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

1. Welcome to the Presentation on setting up of AEZ in Kerala for Selected Horticultural Products A Presentation by : Cebeco India Pvt. Ltd. New Delhi Cebeco India

2. AEZ Proposal was discussed during the last meeting. The following observations were made: • Deletion of Floriculture from the proposal. • Increase of state’s contribution in the project. • Reduction of no. of districts. Cebeco India

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

4. Revised Project Cost & Means of Finance Cebeco India

5. Proposed Area under AEZ Districts : • Palakkad • Thrissur • Ernakulam • Idukki • Kottayaam • Alappuzha • Pathanumthitta • Kollam • Thiruvananthapuram Gateways: • Thiruvananthapuram Airport • Kochi Airport • Kochi Sea Port Cebeco India

6. Thank you Cebeco India

7. Welcome to the Presentation on setting up of AEZ in Kerala for Selected Horticultural Products A Presentation by : Cebeco India Pvt. Ltd. New Delhi

8. Selected Products • Ethnic Banana [Fresh & Processed] • Pineapple • Ethnic Vegetables Products have been selected considering existing export basket, state’s competitiveness and exclusivity of some products Cebeco India

9. Proposed Area under AEZ • Palakkad • Thrissur • Ernakulam • Idukki • Kottayaam • Alappuzha • Pathanumthitta • Kollam • Thiruvanathapuram Cebeco India

10. Production of Selected Commodities Fruits [ in 000 MT] Cebeco India

11. 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% Cebeco India

12. Target Markets Banana/Plantain : Gulf Countries Pineapple : Gulf Countries Ethnic Vegetables : Gulf Countries, Mauritius, Maldives, European Countries Banana Wafers : Gulf Countries Cebeco India

13. 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 Cebeco India

14. Export Projections (Qty. in 000’MT 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 Cebeco India

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

16. 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 Cebeco India

17. 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 Cebeco India

18. State’s 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. Cebeco India

19. State’s 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 . Cebeco India

20. 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 Cebeco India

21. Thank you Cebeco India