ATM News Network: The central government has given permission to five private companies to carry out cluster farming of certain horticultural crops on an experimental basis on around 50,000 hectares, PTI reported.
About Rs 750 crores will be invested in this project with government subsidy. This decision has been taken by the government to make Indian products globally competitive and boost farmers' incomes.
Among the five companies in the country, Desai Agrifoods, FIL Industries, Sahyadri Farms, Meghalaya Basin Management Agency and Prasad Seeds have been selected through the bidding process.
Under the recently launched Cluster Development Programme, the central government will provide financial assistance of up to Rs 100 crore depending on the size of the project. The scheme is to be implemented by the National Horticulture Board at a cost of Rs 2,200 crore.
Union Agriculture Joint Secretary Priya Ranjan while talking to PTI said that the cluster-based system has achieved unparalleled success across the world. In India, for the first time, the government is encouraging market-led development of the entire value chain of specific horticulture crops by providing financial support.
These five companies are spread over nearly 50,000 hectares, supporting around 55,000 farmers. Around Rs 750 crore has been invested in these clusters, she said.
With this, Rs 103 crore 'Banana Cluster' project of Desai Agrifoods to be developed at Ananthapura in Andhra Pradesh. Sahyadri Farms' Rs 205 crore 'Grape Cluster' project in Nashik, Maharashtra, and Meghalaya Basin Management Agency's Rs 52 crore 'Turmeric Cluster' project will be developed in the West Jaintia Hills, she said.
FIL Industries will develop an 'Apple Cluster' in Shopian, Jammu and Kashmir. Prasad Seeds to develop a 'Mango Cluster' in Mahbubnagar, Telangana.
The companies will focus on key crops like bananas, apples, grapes, turmeric and mango. The project will take four years to complete and commission.
The government aims to develop 55 different clusters identified across the country. There will be 12 clusters with seven focus crops on a pilot basis, each with a specific crop.
Under the CDP, financial assistance of up to Rs 25 crore will be provided for small clusters of more than 5,000 hectares, up to Rs 50 crore for medium clusters of 5,000 to 10,000 hectares and up to Rs 100 crore for large clusters of more than 15,000 hectares.
Organisations implementing cluster farming are selected through a bidding process for different segments of pre-production and production, post-harvest management and value addition, and transportation, marketing and dissemination.
Apart from private companies, Farmer Producer Organisations, Farmer Producer Companies, Federations, Cooperatives, Societies, Partnership Societies, Proprietary Societies, State Agriculture and Marketing Boards and other public sector organisations and implementing bodies are eligible for this project.