The Hindu Business Line : Sikkim bets big on floriculture, horticulture

SIKKIM CALLING: Mr G. M. Gurung, Sikkim Minister for Education, at an exhibition in Dimapur inviting entrepreneurs to the north-eastern States to invest in horticulture, floriculture and meat processing. — Kamal Narang

Kohima/ Dimapur , March 29

Marketing Sikkim as the most secure State in the North-East, the State is betting big on floriculture and horticulture apart from meat processing.

"Several companies have approached us during the past few days for setting up food processing and horticulture units. Moreover, we have also received proposal from an investor for setting up a meat processing unit," said Mr G.M. Gurung, Minister of Education, in an interaction with the media in Kohima.

"We are providing fiscal incentives that include exemptions in Income Tax. We are also charging nominal rates for electricity for industrial users here," he said. The State charges one rupee per unit of electricity from the industrial users where as the charges for the household consumers is Rs 1.70 per unit.

Power potential

He said the State has enough power to support the industry. NHPC is already generating 510 MW and is putting up a new unit of 230 MW. "We have a potential to generate 8,000 MW," he added.

"We are inviting investors to Sikkim and will provide them land on lease over and above other incentives. We don't have an Agricultural Marketing Produce Act (APMC) in the State thus making it easy for contract farming sector to operate by sourcing their raw material directly from the farmers," said Mr Gurung, stressing that trade through Nathula Pass is starting soon and though surrounding by three international countries, Sikkim will be the door for South Asian countries for export of horticultural produce. So, it is the best destination for investors in the region.

Problem

However, he admitted that marketing is a problem and added the State is trying to put in place a good marketing infrastructure through public private partnership.

Later, Mr K.K. Singh, Director, Horticulture-Sikkim, said at a pavilion put up by the Sikkim Government in the Agri Expo 2006 at Dimapur: "Floriculture is coming up in a big way in Sikkim. Companies such as the Chennai-based Natson Flora and a local company Manam Garden are marketing the high value flower (orchid variety) cymbidium in the domestic market." Cymbidium is a high altitude flower and grows above 4,500 feet but Sikkim has the natural climate for this flower.

Cluster approach

The State is using a cluster approach for the floriculture production because for creating marketing infrastructure, it requires bulk volumes.

In a village Assam Linge, 27 farmers have taken up cymbidium farming with each putting in about 400 sq metre plot under cultivation with an investment of about Rs 4-5 lakh each. This a joint venture where Governmnet is providing financial assistance and Natson Flora is providing planting material and technology to the farmers.

In order to help improve the market for this flower and other horticulture produce, APEDA has in principle agreed to finance setting up of two packaging houses, with cold chain and reefer vans.

Sikkim has potential for cultivation of passion fruit, good quality oranges, large cardamom and ginger.

"We are encouraging farmers to diversify into the horticulture crops from traditional farming and this trend," said Mr Singh.

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