + Law Dept + Mahabeej
Q2 — Y1
FPC Tier 1 assessment (5 districts, max 50 FPCs); Direct Farmer Track registration portal launched; warehouse mapping + WDRA accreditation pipeline; tech partner RFP
Mahabeej + Agri Dept + NABARD
Q3 — Y1
IoT installation (50 warehouses); AI grading at 50 FPCs; Track 2 quality standards published; Krushi Veer trained as ACMF onboarding agents; blockchain + WDRA-API live
CWC/MSWC + Tech Partner
Q4 — Y1
AMC MoU signed; AIF filing with SEBI; first ACMF transactions — Track 1 (Akola soybean harvest) + Track 2 pilot (25 Direct Farmers); instrument type determination for all registered processors
AMC + Mahabeej + SEBI
Year 2
Full pilot operations — both tracks; first profit-sharing + PPC/Bond issuance; interim evaluation; ACMF Act introduced in Legislature; FBI score published Q3
All stakeholders

 

 

Chapter 11 — Stakeholder Roles & Responsibilities

Stakeholder
Role
V2.0 Key Responsibilities
Shri Arun S. Manorkar
Concept Originator & Advisor
Concept ownership; advisory to ACMF Implementation Committee; recommended: formal Govt Order appointment as ACMF Concept Advisor
Govt of Maharashtra
Policy & Legislative Authority
Enact ACMF Act (with V2.0 provisions); ₹25–40 Cr outlay; gazette APMC + Cooperative amendments; GO for Mahabeej + Manorkar appointment
Mahabeej
Nodal Implementation Agency
FPC Tier 1 certification; Direct Farmer Track registration; warehouse coordination; AMC liaison; Krushi Veer training as ACMF agents
FPCs (Track 1)
Primary Aggregation Gate
Grade, clean, standardise produce; submit e-NWR; charge max 1.5% service fee; manage member relations; quality compliance
Direct Farmers (Track 2 — NEW)
Independent ACMF Participants
Self-grade and pack to WDRA standards; register on ACMF portal; pass WDRA quality assay; maintain quality record for instrument trigger
WDRA Warehouses
Scientific Storage + Quality Gate
Issue e-NWR for both tracks; IoT monitoring; quality assay (sole gate for Track 2); Track 2 rejection protocol
AMCs
Financial Engine
Value e-NWR; issue MF units; manage commodity; mandatory hedging; determine processor instrument type; distribute profit-sharing + PPC + bond payments via smart contracts; publish daily NAV; achieve FBI > 75
Processors (All Types)
Value Addition Partners
Register under ACMF Act; disclose entity type (A/B/C) for instrument determination; comply with 5–10% profit-sharing; issue assigned instrument within 180 days of trigger; submit to annual CA audit
NABARD
Credit Guarantor + Co-Regulator + Bond Guarantor
70% credit guarantee; AMC sponsor (Phase 1–2); quarterly FBI audit; Farmer Welfare Reserve management; Commodity Bond guarantee for cooperatives (optional); ₹200 Cr emergency liquidity backstop
SEBI + WDRA
Regulatory Oversight
AIF Category III licensing; e-NWR asset classification; audit AMC compliance; SEBI SCORES integration; WDRA quality standard for Track 2

 

 

Chapter 12 — Impact Projections & Maharashtra's Historic Firsts

12.1  Projected Impact

Impact Metric
Year 2 (Pilot)
Year 4 (Phase 2)
Year 6 (Full Scale)
Track 1 Farmers (via FPC)
40,000
2,50,000
8,00,000
Track 2 Farmers (Direct — NEW)
10,000
50,000
2,00,000+
Total Farmers Benefited
50,000
3,00,000
10,00,000+
Processors — Instrument A (Equity)
20 processors
150
500+
Processors — Instrument B (PPC — NEW)
80 processors
600+
2,000+
Processors — Instrument C (Bond — NEW)
10 cooperatives
80
300+
Average Farmer Income Increase
+8–12%
+12–18%
+15–22%
Post-Harvest Loss Reduction
3–5%
5–7%
6–9%
ACMF Corpus Deployed
₹500 Cr
₹3,000 Cr
₹10,000+ Cr
Infrastructure Built
50 warehouses upgraded
300 new units
₹1,500 Cr permanent infrastructure

