No Agri Export Zones (AEZs) after 2004

• The concept of Agri Export Zone (AEZ) was introduced in 2001, through EXIM Policy 1997-2001, to take a comprehensive look at a particular produce/product located in a contiguous area for the purpose of developing and sourcing the raw materials, their processing/packaging, leading to final exports.

• The concept hinged primarily on the convergence of existing Central and State Government schemes to take care of financial interventions required at various stages of the value chain.

Key highlights

• The partnership among various stakeholders viz. Central Government, State Government, farmer, processor, exporter etc.; and focus on targeted products and areas to identify required policy interventions.

• All these activities did take place in certain respects in the notified Agri Export Zones.

• In December 2004, an internal peer review conducted by Department of Commerce concluded that the notified AEZs had not been able to achieve the intended objectives.

• It was decided that there will be no creation of new AEZs, unless there were strong and compelling reasons. No new AEZs have been set up after 2004.

• All the notified AEZs have completed their intended span of 5 years and have been discontinued.

• In all 60 Agri Export Zones (AEZ) were notified by the Government till 2004 – 05.

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Mains Paper 3: Economy | Food processing and related industries in India- scope and significance, location, upstream and downstream requirements, supply chain management.

Prelims level: AEZs

Mains level: Measures towards doubling farmer’s income and issues associated

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