Agri product centres planned

The Agricultural and Processed Food Products Export Development Authority (Apeda) has identified 12 locations for setting up centres for handling agro-perishables to facilitate the export of farm products. The project will require an investment of Rs 2,500 crore.

The 12 locations that have been identified are Chandigarh, Rai, Muzaffarpur, Agra, Kolkata, Guwahati, Mumbai, Nasik, Pune, Nagpur, Hyderabad and Dharmapuri. The centres are located close to various production areas, said an Apeda official.

However, the allocation of resources for setting up these facilities and a time-frame for their implementation have not been finalised.

"These locations have been identified with the help of ICRA. They will act as logistical hubs with handling, grading and packhousing facilities. The purpose would be to reduce the losses in perishable commodities due to their multiple handling. These centres would be collection points from where the produce will be dispatched for exports," he said.

According to industry estimates, there is a 30-35 per cent loss in perishable commodities owing to multiple-handling and delays in transportation. The reduction in losses would mean better prices for farmers and higher export volumes.

Located close to production centres, packhouses will enhance the shelf life of perishable products.

Agricultural exports have grown at a compounded annual growth rate of 9.4 per cent in the five-year period from 2000-01 to 2005-06, with total agri exports in 2005-06 standing at Rs 42,362 crore.

In the April-February period of 2006-07, agri exports of products monitored by the Apeda stood at Rs 18,181 crore, an increase of 9.28 per cent over the last year's corresponding figure of Rs 16,637 crore.

The main agri commodities that are exported from India include mangoes, grapes, apples, banana, pomegranate, pineapples, citrus fruits, onions, potatoes and other fresh vegetables. The primary markets for these commodities are the US, UK, Dubai, Saudi Arabia, Bangladesh, etc.