4.2. LAND:

Land is crucial for backward integration for promoting Industry so as to set up nurseries, Research and Development, Demonstration farms and captive consumption for consistent supply of material.

Bombay Tenancy and Agriculture Lands Act, 1948 permits holding and purchase of land only by 'Agriculturists' of the State. This restricts the overall development of agriculture/ Agro Industries. Such laws have already been reformed by States like, Rajasthan, Karnataka and Maharashtra.

The Act, however, permits a commercial/ industrial enterprise to acquire agriculture land on lease u/s. 43 A (1) (a) read with Rules 25 G and 26, within agricultural land ceiling, subject to obtaining prior permission of District Collectors. The State Government will issue guidelines for simplification and expeditious clearance of such permissions by District Collectors for Agro Industries.

The Government will also consider suitable provisions to enable Agro Industries to hold private agriculture land on long term lease.

The Government also intends to provide government land including agriculture farms on long lease basis at concessional rates to Agro Industries.

The Government has already declared a scheme for development of government wasteland. In order to proactively invite investments in this sector, the Government will compile and make available information regarding such government wastelands in the State.

4.3. CONTRACT FARMING :

One of the crucial requirements of agro industry is to get the supply of consistent and quality raw material as per their specifications. At present, raw material is procured by such industry from market place, which often has variable quality and also at times required quantity is not available. This situation has resulted in discouraging optimum size of processing units to come up and have advantage of economy of scale. Besides, small units in food sector are unable to create brand equity and therefore often suffer in market place.

The Industry has also represented from time to time that unless quality and consistent raw material is available as in tea, rubber or sugarcane, large units in food processing sector, particularly in fruits and vegetables sector are unlikely to be set up.

In consideration of above, agro processing industries will be encouraged to enter into contract farming arrangements either directly or through group of farmers, value added centers, agro service centers or cooperatives. To facilitate such arrangement, the State Government will accord priority in sanction of agriculture subsidy under its various schemes to the concerned farmers and will also permit the routing of such subsidy through such centers/groups/co-operatives, subject to the consent of member farmers. This will also result in optimization of subsidy and cluster development of agriculture. These organisations may provide necessary inputs to the member farmers such as planting material, seeds and other inputs, may guide farmers in agronomic practices and may also take crop insurance on behalf of the member farmers.

Legal Department will also examine the feasibility of a legal enactment to facilitate contract farming arrangement.

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