THIRUVANANTHAPURAM: The Kerala Agro Business Company (KABCO), formed to create a vital agricultural market in the state, is struggling to stretch its wings to attract business models. As part of its effort to attract private investment, the company has now changed the percentage of shareholding capacity of the financial institutions from 5 percent to 15 percent.
KABCO was formed in 2023 October as a public-private partnership company on the CIAL model with a capital of Rs100 crore to improve the markets of quality-assured agricultural value -added products.
It was also envisaged to establish and coordinate agri parks and fruit parks, to build up a professional marketing division, act as an agency for common branding for all agricultural products and to enable the participation of farmers in the state in national and international export and marketing.
The government had also transferred six public sector undertakings under the Agricultural Department to KABCO. They are Vegetable Agro Park, Idukki, Banana-Honey Agro Park, Thrissur, Coconut Trading and Marketing Hub Agro Park, Kozhikode, Mango Agro Park, Palakkad and Agritech facilitation centres.
However, the lack of investment has affected the progress of KABCO to achieve its declared aims. “Now, NABARD has come forward expressing its interest to be part of the company,” KABCO CMD B Ashok told TNIE.
“NABARD wants 15% of share and in order to facilitate that the board of directors had through a resolution increased the share-holding capacity of financial institutions, including primary agricultural co-operative, to 15% from five,” he said.
Ashok also said though the business plan is ready, what the company now needs is investment. “Things happen in a sequence. Only after raising funds on credible business plans backed by shareholders can each result be pursued,” he added.
The company has now developed a business plan to produce value-added products from the Banana-Honey Park.
“Producing wine from bananas is one of the major attractions,” KABCO AMD Saju K Surendran told TNIE. “National Research Centre for Banana has the technology. We have to find investors and make facilities for them in the parks. We are also developing infrastructures in all the parks. After that, we will attract private investment. Producing value-added products of mango and coconut are also under consideration,” he said.