Fdi Fell 16% In Agro Sectors During 2000

Foreign direct investment (FDI) in agro-based industries has declined by 16 per cent to Rs 125 crore in 2000 from Rs 149 crore in the previous year, despite special incentives and modernisation plans announced by the government.

According to a study conducted by the Associated Chambers of Commerce and Industry of India (Assocham), Maharashtra could attract FDI of barely Rs 80 lakh last year in comparison to Rs 35.29 crore in 1999.

While FDI in Kerala's agro-based industries was Rs 29.55 crore in 1999, the state drew a blank in 2000, a chamber statement said here today.

West Bengal, Himachal Pradesh and Tamil Nadu too were unable to attract any FDI in 2000 against Rs 17.83 crore, Rs 9.98 crore and Rs 5.99 crore in 1999. States like Uttar Pradesh failed miserably in attracting even one project.

 

While three agro-based industries in Gujarat cornered Rs 13.95 crore in 1999 but in 2000 two industries could barely manage to attract Rs five lakh. Karnataka received Rs 1.28 crore in comparison to Rs 10.52 crore in 1999.

The study pointed out that Andhra Pradesh secured the largest amount of FDI of Rs 109.45 crore last year compared with Rs 9.49 crore in the previous year.

The study said that while overall market for value-added foods increased from $21.4 billion in 1997 to $62.5 billion by 2005, the sector was still underperforming in comparison to the other developed countries.

Stating that the country had the potential to be a dominant player in the international food market, the study observed that the opportunity to supply basi foods will be worth more than $40 billion in this decade.

It said that there was a need for facilitating backward and forward linkages between agricultural producers and industry to encourage captive farming and FDI could play an important role in achieving the target.