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AGRICULTURAL   POLICY   OF   ARUNACHAL   PRADESH

THE POLICY OBJECTIVES                                                 CONTACT ADDRESS


Introduction - Agricultural Policy

1.1 Arunachal Pradesh is slowly developing its economy with the objective of improving the quality of life of its people. The tasks ahead are up hill, the resources available are plenty but the ways and means to achieve the objective through gainful utilization of the resources are not well defined. 
Technology has been relegated to the back resulting in stagnation of growth. However, the state has gained much over the years, it is now necessary to consolidate the gains in order to make it sustainable and add new dimension during the coming years, so as to increase household income generation. 

1.2 Keeping all these factors in mind and the need for achieving higher economic growth and creating job opportunities for the rural unemployed through Agriculture and allied sector, it is necessary for the state to have a well defined policy. The policy should govern the entire gamut of Agriculture scenario of the sate. Towards that goal, the new State Policy on Agriculture has to deal with the multifaceted problems and devise ways & means to redress them.

1.3 The major constraints are low level of productivity, capital inadequacy, lack of infrastructural support, unfavourable terrain, high cost of production along with demand side constraints. The non availability of basic preservation, storage and processing facilities, low value addition and unfavourable price of Agricultural commodities are severely affecting as a whole which directly encourages migration from rural areas to urban centers.

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The Policy Objectives

2.1 Top priority to be accorded on increasing farmers’ income.
The new policy would accord top priority to increasing the incomes of farmer's. This is necessary in view of the topographic disadvantages, communication bottleneck that hinders other income generating activities. 
The Policy, therefore, emphasizes all income generating activities like Cash crop, Floriculture, Fruit culture, Fish and Pig rearing, Agro-processing and so on along with all other activities that are considered necessary for the purpose. 

2.2 Addressing problems related to Shifting Cultivation 
Special emphasis to be given on shifting cultivation, ensuring better land management, introducing improved cultivation in slop land through Agro-forestry, Horticulture and encouraging other household activities. 
The programme is to be designed in such a way that there would be simultaneous thrust in weaning the Jhum farmers towards better cultivation. In this regard observations of S.P. Shukla Commission Report on ‘Transforming the Northeast’ (march 1997) pertaining to Jhum Farming is worth noting :’Hill farming in the Northeast is largely under Jhum though there are some excellent terraces in certain states and expanding patches of wet rice cultivation. Jhum farming is becoming less productive with a shrinking Jhum cycle and has caused erosion and forest regression in certain areas. Not all Jhumias resettlement schemes have worked well; nor can jhuming be ended all at one. The problem needs to be tackled sensitively as Jhum cultivation is also a way of life.’
The ICAR has evolved a three-tier hill-farming package combining forestry, Horticulture or tree farming and terraced cultivation as one moves down the hills. Jhum improvement is advocated by others and can be carried further through appropriate R&D. Nagaland has pioneered an excellent method of upgrading Jhum by interposing a strong and increasing component of agro-forestry through assisted tree planting of selected fast growing economic timber, the menu being a producer of meticulous exercise in bio-diversity mapping, documentation and breeding of plant material for Widespread propagation".

2.3 Location specific strategy development.
Efforts would be made to formulate an area specific differentiated strategy taking into account the agronomic, climatic, socio-economic practices as well as the resource worthiness of the farmer. Special emphasis will be made for introducing the newly developed H.Y.V. seeds, improved planting material, adoption of new technology and mechanized farming.

2.4 Convergence of allied activities. 
There would be a shift from the commodity approach to system approach in Agriculture. All the land based activities like that of Agriculture, Sericulture, Live Stocks, Fish rearing etc. would be given a new dimension and synergetic functional assignment. The ultimate objective is to create conditions, which would help the farming community to maximize incomes. The policy will aim at avoiding duplication of programmes / works by different functionaries, as far a possible. Towards that end, there will be regular monitoring and evaluation of all schemes implemented by Agriculture and allied Departments through appropriate mechanism.

2.5 Technology Transfer.
Importance will be accorded to identify new location specific and economically viable improved species of Agriculture, Horticulture, Livestock and Fish etc. Accordingly motivational aspect of Agriculture Extension would receive due attention. The entire extension system will be revitalized. Innovative and decentralized institutional change will be introduced to make extension system responsible and accountable. Development of human resources through capacity building and skill up-gradation of Extension functionaries will receive due attention.

2.6. Supply of Inputs. 
Adequate and timely supply of inputs such as seed, fertilizer, pesticides, Agri-tools and implements, credit at reasonable rate to farmers will be provided by the Govt. and other institutions, subject to availability of resources and funds. Grater emphasis will be given to increase the consumption of such inputs for achieving the targeted increase per unit area productivity. 
As far as possible use of organic manure/compost will be encouraged to avoid ill effects of inorganic fertilizers. 
Soil health card, quality testing of inputs like fertilizer, chemicals etc, will be introduced and supply of spurious inputs will be checked. 
On farm management of water, increasing the area under irrigation through the use of surface water and sub-surface water will receive added attention.

