GUJARAT

AGRO PROCESSING INDUSTRIES

It is an obvious and unanimous submission that the State of Gujarat is one of the most industrialized states in the country. In case of agriculture production and management of farm produces also, the state is accelerating its pace to maintain its position as a front-runner in the country. The sector has strong base with highly diversified cropping and farming community, which is responsive to changes in agricultural technologies and practices. The state also has other strengths like decent logistical infrastructure like airports, seaports and extensive road and rail network.

The state appreciates the fact that a large cross-section of people from our society earns their livelihood from this sector and although it plays a tertiary role in the State’s Gross Domestic Product, it offers tremendous potential for exploitation.. The major crops produced in the state include rice, wheat, maize, oilseeds, cotton, vegetables and spices. On horticulture side, Banana, Mango, Sapota and Papaya are being cultivated in abundance. In fact, Gujarat ranks third in the production of Banana, sixth in the production of Mango, second in Papaya and Sapota production.

Government has decided that by adopting a holistic approach, the existing agriculture base of Gujarat would be strengthened using modern techniques and equipment, by upgrading the existing logistical framework and by ensuring that more and more farm produces make their way into the processing chain. The Government would also strive to create a world class supply-chain, to promote infrastructure important for agro-industrial development, to ensure close interface between research, extension and industry as well as farmers in agriculture sector, providing assistance to small-scale agro based units to improve their competitiveness in global markets and increasing exports of value added agriculture products. This assumes greater importance especially in the light of the fact that Sardar Sarovar Narmada Project is nearing completion and that the waters of the Narmada started flowing in different parts of the state including Kutch through the extensive network of canals, pipelines and rivers. On completion, the project will irrigate 1.8 million hectares of land, which would trigger the growth of agriculture sector to usher in a new era of Prosperity through Green Wealth.

Role of Government

An array of financial and non-financial schemes enunciated in the Gujarat Agro Industrial Policy 2000, listed as under, would be continued.

• Interest subsidy to Agro Industrial units and Agri Infrastructure projects



• Assistance for preparation of project report



• Assistance for setting up of centre of excellence/specific crop development institute.



• Assistance for quality certification and patent registration



• Airfreight subsidy



• Assistance for research & development



• Equity participation in joint sector projects

Land

The State Government will provide government land, including agriculture farms, on long-term lease basis at concessional rates to agro industries and agri-infrastructure projects including centres of excellence.

Venture capital fund

Having recognized the need for a venture fund to cater to the needs of prospective entrepreneurs who have developed or acquired unique technologies in agro & food processing, horticulture, aquaculture, sericulture, hi-tech agriculture and such other agro-related projects, the State Government shall create a venture fund for agro-industries in association with financial institutions/ banks etc.

IMPORTANT INITIATIVES

• Doubling the processing of Agro Products in next five years: With the global markets including the market for agriculture produces getting increasingly professionalized in terms of consistence in quality of agriculture products, an urgent need is being felt to ensure that more and more agriculture products pass through the processing chain. This will ensure longetivity of products, which is imperative especially for perishable foods. Thus, the state would strive to double the number of current level of foods passing through the processing chain against the current level of around 1%, in next five years time.



• Establishing Food Parks of International Standards by utilizing Cool Energy of LNG at Dahej and Hazira : The Government is in the process of exploring the possibility of utilizing the ‘chill’ being generated out of re-gasification of LNG at Dahej and Hazira for the benefit of Food Park units in particular and for the wide spread benefits to the farmer community of the region. It is therefore proposed to set up Food Parks at both these locations.



• Declaration of AEZs: Agro Export for 12 products including onion, mangoes and other vegetables as sanctioned by APEDA for perishable cargo project : In order to give a boost to the agriculture produces of Gujarat to be able to compete at international level, the State proposes to declare Agriculture Exports Zones (AEZs). Initially, the thrust will be given on 12 products as sanctioned by APEDA for perishable cargo project including onion, mangoes and a few other vegetables.



• Backward and Forward Linkages: The Government acknowledges that an effective and efficient backward and forward linkage could be an important differentiating factor for competing in the international market. The State would thus encourage activities like certified seed distribution, pre and post harvest management practices, post harvest facilities including cold-chain linkages etc. Such measures would give benefits to an organization in terms of reduction in costs, consistency in delivery schedule and maintaining quality of products.



• Introduction of Quality systems : As mentioned in the earlier part of the policy, quality would of paramount importance to compete at international level. Good Agriculture practices, good hygiene and sanitation practices and important initiatives like Hazard Analysis and Critical Control Points (HACCP) would be encouraged.



• Organic farming of products like groundnut, sugar, rice and other horticulture products would be encouraged.



• Bio fuel: On account of the industrialization drive in Gujarat, there has been a marked increase in the demand for fuel. In view of the shortage experienced in the availability of non-renewable fuel as also the rising cost, the Government plans to encourage the use of agro-base renewable sources of energy in the form of bio fuel.



• Participation in Exhibitions abroad and creating a brand image for agriculture products of Gujarat : Marketing and Promotion has become an important aspect in today’s world since the international market brings together a broad spectrum of buyers and sellers. The point has been dealt with in detail in the subsequent chapter of Market Development and Promotion.



• Revamping of Agriculture Producers’ Marketing Committee (APMC) : The APMCs would be made more effective as an interface between Market and Farmers. For the purpose, it is proposed to make extensive use of modern technology together with the use of good management practices. The following initiatives are planned:


• The present system will be upgraded by establishing linkages with multi-commodity exchanges.



• The Future’s market for Agriculture Commodities will be further strengthened



• In order to enable a farmer to get better price of his products, good management practices would be introduced to eliminate intermediaries by making the transfer chain direct



• Transaction through E-commerce will be encouraged



• E-commerce facilitation centers will be put in place for primary producers



• The Government would strive to create model APMCs, that would serve as a source of inspiration for other APMCs in the state.


• Effective and Continuous linkages between Agriculture Universities, R&D institutions and farmers : Research and Development will invariably play a major role in shaping the destiny of agriculture sector of the State in the years to come. The state would intervene at all possible levels to ensure that the bonds of linkages between Agriculture Universities, R & D institutions and farmers are strengthened and that they work in consonance in the interest of profitable use of the green wealth in the State.

Thrust on special sectors

The Government has decided to immediately focus on two specific agro products in view of their strategic comparative advantages in the global context as far as Gujarat is concerned. For the purpose, the Government proposes to adopt a Mission Mode Approach. A Core Group on each of the products will be set up to operationalise this project. The following products would be taken up for the purpose:

• Castor Seeds
  
  Gujarat contributes almost 67% of the production of castor seeds in the world and in India, the contribution of Gujarat is as high as over 82%. All over the world, a large number of derivatives numbering around 140 are developed based on castor seeds. It has been decided to target the development of at least 50 such derivatives in Gujarat in next five years time.



• Psyllium Husk
  
  As far as Psyllium Husk is concerned, Gujarat contributes 35% of world production. In case of this product, it has been discovered that a large number of patents on its uses in pharmaceutical/drug composition, treatment of constipation related ailments, in food and beverage preparations etc. are being claimed by foreign companies. It is being felt that large number of these products (developed by foreign companies through minor changes) can easily be developed in Gujarat and in some cases, the patents already granted must be contested on account of existing prior art i.e., knowledge and practices already in public domain. An appropriate research strategy/mechanism would also be developed so that a specific portion of funds generated through export of psyllium is invested in creating and protecting intellectual property rights.

The agro processing industries associated with hi-tech agriculture will also be encouraged.