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ministries under the ambitious Krishi                                  become economically viable. That is a
        Udan 2.0 policy. The scheme is slated                                  challenge for the region.”
        to boost growth in the agricultural
        sector and double the income of Indian                                 • Lack of infrastructure
        farmers by removing barriers in supply                                 Rahul Mathur,  CEO of Udgam Logistics
        chain, logistics and transportation of                                 (Sitics’s Coldchain division) said, “Over
        farm produce.                                                          the years the biggest challenge in the
           With the convergence of the slow                                    agri sector was infrastructure. Due to
        moving Operations Greens scheme                                        this, there was a lot of wastage in terms
        (announced in 2018-19 budget) into                                     of value of the produce and farmers were
        the newly minted Krishi Udan 2.0,                                      not able to market their produce and
        the government is offering a freight                                   this was not able to reach the markets
        subsidy of 50  percent for agri-                                       where it should be consumed or where
        perishables of NER (North Eastern                                      the consumer existed. Apart from
        Region) states and three Himalayan       Infrastructure was one        infrastructure, others like small farmers
        States/UT in a bid to improve air cargo   big challenge and others     with small land holdings and yield
        transportation from these states and     like small farmers and        issues, are other critical areas that need
        expand product-coverage from just                                      focus which the government is tackling
        tomatoes, onions and potatoes to         yield issues, are other       now through schemes like these.”
        include 22 more products.                  critical areas that
           The scheme is expected to facilitate   need focus which the         Lack of international air connectivity
        and incentivize movement of agri-        government is tackling        from NE
        produce by air transportation and was    now through schemes           For the Northeast region the problems
        formulated by AAICLAS- a 100 percent           like these              are manifold as they are yet to be
        subsidiary of Airports Authority of                                    connected to international destinations
        India(AAI), Invest India and India’s         Rahul Mathur              by air. While flights to six international
        National Investment Promotion and             Udgam Logistics          destinations namely Singapore, Dhaka,
        Facilitation Agency under the Ministry of                              Yangon, Kathmandu and Kuala Lumpur
        Commerce and Industry.                                                 were flagged off in 2019, from Guwahati
           The Indian government had committed   million MT. And of this number, around   airport, the operations were grounded
        to doubling the farmer’s income by 2022.   2 million MT is international freight.  due to insufficient passengers and the
        Union aviation minister Jyotiraditya   Among its highlights, the scheme   pandemic outbreak, however efforts are
        Scindia said while launching the scheme,   includes a full waiver of landing,   on for resuming operations soon.
        “We are the second largest producer   parking, TNLC and TNFC charges for   Bidyut Baruah, assistant general
        of fruits and vegetables in the world at   Indian freighters and P2C(passenger to   manager, APEDA said, “There is no
        close to 170 million MT and we are the   cargo) freighters at select AAI airports.   direct international flight operating
        third largest producer of food grains   The scheme will be implemented at 53   from Guwahati till recently, which
        in the world at close to 300 million MT.   airports mainly focusing on Northeast,   meant that the exporters have to send
        That is the asset side, but there is also a   tribal and hilly areas with farmers,   the perishable products to Delhi or
        weakness side of the balance sheet. We   freight forwarders and airlines as its key   Kolkata which has many international
        only process close to 40 percent of our   beneficiaries and stakeholders.  flights and the goods are loaded onto
        production in India, while international                               the international cargo and sent. Since
        estimates have estimated close to $14   Current Challenges:            the cargo could only be cleared at Delhi
        billion dollars in terms of wasted produce   •  Low agri yield         or Kolkata, this affected the quality
        in India and within that challenge lies the   Kuntal S an advisory and consultant   of our products. So while export was
        opportunity for us. The conundrum of   for international trade & standards   happening, the problem was that there
        farm to market is what we wish to solve   & accreditations batted for the   was no custom clearance facility till a
        for our farmers. That problem can only be   scheme and its benefits for the North   few years back. Now that it is there at
        solved for our farmer if we are able to take   eastern states and said, “This is a   the Guwahati Airport, it’s an advantage
        him or her up the value chain and therein   great initiative that will bring a lot of   for the exporter, but other airports of
        lies the vision of our government which is   momentum to the NE region. With local   Northeast do not yet have the advantage
        of doubling farmer’s income.”       entrepreneurship looking up in recent   of facilities like customs clearance and
           While announcing the scheme,     years, the sector has been looking for a   phytosanitary certificate yet.”
        Scindia put the country’s total freight   boost like this. However, volumes seem    He adds, “At Agartala airport they don’t
        movement in the year 2018-19 at about   to be a problem because even if basic   have the facility to issue the phytosanitary
        3.56 million MT, and in the following   infrastructure is there or has been   certificate which is issued by the ministry
        year as Covid-19 started its onslaught   created, they need a certain capacity   of agriculture via NPPO (National Plant
        that number came down to about 3.36   and volume to flow through it for it to   Protection Organization) for export of


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        www.itln.in                                                                             January - February 2022
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