Kerala govt invites TN firms to invest in agri sector

COIMBATORE: The Kerala govt has invited companies in Tamil Nadu to invest in its agriculture sector and procure farm produce directly from farmers without intermediaries under the Kerala Climate Resilient Agri-Value Chain Modernisation (KERA) project.

Addressing reporters in Coimbatore city on Wednesday, Kerala agriculture department joint director and KERA project administrator Suresh C Thampi said the initiative was launched last year to strengthen the state’s agriculture sector against climate change and modernize farm produce into value-added products. The project is being implemented with World Bank support at an outlay of Rs 2,365 crore, with 70% funding from the World Bank and 30% from the state govt.

“The primary objective of KERA is to facilitate direct procurement and sales between farmers, farmer producer organizations (FPOs) and leading agri-business firms, eliminating middlemen,” he said. Agri and non-Agri companies, supermarkets, exporters, and ecommerce platforms can participate in the project. The initiative aims at creating sustainable linkages between Kerala’s high-quality agricultural produce and national and international markets.

The project focuses on crops such as coffee, cardamom, rubber, coconut and pepper. Though originally implemented in Kerala, the project has now been extended to states including Maharashtra, Uttar Pradesh and Gujarat.

To enter into agreements under the project, companies must have an annual turnover of up to Rs 10 crore, along with proper banking and statutory documentation. Farmer producer organizations with a minimum of two years of operational experience, at least 200 members and a turnover of Rs 10 lakh are also eligible. Qualified entities can avail subsidies of up to 60%, capped at Rs 2 crore. Interested companies can apply online at https://pa.kera.kerala.gov.in/auth/login.

At present, 85 companies have registered under the project, of which 20–30% are from outside Kerala, Suresh C Thampi said.