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 agribusiness 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
Annexure. State Government can add/amend the list

listed
in
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 agroindustries 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 agriproduce 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 agroprocessing 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
Total Land allotted
Proposed Investment
Expected employment
: 34 ( in 11 Mandis)
: 46480.33 Sq.meter
: 96.60 crores
: 4892 persons
THE END