Rajasthan government bets on investment in agriculture-based industries

A subsidy of up to Rs 2.60 crore is being given to farmers for setting up agriculture-based industries in the state, said a senior agriculture department official. The policies of agro-processing, agri-business, and agri-export promotion are yielding positive results in Rajasthan.

The farmers taking subsidies under this policy launched by Chief Minister Ashok Gehlot in 2019 are setting up agro-processing industries, cold storage, pack houses and milk chilling plants.

The official said farmers, taking advantage of subsidies, are setting up processing units near their fields and adding value to their produce. Additionally, employment is being generated for unskilled, semi-skilled, and skilled labourers,” he said.

Rajasthan now is becoming a centre for processed agro products and exports, the official claimed. Till now, more than Rs 2,589.21 crore has been invested in the state due to which new employment has been created and the gross domestic product has also increased.

Agriculture and Horticulture Department Secretary Prithvi said that in this scheme, farmers or their organisations are being given a subsidy of 75 per cent of the cost or a maximum of up to Rs 1.50 crore for setting up a new agro-processing industry with a capital investment of up to Rs 5 crore.

Prithvi said the farmers were being given a subsidy on the interest on loans taken – at the rate of 6 per cent with a maximum of Rs 1 crore.

The state government has also made a provision of additional incentives to run their businesses and to increase the acceptability of their products in the international market.

Incentives include setting up of solar plants, and a subsidy of Rs 10 lakh. Along with this, a maximum up to Rs 2 lakh per annum is being given for the patenting and registration of design. For quality certification, a subsidy of Rs 2 lakh per certification is being given.

Farmers are also being given a freight subsidy of up to Rs 10 lakh for 3 years for the export of fruits, vegetables, and flowers.

Prithvi said that under this policy, so far, 1,103 units have been given a subsidy of Rs 399.87 crore. An investment of Rs 2,589.21 crore has been made.

A farmer, Harishit, of Jaipur district has set up a groundnut processing unit and he also received a subsidy of Rs 50 lakh. He is selling his products in India, Bangladesh, Nepal, Afghanistan, and Sri Lanka and his turnover has touched over Rs 45 crore.