Gujarat farmers await agri-policy

The farmers and agro-industrialists of Gujarat are awaiting the comprehensive agriculture policy promised by the state. The policy was to be announced by mid-December 2006.

Later on, the state government had promised to announce the policy by January-February 2007 but the announcement has not come yet.

Now the government claims the comprehensive Agri-Policy is under consideration. However, the sources in the department say the drafting process of the policy started a long time ago.

The comprehensive agri-policy was promised last year by the state government and it was to cover everything required to boost agriculture and the agro-industry in the state. The Ministry of Agriculture and Co-operation had promised last year that the policy will be announced in January or February.

However, the policy is yet to be announced. It was believed the policy will be announced in the budget session in March this year. However, instead of that the government brought an amendment in the APMC Act.

At present the fate of the policy is unclear as the government says the policy is still under consideration and it is not clear when the policy will be announced.

Talking to Business Standard, Bhupendrasinh Chudasama, the Minister of Agriculture and Co-operation, Gujarat, said, "We are thinking over the policy and discussions are on between the Department of Agriculture and the Ministry of Agriculture and Co-operation. The policy is under consideration." He did not give a reason for the delay.

On the other side, some sources in the department of agriculture and co-operation say the process of drafting the policy has already commenced but they did not know what is causing the delay in the announcement.

One official also said that it is too late for the government to announce the policy as the state Legislative Assembly session is over and elections are due in December.

The government may choose to announce the policy ahead of the Assembly elections as the farmers of the state are unhappy with the recent government drive to curb power theft and raids across the state on farms. This may help the help the ruling party appease the aggrieved farmers ahead of the Assembly polls.

Sources in the department claim the policy will bring more benefits to the farmers and agro-industry. They say the government has planned benefits for farmers who go in for contract farming and for companies willing to set up food processing plants and agricultural infrastructure.

The government's focus is on value addition. It is believed the policy might bring in public-private partnership (PPP) model in the state agricultural sector for the first time.

The PPP model is emphasised for developing critical infrastructure in the state. The government will allow private players to participate in development and maintenance of infrastructure.

The government has already brought some changes in the agri-sector by changing the Gujarat Agricultural Produce Market Act -1964 in March this year. The new Gujarat Agricultural Produce Markets (Amendment) Act 2007 has amended a number of sections.

Main feature of the amendment was that the government opened the doors for agro processors, private markets, corporate players and exporters to directly deal with farmers.

The government allowed direct access to farmer's produce through contract farming by agro processors and exporters, and value-addition centres.

The amendment also removed the intermediaries in agriculture trade and provided the much-needed competition in the agriculture market.