Rajasthan State Agricultural Marketing Board, Jaipur Policy for Promotion of Agro-Processing Industries and Agri-Business, 2010 Rajasthan State Agricultural Marketing Board, Jaipur

Rajasthan  An Introduction Largest State in the Country, 10% of India’s geographical area, 5% of its population, 13.2% of its arable area Diverse agro-climatic conditions in the State permit growing of large variety of crops Second largest producer of oil seeds and coarse cereals Fourth largest producer of pulses Sixth largest producer of foodgrains Fourth largest producer of spices. 50% of Country’s coriander, 85% of fenugreek, 15% of Cumin, 12% of garlic production Largest producer of commercial guar gum seed, 95% of Country’s production Around 300,000 sq. meter area under protected/controlled cultivation where cultivation of vegetables, floriculture is being taken up Second largest producer of milk

Rajasthan  An Introduction State has a well developed network of KUMSs. There is scope for more markets as the area served per Mandi is over 50,000 Ha. against 37,000 in MP and 26,000 in Gujarat Over 100 cold storages with a capacity of over 3.5 lakh tonnes. 75% of the cold storages are multi purpose. Most of these in Jaipur, Jodhpur and Bharatpur Agro processing still in the nascent stage. Over 13,000 industries in agro-processing, mostly small scale, with investment of Rs. 1000 crore Abundance of land offers opportunities for agricultural and agri- business activities Lies in the corridor connecting Delhi & National Capital Region in North with Mumbai and Gujarat in the West, two of the largest markets in India. Delhi Mumbai Industrial Corridor to stimulate industrial growth Vast geographical area with close proximity to large and rapidly growing markets of NCR offer attractive business opportunities

Main Features of the Policy Aims at value addition in agriculture, increasing income in the hands of producers, providing better quality products at reasonable price to consumers and attracting investments in agro-processing and agri-businesses Incentives available for the industries/businesses listed in Annexure. State Government can add/amend the list Benefits under the Policy available not only to agro-processing industries but also to agri-businesses Agro-processing would require change in product classification at 6 digit level and value addition of at least 30% Besides fiscal incentives policy addresses procedural bottlenecks, encourages competitiveness and infrastructure development Policy to be reviewed after 5 years in 2015

Fiscal Initiatives Eligible units entitles to all benefits under the Rajasthan Investment Promotion Scheme Capital Subsidy in the form of interest subsidy and wage employment subsidy Concession on stamp duty, electricity duty, Mandi fee, land conversion charges Policy offers additional fiscal incentives, in addition to incentives under ongoing schemes Incentive for creating new employment @ Rs. 6,000/8,000 for each completed year for new employees for 3 years, subject to, along with incentives under RIPS, a maximum of VAT/CST paid

Fiscal Initiatives Agro-processing and agri-business enterprises to be eligible for 50% concession on stamp duty. Food parks to be eligible for 50% concession on stamp duty on the first transfer of land/space after development Agro-processing enterprises to be eligible for 50% concession on electricity duty Cold chain, including cold storages, to be treated at par with agro- industries for the purpose of tariff and electricity duty

'Early Bird' Projects Projects with investment of Rs. 25 crore and above which commence commercial production by 31.3.2012 were entitled to higher level of incentives: Now proposed to extend till 31.3.2013. Notification under process. 100% exemption on stamp duty 100% exemption on electricity duty 100% exemption from Mandi fee 100% exemption from land conversion charges Higher incentive for creating new employment @ Rs. 7,000 per new employee for each completed year for 3 years in stead of Rs. 6,000 @ Rs. 9,000 per new employee for each completed year for 3 years instead of Rs. 8,000 for women, SC and ST employees

Land Conversion Simplified Policy focuses on addressing the delays in land related issues, viz., land conversion, allotment Power to convert land for setting up units under the Policy delegated to district level District Collectors authorised to convert land above 10 hectares, Sub Divisional officers authorised to convert land up to 10 hectares Agri-business activities where the area under non-agricultural activities does not exceed 5% of the total area will be treated as agricultural use and no conversion for non-agricultural purpose will be required State Government will exempt from Ceiling Act procurement of agriculture land beyond ceiling limits Government to notify agro-processing zones where land conversion to be automatic on deposit of requisite fee and title documents

Allotment of Government Land Projects which bring in new technologies/processes to the State will be eligible for allotment of Government land on lease @ 10% of the reserve rate per annum Government land can be allotted on 30 year lease for captive production and consumption for projects with investment of Rs. 50 crore and above. Panchayat to get 25% of lease amount for panchayat lands 25% concession in reserve rate for setting up industries using agri- produce from the same Mandi. 50% concession in special Mandis Government amended the Rajasthan Tenancy Act to permit leasing of private land for 15 years, extendable by another 15 years Rules for allotment of Government of land for agro-processing and agri-businesses has been framed.

