State retools agri policy to boost farm sector

The State government has come out with an ‘Integrated Agribusiness Development Policy-2011’ with an ambitious agenda of increasing the income of farmers and the State’s Gross Domestic Product (GSDP) in the agriculture sector, and enhancing food security.

The policy comes ahead of the much-touted Global Meet on Agriculture, scheduled to be held in Bangalore later this year. The government expects to attract investments worth Rs 52,000 crore in the agriculture sector during the meet.

The policy has been framed after consultation with various stake-holders, including the departments of agriculture, horticulture, agro-forestry, dairying, animal husbandry, fisheries, sericulture, apiculture and food processing.

The thrust of the 35-page policy is to ensure better price realisation for farmers by using global technologies and innovative tools. For this, the government proposes to encourage private participation in development, operation and maintenance of agri-infrastructure by way of providing fiscal incentives for agro-based industries.

The policy proposed to take forward the robust growth clocked by the State in the agriculture sector in 2010-11 at 5.7 per cent in the GSDP compared to 3.3 per cent last fiscal. The State contributes seven per cent of the agricultural production and 15 per cent of the horticultural production in the country.

To achieve its objective, the State government proposes to attract investment in infrastructure and industries, technology, research, skill development in agriculture and allied sectors. In this direction, the government proposes to set up agri-horticulture-animal husbandry-fisheries-food processing corridors at strategic locations across the State.

The corridors will be aligned along major transport arteries, including road and rail trunk routes. These zones will have market investment centres, know-how dissemination centres, agriculture education hubs, R&D institutions among others.

Financial incentives

Entrepreneurs investing in micro, small and medium enterprises, large and mega agro-based industries will get a slew of financial incentives.

These include exemption from stamp duty, concessional registration charges, exemption from entry tax, exemption from Agriculture Produce Marketing Committee cess among others.

Farmers who lose land for agro-based industry will be waived of registration fee to purchase land at other locations for agriculture-related activities.

Under the new policy, farmers are entitled to covert their land free of charge to agribusiness purpose through self-declaration. The policy proposes to provide government land to entrepreneurs on long-term lease basis at concessional rates to agro-based industries and agri-infrastructure entities.

The State government proposes to create a Special Purpose Vehicle (SPV) “Karnataka Agribusiness Development Corporation” to realise the vision envisaged in the policy. The SPV will identify project opportunities and facilitate investment in identified projects, act as a single window for all clearances, will conduct investors meet, roadshows and follow-up investment queries among others.

Hot time ahead for Byadgi chilli

Byadgi chilli, Coorg honey, rose onion, Nanjangud rasabale and other agro-produce native to Karnataka are set to get a boost, thanks to the State’s Integrated Agribusiness Development Policy-2011.

The policy speaks of creating a platform to increase market share with better price realisation for these native agro-varieties.

Some of the strategies contemplated include brand building of the produce, demarcation of exclusive areas for their cultivation and setting up of research centres.