Promotion of Off Farm Sector was enshrined in the mission statement of NABARD at the time of its inception. The
sector assumes significance in the context of the pressing need for reducing rural India’s dependence on agriculture
income by encouraging alternate livelihood options. Development of this sector also helps in mitigating the migration
of small and marginal farmers and agricultural labour to urban areas in search of livelihood opportunities in the
other sectors.
Off-Farm Development Department (OFDD) has always aligned itself with the emerging areas and designed several
promotional schemes for the development of the off-farm sector. OFDD has been making constant efforts to broad base,
refine and rationalise its schemes in response to the needs at the field level. The focus has been on the programmes
that enable development of skills, promote avenues for marketing, foster collectives of producers, GI promotion and
encouraging development of the service sector to create sustainable livelihoods in the rural areas. In this direction,
the Department has been committed to foster enhanced income of people dependant on the small, cottage and village
industries, handloom, handicrafts and other rural crafts.
Core Functions
- i. To promote sustainable employment and livelihood activities by development and implementation of grant-based
products.
- ii. Skilling and capacity building of rural youth to empower them for employment (Self/ wage) to improve their
family income.
- iii. To support promotion, development and nurturing of Off-Farm Producers' Organizations (OFPOs) to facilitate
capacity building, easier access to credit, aggregation of produce and marketing for better remuneration, and bulk
purchase of raw material.
- iv. To provide marketing opportunities to SHGs, Producer Organisations, artisans and weavers through Rural Haats,
Rural Marts, exhibitions, fairs etc. and provide a platform for engagement with buyers, understanding market
preferences and carrying out bulk sale of product through modern day marketing infrastructure, including onboarding
to digital platforms.
- v. To promote innovation and entrepreneurship in agriculture and rural sectors by setting up Rural Business
Incubation Centres which provide handholding support to startups.
- vi. To recognize the uniqueness of rural products and protect the dying arts and crafts by facilitating their
registration as Geographical Indications.
- vii. Capacity building of channel partners, dissemination of information and propagation of sector specific
activities through seminars, workshops, etc. in Off-Farm Sector.
Initiatives of OFDD:
i) Skill Development
In tune with Govt. of India’s goal, NABARD supports skill development programmes through a structured approach for
addressing the skill gaps in rural India through demand and outcome-based programmes through multiple stakeholders in
skill development ecosystem leading to wage/self-employment. NABARD has developed a digital platform “NABSKILL” (www.nabskillnabard.org) enabling complete digitalisation of skill
interventions.
ii) Off Farm Producer Organisation (OFPO)
NABARD supports Off-farm Producer Organisations (OFPOs) which are formed by artisans, weavers, craftspeople etc., to
promote rural enterprises, mechanisation, adoption of technology for design development, develop strong forward and
backward linkages, ensure better income realisation, and profit distribution, which ultimately bring in sustainable
and inclusive development through collectivisation.
iii) Promotion Of GI Products
NABARD provides end-to-end support in facilitating pre-registration as well as post-registration activities for GI
products. So far, NABARD has provided support for 300 products out of which, 145 have been granted registration by
Department for Promotion of Industry and Internal Trade (DPIIT). The prominent products supported by NABARD for GI
registration are Pochampally Ikat (Andhra Pradesh), Nizamabad Black Pottery (Uttar Pradesh), Gulabi Meenakari (Uttar
Pradesh), Ladakh Wood Carvings (Jammu & Kashmir), Monpa Handloom Textile Products (Arunachal Pradesh), Bihu Dhol
(Assam), Risa Textiles (Tripura), Bandhej Craft (Rajasthan), Ajrakh Print (Gujarat), Ringal Craft (Uttarakhand) etc.
NABARD has also supported two exclusive marketing outlets for GI products:
NABARD has also supported two exclusive marketing outlets for GI products:
- “The Banaras GI Store” at Deen Dayal Hasthakala Sankul at Varanasi Uttar Pradesh with a grant assistance of
Rs.14.57 lakh.
- “Desha Shoochakam” at North Paravur, Kerala with grant assistance of Rs.10.00 lakh.
iv) Marketing Initiatives
NABARD supports rural artisans and producers to widen and deepen their access to markets, to access new markets,
increase their share in the final price paid by the consumer and to market their products effectively. NABARD also
provides financial assistance for establishing rural haats, rural marts, stall in malls and sponsors exhibitions.
a) Rural Haat
Rural Haats serve as primary markets in rural areas and play an essential role in the rural economy by providing
business opportunities and promoting rural-to-rural trade.
NABARD supports Rural Haats by creating modern day infrastructure by collaborating with local agencies for
facilitating producers to sell surplus agricultural and related items at these marketplaces and help local consumers
to purchase consumer goods in their vicinity.
b) Rural Mart
NABARD supports setting up of Rural Marts which are retail marketing outlets for producers/ artisans/ SHGs to sell
their local products. The objective of the scheme is to facilitate marketing linkages for artisans and farmers so as
to increase the remuneration for the products through price discovery and also provide a definite location for the
interested buyers.
