Investors shy away from biotech

West Bengal (WB) was rich in bio-diversity, soil fertility and natural resources and has identified agri-business as a prime growth area in view of these perceived advantages.

However, awareness about the huge potential of organically farmed products among farmers and in the industry was low, Nirupam Sen, commerce and industries minister of WB said.

Application of biotechnology was of prime importance as around 94 per cent of the farming community was dominated by small and marginal farmers holding below one hectare land, it was disclosed at a round table discussion on business opportunities for biotechnological application in agro and processed food , horticulture and organic food jointly organised by Indian Chamber of Commerce (ICC) and WB State Council of Biotechnology (WBSCB).

Sadly, private sector participation in the sector was negligible in the state in comparison to the country wise figures available for fiscal 2003-04.

Sen said this was because of the communication gap between academic institutions involved in research and development (R&D) and the industry.

"There is a serious dearth of private participation in this sector which has immense potential. Lack of private participation is creating a gap between the researcher and the actual market demand. In fact, most of the researched output is yet to see light of the actual market", he added.

Growth in biotechnology has been strong in states like Karnataka, Andhra Pradesh, Kerala and Maharashtra. Biotechnology could offer opportunities for fresh investment of Rs 7-8 billion over the next five years.

M Siddiqui, director of Kolkata's Bose Institute, urged the state government to provide fiscal incentives related to sales tax and human resource and development (HRD) costs to encourage private participation in this sector.

"Other states have progressed immensely through public-private-participation (PPP) model and that is the need of the hour. Without private initiative in promoting as well as in R&D ,desired result cannot be achieved", he added.