The Hindu Business Line : Agri export zones, a partial success

New Delhi, July 16 The Agri Export Zones (AEZs) set up in 2001-02 and numbering 60 spread over in 20 States have so far garnered an investment of Rs 866.40 crore and achieved exports of Rs 5,412.81 crore over the last five years, against an envisaged investment of Rs 1,717.95 crore and exports of Rs 11,821.47 crore.

Sources in the Government told Business Line that the AEZ scheme could be said to be only “a partial success.”

One of the reasons for shortfall in the performance pertains to the lack of any extra special benefit to exporters from AEZs.

A peer evaluation shows that there is no single entrepreneurial agency running an AEZ.

The success of any AEZ depends on co-ordinated efforts of various Central and State Government agencies along with private entrepreneurs.

Following this, it has been resolved to accord priority of funding of projects in the AEZs under Assistance for State Infrastructure Development for Export (ASIDE) of the Department of Commerce, the sources said.

It has also been decided that in the absence of separate funds for AEZs under the ASIDE scheme, the States might spend 15-20 per cent of the ASIDE funds allocated to them on AEZ projects.

Some 29 projects entailing financial support amounting to Rs 97.95 crore are under consideration for funding from the ASIDE scheme, the sources said.

They added that private financial institutions such as Yes Bank and ILFS have also evinced interest in making public-private partnership projects for some of the AEZs.

According to the sources, the Department is extending fillip to build infrastructure and enable export of agri produce under the Plan schemes of the Agricultural and Processed Food Products Export Development Authority (APEDA).

Various schemes being operated by APEDA for development of infrastructure, market development, quality development, R&D and transport assistance would get an enhanced outlay of Rs 750 crore in the 11th Plan (2007-12), against the actual expenditure of Rs 272.20 crore for such schemes during the 10th Plan.

Referring to the technical barriers to trade and stringent sanitary and phytosanitary standards of major importing countries impacting the competitiveness of Indian produce, the sources said that the persistent efforts of the authorities had paid off, with both the US and Japan recently lifting the ban on import of Indian mangoes. However, Japan insists on vapour heat treatment for mangoes before exports, while the US wants irradiation.

“Such diverse treatment to satisfy the requirements of importing countries raises the ultimate price of the produce.”

Efforts are also under way to remove barriers to Indian mangoes in Australia and New Zealand and to gherkins and floriculture products that confront certain barriers in the European Union so as to gain market access for Indian farm produce, they added.