Backing for private, public ventures in agri-business
Minister spells out profit sharing scheme:
Anjana SAMARASINGHE
AGRI BUSINESS: Minister of Agricultural Development Hemakumara
Nanayakkara said the Government needs to venture out into agriculture
businesses through public-private partnerships.
Speaking at the inaugural ceremony of the Profoods Propacks 2007
International Processed Food and Packaging Exhibition and Ag- Biz trade
fair for national Agribusiness, held last week the Minister, said these
ventures could be established on a profit sharing basis.
‘At present many agriculture based companies have to lease lands for
their businesses.
‘The Government could provide sufficient lands and necessary
infrastructure for these joint ventures.
‘The Government could enjoy 51 percent of profit while the private
sector could enjoy the balance in profit,’ he said.
The farmer community is an important segment in the country and they
are poor. Farmers need to be organised as companies and enter into
formal agreements with private sector for better quality agricultural
products’, the Minister said.
Nanayakkara also invited the private sector to correspond with the
Government for the development of the agriculture sector in the country.
Minister of Industrial Development Kumara Welgama said there is a
remarkable growth in the food processing sector in Sri Lanka. Over 100
companies in local food processing sector now have HACCP certification,
which is important for export market.
The recent budget has granted several concessions for the food
processing industry and the 300 factory programme provided great
incentives for the print and packaging industry, he said.
President Elect of National Agribusiness Council (NAC) Sarath de
Silva said they expect to double the volumes of fruit and vegetable
exports from Sri Lanka in next year. In 2010 we are targeting Rs. 10,000
million through fruit and vegetable exports.
‘We need lands, infrastructure and irrigation to double the
production and double the exports of fruit and vegetables. Industry
needs total commitment from the Government to achieve these targets, he
said.
Nearly 40 percent of the lands in Sri Lanka belongs to the plantation
sector and the Forest Department owns 20 percent. There are nearly 10
percent of lands owned by the Government and these lands could be
utilised for cultivation, he said.
‘President of NAC Mario de Alwis said local consumers never demand
for more. If consumers demand more, quality of the products will be
increased. There is a weak linkage between the formal and informal
segments in the agricultural sector.
There should be strong integrity with informal and formal sector, he
said. |