2.7 Facilitate private investment in Agriculture. 
Efforts would be made to create conditions that encourage participation of the private enterprises in the establishment of Agro-based industries. . An incentive package and guideline would be finalized ensuring participation of private sector & financial institutions in the Agricultural sector as a whole NABARD will have to play a major role in canalizing investment. To meet local credit needs of farmers, Rural Credit Banks are to be set up.

2.8 People’s participation:
The new policy would encourage formation of "Self Help Group" , village committees at different levels . The village committee would be vested with the task of maintaining and managing the assets created so far like irrigation channel, terraces market shed etc.

2.9 Research and Technology package: 
Location specific Agricultural research, based on identified agro-climatic zone will be accorded foremost importance. Development of need based technology package for achieving higher productivity would constitute the thrust area of the new policy. Effort will be made to build a well organized efficient and result oriented agricultural research & Education system for introducing technological changes in the Agricultural sector. 

2.10 Marketing infrastructure: 
Emphasis will be laid on development of marketing infrastructure and techniques of preservation, storage, and transportation etc. with a view to reduce the post harvest losses and ensuring a better return to the grower. Direct marketing and procurement by a notified State level procurement agency, as and when required with storage facilities of different items will be made available to the production areas. Up-gradation and dissemination of market intelligence will receive particular attention. Efforts will be made to strengthen the market infrastructure. 

2.11. Agro - processing: 
Setting up of Agro - processing units in production areas will be given due priority. To reduce post harvest wastage, effort would be made to add values especially to agricultural and horticultural produce by setting up small processing units. The small farmers Agricultural business consortium (SFAC) will be activated to cater to the need of farmer entrepreneurs. Tea will be brought under Agriculture sector, but for processing it may be under industries Sector. 

2.11 Price Support:
Market intervention scheme involving procurement through a notified agency will be implemented for selected Agricultural / Horticultural Crops so that farmers are assured of remunerative prices. 

2.12 Use of information Technology: 
The database for Agricultural sector will be strengthened to ensure greater reliability of estimates and forecasting which will help in the process of planning and policy making. 

2.13 Flood & drought Management:
It will be the endeavour of the Govt. to device a mechanism by which the floods and droughts affecting the agricultural production could be tackled. Provisions under national crop insurance scheme would be reviewed facilitating its introduction in the State. Subject to availability of funds. In foothill areas, water pumping system to be provided to exploit ground water. Further, contingency agriculture planning would be encouraged along with the use of drought and flood resistant crop variety in the affected areas. 

2.14 Cost of implementation of New Agricultural Policy: 
The state will have to bear the additional cost of implementation of the New Agricultural policy / Programmes and the annual plan allocation of funds to Agriculture and allied sectors will have to be increased correspondingly. 


 

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DETAILS PLEASE CONTACT:

Mr. Tajom Taloh, Secretary to Chief Minister
Secretary (Agriculture)
Govt. of Arunachal Pradesh
Itanagar, Pin-791111
Phone - 0360- 2212493 (O) 2212980 (R) 

Mr. Tago Basar
Director of Agriculture
Govt. of Arunachal Pradesh
Naharlagun, Pin-791110
Phone - 0360-2244252 (O) 2244462 (R) 

 

 

 

 

 

 

 

 

 

 

 

 

 

INDUSTRIAL POLICY OF ARUNACHAL PRADESH 2001


PART-III             PART-IV           PART-V           CONTACT ADDRESS

PART-I
New Industrial Policy of Arunachal Pradesh 2001

Arunachal Pradesh is the largest state among the North Eastern States, having an area of 83743 Sq Km, with a population pf just above 1 million. Through it has successfully launched various socio-economic development programmes and though the literacy rate has also been rising, industrial activity is insignificant. Hence, the need for a well-defined Industrial policy. This policy resolution is the second of its kind and will be known as "The New Industrial Policy of Arunachal Pradesh 2001". 

PART-II 
Policy Resolution

v The State Government will encourage the establishment of industrial undertakings in the private and cooperative sectors for the sustainable development of the state.

v Employment opportunities and gainful self-employment in industrial and allied sectors for the local populations of Arunachal Pradesh will be given priority.

v Investors from outside the state will be encouraged to invest in the state. Hundred percent equity ownership of an industrial unit by entrepreneurs will be allowed for a maximum period of 30 (thirty) years by the end of which period such equity holding will be reduced to 49 percent, the remaining 51 percent will be held by a local Arunachal Tribal entrepreneur or a group of local tribal entrepreneurs or the state government, if it considers necessary to do so. 

v Outside entrepreneurs may be allowed to hold land on lease for a period of 30 years, after which the lease may be renewed for a further period of 30 days. The consideration for the lease may be in the form of annual or lump sum payments or as equity. (The lease may be used as security for loans from financial institutions.)

v Development of all industries will be encouraged. To begin with, the following industries will have priority.

v Industries based on locally available raw materials.

v Textiles (handlooms and power looms) and handicrafts.

v Electronics and knowledge based industries.

v Industries based on non- timber forest produce.

v Infrastructure, such as power and communications. 

v Tourism 

v Medical services 

v Educational services 

A package of incentives for all eligible industrial units has been devised. The package is contained in Part-V. 