 

12.2  Maharashtra's Historic Firsts — V2.0 Enhanced

Maharashtra Achieves These Historic Firsts Through ACMF V2.0

 

① First Indian state to convert agricultural produce into Mutual Fund / AIF Units — creating a new financial asset class

② First state to provide DUAL ACCESS to agri-finance — FPC route AND Direct Farmer route — no farmer excluded

③ First state with a THREE-INSTRUMENT farmer wealth framework covering ALL processor types — equity, PPC, and bonds

④ First state to mandate processor profit-sharing with supplying farmers through statutory law — regardless of processor size or structure

⑤ First state where farmers are permanent stakeholders in agribusiness through legally protected instruments

⑥ First state to implement AI + IoT + Blockchain agri-financial infrastructure from farm gate to processor at scale

⑦ First state to build ACMF as the financial engine of a comprehensive 5-pathway farmer sale ecosystem (Project Samruddhi)

 

Maharashtra becomes the global model for inclusive, technology-driven agricultural finance innovation.

 

 

Chapter 13 — Conclusion & Formal Recommendations

ACMF Version 2.0 is not merely a refinement of Version 1.0. It is a fundamentally more inclusive, legally complete, and ecosystem-integrated framework. Three critical amendments resolve the three most important gaps identified in independent review:

 

Amendment 1 (Dual Instruments): No processor — however small — can avoid farmer wealth creation obligations. PPC and Commodity Bond fill the equity share gap for 75–80% of Maharashtra's processors.
Amendment 2 (Dual Access Track): No farmer — however remote from FPC infrastructure — is excluded from ACMF. Track 2 opens ACMF to progressive, capable farmers independently.
Amendment 3 (Samruddhi Integration): ACMF is positioned within its proper ecosystem context — as the financial engine of Project Samruddhi's 5-pathway farmer sale architecture. Both DPRs reference each other; both can be approved on parallel regulatory tracks.

 

13.1  Formal Recommendations to Government of Maharashtra

Formally approve ACMF V2.0 under Discover & Incubate Track 1 and issue Government Order initiating implementation
Designate Maharashtra State Seeds Corporation (Mahabeej) as Primary Nodal Implementing Agency by formal Government Order
Commission drafting of Maharashtra ACMF Act incorporating V2.0 provisions: Dual Access Tracks, Three Farmer Benefit Instruments, and Samruddhi integration clauses — target: Winter Session 2025
Initiate SEBI (AIF Category III) pre-consultation and NABARD MoU negotiations within 60 days of approval
Allocate ₹25–40 Crore in Budget 2025–26 for Phase 1 pilot infrastructure
Appoint Shri Arun Shantinath Manorkar as Official Concept Advisor to the ACMF Implementation Committee by Government Order — recognising his November 2017 origination of this concept
Constitute ACMF Joint Oversight Committee with 4 farmer representative seats (3 FPC + 1 Direct Farmer Track — NEW V2.0)
Instruct WDRA to activate 'Provisional NWR' category for ACMF-vetted warehouses — accelerating Phase 1 warehouse network by 18 months

 

Final Statement

 

Maharashtra's farmers have produced food for this nation for centuries — without ever being invited to share in the financial value of what they grow.

 

ACMF changes that. Permanently. For every farmer — whether they come through an FPC or walk in directly. Whether their processor is a listed company or a small dal mill. Whether they are growing soybean in Akola or tur dal in Jalna.

 

With this approval, the Government of Maharashtra does not merely implement a scheme. It builds a permanent financial architecture that treats agricultural produce as what it truly is: an asset, not a burden. A source of wealth, not just subsistence.

 

This proposal is ready. Maharashtra's farmers are waiting.

 

ACMF DPR Version 2.0  |  Submitted to Government of Maharashtra  |  Concept: Shri Arun S. Manorkar, Mahabeej, Akola  |  2025