Welcome to the Presentation on setting up of AEZ in Kerala for Selected Horticultural Products

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Welcome to the Presentation on setting up of AEZ
in Kerala for Selected Horticultural Products
A Presentation by Cebeco India Pvt. Ltd. New
Delhi
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AEZ Proposal was discussed during the last
meeting. The following observations were made

• Deletion of Floriculture from the proposal.
• Increase of states contribution in the project.
• Reduction of no. of districts.

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• Floricultural products like Cut Foliage and
  Exotic Flowers have been deleted to have focus
  only on Banana, Pineapple and Ethnic Vegetables.

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Revised Project Cost Means of Finance
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Proposed Area under AEZ

• Districts
• Palakkad
• Thrissur
• Ernakulam
• Idukki
• Kottayaam
• Alappuzha
• Pathanumthitta
• Kollam
• Thiruvananthapuram

• Gateways
• Thiruvananthapuram Airport
• Kochi Airport
• Kochi Sea Port

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Thank you
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Welcome to the Presentation on setting up of AEZ
in Kerala for Selected Horticultural Products

• A Presentation by
• Cebeco India Pvt. Ltd.
• New Delhi

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Selected Products

• Ethnic Banana Fresh Processed
• Pineapple
• Ethnic Vegetables
• Products have been selected considering existing
  export basket, states competitiveness and
  exclusivity of some products

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Proposed Area under AEZ

• Palakkad
• Thrissur
• Ernakulam
• Idukki
• Kottayaam
• Alappuzha
• Pathanumthitta
• Kollam
• Thiruvanathapuram

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Production of Selected Commodities
Fruits
in 000 MT
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Existing Exports
Export volumes of fruits vegetables 25,000
tons Exit Points Thiruvanathapuram 80,
Kochi 10, Kozhikode 10 Export Basket
Plantain 65, Ethnic Vegetables 30 Markets
Gulf 90, Maldives, Mauritius, European
Countries. 10
Trends of Export from Thiruvanathapuram Airport
Average Growth Rate 12
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Target Markets
Banana/Plantain Gulf Countries Pineapple
Gulf Countries Ethnic Vegetables Gulf
Countries, Mauritius, Maldives, European
Countries Banana Wafers Gulf Countries
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Target Markets Contd
Gulf Countries - Major Destination

• Sizable population of NRIs / NRKs

• Nendran and Ethnic vegetables are sourced only
  from Kerala to supply to NRKs in Gulf

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Export Projections
(Qty. in 000MT and value in crores)

• Present availability of Indian fruits
  vegetables to NRIs in Gulf is only 8 kgs. per
  person as compared to availability of 150 kgs per
  person in India. Therefore, immense potential for
  increasing export.
• Incremental export to the tune of Rs. 125 crores
  from fifth year onwards

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Economics of Banana Exports
With the use of marine transport, there would be
substantial reduction in the landed cost of
banana.
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Interventions

• Development of Cold Chain
• Development of Protocols for post-harvest
  handling of banana and pineapple.
• Use of cheaper marine transportation
• Pre-harvest management for quality enhancement
  for selected fruits and vegetables.
• Promotion of mono-crop of banana and vegetables
  for improved and consistent exportable quality.
• Value addition to banana chips through
  manufacture by automated lines, packaging and
  branding

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Project Cost
- GOK constructed EU markets at the cost
of Rs. 70 crores. The facilities would be useful
for projects to be set up under AEZ. -
KHDP project implemented at a cost of Rs. 131
crores. For extension of activities in Kollam
and Alappuzha, GOK has sanctioned an amount of
Rs. 1.3 crores. These two districts are in
proposed AEZ. - GOK invested 48 crores
in commercial and homestead production of fruits
and vegetables and Rs. 5 crores in agri-biotech
centre for making available tissue cultured
plants. - GOK to make available
Government farms (500 ha) to farmers / self help
groups /exporters for cultivation of fruits and
vegetables meant exclusively for exports. GOK
has already budgeted Rs. 3 crores for AEZ and Rs.
2 crores as support to VFPCK
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States Commitments

• GOK is committed to development of horticulture
  in the state. It has provided sustained support
  to EU funded, Kerala Horticulture Development
  Program (KHDP) which has become a popular model
  for the developing countries.
• APMC act does not exist in Kerala and Agri
  Markets along with export zones are exempted from
  the labor laws as per the recent Notification of
  GOK.
• GOK has nominated Department of Agriculture as
  state nodal agency which will set up project
  management unit.
• GOK has agreed to provide state owned farms for
  cultivation of exportable fruits and vegetables.

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States Commitments Contd.

• For increasing the area under horticultural
  crops, Kerala Land Utilization Order would be
  amended.
• GOK will continue support to KHDP (VFPCK) as
  their infrastructure would be very important for
  regular supply of fruits and vegetables to
  merchant exporters.
• Kerala Land Reforms Act amendment is in pipeline.
• GOK will take up all the activities through its
  nodal agency for the speedier implementation of
  AEZ in the State.
• GOK has already budgeted Rs. 3 crores for AEZ
  and Rs. 2 crores as support to VFPCK
• .

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Cost Benefit of the Project

• ERR 51
• NPV Rs. 28.0 crores
• Cost Benefits Ratio 2.6
• Creation of 450 jobs
• Benefit to 14,000 farmers

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Thank you