India: Government allows 5 private firms for cluster farming on 50,000 hectares with Rs 750cr investment

Published Apr 10, 2023

Tridge summary

The Indian government has permitted five private firms to conduct cluster farming of specific horticulture crops across approximately 50,000 hectares, investing Rs 750 crore, including subsidy, as a pilot scheme. The goal is to enhance the global competitiveness of Indian produce and boost farmers' income. The companies will focus on banana, apple, grapes, turmeric, and mango. The government will contribute up to Rs 100 crore per project under the Cluster Development Programme (CDP), which aims to develop 55 clusters across the country, with financial assistance varying based on cluster size. The scheme aims to provide farmers with high-quality planting material, aligning production with international standards, and enabling them to export their crops.

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Original content

The Centre has allowed five private firms to undertake cluster farming of specific horticulture crops in about 50,000 hectares on a pilot basis entailing an investment of Rs 750 crore, including government subsidy -- a moved aimed at making Indian produce globally competitive and boost farmers income. Desai Agrifoods, FIL Industries, Sahyadri Farms, Meghalaya Basin Management Agency, and Prasad Seeds are five companies selected for pilot cluster farming through a bidding process. The Centre will give financial assistance up to Rs 100 crore depending on the size of the project under the recently launched central scheme Cluster Development Programme (CDP), which is implemented by the National Horticulture Board with an outlay of Rs 2,200 crore. Speaking with PTI, Priya Ranjan, Joint Secretary in the Agriculture Ministry, said, the cluster-based approach has seen an incredible amount of success across the world. In India, the government for the first time is encouraging market-led ...

Source: Economic times