Significantly, the suggestion to allow cooperatives to access funds either through private investment or through the markets was mooted by veteran Congressman and president of the National Federation of Sugar Cooperatives, Shivaji G Patil. Cooperatives minister Jaiprakash Mundada invited suggestions for the revival of sick sugar cooperatives, with the suggestion that they be brought within the ambit of the Board for Industrial and Financial Reconstruction (BIFR).

Speaking at a road show to promote Agro Advantage Maharashtra which was attended largely by chairmen of cooperatives, Vikhe Patil explained that changes in the Cooperatives Act were being undertaken to allowcooperatives to access funds from the market for expansion, diversification or modernisation purposes. The proposed changes are expected to be placed before the cabinet by the end of August, after the agriculture ministry receives responses from leaders of the politically powerful, Congress-controlled cooperatives. The state government will be issuing questionnaires to cooperatives shortly, which are expected to be returned completed by the end of this month. Vikhe Patil admitted that this was the first time the state government had taken the lead in proposing changes in the Act.

The state government is itself setting up two orange processing plants using the joint venture route. These plants, coming up in Katol and Morshi, will require investment of Rs 10 crore. It has received three tenders for the proposed 50:50 joint ventures, which will be opened at the end of this month. While the state government was not opposed to foreign companies setting up 100 per cent owned companies in the agri sector, thesugar industry would not be allowed to do so. The three-day Agro Advantage expo is expected to bring in Rs 5,000 crore investment into the state's agri sector. Taking a leaf out of Shetkari Sanghtana leader Sharad Joshi's proposals, mooted over three years ago, the state government also proposes to set up agro industrial estates. Sharad Joshi had suggested the setting up of joint stock companies, allowing private sector investment in agriculture, and the creation of agro industrial estates, which would protect the interests of the farmers.

The state government will also allow agricultural universities to form joint ventures with foreign companies. Vikhe Patil stressed that the aim in inviting foreign participation was investment as well as transfer of the latest technology, citing the attractiveness of cheap labour here. While the German department of agriculture has confirmed its participation, its US counterpart is expected to follow suit, inspite of the sanctions. Among the other countries which areexpected to participate are France, Italy and Israel.

The state government's effort to boost agri-horti and floriculture in the state are to be promoted through road shows in Hyderabad (July 15), Bangalore (July 17) and Chennai (July 25). This is expected to be followed by road shows in European countries, the US and South East Asia. The state government is seeking RBI's clearance to allow remittances by participants using electronic transfers of funds.

Sahakari Sakhar in pact with US firm

Maharashtra minister for agriculture Vikhe Patil, whose family controls the state's oldest sugar cooperative, the Pravara Sahakari Sakhar Karkhana (SSK) in Ahmednagar district, said the SSK has entered into a US $25 million cogeneration project. The joint venture is on a build-operate-own-transfer (BOOT) basis and is expected to be finalised by the end of this month with a US-based company.