The agriculture and allies activities sector, which employs the highest number of people in Maharashtra, is expected to decline by 2.7%, the Economic Survey of Maharashtra 2015-16 has noted.
To add value to the ailing farming sector in Maharashtra, which is reeling under successive droughts, agrarian distress and a negative growth rate, the state government is working on an agro-industrial policy.
"We are working on an agro-industrial policy. It will look at granting incentives to agro-industries like food processing units, which will help create value chains for farmers and set up facilities like cold storages. The policy will also grant sops to industries that want to set up units in particular parts of Maharashtra," a senior state industries department official told dna, adding it will also create better linkages between agriculture and industry in the farm-to-fork stage.
He also said that they were looking at boosting investment in the entire agro-industrial ecosystem. The policy will also look at promoting the setting up of food parks and clusters.
The agriculture and allies activities sector, which employs the highest number of people in Maharashtra, is expected to decline by 2.7%, the Economic Survey of Maharashtra 2015-16 has noted.
The sector suffers from severe structural imbalances like non-remunerative pricing, lack of access to markets and technology for farmers, stagnant irrigation, low crop insurance coverage and poor productivity. Smaller size of holdings and fragmentation in land holdings also make agriculture a non-viable. For instance, the average size of operational holdings has declined due to fragmentation to a low of 1.44 hectare in 2014-15 from 4.28 hectare in 1970-71.
However, Maharashtra remains a major state for horticulture with fruits like Alphonso mangoes, bananas, pomegranates, oranges and grapes, vegetables and cut flowers being cultivated. An increase in the agro and food processing industry's footprint can add value to farm produce and ensure better income and returns for agriculturists.
An increase in investment in the sector can also aid farmers by allowing access to technology, reducing inefficiencies like wastages and overcoming problems like low shelf life.
In 2010, Maharashtra had circulated a draft agro-industrial policy which, however, did not make it to the state cabinet for approval.
However, the official warned that "it was not enough to just issue policies". "It is necessary to set up an execution mechanism and lay down procedures about where entrepreneurs can apply and the modalities involved. That is important," he stressed.
Maharashtra's geographical area is 307.58 lakh hectare, of which the cultivable area is 225.56 lakh hectare or 73% of the geographical area. The proportion of small and marginal farmers was 78.6% as per the agriculture census 2010-11. The rain-fed area is 80.24% and the drought-prone area is around 52%. The ultimate irrigation potential is around 85 lakh hectare (38% of the cultivable area). If ground water and drip irrigation are considered, another 41 lakh hectare can be irrigated, taking the total irrigation potential to 126 lakh hectare (56% of the cultivable area).
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
 "farmers")
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}