A programme for the development of infrastructure facilities, inter-alia including the establishment of Industrial Estates, Industrial Growth Centers, Integrated Infrastructure Development Centers, strengthening of existing Industrial Estates, Export Promotion Industrial Parks, Export Promotion Zones, Border trade, will be taken up in a phased manner. Reserves of minerals will be explored and exploited commercially through appropriate agencies. Government will make special efforts for development of local entrepreneurial, managerial and technical skills. For this purpose, special training and educational programmes, including women, will be put on a sound economic and commercial footing and ensure smooth flow of credit for new industrial projects, village industries and rural artisans. The District Industries Centers and financial institutions will work in close cooperation. 

There will be no licensing requirements for industry save as may be provided by any law or Central Government policy.


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PART-III
Administrative Measures 


v State Level Empowered Committee : A State Level Industrial Empowered Committee comprising of the concerned Secretaries and representatives from banking and financial Institutions will be formed to grant the requisite clearances and facilitate the establishment of industries from a single window. This Empowered Committee will be headed by the Minister of Industries and will meet as often as necessary. 

v Strengthening of District Centers : The Government will strengthen the DICs with adequate and basic facilities. Each DIC will have an Udyog Sahayak Cell to guide entrepreneurs in the setting up of project report and arrangement of finance for the projects. There will also be a women's cell in each DIC to give special attention to the women entrepreneurs. A data bank will also be created in each DIC for the benefit of the entrepreneurs. The District Level Industrial Advisory Boards will be reconstituted for monitoring the working of the District Industries Centers.

v Rural Non-Farm Sector : NABARD has identified 10 sectors for development, which include sectors like Agriculture, Fish rearing and processing, Rural Retail Trade, Sericulture & Silk Textile Fiber products, Construction, Small plantation products, Handloom, Handicrafts products in cane & Bamboo and wood. These activities are to be developed for creation of additional employment in the rural areas. All relevant Departments will be associated in the implementation of these schemes.

v Industrial Sickness : A package for the revival of sick industries in the SSI and Tiny sector will be devised by the Industries Department.

v Public Sector Policy : The State Government will gradually vacate economic space for the private and cooperative sectors and the public and state sectors will be economic players only where absolutely necessary.

v Women Entrepreneurs : To generate employment among women and to encourage women entrepreneurs, the Government will reserve 33 percent of industrial sheds, development plots in Industrial Area / Estate / Growth Centre etc for women.

v Registration of SSI Units : In order to speed up the SSI Registration process, the JDI / DDI / ADI will be empowered to register the SSI units. A single window service cell will be set up for assisting entrepreneurs to get all required technical project or activity in the district. Units fulfilling all formalities of registration will be given provisional or permanent registration by the District Industries Centres / Directorate of Industries immediately.

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PART-IV 
Date of effect, definition and eligibility criteria.


v Date of Effect : The New Industrial policy of the Government of Arunachal Pradesh will come into effect from the date of notification of this policy. 

v Eligibility : New registered units set up after the date of the notification of the policy, or which started production after 1 April 2000 and existing registered units, which have undertaken expansion, modernization or diversification, or which have not completed five years of production as on 1 April 2000 will be eligible for the package of incentives. All units must be registered . Existing units that have not completed five years of commercial production as on 01.04.2001 are also eligible for the incentives scheme.

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PART-V
Incentives 

All incentives granted by the Central Government shall be transmitted to eligible entrepreneurs establishing industrial units in Arunachal Pradesh.
Currently these include : 
    v Central Capital Investments Subsidy Scheme.
    v Transport Subsidy Scheme
    v Central Interest Subsidy Scheme
    v Comprehensive Insurance Scheme, etc.

Price Preference : Government departments and Government control bodies and organisations while making purchases will give price preference to the product manufactured by registered SSI units. Other things being equal, they will be given a price preference in contract bid as indicated below. 
          Sl.No.                      Type of Industries                     Price preference rates 
             1.                           Cooperative Ventures                           7.5% 
            2.                           SSI Units, cottage and tiny units          15% 

v Registered SSI units will be exempted from furnishing security deposits or earnest money.

v Quality Control : For purchase of testing equipments, 50% subsidy will be admissible to the SSI and tiny industries. Registration fee and Annual fee with the Bureau of Indian Standards etc. will be reimbursed in full for the first five years. The department of Industries shall be the Nodal Agency for quality control of all industrial products in the state. In collaboration with the Arunachal Pradesh Chamber of Commerce and Industry, the State Government would endeavour to establish "Produce of Arunachal Pradesh" as a " Corporate Brand" and undertake suitable measures for its publicity to achieve consumer recognition.FOR 

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