Agri export body to rope in private firms

Karnataka State Agricultural Produce Processing and Export Corporation Limited (Kappec), the state-owned enterprise engaged in the promotion of exports of agricultural and horticultural produce, has received encouraging response from the private sector for its proposal to set up modern cold chain facility in the state. As many as 12 private companies have submitted their expression of interest (EoI) to develop a cold chain for various agricultural commodities in different parts of the state.

In December 2008, Kappec had advertised for submission of investment proposals from the private sector on public private partnership (PPP) model for creation of cold chain facility consisting of pack house, pre cooling unit and cold storages for the export of grapes, pomegranates at Bagalkot and Athani, cold chain with pack house, pre cooling unit for handling vegetables at Chikkaballapur.

It had also sought investment for setting up cold chain cum processing plant for mango and other horticulture produce at Hubli-Dharwad and vanilla in Shimoga, Dakshina Kannada, Uttara Kannada and Chickmagalur districts.

K J Devendrappa, managing director, Kappec, said, “We have decided to adopt PPP model to expand the infrastructure required for storage, processing and creating value addition for various agricultural and horticultural produce in the state. We have already seen success under PPP model in Hubli for mango processing. We want to replicate that model in other parts of the state for various other commodities.”

So far, the corporation has received proposals for creation of cold chain and processing unit for Alphanso mangoes at Dharwad, vanilla at Sirsi in Uttara Kannada, tomatoes and mangoes in Kolar, maize in Davanagere, Chitradurga and Tumkur, grapes in Belgaum, pomegranates in Bagalkot.

State Trading Corporation (STC), the Central government undertaking has shown interest in setting up cold chain and processing facility for maize and coffee in Chikmagalur, he told Business Standard.

However, the exact amount of investment being made by these companies is not known. “We have asked all the applicants to submit their detailed project report indicating the amount of investment they will be making in the state in the next few days and based on their reports we will go the state government for their final approval to set up joint ventures with these companies”, Devendrappa said.

It is estimated that a standard cold chain facility with about 200 tonne capacity cold storage and 300 tonne bulk storage unit will involve an investment of about Rs 10 crore. Kappec will take between 26 per cent and 49 per cent equity stake in the new joint ventures in the form of land, building and machinery, while the majority will be with the investing companies. , he said.

In 2007-08, Karnataka exported agricultural products worth Rs 3,760 crore, about 7 per cent of the country’s total agriculture exports. Major commodities exported were coffee, silk, cashewnut and spices which together constitute 87 per cent of the state’s total exports.

While the vegetables, fruits and flowers account for the remaining 13 per cent.