The Hindu Business Line : 12 more agri-export zones to come up

TWELVE more agri export processing zones (AEZs) are to be set up in different States and they are likely to start functioning by the next financial year, Mr K.S. Money, Chairman, Agricultural and Processed Food Products Export Development Authority (APEDA), has said.

He was speaking at a press meet here on Thursday after participating in the inaugural session of the two-day national seminar on agri export processing zones, jointly organised by the Geetam Institute of Foreign Trade (GIFT) and the Vizagapatam Chamber of Commerce and Industries.

Mr Money said that at present there were 48 AEZs in the country and recently 12 more had been sanctioned. "The modalities would have to be worked out and the MoUs would have to be signed with the State Governments concerned. We expect them to become operational by the next financial year,'' he said.

He said in fact, there were requests pending from various States for setting up more AEZs, "but we have decided to focus more on the existing ones. One too many will defeat the purpose".

He said not all the existing ones were functioning satisfactorily and the Union Commerce Ministry was planning to conduct an evaluation study.

The exports from the AEZs had amounted to Rs 1,981 crore during 2003-2004, he said and added that the projected exports during the next four to five years were of the order of over Rs 10,000 crore. "It is a very ambitious target. We have to strive hard to achieve it," he said.

Mr Money said the total agricultural exports from the country had increased to Rs 33,000 crore (2003-2004) from a level of Rs 25,000 crore during 1998-99. "But, on the whole, our percentage of exports in the production base is insignificant. So is our share in the world trade. We must at least achieve 1.5 per cent of the global trade volume as envisaged by the Union Commerce Ministry," he said.

He said the APEDA had invested Rs 230 crore in the existing AEZs and the private investment was roughly of the order of Rs 800-1,000 crore.