05-14-2007, 01:02 AM
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--><img src='style_emoticons/<#EMO_DIR#>/sad.gif' border='0' style='vertical-align:middle' alt='sad.gif' /><!--endemo--> Who cares for AEZs?
Rajeev Ranjan Roy| New Delhi
In the run for getting maximum Special Economic Zones (SEZs) sanctioned, the Centre seems to have lost its sight on the Agriculture Economic Zones (AEZs). The export proceeds from 60 AEZs in the past six years stands only at Rs 5316.31 crore against the target of Rs 11821.47 crore. Such a tardy growth of AEZs in the country punctures the Government's claims over putting the best possible efforts to accelerate agriculture's contribution to gross domestic product (GDP).
As per an Associated Chambers of Commerce and Industry (ASSOCHAM) study, there is a shortfall in exports and investment proceeds of over 50 per cent in all the 60 notified AEZs spread across 20 States. Such agriculture zones were notified in 2001 to promote export and investments in the farm sector. Out of this, 54 are performing very badly.
The study claims that these AEZs could attract only Rs 820.08 crore worth of investment against the envisaged investment limit of Rs 1717.95 crore. "54 AEZs have not been able to make any export or investment due to the non-cooperation of agencies involved by their promoters," ASSOCHAM president Venugopal N Dhoot said.
"It is true that AEZs are not doing so well. Many of them have not yet been able to cope with the teething problems. It is only six years ago that most of them were notified. They would pick up in years to come effectively," an official in Agriculture Ministry said.
The Government is in receipt of 34 additional proposals for setting up of AEZs in the last two years. The final approval has not yet been granted.
The latest Government figure shows the agriculture production has plummeted to an all-time low to 1.5 per cent. The production of rice, coarse cereals and oilseeds has declined by 1.1, 8.3 and 18.2 per cent respectively. The Central Statistical Organisation (CSO) puts the growth in agriculture at 1.5 per cent in gross domestic product against 8.7 per cent during the last corresponding period.
In 2007-08 budget, the Centre has allocated Rs 8558 crore under the plan outlay for agriculture sector as against Rs 7391 crore spent last year to give a boost to the farm sector, considered to be the backbone of Indian economy. There is just an increase of Rs 1167 crore in the centre's allocation to agriculture.
"The wrong policies and continuous neglect has made agriculture subservient to other sectors in India, which is very unfortunate. There is stagnation in productivity. It is high time the Centre takes charge of agriculture. It cannot be left at the mercy of States. The investment on irrigation has to be increased adequately," P Chengal Reddy, secretary general, Consortium of Indian Farmers Associations, said.
According to Dhoot, the AEZ in Karnataka, which processed rose onion, flowers and vanilla, had envisaged the export proceedings to the tune of Rs 619.38 crore and the export realisations to the tune of Rs1138.49 crore. To achieve this goal, the investment projected was Rs.52.23 crore. But in reality it received investments only up to Rs.91.04 crore till January 2007.
The AEZ in Maharashtra has realised export proceedings to the tune of Rs 1051.15 crore with actual investments of Rs.365.3 crore against the targeted investment of Rs.270.65 crore till January 2007. "Investment in AEZs meant for premium products like basmati rice is negligible and Darjeeling tea is zero. India is the leading producer of tea, but has only one zone attributed to tea in Darjeeling. It was approved in September 2004 Due to the lack of consensus between the central and the state government, MoU is still awaited," Dhoot said.
According to ASSOCHAM study, there six flower zones in the country, but the exports are not even ten per cent of the estimations.
There is a huge untapped market potential for flowers in international market. Punjab has three AEZs, one each of vegetables, potatoes and basmati rice. So far the Basmati zone has drawn an investment of Rs 5.27 crore against the anticipated figure of Rs 23.30 crore," Dhoot said.
--><img src='style_emoticons/<#EMO_DIR#>/sad.gif' border='0' style='vertical-align:middle' alt='sad.gif' /><!--endemo--> Who cares for AEZs? Rajeev Ranjan Roy| New Delhi
In the run for getting maximum Special Economic Zones (SEZs) sanctioned, the Centre seems to have lost its sight on the Agriculture Economic Zones (AEZs). The export proceeds from 60 AEZs in the past six years stands only at Rs 5316.31 crore against the target of Rs 11821.47 crore. Such a tardy growth of AEZs in the country punctures the Government's claims over putting the best possible efforts to accelerate agriculture's contribution to gross domestic product (GDP).
As per an Associated Chambers of Commerce and Industry (ASSOCHAM) study, there is a shortfall in exports and investment proceeds of over 50 per cent in all the 60 notified AEZs spread across 20 States. Such agriculture zones were notified in 2001 to promote export and investments in the farm sector. Out of this, 54 are performing very badly.
The study claims that these AEZs could attract only Rs 820.08 crore worth of investment against the envisaged investment limit of Rs 1717.95 crore. "54 AEZs have not been able to make any export or investment due to the non-cooperation of agencies involved by their promoters," ASSOCHAM president Venugopal N Dhoot said.
"It is true that AEZs are not doing so well. Many of them have not yet been able to cope with the teething problems. It is only six years ago that most of them were notified. They would pick up in years to come effectively," an official in Agriculture Ministry said.
The Government is in receipt of 34 additional proposals for setting up of AEZs in the last two years. The final approval has not yet been granted.
The latest Government figure shows the agriculture production has plummeted to an all-time low to 1.5 per cent. The production of rice, coarse cereals and oilseeds has declined by 1.1, 8.3 and 18.2 per cent respectively. The Central Statistical Organisation (CSO) puts the growth in agriculture at 1.5 per cent in gross domestic product against 8.7 per cent during the last corresponding period.
In 2007-08 budget, the Centre has allocated Rs 8558 crore under the plan outlay for agriculture sector as against Rs 7391 crore spent last year to give a boost to the farm sector, considered to be the backbone of Indian economy. There is just an increase of Rs 1167 crore in the centre's allocation to agriculture.
"The wrong policies and continuous neglect has made agriculture subservient to other sectors in India, which is very unfortunate. There is stagnation in productivity. It is high time the Centre takes charge of agriculture. It cannot be left at the mercy of States. The investment on irrigation has to be increased adequately," P Chengal Reddy, secretary general, Consortium of Indian Farmers Associations, said.
According to Dhoot, the AEZ in Karnataka, which processed rose onion, flowers and vanilla, had envisaged the export proceedings to the tune of Rs 619.38 crore and the export realisations to the tune of Rs1138.49 crore. To achieve this goal, the investment projected was Rs.52.23 crore. But in reality it received investments only up to Rs.91.04 crore till January 2007.
The AEZ in Maharashtra has realised export proceedings to the tune of Rs 1051.15 crore with actual investments of Rs.365.3 crore against the targeted investment of Rs.270.65 crore till January 2007. "Investment in AEZs meant for premium products like basmati rice is negligible and Darjeeling tea is zero. India is the leading producer of tea, but has only one zone attributed to tea in Darjeeling. It was approved in September 2004 Due to the lack of consensus between the central and the state government, MoU is still awaited," Dhoot said.
According to ASSOCHAM study, there six flower zones in the country, but the exports are not even ten per cent of the estimations.
There is a huge untapped market potential for flowers in international market. Punjab has three AEZs, one each of vegetables, potatoes and basmati rice. So far the Basmati zone has drawn an investment of Rs 5.27 crore against the anticipated figure of Rs 23.30 crore," Dhoot said.