The study, commissioned by ICICI, has found that development of proper linkages between the various players could improve income-generation from the farm sector in a substantial manner in the two states. Based on the average prices and yield during 1998-99, the study has valued mangoes at Rs 1,700 crore and grapes at Rs 300 crore. Papaya, pomegranate, fig, guava and sapota (or chiku) togther accounted for Rs 250 crore. Chillies were valued at Rs 1,450 crore while turmeric accounted for Rs 125 crore.

The study has also identified the high potential regions, high potential crops and various stakeholders in the farm sector with a view to creating initial partnerships. The partnerships are expected to enhance crop yield, crop marketability and income levels. The report also claimed that it has helped develop initial partnership for certain crops which could bring-in near-term market access for Rs 300 crore.

The second phase of the study would focus mainly on six areas in the two states. In Karnataka, the study would concentrate on development of horticulture of Chitradurga district along with progressive farmers association. Developing select crops in Belgaum district and linking fruit growers from Bagalkot and Bijapur with corporates would be the other areas of attention. In Andhra Pradesh, the study would focus on development of groundnut in Ananthapur along with Basix, a leading micro-credit financing body besides exploring the possibilitties of boosting grape and mango exports and corporate linkages for chillies.

Meanwhile, William Lesser of Cornell University on Thursday said the major problem facing the agricultural sector was on ways to reduce the cost of food products. Addressing the agri-business management programme organised by Cornell University in Bangalore, Dr Lesser said, "We must strive to reduce costs further to serve the most wreteched portion of humanity that goes without food at present." The underlying issue here was not supply but costs, he said adding that limited per capita increase in food production would add to the woes of the poor in the coming days. Dr Lesser also pointed out that funding for agriculture research was coming down all over the world.