The realization of the Kerala Agro Business Company (KABCO), dedicated to advancing agricultural business initiatives, has come to fruition. This endeavor has ignited optimism among young investors and farmers. The government’s proposal for establishing an agricultural company, inspired by the successful CIAL model, was initially introduced in the 2016-17 period.
Following the project’s approval by the cabinet, a ten-member director board will be imminently appointed for KABCO. This board will include government secretaries and experts in agriculture.
The long-pending KABCO project, which encountered delays due to issues between the agricultural and industrial departments, will function as the specialized entity of the Kerala Agro Industries Corporation. KABCO’s stakeholders will include farming groups, the general public, and primary agricultural cooperative societies. Initially set to facilitate trade amounting to Rs 500 crores annually, KABCO is projected to exceed Rs 1,000 crores in a short span.
KABCO will introduce ready-to-eat and ready-to-cook agricultural products into the market. The components of KABCO encompass: • Agricultural project centers, agricultural market facilitation centers, processing units, and cold storage facilities. • Seventeen major markets, including the Thiruvananthapuram Anayara market, falling under the agro industries corporation. • Storage centers strategically positioned in districts such as Idukki, Thrissur, Kozhikode, Palakkad, Ernakulam, and Wayanad. • Nine markets, including the “international wholesale market” under the purview of the agricultural department.
The agricultural department will retain a 33 percent stake in the company, which is established with an initial capital investment of Rs 10 crore. The remaining shares will be allocated to public sector entities, farmers, and food processing companies.