Sahay: Offer of help

Calcutta, Sept. 25: The Centre today signalled it could help farm product retailers in Bengal start ventures or overcome problems, days after the state’s farm marketing committees were hauled to court over licence delays.

The indications of assistance came from Union food processing minister Subodh Kant Sahay, who said he had spoken to state agriculture minister Naren De on the matter.

“I have spoken to the agriculture minister of the state. It is not only international companies like Metro (Cash & Carry) but also local ones like Keventer (Fresh) who are fighting for survival. If not the government, let the third parties (companies) invest in farming,” the minister told The Telegraph.

Keventer Fresh, which sells farm produce in Reliance Fresh outlets and intends to be a supplier to Metro Cash & Carry, has filed 12 writ petitions against agri-marketing committees in the state for sitting on licence applications.

Sahay, in the city for the second Green Revolution Summit and Agro Protech Expo, pointed out that the agriculture produce marketing committee act, which empowers farm marketing bodies like those in Bengal, was a big hurdle to cluster farming and a market-driven economy.

The Keventer petitions represent the first legal challenge to the committees, run by the Forward Bloc, and their outcome could affect investments in food retail as the Left Front partner has so far been blocking efforts by companies to source farm produce and sell them.

Sahay, too, pointed to the limitations of such an approach. “Fragmented holding and farming cannot provide economic sustainability to farmers. If the farmer can’t invest in seeds, harvesting technology and water management, we should allow a third party to invest. Private players assume great importance to putting in this investment. Let farmers profit and consumers benefit.”

He suggested Bengal should extend tax breaks to farm produce, arguing that if the Nano project could be allowed a VAT waiver, processed food items should be free from the levy, too.

“If VAT can be waived for Nano, why cannot... processed agri-produce be accorded the same status?”

He picked potato chips as an example, saying Bengal had imposed a VAT of 8 per cent on the item, a rate that was on the higher side given that the range was 4 to 12 per cent in most states. He said Bengal, with its focus on food processing, should ideally waive the levy on such products.