Apeda pares agri export growth target by 6%

Agricultural & Processed Food Products Export Development Authority (Apeda) has scaled down the export growth target for agri-products to 15 per cent for the year 2006-07 from 21 per cent last year, a reduction of 6 per cent.

The cut in expected growth rate was primarily due to ban on exports of pulses, which contributed Rs 800-1,000 crore last year, Apeda Chairman K S Money said.

In 2005-06, exports of agri-products grew 21 per cent to $4,384 million, 70 per cent of which comprised Apeda-scheduled items while the remaining 30 per cent non-scheduled items.

The export development body has over 500 commodities under 15 product groups as its scheduled items. Major non-scheduled items include basmati rice and wheat.

"Among the non-schedules item, wheat used to be a major export item, whose share was around 14 per cent. Now, that we are importing wheat, its contribution in the export kitty would be nil," he said.

While the scheduled items rose around 38 per cent last year, they were expected to grow 20-25 per cent this year. The non-scheduled items, however, would see a decline in growth, the chairman said.

Meanwhile, Apeda has been moving on a fast track to develop the necessary infrastructure for providing support to the export of agri-products.

It is in the process of setting up four centres for perishable cargo "� in Cochin, Amritsar, Ahmedabad and Kolkata "� in addition to the six existing units in Bangalore, Chennai, Delhi, Mumbai, Thiruvananthapuram and Pune.

"The four new centres are likely to be commissioned by the end of the next year," he said.

The organisation, at the same time, is mooting the idea of setting up a cold storage "� 'walk in cold storage' "� at all major airports in the north-eastern states.

"We already have similar arrangements in Assam at the Guwahati airport. We will be extending it to all other airports in the remaining major states of the region. The cost would be around Rs 20-25 lakh for each cold storage," Money added.

Besides, Apeda is in the process of setting up a world-class wholesale market and four auction centres in Kolkata, Bangalore, Mumbai and Noida.

"The physical construction of the Bangalore and Mumbai auction centres will be ready in three months, the other two centres will be set up in a year," the Apeda chief said.

While the Bangalore and Mumbai centres would involve a cost of around Rs 13 crore each, Rs 10 crore had already been sanctioned for the Kolkata centre from the Assistance to States for Developing Export Infrastructure and Allied Activities scheme, Money said.

"The target sanction under our five schemes "� a mix of grant and subsidy set at Rs 78 crore for 2006-07 "� is likely to be surpassed," he said.

In 2005-06, Apeda sanctioned financial assistance of Rs 58 crore compared with the previous year figure of Rs 45 crore, Money added.