Indian Govt. seeks Private Investments in Agriculture to Remove Infrastructure Blockades

Sept. 28, 2007 - PRLog -- According to the recent market research report “Indian Food and Beverages Forecast (2007-2011)” by RNCOS, presently, India has around 7,2523 regulated agricultural markets and a majority of them are devoid of critical infrastructure. As a result, huge investment is required to build critical agricultural marketing infrastructure. A minimum of around Rs. 12,230 crore is estimated for the regulated markets. The economic conditions in rural India and private sector have no basic infrastructure essential to build up adequate buffer stocks even and also, the country is not free of weather shocks.

So to remove infrastructure blockage, the Indian government is looking to private sector for investments in the agricultural sector by developing transport facilities, cold chains, and warehousing.

As per the news published by My Iris on July 17 2007, Kamal Nath, Commerce and Industry Minister, in his meeting with the parliamentary consultative committee, said that the private sector would support the public investment in agro-expert sector. Nath admitted the major problem faced by the Indian agricultural in general and agro exports in particular is the infrastructure. He further stressed the need to bolster the transportation facilities, cold chain network, and warehousing facilities to minimize the wastage and to ensure the good quality of the products.

Members at the meeting revealed the urgency to establish recognized laboratories in India whose certifications are accepted worldwide for export purpose. In order to handle agro-perishable exports, the Agricultural and Processed Food Products Exports Developments Authority will set up total 12 centers are to be set up in the nation at the cost of Rs. 25 Billion (Rs. 2, 500 crore). The Commerce Minister has also announced to build 6 spice parks across the nation for various spices besides setting up 12 centers to handle the exports of agro-perishables.

According to the statement made by APEDA Chairman KS Money, which was published in RediffNews on July 17, 2007, the centers will be set up in Guwahati, Chandigarh, Agra, Muzzafarpur, Nagpur, Kolkata, Nasik, Dharampuri, Pune and Rai Hyderabad.

In the five-year period from 2000-01 to 2005-06, Agro exports grew at a CAGR 9.4%. In 2005-2006, total agro exports reached more than Rs. 42,360 crore. As per the RNCOS report, spices, marine products, sugar, nuts, and grains account for a major part of the agro exports.

For more information visit:  http://www.rncos.com/Report/IM530.htm
Current Industry News: http://www.rncos.com/blog

# # #

About RNCOS E-Services Pvt Ltd.:

RNCOS, incorporated in the year 2002, is an industry research firm. It has a team of industry experts who analyze data collected from credible sources. They provide industry insights and analysis that helps corporations to take timely and accurate business decision in today's globally competitive environment.

Website: www.rncos.com