In a objective to promote agro-processing industries and agri-marketing activities in Rajasthan, the State government today launched ‘Rajasthan Agro-Processing and Agri-Marketing Promotion Policy, 2015 with various financial incentives and other facilities to help farmers get competitive prices for their agricultural produce.
Launched by the State chief minister Vasundhara Raje, the policy will enable establishment of agro-processing industries in the State. Under the policy, Rajasthan Government has provided various financial incentives and has simplified the procedures. This policy is likely to generate significant employment.
Main objectives of the policy are to promote agro-processing and to reduce post-harvest losses at the farm-gate thus to ensure maximum prices of farmer’s agri produce.
Under the policy, two different provisions have been made. Rajasthan Agro-Processing and Agri-Marketing have been included as part of the Rajasthan Investment Promotion Scheme (RIPS), 2014 as thrust sector along with tourism, textile, energy among others, to provide higher incentives than normal provisions available in RIPS 2014 to these sectors. Additional incentives like provisions of subsidy for product patent, product registration, quality certification, sending samples abroad, project report preparation, transport of on fruits and vegetables and spices abroad have also been made.
RIPS, 2014 has made provision for post-harvest activities to this sector. Provisions include 5 percent interest subsidy on term loan for 5 years, 50 percent exemption in land tax, electricity duty and mandi-cess for 7 years and 50 percent exemption in stamp duty, conversion charges and entry tax on plant and machinery in the State.
Investors in agro-processing sectors, with investments up to Rs. 25 lakh, will be granted 30 percent capital subsidy, 20 percent employment generation subsidy on VAT and CST deposited for a period of seven years.
Investors in agro-processing sectors making investment above Rs. 25 lakh will be granted 60 percent capital subsidy, 10 percent employment generation subsidy on VAT and CST deposited for seven years.
Under the Policy, customised package will be granted to the enterprises making an investment of Rs. 100 cores and generating employment for 250 persons in the unit. 50 percent exemption in stamp duty will be granted on first transfer of plot in Food Park.
Agriculture Department, Government of Rajasthan will be the nodal department and Rajasthan State Agricultural Marketing Board will act as nodal agency for this policy.
The financial provisions available in new policy are expected to attract good investment in agro-processing and agri-marketing sector and generate good opportunities of employment.