Thrissur: The Kerala Agro Business Company (KABCO) which gives priority to agricultural business initiatives has turned into a reality. The project has given wings to the hopes of young investors and farmers. It was in the year 2016-17 that the government had put forward the proposal for setting up an agricultural company taking cue from the highly successful CIAL.

Since the cabinet has approved the project, the government will soon appoint a ten member director board for KABCO. The board will comprise government secretaries and agricultural experts.   

The KABCO project has been long pending owing to the issues between the agricultural and industrial departments.

KABCO which will function as the special purpose vehicle of the Kerala agro industries corporation will have the participation of farm groups, common people, and primary agriculture cooperative societies. KABCO, which will initially exchange goods worth Rs 500 crores in a year, is expected to raise above Rs 1,000 crores within a short time. 

Through KABCO, ready to eat and ready to cook farm products will hit the market.

Components of KABCO

  • Agri project centres, agricultural market facilitation centres, procession units, cold storage units
  • 17 major markets including the Thiruvananthapuram Anayara which falls under the agro industries corporation.
  • Storage centres in the districts of Idukki, Thrissur, Kozhikode, Palakkad, Ernakulam and Wayand.
  • Nine markets including the agricultural department’s ‘international wholesale market’.

The agricultural department will hold 33 per cent shares in the company which is being set up with a capital investment of Rs 10 crore. The rest of the shares will be distributed among public sector companies, farmers, and food processing companies.