AGRICULTURE MARKET

REFORMS IN
BIHAR
A presentation by
Ashok K. Sinha
Agriculture Production Commissioner
& Principal Secretary
Agri-Maket Summit,Delhi,29th Sept 2006
 APMC Act Repealed !!!

• Bihar has taken the revolutionary step of

repealing BPMC Act to provide for a
completely free Agriculture Market
• Repealing Act notified on 1st Sept 2006
• No market fee
• No Market Committees
• No Market Board
 Assets still being used for
Agri-marketting

• Assets including market yards and Rural

hats taken over by Government
• Transactions continue as before
• No Market fee being levied
• Markets called “Government Free market”
• Officers and staff may be absorbed by
Government after screening
What lies in store for FUTURE ?
• Private & Co-operative Markets, Contract
farming and Direct market to be encouraged
• 55 developed market yards and 347 rural hats
ready to be used in PPP mode
• Other facilities like AEZ, Railway Container
Depot, Food Park available for support
• More than 300 farms ( 5000 ha ) farm land
available for logistic support on Production side
• Big soil testing and bio-fertilizer and irrigation
programs available on production size
AGRICULTURE IS CORE
COMPETENCE OF BIHAR
QUALITY LAND * Type – Alluvial Plain *Texture – Loam
RESOURCES * pH – 6.5 – 7.5 *Medium to rich in NPK

•Annual Rainfall – 1297.2 mm.

•Irrigation Potential
QUALITY WATER Surface water – 6.33 million Ha
RESOURCES Ground water – 4.85 million Ha
Total – 11.19 million Ha
•Irrigated Area – 4.88 million Ha
• 1145 Agriculture graduates trained in agri clinic
QUALITY HUMAN /agri-business management
RESOURCES •Bihar farmers are the BEST

We can take three crops (Kharif, Rabi & Garma ) a year !!!
 AREAS FOR PRIVATE INVESTMENT
Crop PROCESSING COOL EXPORT CONTRACT ETHANOL MODERN
CHAIN FARMING / RICE MILL
CORN OIL
/STARCH
INDUSTRY
LITCHI

HONEY

MAKHANA

BANANA

MANGO

MAIZE

VEGETABL
E
AROMATIC
RICE
FISH
 INCENTIVES FOR
AGRO -PROCESSING UNITS

NO MANDI TAX

EXEMPTION OF STAMP DUTY AND

REGISTRATION FEES

REIMBURSEMENT OF 50 % COST
(MAXIMUM RS. 75000) ON PROJECT REPORT

SUBSIDY ON LAND/SHEDS (INDUSTRIAL

AREA /EXPORT PROMOTION ZONE/ FOOD
PARK/ AGRI-EXPORT ZONE)
@ 50% (MAXIMUM RS. 7.50 LAKH) FOR
SMALL/ TINY UNITS
@ 25% (MAXIMUM RS. 15.00 LAKH) FOR BIG/
MEDIUM/MEGA UNITS
INCENTIVES CONTD.….

REIMBURSEMENT OF 30% COST

(MAXIMUM RS. 15.00 LAKH) FOR
TECHNICAL KNOW HOW
50% SUBSIDY ON PLANT AND
MACHINERY FOR CAPTIVE POWER
GENERATION
REIMBURSEMENT OF 80% VAT TO
NEW UNITS
100% EXEMPTION IN ELECTRICITY
DUTY
ONLY 1% CST ON PRODUCTS FROM
SMALL /MEDIUM UNITS
REIMBURSEMENT OF 75% COST OF
ISO/QUALITY CERTIFICATION ETC.
 We will tell you more
when you come to Bihar
Contact: Agriculture Production Commissioner,
Vikas Bhavan, Patna 800015
Phone: 0612-2223720 Fax:2224365
Mobile:94310-12322

Thanks!!!