Apeda may hand over agri zones to IL&FS

Dissatisfied with the overall performance of 60 agri export zones (AEZs) set up over a period of last seven years, the Agricultural and Processed Food Products Export Development Agency (Apeda) is likely to hand over the development of 5 AEZs to IL&FS. At present, Yes Bank is developing 3 AEZs. Apeda, an agency under the commerce ministry is the nodal agency for these zones.

Of the five zones, two are located in Andhra Pradesh (mango pulp and fresh vegetables, gherkins) while the remaining three are in Maharashtra (onion), Madhya Pradesh (oranges) and Tripura (pineapples). The three zones with which Yes Bank is associated are in Punjab (vegetables), Andhra Pradesh (mangoes) and West Bengal (vegetables).

"We have consulted IL&FS on the development of these zones and have suggested it to look after these zones to attract investment and promote exports from these zones. These AEZs could have yielded excellent results but have failed to do so for a host of reasons," said S Dave, director, Apeda.

The country has 60 AEZs spread across 20 states. The zones are set up in agro-climatic regions that are known for a particular variety of farm produce.

The first was notified in 2001 and the last in 2005. Some prominent AEZs are tea (Darjeeling in West Bengal), chilli (Guntur in Andhra Pradesh), potatoes and basmati rice (parts of Punjab).

According to Apeda, the 60 AEZs sanctioned by the Steering Committee envisaged an investment of Rs 1,718 crore and exports of Rs 11,822 crore over a period of five years. However, what has materialised so far is an investment of Rs 1,050 crore and exports of Rs 10,503 crore.

The main agricultural products exported from India are foodgrains, nuts and seeds, meat, poultry and dairy products, processed foods, tobacco, tea and coffee.