MP agri-export zones grope in the dark

Exporters blame sloppy rules, poor planning

Agri-export zones set up with much fanfare in Madhya Pradesh are yet to take off. Exporters blame sloppy laws, ineffective plans, poor co-ordination and bureaucratic tangles for the situation.

"Probably, the state exported more farm products when agri-export zones were not created," remarked a government official.

The state has set up agri-export zones for onion, garlic, potato, wheat, coriander and fenugreek seed and the government plans new zones for pulses, oranges and few other commodities.

"Not a single onion and garlic dehydration unit has been set up in the Bhopal agri-export zone since its announcement," said the official. On the proposed agri-export zone for orange and pulses, he said there had been no meeting between the AEZ steering committee and the state government officials.

The state neither has developed any mechanism to keep track of exports like that of Punjab government nor have adequate data on exportable commodities. "The MP Export Promotion Council, which is supposed to take initiatives and help exporters, does not have any data on these commodities," he said.

Contract farming is another area that has failed to take off. "A tripartite agreement between the contract farming sponsors, farmers and bankers is needed," said a senior official in of the MP State Agro Industries Development Corporation.

According to sources, seed adulteration is a major problem. Since there was no seed certification agency in the state, we get adulterated seed, sources said.

"We are in talks with private players for the supply of certified seeds in the agri-export zones," KK Tiwari, managing director of MP State Agro Industries Development Corporation Ltd, told Business Standard.

Meanwhile, applications from exporters to seek transport subsidy have piled up in the Apeda's office in Bhopal.

"The transport subsidy offered to export-oriented units (since MP is a landlocked state), is only on processed foods. But there is not a single food processing unit in any agri-export zone," said a government official.

"There is no meaning of offering this kind of facilities, when the government has not made any provisions for them in the agriculture department's budget," said an exporter.

But according to Apeda data, 2,100 tonnes onion, 10,000 tonnes potato and 2000 tonnes coriander, 975 tonnes fenugreek seed, 7,000 tonnes wheat and garlic worth Rs 1.97 crore were exported after the creation of agri-export zones.

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Farming discontent

• The state has set up agri-export zones for onion, garlic, potato, wheat, coriander and fenugreek seed
• New zones for pulses, oranges are on the cards