Mains Paper 3: Economy | Food processing and related industries in India- scope and significance, location, upstream and downstream requirements, supply chain management.
From UPSC perspective, the following things are important:
Prelims level: AEZs
Mains level: Measures towards doubling farmer’s income and issues associated
AEZs under stress
- In all 60 Agri Export Zones (AEZ) were notified by the Government till 2004 – 05.
- In December 2004, an internal peer review conducted by Department of Commerce concluded that the notified AEZs had not been able to achieve the intended objectives.
- It was decided that there will be no creation of new AEZs, unless there were strong and compelling reasons.
- No new AEZs have been set up after 2004.
- All the notified AEZs have completed their intended span of 5 years and have been discontinued.
Agri Export Zone (AEZ)
- Nodal Agency: Ministry of Commerce
- The concept of Agri Export Zone (AEZ) was introduced in 2001, through EXIM Policy 1997-2001.
- It aims to take a comprehensive look at a particular produce/product located in a contiguous area for the purpose of developing and sourcing the raw materials, their processing/packaging, leading to final exports.
- The concept hinged primarily on convergence of existing Central and State Government schemes to take care of financial interventions required at various stages of value chain; partnership among various stakeholders’ viz. Governments, farmer, processor, exporter etc.; and focus on targeted products and areas to identify required policy interventions.
- All these activities did take place in certain respects in the notified Agri Export Zones.