Kerala Kaumudi Online
Monday, 22 July 2024 4.23 AM IST

'KABCO' still in files; no progress for three years


THIRUVANANTHAPURAM: The Kerala Agri Business Company (KABCO) announced by the first Pinarayi government to increase the farmer's income by 50% by preparing food products from agricultural produce is sleeping in files. The outline submitted a year ago by the expert committee, which came into being last August, for the formation of the company announced on the model of SIAL has not seen the daylight.

The committee prepared the company's business plan including a Memorandum of Association (MOA). Company formation is possible only if these are approved in the cabinet meeting.

KABCO was announced three years ago by former minister VS Sunilkumar. The new government came to power while the draft was being drawn up. An expert committee was appointed only after a year. Dr. B Ashok, Principal Secretary, Department of Agriculture; former Legal Secretary BG Harindranath, Chartered Accountant MK Sridhar and Agribusiness-Entrepreneurship-Skill Expert Dr. TP Sethumadhavan were members of the committee.

To start the project

If approved by the cabinet, the government should decide on a 10-member board of directors. Govt. Secretaries and agricultural experts should be made a part of the project. 9 markets, including the international wholesale market of the Department of Agriculture, will be brought under KABCO. Those looking for work in the markets should be transferred to the company. A project management agency should be appointed to prepare the project document for collecting, freezing, packaging, branding, and marketing of agricultural produce. The company, which expects a turnover of 1,000 crores in three years, is crawling.

81,000 crore business

  • Annually, agricultural food products worth more than 55,000 crores and animal products worth 26,000 crores are purchased from neighboring states and foreign imports. The aim is to capture this market.
  • The Department of Agriculture has a stake not exceeding 33 percent in the company. Manufacturing companies, farmers, and public sector organizations can be shareholders
  • Agriproject Centers, Agricultural Market Facilitation Centers, Processing Units, and Cold Storage Centers will also come up with a capital investment of over 200 crores. More employment opportunities in the agriculture sector.
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