Agri export zones (AEZs), with comparatively lower level of investment than the special economic zones (SEZs), have the potential to boost exports. A recent study of 60 AEZs spread across 20 states conducted by Agriculture and Processed Foods Export Development Authority (APEDA) shows AEZs are approaching the cumulative export target.

According to the report by APEDA, AEZs have recorded cumulative exports of Rs10,685.29 crore up to February 2008 against the target Rs 11,821.47 crore. The investments by the central and state government agencies and by the private sector in the AEZs have not been up to the mark. Against a projection of Rs 1,717.95 crore, the cumulative investment so far has been Rs 1,097.53 crore.

AEZs have been less controversial than SEZs because they have not resulted in a change of land use for industrial and other activities. AEZs are not fixed by physical boundaries like SEZs-they are regions in different states known for growing special crops like gherkins, grapes, special varieties of mango, lichi, potato, pineapples, Darjeeling tea, rose onion, vanilla, flowers, basmati rice, medicinal and aromatic plants, pomegranate, banana, walnut, garlic, spices, duram wheat, lentils & gram, cashew nut, honey, apple, ginger, turmeric, coriander and cumin.

Over the years there have been sporadic efforts at setting up AEZs, with the state governments clamouring for approvals. This had resulted in the setting up of as many as 60 AEZs in 20 states. In most cases the state and central governments have not lived up to their commitments of ensuring adequate infrastructure, and the investment from the private sector has not been to the desired level. The APEDA review, therefore, said, ?A package needs to be developed to suggest solutions to these problems and agencies identified to implement these in a given time-frame.?

Andhra Pradesh with five AEZs has a record export turnover of Rs 2,852.59 crore. The AEZ for mango pulp and fresh vegetables in Chittoor district alone recorded an export turnover of Rs 2,736.03 crore, while export of mango and grapes in Ranga Reddy, Medak and Mehaboobnagar districts earned Rs 18.29 crore.

The mango AEZ in Krisha district is expected to record an export of Rs 2.75 crore and the gherkins AEZ in Mehaboobnagar, Ranga Reddy, Medak, Karimnagar, Warangal, Ananthapur and Nalgonda districts is likely to bring in Rs 44.5 crore through exports. The chilli AEZ in Guntur district earned Rs 51 crore in exports.

Next to Andhra Pradesh, in performance, is Kerala with two AEZs. Its horticulture products AEZ in Thirssur, Ernakulam, Kottayam, Alappuzha, Pathanamthitta, Kollam, Thiruvananthapuram, Idukki and Palakkad districts is expected to earn through Rs 2,277.79 crore. Kerala?s medicinal plant AEZ is yet to become operational.

Karnataka?s AEZs could bring in Rs 1544.79 crore hrough exports. Its gherkins AEZ located in Tumkur, Bangalore, Hassan, Kolar, Chiradurga, Dharwad and Bagalkot districts registered an export of Rs 1,237.05 crore.

The rose onion AEZ in Bangalore and Kolar districts earned an export amounting to Rs 276 crore, while its floriculture AEZ in Bangalore, Kolar, Tumkur, Kodagu and Belgaum districts earned Rs 31.74 crore.

The vanilla AEZ in Karanataka is yet to become operational. The success story of AEZs is not just limited to south India. In north India, Punjab with its three AEZs has already earned Rs 1,523.83 crore through exports. The basmati rice AEZ located in Gurudaspur, Amritsar, Kapurthala, Jalandhar, Hoshiarpur and Nawanshashar districts fetched Rs 1,521 in exports. Export earnings from Punjab?s vegetable and potato AEZs have been negligible.

Maharashtra is the fifth state, which has done well in earnings from exports through AEZs. The state has eight AEZs for grapes and grapewine, alphonso mango, kesar mango, floriculture, onions, pomegranate, banana and oranges.

The cumulative export earning from these eight AEZs are Rs 1,166.34 crore.

There are several such success stories in other AEZs spread across other states. The APEDA review also noted that some AEZs are yet to become operational, like the Darjeeling tea AEZ in West Bengal, vanilla AEZ in Karnataka, lentils & gram AEZs in Madhya Pradesh, sesame seed AEZ in Gujarat and medicinal plant AEZ in Kerala.