MP's Babai farm not to be sold or leased

There is bad news for corporate houses eyeing the 3,200-acre state-owned Babai farm.

The MP government has dropped the idea of selling or even leasing it; instead, private firms will be allowed to enter into joint production management with the government.

Reliance Industries, FieldFresh Foods Pvt Ltd (a joint venture of Bharti Enterprises Ltd and UK-based ELRo Holdings India Ltd), and a Canadian company Spaceage Advanced Technology Ltd (SATL) had evinced interest in the farm.

Although details are yet to be worked out for the new joint production arrangement, "the corporate leasing of state-owned farms will not be allowed in the new agriculture policy. Instead we will go for joint production arrangements with corporate houses for the farm. The idea is to give maximum benefit to the farmers," a senior government official said Business Standard, adding, "we will add value to the farm products."

Talks on corporate leasing have reached a critical stage. Later succumbing to pressure from local people and employees of the Madhya Pradesh State Industrial Development Corporation, the nodal agency of the farm, the MP government decided to float global tenders for a joint venture with corporate houses by creating a cooperative body of local people, employees and government representatives, which can run businesses like horticulture, milk production, etc.

Last year, the MP government said the concept of farm leasing to corporate houses was dropped. The fully irrigated farm grows horticulture products like mango, papaya, and other fruit and vegetables.

However, the MP State Agro Industries Development Corporation (MP Agro) showed loss in the farm business.

The National Bank for Rural and Agriculture Development (Nabard) has been given the task to assess the value of the farm. But local people and employees of the MP Agro protested against selling of farm.