Babai farm to be privatised, bigger pvt role in agri sector

Decks have been cleared for the privatisation of the state-owned Babai agriculture farm. Private companies are now allowed to manage loss-making state-owned agri-farms and nurseries.

The private sector will also be allowed to operate state-owned tissue culture labs.

The agri-farms and nurseries will now be available for corporate houses, with certain limitations.

In a Cabinet decision, the ruling Bhartiya Janata Party government today decided that corporate houses would be allowed to enter into contracts for a minimum period of three years to a maximum period of seven years for managing loss-making agri-farms.

These agri-farms are owned by state agencies, namely, the Madhya Pradesh State Seed and Farm Development Corporation, Agro Industries Development Corporation and Department of Agriculture.

"Private investors, seed companies and seed cooperative bodies will be allowed to participate in the contracts. Terms and conditions for these contracts will be ascertained at a later stage and tenders will be floated after roping in competent institutions," a government spokesperson said.

The existing staff of the farms and nurseries will be re-deployed in seed development and processing. Seed certification agencies would be provided with the staff to develop processes for seed certification, said the spokesperson.

A sub-committee has also been formed for the purpose. A technically sound institution or consultant will be roped in to assist the agriculture department for the execution of contractual management. The Project Implementation and Clearance Board will clear the final proposal.

The MP Seed Development Corporation owns 43 agriculture farms while the MP Agro Industries Development Corporation owns the Babai farms sprawling over an area of 3,200 acres.

Reliance, FieldFresh Foods Pvt Ltd, a company jointly floated by Bharti Enterprises Ltd and UK-based ELRo Holdings India Ltd, and a Canadian company Spaceage Advanced Technology Ltd (SATL) had shown interest in the farm.

The Seed Corporation has 3,283 hectares of irrigated arable land. It produces seeds of soyabean, wheat and gram.

Despite the existing business of the corporation touching Rs 70 crore, then also most of the farms are incurring losses.