New Delhi, Feb 13 (PTI) The Cabinet Wednesday approved leasing out 1.61 acres of land at Alipur in the national capital to the government body SFAC for setting up a ‘Kisan Mandi’, a platform that will benefit farmer producer organisations (FPOs) as well as consumers.

The land, owned by state-run Delhi Milk Scheme (DMS), will be leased out to the Small Farmers Agribusiness Consortium (SFAC), an official statement said.

The lease will be for a period of 30 years with effect from September 10, 2014 to September 9, 2044, with the lease rent of Rs 100 per month with annual increase of 10 per cent per annum from September 10, 2014, it said.

The lease rent will be payable in advance for the whole year in the beginning of the calender year latest by January 31.

“Kisan Mandi will also offer direct supply through retail outlets on a franchises model,” the statement said.

A beginning will be made by offering staple produce such as potato and onion through selected kiosks of the DMS. The Kisan Mandi will also have provision for online sales and direct marketing through call centres, it said.

Only registered FPOs/Grower Associations will be allowed to offer fresh produce for sale on this platform.

Organisations, retailers, wholesalers, hotels and catering institutions, resident welfare associations and ordinary consumers can buy from this platform, with no agents/middlemen involved.

There will be no commission charged on the transaction in the proposed Kisan Mandi either from sellers or buyers and FPOs will pay a small service charge for the use of facilities such as godowns and cold storage.

The setting up of a Kisan Mandi will provide an additional, marketing channel/platform to FPOs and Growers Association for direct sale of fruits and vegetables to wholesale and retail buyers in Delhi-NCR for the benefit of farmers as well as consumers, the government added.

This is published unedited from the PTI feed.