Five years after the government called for agri export zones (AEZs) to be set up across the country, the Centre and states have both drawn flak for failing to do enough to ensure that projects took off. A review group set up by the Ministry of Commerce has blamed them for going slow on investment while farmers and exporters feel the zones need an accountable authority and greater initiative to bring in investment.

Unlike special economic zones (SEZs), agri export zones are not based on any particular plot of land with physical boundaries. AEZs relate to agro-climatic regions known for growing speciality crops. It envisages integrated development of the region through development of needed infrastructure like roads, storage, transport and processing and value addition facilities. Since 2001, the plan has grown to around 60 AEZs in 20 states.

Five years on, the Central and state governments have dragged their feet on fulfilling their promised share of investments. Nor have they actively engaged the private sector to put the infrastructure in place. As per initial criteria, investments by the central and state governments and the private sector was to be in the 1:1:2 ratio. Accordingly, the total investment for 60 approved AEZs was estimated around Rs 1718 crore. Against this, the total flow of investment till date is only around Rs 811 crore.

Sources in the commerce ministry said the nodal agency — Agriculture and Processed Food Export Development Authority — had recently asked for Rs 271.5 crore support for seven AEZs. The ministry, however, has agreed to offer only Rs 50 crore.

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