The Hindu : Kerala / Thiruvananthapuram News : State loses Rs.500-crore Central aid for AEZs

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Saturday, May 31, 2008
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Kerala

Kerala - Thiruvananthapuram

State loses Rs.500-crore Central aid for AEZs

N.J. Nair

Bureaucratic apathy, lack of directives from Agriculture Ministry blamed

Centre may not accept request for more funds
At least 20,000 farmers would have benefited by the project

THIRUVANANTHAPURAM: The State is understood to have lost Central assistance worth around Rs.500 crore for setting up Agri Export Zones (AEZs) owing to tardy implementation of the project and misutilisation of the sanctioned funds.

Agriculture Department sourced told The Hindu that a lion’s share of the funds already sanctioned by the Agriculture and Processed Food Products Export Development Authority (APEDA) for growing fruits, vegetables and medicinal plants in select zones in the State was remaining unutilised because of bureaucratic apathy and lack of clear directives from the Agriculture Ministry.

The State government signed a memorandum of understanding with APEDA and the funds were sanctioned against projects submitted by the government for cultivating fruits, vegetables and medicinal plants.

Nearly Rs.6 crore sanctioned in two instalments for setting up three AEZs was deposited with a nationalised bank and left at the disposal of the implementing officers of the projects.

‘Misuse’ of funds

Instead of implementing the projects in a systematic manner, the officers are learnt to be utilising the interest accruing on the deposit for buying vehicles and meeting administrative expenses. After splurging huge amounts available in this fashion, the principal would be remitted to the Centre to coincide with the expiry of the project.

The department is understood to have wound up the cell opened at the Directorate of Agriculture for implementing the project and district implementing officers have been called back to the department.

Laxity

The laxity in implementation and poor absorption of funds may prevent the Centre from entertaining any more requests for sanction of additional funds for growing mushroom, spices, floriculture or organic farming, it is learnt.

Had the department implemented the project in a time-bound manner, securing Rs.500 crore would have been easy, sources said.

The official laxity is feared to tarnish the image of the government and seal more opportunities to secure funds for other innovative projects in the farming sector in the State.

Implementation of the project would have helped to enhance exports and also empower the farmers to overcome the threat posed by the multinational competitors, sources said.

More so, given the context of growing stiff resistance against the opening of the retail sector to monopoly companies as well as overdependence on neighbouring States to meet the demand for fruits and vegetables.

The proposal was to cultivate banana on 3,000 hectares and vegetables and pineapple on 500 hectares each.

At least 20,000 farmers would have been benefited by the project.

The zones were proposed in Thiruvananthapuram, Kollam, Pathanamthitta, Alappuzha, Kottayam, Ernakulam, Thrissur and Palakkad districts.

Medicinal plants

Wayanad and Malappuram were identified for growing medicinal plants.

Even the stray efforts made for fruit and vegetable cultivation had failed to materialise once the initial enthusiasm died down.

Since the State government is unable to project any tangible achievements in utilising the sanctioned funds, it would not be able to seek further assistance, the sources said.

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