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Kashmir Cold Storages Association submits charter to LG Sinha

Ziraat Times News Network

Srinagar, June 27: Jammu and Kashmir Fruits and Vegetables processing and Cold Chain Association (JKPICCA) met J&K’s Leitenant Govenor as part of the business leaders’ team in Srinagar last week and presented a charter of demands.

A spokesperson of the Association told Ziraat Times that key issues related to the industry were highlighted during the meeting.

Here is the abridged version of the memorandum submitted by the association:

Shri Manoj Sinha

Hon’ble Leitenant Governor

J&K

I am highly thankful to the Govt of J&K that has given us the opportunity to give our suggestions which we expect shall be (in due course of time) be the part of schemes formulated by the Govt of J&K.

Sir, My name is Maajid Aslam Wafai and I am the member of Kisan Board and I also the President of Jammu and Kashmir Fruits and Vegetables processing and Cold Chain Association JKPICCA. We are an amalgam of all the Controlled atmosphere apple cold Store in the J&K. And our vision is to see our market as the leader in storage, supply chain, backward and forward linkage for fresh Stone fruits and vegetables. We intent to do nationwide promotion starting with a focus in one particular state with a one particular fruit and it is a work is in progress and we expect full support from the Government.

One decade before the economy of apple industry was in shambles there was lack of infrastructure like road connectivity, grading and packing facilities storage facilities. Apple is one of the important contributors in J&K Economy. This industry has annual revenue generation from 7000 to 8000 crores and the total production has reached to around 2 million tons. Our state is worlds second in area under apple cultivation and yield wise we are at 7th position. Presently we have 37 ca store and this industry has developed from scratch in 2008 to around 1150 crores in last over a decade and we anticipate in next five years it will add another 1500 crores and take the size of this sector in a range of 3000 to 3500 crores and which will give exponential rise in other allied sectors particularly in the tertiary sector. As a matter of fact the production of A grade apple is bound to increase because the growers are shifting from traditional orchards to High density production of apples in the valley from last few years and in a span of five years we see a yield increasing by another million tons. This fast development was not at all possible unless and until there would not have been a focus and effort by both the central and state govt. Under Hon’ble LG we have seen unprecedented support for our sector both for post and pre harvest intervention..

Now we have Srinagar producing 20000 tons with zero storage capacity, similarly ganderbal producing 92000 tons no storage facility, bandipora producing 60000 tons no storage kupwara producing 2.9 lac tons with no storage anantnag producing 2.1 lac ton no storage kulgam 2.13 lac tons no storage budgam producing 1.5 lac tons only 5000 tons capacity, baramulla is at 4.10 tons only 15000 tons of storage capacity, twin district pulwama and shoplan produces 4.0 lac tons and a storage capacity of around 2.0 lac tons. Now as per the data given it is amply clear that focus has to be given on the virgin areas and there has to be equitable growth in all the districts. Based on our data and market research IGC Lassipora which is the largest apple cluster in south asia has reached saturation levels and focus has to be given to maintain the equilibrium of demand and supply.

Likewise full focus has to be given to Increase the population of refrigerated trucks which as of today are in range of 35 to 40 and this year we should be able to take it to 100.

Following are the suggestion sector wise which we would like govt’s kind consideration.

Post Harvest Management Horticulture.

Cold Stores For the establishment of Controlled Atmosphere Cold Stores promoter should be given option either to opt for subsidy from MIDH or State Industries Department.

If promoters approach either MIDH ог State Industries Department in both the cases he should be qualified for State share which at present is 7.23 Crores from 5000 MT

After the GST Regime came into It is now suggested like in being the Civil works, Plant and pre-G.S.T Regime we were Machinery and allied Equipments asked to register and other our services abruptly projects in MOFPI attracted GST in the range of 18% to 27% which amounts to to approximately Rs 6.5 crores in respect of each 5000 MT annual capacity Integrated Controlled Atmosphere Cold Stores, with Grading and Packing facilities. if we compare the tax burden on the establishment of Cold Stores with allied facilities prior to GST Regime, Horticulture Infra-Structure project regime in pre GST Regime was attracting 2% Tax amounting to Rs 0.60 crores only as the total subsidy availed by the entrepreneurs in present G.S.T Regime was to the tune of Rs 5.5 to 6.5 crore which is same as Rs 5.5 6.5 crore in G.S.T Regime that means there is zero percent effect of subsidy on the total subsidy claims in the range of Rs 5.5 to 6.5 crore thereby the tax burden of Rs 6.5 crore in G.S.T Regime is still existing.

Government of India so as get exemptions on account of Import Duty/ excise on all the Plant and Machinery Equipments establishment Integrated and allied relating to of Controlled Atmosphere Cold Stores. Similarly now in post GST same Project Registration with MOFPI for Project Discount) should be made available to the new proposed project.

Grading and Packing Line

Till now 95% of the grading and packing is being done by hand. Since the Govt focus has been in the automation of the horticulture sector. A typical modern grading and pack house can be establish with a cost of 12.00 Crores only.

We propose that over and above the subsidy provided by the govt. Through industrial policy /MIDH Scheme the state support should also be provided to the new new/upcoming projects on the similar pattern as has been done in the establishment of the controlled atmosphere cold stores and we propose a State share of 3.00 Crores should be made to this activity over and above to the subsidy offered by Industries Department / MIDH.

Moreover there is a need of Reefer Trucks

The govt has set up a very attractive target of converting 5500 hectare of orchard land into high density apple plantation. scheme has seen This tremendous amount of appreciation as well as acceptability by the small as well as big farmers alike.

Presently we believe this scheme is a bit cumbersome as the full financial burden of the Inflammation of this scenario lies on the shoulders of private developers.

A) Quarantine Issues B) Nursery Development Import Substitution C) Agri Infrastructure Fund

a modernisation policy wherein farmers can be supported for using modern packaging and online grading and packing facilities. E.g Shifting from Wooden boxes: to corrugated boxes. 50% Subsidy Should be Provided on the reefer trucks within upper cap of Rs 25 Lakh/Truck. A capacity of 18 MT.

Pre Harvest Management in

A) To achieve the enterprising target of 5500 Hectares J&K govt should come up with an horticulture estate where all the PE’S can complete their quarantine or they should be granted land for completing quarantine of plants as required by law. B) For the implementation of New Nursery Policy land availability needs to be Identified. C) The pending notification ( for inclusion of HD Scheme in Agri Infra Fund) to be issued by the Govt. Of India needs to be expedited as this shall enable the fast implementation of Density High Scheme.

D) Freight subsidy on the import of planting material by sea and by air for the next five years.

Modernisation schemes in Horticulture, Agriculture and Animal Husbandry.

Identification of one district one product and allocation of clusters and Central of Excellence to districts focusing on mechanisation high yielding varieties and modern commercial farming techniques and methods.

Commercial vegetable farming

Based on our market research it became amply clear to us that if the controlled cultivation in green houses is supported by the govt our conservative estimates us that if total investment in next two years is done to the tune of one thousand crores our output shall be in the range of 2500-3000 crores annually.

Potential employability of 30000 young people is estimated in this Sector.

Floriculture

We have also have done lot of theoretical work to understand how to take this sector to next level. This sector is huge and now it is

All the departments who are providing subsidies should be clubbed in one department so as there shall be one point of contact for availing subsidies on the establishment of the modern green houses. We also propose 25% more state support over and above the subsidies provided by the other department like state agriculture department and National horticulture board.

We propose that govt should keep a budget of around 100 crores to fund projects worth 25 crore.

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