The Hindu Business Line : Apeda plans to outsource some core activities

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New Delhi Feb 11 The Agricultural and Processed Food Products Export Development Authority (Apeda) has decided to restructure the organisation on the basis of focus products and markets, and is mulling options such as outsourcing some core activities, facilitating an integrated supply chain and revamping agri export zones.

Official sources told Business Line that in a recent presentation made to the Commerce Secretary's Review of Activities of Apeda, the authority said that the major constraints are inadequate manpower to manage the large number of products in its portfolio (numbering 544) and insufficient funds, given the scope and scale of activities.

The sources also said that Apeda proposes to prune transaction costs and improve competitiveness through reduction in freight/logistics costs, building logistics corridors and extending incentives for aggregation.

Alongside, there would be simplification of procedures and setting up of market facilitation centres, besides going direct to retail.

Processing of financial assistance claims under various schemes consumes a great deal of time, leaving little time and limited number of officers for focus on strategic and developmental functions.

Therefore, the authority proposes to outsource this area, so that room for rent-seeking activity by officials is reduced and the beneficiaries of various schemes get financial assistance in time.

Other activities likely to be outsourced include transfer of Residue Monitoring Plans products such as eggs, honey, grapes, groundnuts to Export Inspection Council/AGMARK and providing recognition to laboratories, besides engaging subject matter specialists on consultancy basis.

In the focus products, it is proposed to pay more attention to mango and pomegranates under fruits, onion under vegetables, honey and poultry products under livestock, frozen/ready-to-eat products, floriculture and organic products.

More effort would go into promotion of agro and processed products in the overseas markets.

The sources said that in order to achieve its restructuring plan and programmes, Apeda has sought approval of modifications in schemes, relaxation under market development assistance and flexibility in decisions on market promotions under Plan schemes, allocation of budget for non-Plan expenditure and consistent policy for export for wheat, pulses, onion and skimmed milk powder.

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