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Bengal panel moots agro-industry promotion policy

Our Bureau

CALCUTTA, May 28

THE task force on the agro-industries sector, set up by the West Bengal Government, has suggested a clutch of measures to boost exports. It has stressed the need for an integrated agro-industry promotion policy.

Noting that under the WTO regime, the subsidies which are supporting the European growers are expected to be reduced, it has opined that agro-industries offer an opportunity for West Bengal, which has the ``singular advantage of five agro-climatic region s''. West Bengal has scope to tap the markets in South-East Asia and Japan.

West Bengal produces most of the fruit varieties, barring apples and grapes. In vegetables too, the range is wide while in spices, barring small cardamom, all others are grown in the State.

The task force, which comprised the Government functionaries and was headed by the chief secretary, has suggested the setting up of a cabinet committee for taking policy decisions regarding promotion of agro-industries.

The report regrets that although the State has reached a stage where farm production generates marketable surplus for processing and value-addition, poor infrastructure and funds shortage are responsible for the tardy growth of agro-industries. The task force, which submitted its report recently to the State Government, is among the six such panels set up as a follow-up action after the `Destination West Bengal' meet at Raichak in South 24 Parganas district in January 1999.

The panel has emphasised the need for formulation of an export strategy which lays adequate stress on the development of the agro-processing sector. It sees scope for a short-term plan focussing on mango, pineaple and tobacco.

Mooting the idea of creating special purpose vehicles for involving the private sector in agro-industry, the report has pointed out that investment is needed not only for setting up the units but also for infrastructure such as irrigation and rural roads .

The integrated policy that the State Government has to formulate should address the entire gamut of issues relating to land, technology, farm management, infrastructure, cold chains, funds, manpower and marketing.

The recommendations include making degraded land available for agro-industry, relaxing the land holding ceiling, and approaching the Centre for creating adequate cold storage facilities at the States' sea and airports, and also at the Petrapole border ne ar Bangladesh. It has pointed out that as per an assessment done in 1997-98, the State has 1,60,271 hectares of cultivable waste land.

The State Government should also move the Centre for increasing the air freight subsidy while introducing an ocean freight subsidy. Regarding improving funds flow to the agro-industry sector, it has favoured promotion of venture capital funds. The West B engal Industrial Development Corporation and Food Processing Industries and Horticulture Department should initiate discussions in this regard with financial institutions. The loan application and documentation procedure should be simplified.