Tussle between departments puts formation of Kerala Agro Business Company in limbo

Thiruvananthapuram: The agricultural department’s move to form a 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 has 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. 

The agricultural department had constituted an 11-member expert committee for designing a blueprint for the project. KABCO, a Thiruvananthapuram-based initiative, aims at marketing value-added products produced under Krishi Bhavans. 

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

Kerala produces approximately 16 lakh tonnes of vegetables every year. However, there are no proper storage facilities in the state as of now. The agriculture department is hoping to put an end to the ordeal, by opening up several agro parks under KABCO.  The department is also considering the possibility of allowing farm-producing companies to hold shares in KABCO.