2.0 OBJECTIVES :

This policy endeavors to make Gujarat, the destination of choice for investors and processors, both global and domestic.

Gujarat has vast untapped potential in agro industrial sector, which could be used advantageously to achieve multiple goals viz. increased income for farmers, rural industrialisation, rural employment, better quality products to consumers. This can be achieved by new investments in agro industries by national/ multinational companies. The broad objectives of agro industrial policy are enumerated as under:

1. To create world class supply-chain infrastructure needed for agro industrial development.

2. To increase total flow of investments both skills and capital, in agro industries to establish backward and forward linkages,

3. To accelerate a close interface between research, extension mechanisms and industry and farmers in agri sector,

4. To increase the value addition and reduce wastages, thereby increasing the income of farmers and delivering better quality products to consumers,

5. To create rural employment and improve quality of life of rural people,

6. To assist small-scale agro based units to remain competitive in global markets,

7. To increase export of value added agri products.

 3.0 APPROACH :

In the present climate of economic liberalisation and globalisation, Gujarat needs to create favourable environment by providing incentives to the domestic and foreign investors for setting up of agro industrial project in Gujarat. The approach would be for the government to play a facilitatory role in galvanizing private sector investment in agro industries in the State. A key initiative of the government would be to metamorphose the supply chain infrastructure, which would have multiplier effects in the agricultural sector and greatly increase competitiveness across the entire sector. A well integrated and coordinated approach to infrastructure development will be necessary to ensure healthy utilization of infrastructure facilities across the chain.

The State Government, in conjunction with appropriate private sector agencies, will market this supply chain infrastructure opportunity to multilateral financial agencies and other infrastructure investors. Globally successful processors and retailers need to be aggressively marketed to by the State, as they provide the linkages with the consumer that has been hitherto missing in Gujarat's Agribusiness strategy. The responsibility for such State/ industry specific marketing will lie with the Nodal Agency.

Emerging technologies - like bio technology, genetic engineering - have enormous potential in the near future to extract efficiencies in the supply chain. However, in the short to medium term, significant investments need to be made in the bricks and mortar infrastructure - ports, cold storages, value added centers, irrigation, agronomic practices, etc.

With this approach of occupying top-of-the-mind share of investors and processors, Gujarat should be able to take a lead in rapid agro industrial development.