Rural Marts not only provide market access but also help in promoting entrepreneurship amongst producers.
c) Exhibitions / Melas
Exhibitions/ Melas provide a unique platform for artisans, members of OFPOs and SHGs to develop direct linkages with
customers, link up with bulk buyers, understand their needs and requirements, eliminate the role of middlemen in
marketing of rural products and earn additional income through sale of products.
Exhibitions/ Melas also create awareness amongst urban consumers about rural products. Participation in these
Exhibitions empower the artisans to face the challenges, cross learning and design development for fetching better
prices for their products.
d) Stall in Mall
An innovative scheme named ‘Stall in Mall’ was introduced to provide support for hiring and/ or setting up of
temporary stalls in reputed malls, stores, market complexes, hotels and prominent premises with good foot fall. This
initiative helps the rural producer to learn about price discovery, customer preferences, need for changing designs,
e-marketing etc. The initiative also helps in B2B meetings and helps artisans and weavers to get direct orders.
v) Rural Business Incubation Centres (RBICs)
NABARD supports eligible institutions for setting up Rural Business Incubation Centres (RBICs) to nurture early-stage
innovative enterprises that have high growth potential in agribusiness by adding value and linking to producers and
buyers. These centres incubate the start-ups working in identified areas of agriculture, allied activities and off
farm activities.
vi) Catalytic Capital Assistance to Incubators/Subsidiaries of NABARD
NABARD has introduced the Catalytic Capital scheme to provide financial assistance to startups through Incubation
Centres/ Subsidiaries of NABARD in order to encourage the formation and development of innovative, technology-based
business enterprises in agriculture and identified sectors that will lead to venture creations, increased employment
and leveraging of public and private investment. The catalytic capital support is positioned to act as a bridge
between two stages viz. development and commercialization of innovative technologies/ products/ services in
agriculture and rural sector.
vii) Projects in DPR mode
Keeping in view the diversity of the nature of off-farm sector as well as requirement of disadvantaged regions of the
country, during the 2021-22, NABARD decided to support location specific interventions on pilot basis in DPR mode. On
receipt of satisfactory feedback and progress, it has been decided to mainstream the pilot scheme.
viii) Capacity Building Fund for Social Stock Exchange (CBF-SSE)
The Social Stock Exchange (SSE) has been created for listing social enterprises and voluntary organizations working
for social welfare to raise capital as equity, debt or as units like a mutual fund. It is a separate segment on
existing Stock Exchanges to leverage the securities market instruments to enable fund raising by eligible voluntary
organizations.
As a part of this initiative, a Capacity Building Fund has been set up as an administrative fund under NABARD which
will be used for awareness creation and capacity building of the different stakeholders of SSE, namely, Non-Profit
Organizations (NPOs), For-Profit Enterprises (FPE), investors, funders, capacity builders, etc. about the aims and
objectives of the SSE, its functioning and the opportunities for funding that it offers.
ix) Stand-up India Scheme
The Stand Up India Scheme (SUI) launched by Govt. of India on 15 August 2016 facilitates bank loans ranging from
Rs.10.00 lakh to Rs.1.00 crore to at least one SC or ST borrower and at least one women borrower, per bank branch for
setting up Green field enterprises.
The scheme is owned by SIDBI and NABARD has been entrusted as Connect Centre with handholding support to borrowers.
Hon'ble FM as a part of the Budget speech FY 2021-22, announced that the scheme has been extended up to March 2025
and proposed that to facilitate credit flow under the scheme to SCs, STs and women, the margin money requirement has
been reduced from 25% to 15%, and also included loans for activities allied to agriculture.
x) Special Credit Linked Capital Subsidy Scheme (SCLCSS)
Ministry of MSME, Govt. of India has introduced Special Credit Linked Capital Subsidy Scheme (SCLCSS) under National
SC-ST Hub (NSSH) with the objectives to promote setting up of new enterprises and support existing enterprises in
their expansion for enhanced participation in the public procurement. The scheme is applicable to the eligible SC/ST
Micro and Small Enterprises of Sole proprietorships, Partnerships, Co-operative Societies, Private and Public Limited
Companies engaged in Manufacturing and Service activities. NABARD is one of the nodal agencies for implementing the
scheme.
For information regarding the scheme, one may visit the Government of India portal:https://www.scsthub.in/content/special-credit-linked-capital-subsidy-scheme.
Contact Information
Shri Partho Saha
Chief General Manager
5th Floor, 'B' Wing
C-24, 'G' Block
Bandra-Kurla Complex, Bandra (East)
Mumbai 400 051
Tel: (91) 022--68120036
E-mail Address: ofdd@nabard.org
Information under RTI, Section 4(1)(b)