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Economic
Development Policy |
| AGRICULTURE
& ALLIED SERVICES |
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VALUE ADDITION
A
vibrant processing sector creates favourable conditions for the
development of the agri-sector through greater employment
generation, higher returns and
market development for agri produce. The government should,
therefore, attempt to foster the development of the processing sector by
ensuring a conducive environment free of restrictive regulations as well
as easy availability of raw material etc.
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Bestow
priority sector status.
Agri/Food processing has been accorded the priority sector status and suitable incentives at par with those in
other states shall be provided. A Food Processing Policy enumerating
these has been drafted.
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Encourage
Contract Farming.
The government shall provide the legal and institutional framework for Contract
Farming and encourage corporates to engage in the same.
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Nominate
a nodal agency.
MP Agro shall be the Nodal Agency
for marketing and promotion of agro/food industries and exports. Its
roles would include
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Dissemination
of market information
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Development
of project profiles
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Proactive
targeting of pre-identified set of food majors
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Agency
for private sector interface & escort services
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Development
of infrastructure i.e. food parks, cold chain, either on its own or
through private sector participation
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Agri
Export Zones (AEZ) shall be developed for Wheat, Spices and Vegetables.
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PRIVATE SECTOR PARTICIPATION
Historically,
public investment has crowded out private investment in agriculture in
India. This is largely because of our socialist leanings and the
priority status accorded to the agriculture sector. Government spending
in agriculture has reaped returns. It was critical investment in the
earlier years when the private sector was either unable or unwilling to
do the same. However, in several areas the private sector can begin to
gainfully contribute and share the responsibility with the government.
Some
of the areas where the private sector shall be encouraged to contribute
are:
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Wasteland
Development
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Seed
Production & Research
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Agri
Portal for Information dissemination
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Agri
Extension Services
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Agri-input
distribution and marketing: At
present, while private sector participation is permitted in fertilizer
trade, in the case of Urea, producers are permitted to sell only 15% of
the entire production. In the next four years, it is proposed that the
sector shall be fully opened up to the private sector.
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Agri
Infrastructure Development: The private sector shall be invited to
participate in the upgradtion of mandi infrastructure, in the
development of cold chains, storage facilities and export zones.
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Agri
Processing
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However,
various initiatives from the Government are required before the private
sector will actively begin to invest in this sector. These would be in
the following areas.
Free
Enterprise:
The regulatory framework in the agri sector has typically constrained
private enterprise. A review has been undertaken to dismantle some of
the obsolete and deleterious regulations in the sector and constitute
others, which would enable enterprise. The state government is already
taking steps in the following areas:
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Contract
farming
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Wasteland
development
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Allotment
of Mandi premises to private sector
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Seed
multiplication
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Nominate
a Nodal Agency:
In the present context of increasing competitiveness among states, it is
critical to not only lay out clear and transparent policies to attract
investment but also provide easy and quick facilitation mechanisms and
marketing efforts. MP Agro Industries Development Corporation has been
given this mandate.
Incentives:
As
mentioned earlier, the increasing competition necessitates that
governments provide attractive incentives to the private sector, at
least to match what is being provided by other states. In this context,
the State is in the process of formulating a new Food Processing Policy.
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