Agri Economic Zone (AEZ)

By – Ajay Kumar
ajaykumarkm@yahoo.com
Image of Indian Agriculture
 Worldwide
Agriculture is now like Manufacturing
• Systems and Processes
• Higher Productivity
• Low Cost Strategy
• Robust Supply Chain
• Diverse Product Mix
• Hi-Tech Technology
 The present Agriculture model
1. Small and marginal farmers
2. Low productivity
3. Many Central and State organizations in Agri sector working in a
non-coordinated way. The mandate of most institutions are
overlapping.
4. Private companies not coming forward as investment in Agri infrastructure is
high with low and seasonal returns.
5. Most of the existing infrastructure like processing plants, cold store etc are
not even working at 50% of its capacity
6. Relaxation of FDI alone in retail sector is no solution as the basic ground
realties remain the same
7. In name of empowerment, lots of workshops, seminars, training conducted
to all including farmers ever year to the same participants and same topics.
What has been the outcome ? NIL
8. Research and Extension activity not in tune with market requirements
9. Every alternate year, central / state govt comes up with new terminology
like IPM, INM, etc like old wine in new bottle
10. The growth in Agri sector not keeping in pace with the population growth
AEZ – A alternate Future model
• AEZ is not synonymous to Food parks or constructing some concrete
blocks

• In AEZ, actual Farming is done where the scale of operations and

competency level is similar to running a manufacturing company

• Synchronization and coordination between all stakeholders and a single

window approach

• This model in turn will boost the infrastructure and agri processing
industry growth.
 Agri Economic Zone
1) Land

• Land consolidation model.

• Govt owns cultivable land banks (approx 2000 ha)
• Govt LEASE out land to Individual farmers, Coop societies, Corporate
• Intensive Agriculture (2 to 3 crops per year)
• Micro irrigation facilities like drip, Power made available.
• Road infrastructure for accessibility to these farms

2) Shops inside these Zones making available quality inputs timely and at
competitive rate

3) Agriculture machinery shops make available tractors, tillers for sales or

on rental basis

4) Storage godown, warehouses, cold stores constructed by govt given on

lease to pvt players for operations
 Agri Economic Zone
5) Markets infrastructure developed by govt managed by professionals,
providing market information, grading facilities, auctions, reverse auctions,
exports etc.

6) Logistics desk for timely availability of vehicles, reefer vans, different

capacity vehicles operated by private players

7) Small processing units for canning , drying etc constructed by govt,

managed by private professional team

8) Labs for quality check of soil, seeds, fertilizers, processed products etc

9) Agri products/proceesed products loaded from AEZ goes straight to the

destinations markets without being stopped at various check posts in
different states
Agri. Economic Zone