In a bid to boost investment in backend infrastructure development for farm-produce, the agriculture ministry has proposed doing away with the ceiling on the subsidy provided for post-harvest management.
At present, the subsidy is 25% up to a maximum limit of Rs 50 lakh. Thus, any project above Rs 2 crore does not benefit to the full extent. The change is likely to benefit bigger projects. However, with an estimated Rs 15,700 crore, required to set up an effective cold chain and backend logistics infrastructure at the present level of agricultural production, the ministry would have to shell out Rs 3,925 crore.
?Big companies, which are capable of large-scale investments in backend logistics, have not been putting in the desired level of investments. The ceiling of Rs 50 lakh has acted as a deterrent in them approaching the ministry. So, the ministry has mooted the proposal of doing away with the ceiling while keeping the subsidy at 25%,? said an official in the ministry.