Human Resource Development Government to allot up to 5 acres of land at institutional reserve rate in urban areas and up to 10 acres of land at the district level committee rates in rural areas for setting up academic and training institutions More land can be allotted in case regulatory norms require more land with such institutions Assistance @ Rs. 750 per trainee per month, subject to a maximum of Rs. 25 lakh per year, for 3 years to institutions recognized/affiliated with respective regulatory body or approved by the State Government State to encourage Universities to introduce courses in agro- processing and agri-businesses

Market Development & Diversification Subsidy @ 50% of cost of sending samples abroad for test marketing, subject to a maximum of Rs. 50,000 per beneficiary and for one sample to one country. Subsidy of Rs. 3.50 per kg or 20% of FOB value, whichever is less, for 3 years for export of fruits and vegetables from the State, subject to a maximum of Rs. 10 lakh per year Subsidy of 25% of rail freight on organges, kinnow or other horticulture products to be notified by the State for 3 years for marketing of the produce in the country, subject to a maximum of Rs. 10 lakh per year and distance of 500 km and above

Market Development & Diversification Retail marketers of processed food and/or fresh fruits and vegetables to be eligible for incentives under the Rajasthan Investment promotion Scheme, provided the share of these produce in the total turn over is at least 80% No restrictions on purchase of agriculture and horticulture products produced in the State by agro-processing industries. Such purchases to be exempted from payment of Mandi fee No restrictions in terms of area of purchase of produce under contract farming State to support participation in National and International trade fairs

Agri Marketing Reforms Contract farming allowed through amendment in the Agriculture produce Markets Act, 1961 Agreement to be registered with the Market Committee Direct purchase of agriculture produce has been allowed for processing, exports , trade, grading packing and value addition Private Mandis allowed through addition of section 5A and 5B in the Act Single License to operate in more than one market (Section 14A) E-market: Licenses granted to National Spot Exchange and National Commodity and Derivatives Exchange Ltd. (NCDEX)

Promoting Quality & Competitiveness State to promote quality improvement and competitiveness enhancement Assistance of 3 times the prescribed fee, subject to a maximum of Rs. 1 lakh, for registering Patents and Designs Assistance of 2 times the prescribed fee, subject to a maximum of Rs. 1 lakh, for getting internationally accepted quality/environmental certification, viz., OHSAS, SA8000, ISO 14001, ISP 9000 Sponsored research in association with reputed research institutions to be eligible for 50% subsidy, subject to a maximum of Rs. 20 lakh State to support internationally recognised quality testing and certification laboratory through concessional allotment of land at suitable places or Mandi yards. Agro and food processing enterprises eligible for assistance from Rajasthan Venture Capital Fund.

Supporting Infrastructure Development Common infrastructure projects in the area of agro-processing and agri-businesses to be eligible for allotment of Government land Centres of Excellence, Crop Development Institutes, Food parks, etc., eligible for allotment of Government land State to accord priority to road links to agro-processing clusters and agro-processing units State to encourage setting up of private Mandi yards. Private Mandi Yards to be given 20% of the Mandi fee collected for maintenance Government to encourage setting up of oil, seed and soil testing laboratories, weigh bridges in the Mani yards under revenue sharing model where land would be given free of cost Land/space on concessional rates in Mandi Yards to retail chains specializing in selling products used directly of indirectly in agricultural activities.

Implementation Mechanism Empowered Committees at State and District level to approve the incentives under the Policy District Level Sanctioning Committee under District Collector for Small and Medium Enterprises State Level Empowered Committee for other enterprises Department of Agriculture in the State Government is the Nodal Department Rajasthan State Agricultural Marketing Board is the Nodal Agency Post Harvest Management Cell in the RSAMB dealing with the subject General Manager looking after the activities Contact +91 141 222 7824 For more details, please visit www.rsamb.rajasthan.gov.in Contact us: rsamb@rajasthan.gov.in

Impact of Policy Land Allottments to Entrepreneurs : 34 ( in 11 Mandis) Total Land allotted : 46480.33 Sq.meter Proposed Investment : 96.60 crores Expected employment : 4892 persons

THE END