KABCO to come into existence from Chingam 1

Thiruvananthapuram: The cabinet has approved the setting up of Kerala agro business company (KABCO) under the agricultural department, overcoming the opposition from the industrial department of the state. The company will start functioning from Chingam 1. The agriculture department  has taken steps in this regard.

Earlier, the agricultural department’s move to form the company for boosting the values and sales of agricultural products, was temporarily put on hold following intervention from the industries department.  

The chief minister of Kerala had requested both the parties to come to a consensus, before moving ahead with the proposed plan.  

Kerala Agro Business Company (KABCO), which aims at the welfare of farmers and farming groups, will deal with procuring, processing, and marketing of local farm products. 

Industrial Minister P Rajeev argued that KABCO company and its sales activities shall come under the realm of the industries department. He had also accused that the formation of KABCO was in violation of the ‘rules of business’. CPI ministers had lined up in support of Rajeev as he stated his concerns. 

Taking the different opinions into consideration, CM Pinarayi Vijayan had instructed different departments to come into a consensus on the matter. As per his instruction, severe special meetings were held involving agriculture, industrial and revenue departments. They all came to a conclusion and the matter was taken up by the cabinet once again on Wednesday. 

Processing, sales and exports generally come under the jurisdiction of the industrial department. However, KABCO will exclusively manage processing and sales of agricultural products. 

“In the cabinet, we discuss and debate on various matters. A unanimous decision will be taken on a particular matter at the end after taking various opinions into consideration,” said agriculture minister P Prasad.