Centre to subsidise air freight
 NEW DELHI, June 24 – Recognising the vast scope of the northeastern states to 
boost the country’s spice exports, the Centre today announced its plans to 
establish cold storage facilities at five airports in the region and 
heavily-subsidise air freight to Kolkata, Delhi and Mumbai for all 
export-oriented horticulture products from the region, reports PTI. Launching a 
new initiative to start organic cultivation of turmeric, ginger and chilli on a 
large scale in Karbi Anglong district, Union Minister of State for Commerce 
Jairam Ramesh said though the present contribution of the northeast to India’s 
spice exports of about $ 800 million (in 2006/07) was very small, there was a 
great scope for increasing it.

For this, he said, his ministry is establishing cold storage facilities at five 
airports in the northeastern region – Guwahati, Aizawl, Imphal, Agartala and 
Dimapur – and announced a subsidy scheme by which 90 per cent of air freight to 
Kolkata airport and 50 per cent of air freight to New Delhi and Mumbai airports 
from northeast airports for all horticulture products meant for exports is 
subsidised by the Centre, an official release here said.

Highlighting the social and economic significance of the project to start 
organic cultivation of spices, Ramesh reiterated his commitment to giving a 
special and vastly expanded northeast focus to the Kochi-based Spices Board, 
particularly in the area of organic spices which command a premium in world 
markets and in which the northeastern states have a natural competitive 
advantage.

These include ginger where the northeast already accounts for over 50 per cent 
of the country’s production of turmeric, chilli, black pepper, chilli and large 
cardamom. He stressed the need for value addition and the need for 
organisations like the producer companies established in Karbi Anglong so that 
the benefits of export growth flow directly to tribal families.

Ramesh expressed the hope that the initiative in Karbi Anglong will be 
replicated in other parts of the northeast.

Each of the two companies, located in Paroli and Rongmanpi in the Hamren 
subdivision of Karbi Anglong, will initially have a plantation area of 500 
hectares which will be cultivated over a five-year period, with 175 hectares 
being taken up in the first year itself.

Agreements are being signed with private companies for processing and 
marketing. The first such MoU has already been signed by Coinonya Farms with 
Arjuna Natural Extracts for extraction and marketing of turmeric products. – PTI

       
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