Big industries were unlikely to invest in West Bengal, unless the state amended archaic laws like Agriculture Produce Marketing Committee (APMC), suggested Subodh Kant Sahai, Union minister for food processing industries, to the Bengal government on Thursday.
"The West Bengal government should amend the Agriculture Produce Marketing Committee (APMC) Act, to develop its agriculture sector," said Sahai at a seminar on agriculture, organised by the Indian Chamber of Commerce (ICC), in Kolkata today.
Apprehensive of industrialisation in West Bengal, the Union minister said, "Tata's must make their small car here. This is my vision. However, the agriculture produce of the farmer should have a zero value added tax, like the Nano car," said Sahai.
While West Bengal had a "wonderful chief minister", the state lacked long term planning to attract investors, he said.
Also, while politicians invited industrialists to set up industries in their ruling states, when they come, states have little to offer, the minister remarked.
"West Bengal should create an industry-friendly policy for the benefit of farmers, industries and consumers," he said.
Speaking on the occasion, Goutam Sanyal, joint secretary, ministry of food processing industries, said the growth of the food processing sector increased from 7 per cent in 2002-03 to about 13.4 per cent in 2006-07.
The growth of investment in food processing in industrial units increased from Rs 30,000 crore in 2002-03 to about Rs 40,000 crore in 2006-07.
Sahai sought zero per cent VAT for processed food products from West Bengal and emphasised on amendment of the APMC licence.
Amendment of Agriculture Produce Marketing Committee (APMC) Act would pave the way for private capital in the agriculture sector to achieve high growth.
He also cited the example of other states such as Orissa, Bihar and Jharkhand which had amended or scrapped the APMC Act.
"In the horticulture mission we had tried to convince the states that those who have amended the APMC Act will get full assistance in getting money under the mission, but we cannot impose restriction due to this," he said.
