Comprehensive Agro Business Policy, Gujarat: Overview & Eligibility

Comprehensive Agro Business Policy 2016-2021 (CABP)/ Chief Minister’s Mission on Food Processing is issued by Gujarat Government. Overview, eligibility check and important definitions of the scheme are covered in this article.

1. Eligible Sectors

• Fruits and vegetables Processing
• Cereal/ other consumer food products
• Oilseeds products
• Rice & Flour milling
• Pulse processing
• Honey & Bee Keeping
• Milk products
• Meat, Poultry, Fishery
• Non edible agriculture produce
• Other such Agri-horticulture sectors including food flavors and colors, oleoresins, spices, coconut, mushrooms and hops
• Agri Waste Processing Units
• Infrastructure projects: CA Cold Storages, Food Irradiation Processing Plants, Cold Chain, Silos, Pack houses, Food Parks, Logistics Park, Reefer Vans etc.

Only the units falling under the category of Food Processing Unit, will be eligible to avail benefits. Definition of Food Processing Unit is provided in point 3.

Only value added milk products manufacturing units, excluding liquid milk, will be eligible to avail benefit under the scheme.

2. Ineligible Sectors

• Manufacturer of Tobacco products, Gutkha.
• Manufacturing of Beverages:
  • Distilling, rectifying and blending of spirits, ethyl alcohol production from fermented materials.
  • Manufacturing of wines.
  • Manufacturing of malt liquors.
  • Manufacturing of soft drinks, production of mineral waters and other bottled/ pouched waters; production of aerated beverages.
• Manufacturing or sizing of wood; manufacture of furniture and products made from wood and cork.
• Production of firewood and charcoal.
• Cottage and village industries, baring food processing units, failing within the preview of Khadi and Village Industries Board, Khadi and Village Industries Commission and Industries falling within the purview of Boards set up for Coir, Silk, Handloom, Handicraft and units set up by self- employed workers and artisans etc, which are covered under separate schemes of assistance.

3. Definitions

1. Agro Industries: Units which add value to agriculture products/ its derivatives/ residues both food and non food by processing into products which are marketable or usable or edible or by improving storability or by providing the link from farm to the market or part thereof. Agro industry also includes hi- tech and biotechnology based agriculture.
2. Agricultural Products: Means produce of Agriculture- Horticulture- Sericulture- Floriculture- Fisheries- Dairy and it also includes minor forest produce and livestock based products.
3. Hi Tech & Biotechnology Based Agriculture: Means and includes projects which involve any of the processes such as Tissue culture, Production of Transgenic plant, Mass multiplication of parasites’ predators, Fermentation plant for bio- fertilizers, Gene Mapping cloning and Genetic engineering, Green house, Aquaculture etc.
4. Food Processing Unit: This will include items pertaining to these two processes viz:
   • Manufactured Processes: lf any raw product of agriculture, animal husbandry or fisheries is transformed through a process [involving employees, power, machines or money in such a way that its original physical properties undergo a change and if the transformed product is edible and has commercial value, then it comes within the domain of Food Processing  industries and;
   • Other Value- Added Processes: Hence, if there is significant value addition (increased shelf life, shelled and ready for consumption etc.) such produce also comes under food processing, even if it does not undergo manufacturing processes.
5. Modernization: Adopting New Technology/ Production Process and/ or improving quality of products with an investment of more than 25% of its existing gross fixed capital investment in plant and machinery on the date of initiating modernization and commencing production of said modernization during the operative period of the scheme.
6. Gross Fixed Capital Investment: means investment made in buildings, plant & machinery and other related fixed assets required to manufacture end product or render services.
7. Expansion & Diversification: An investment of more than 50% of (out of which minimum 60% should be in plant & machinery) its existing gross fixed capital investment on the date of initiating expansion/ diversification and commencing production of said expansion/ diversification during the operative period of the scheme.

Only following will be considered for expansion/ diversification:

• Increasing installed working capacity.
• Production of additional new item.
• Undertaking production of raw material to be consumed by the unit itself (backward integration).
• Producing new product by utilizing existing products of the             same unit (forward integration).

Youtube link for the video of this policy:

https://www.youtube.com/watch?v=uU8mE_lbIeY&t=9s