Government Permits 5 Private Firm For Cluster Farming On 50,000 Ha With Rs 750 Cr Investment

On a pilot basis, the Indian government has granted permission to five private firms to engage in cluster farming of specific horticulture crops on approximately 50,000 hectares. The total investment of Rs 750 crore, including government subsidy, aims to enhance the competitiveness of Indian produce in the global market and increase farmers' earnings.

After a rigorous bidding process, Desai Agrifoods, FIL Industries, Sahyadri Farms, Meghalaya Basin Management Agency, and Prasad Seeds were chosen for the pilot cluster farming project.

The newly launched central scheme Cluster Development Programme (CDP) will be implemented by the National Horticulture Board, with an outlay of Rs 2,200 crore, and the government will provide financial assistance of up to Rs 100 crore, depending on the size of the project.

During an interview with PTI, Priya Ranjan, the Joint Secretary in the Agriculture Ministry, stated that the cluster-based approach has been remarkably successful worldwide. In a first-of-its-kind move, the Indian government is now promoting the market-driven development of complete value chains for specific horticultural crops by providing financial aid.

According to a statement, the five companies involved in the project are spread over an area of nearly 50,000 hectares and encompass approximately 55,000 farmers. The investment for these clusters amounts to approximately Rs 750 crores.

For example, Desai Agrifoods intends to create a 'banana cluster' project worth Rs 103 crore in Ananthapura, Andhra Pradesh. Similarly, Sahyadri Farms plans to establish a 'grapes cluster' project valued at Rs 205 crore in Nasik, Maharashtra. Finally, Meghalaya Basin Management Agency aims to develop a 'turmeric cluster' project worth Rs 52 crore in West Jaintia hills.

FIL Industries has announced its plans to develop an 'apple cluster' in Shopian, Jammu, and Kashmir, while Prasad Seeds will focus on creating a 'mango cluster' in Mahabubnagar, Telangana.

These companies will mainly concentrate on cultivating banana, apple, grapes, turmeric, and mango crops. The project is expected to take four years to complete and become operational.

The government has identified 55 clusters across the country, each specializing in a particular crop. The initial phase will consist of 12 clusters with a pilot program for seven different crops.

According to the CDP, financial aid will be provided to mini, mid, and mega clusters with sizes over 5,000, between 5,000-10,000, and over 15,000 hectares, respectively. The funding limit for mini clusters is up to Rs 25 crore, for mid clusters it is up to Rs 50 crore, and for mega clusters, it is up to Rs 100 crore.

To execute cluster farming, different verticals such as pre-production and production, post-harvest management and value addition, and logistics, marketing, and branding will be assigned to implementing agencies via a competitive bidding process.

Aside from private companies, a range of entities including farmer producer organizations (FPOs), farmer producer companies (FPCs), cooperatives, societies, partnership and proprietorship firms, as well as state agriculture and marketing boards and other public sector organizations are eligible to be implementing agencies for the distribution of clean and high-quality planting material to farmers. The primary goal of the Distribution of Certified Planting Material (DCP) initiative is to make it easier for farmers to obtain such materials, which will improve the quality of their crops and allow them to benefit from exporting their produce to international markets. By aligning crop production with global standards, this objective can be achieved.

-PTI

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