Print
XClose
Press Information Bureau
Government of India
Ministry of Agriculture & Farmers Welfare
11-August-2015 18:06 IST
FDI up to 100% is Permitted Under Automatic Route in Specified Activities of the Agriculture and Allied Sectors

Public and private investments as well as Foreign Direct Investment (FDI) are allowed in the agriculture and allied sectors.

FDI up to 100% is permitted under automatic route in specified activities of the agriculture and allied sectors. The details as per para 6.2.1 of “Consolidated FDI Policy Circular of 2015” are at Annexure I.

The details of FDI in the agriculture sector during the last three years are at Annexure-II. A number of farmers are benefited directly and indirectly from FDI. However, details are not available.

 

ANNEXURE-I

Para 6.2.1 of “ Consolidated FDI Policy Circular of 2015” on Agriculture

 

Sl. No.

Sector/Activity

% of Equity/ FDI Cap

Entry Route

Agriculture

6.2.1

Agriculture & Animal Husbandry

 

 

a)      Floriculture, Horticulture, Apiculture and Cultivation of Vegetables & Mushrooms under controlled conditions;

b)     Development and Production   of seeds and planting  material;

c)      Animal Husbandry (including  breeding of dogs), Pisciculture, Aquaculture, under controlled conditions; and

d)     Services related to agro and allied sectors

 

Note: Besides the above, FDI is not allowed in any other agricultural sector/activity

 

100%

Automatic

6.2.1.1

Other Conditions:

 

I.  For companies dealing with development of transgenic seeds/vegetables, the following conditions apply:

(i) When dealing with genetically modified seeds or planting material the company shall comply with safety requirements in accordance with laws enacted under the Environment (Protection) Act on the genetically modified organisms.

(ii)  Any import of genetically modified materials if required shall be subject to the conditions laid down vide Notifications issued under Foreign Trade (Development and Regulation) Act, 1992.

(iii) The company shall comply with any other Law, Regulation or Policy governing genetically modified material in force from time to time.

(iv)Undertaking of business activities involving the use of genetically engineered cells and material shall be subject to the receipt of approvals from Genetic Engineering Approval Committee (GEAC) and Review Committee on Genetic Manipulation (RCGM).

(v) Import of materials shall be in accordance with National Seeds Policy.

 

II.     The term “under controlled conditions” covers the following:

 

(i)     ‘Cultivation under controlled conditions’ for the categories of floriculture, horticulture, cultivation of vegetables and mushrooms is the practice of cultivation wherein rainfall, temperature, solar radiation, air humidity and culture medium are controlled artificially. Control in these parameters may be effected through protected cultivation under green houses, net houses, poly houses or any other improved infrastructure facilities where micro-climatic conditions are regulated anthropogenically.

 

(ii)   In case of Animal Husbandry, scope of the term ‘under controlled conditions’  covers –

(a)    Rearing of animals under intensive farming systems with stall-feeding. Intensive farming system will require climate systems (ventilation, temperature/humidity management), health care and nutrition, herd registering/pedigree recording, use of machinery, waste management systems as prescribed by the National Livestock Policy, 2013 and in conformity with the existing ‘Standard Operating Practices and Minimum Standard Protocol.’

(b)   Poultry breeding farms and hatcheries where micro-climate is controlled through advanced technologies like incubators, ventilation systems etc.

 

(iii) In the case of pisciculture and aquaculture, scope of the term ‘under controlled conditions’ covers –

(a)                Aquariums

(b)   Hatcheries where eggs are artificially fertilized and fry are hatched and incubated in an enclosed environment with artificial climate control.

 

(iv)  In the case of apiculture, scope of the term ‘under controlled conditions’ covers –

(a)    Production of honey by bee-keeping, except in forest/wild, in designated spaces with control of temperatures and climatic factors like humidity and artificial feeding during lean seasons.

 

 

ANNEXURE-II

FINANCIAL YEAR WISE FDI EQUITY INFLOWS FROM APRIL 2012 TO MAY 2015


Sector AGRICULTURE SERVICES

Sl No

Year (Apr-Mar)

FDI
(in Rs. crore)

FDI
(in US$ million)

1

2012-13

875.90

161.47

2

2013-14

559.66

91.01

3

2014-15

352.37

57.87

4

2015-16
Apr-May

37.64

5.99

 

Grand Total

1,825.58

316.34

Source: Department of Industrial Policy & Promotion (DIPP)

 

This information was given by the Minister of State for Agriculture Sh. Mohanbhai Kalyanjibhai Kundaria in Lok Sabha today. 

 

SS/CP