Rajasthan Reforms

Agro-marketing and Agro-business Policy

  1. Rajasthan is not just India’s largest state. It has also one of the highest livestock populations in the country. The contribution of the Animal Husbandry Sector is more than 10% of the state GDP, thereby making livestock not only a significant component of rural economy but also an important shield against adverse climatic conditions. In Rajasthan, it has been estimated that an economy of Rs.1,25,000 crores revolves around this sector. The value of livestock and its products alone touches Rs.75,000 Crores. Rajasthan produces 10% of India’s milk and a third of sheep and goat. It also produces the largest amount of wool in the country.
  2. Feed and fodder availability in a drought prone state has been a major constraint of the sector in Rajasthan. We estimate a perpetual shortage of fodder to the tune of 40%. Despite this, the state has some of the finest indigenous milch cattle breeds as well as breeds for dual purposes and for draft.
  3. Rajasthan also produces non-conventional ingredients, which can be integral part of the feed raw material. These include mesquite (Juliflora) pods, watermelon and Citrulus (bitter melon), which are abundantly available in our state. We have already in place a State level Feed and Fodder Laboratory with advanced facilities that are able to test feed and fodder for drug residue, fungal toxins and pesticides. Our Veterinary University is involved in research in fodder production, nutritional value addition, hydroponics, polybag silage and on bypass fat and bypass protein technologies.
  4. Rajasthan offers excellent scope to the livestock and poultry feed sector. Maize, whose sowing area is touching one million hectares sees a total production of around 1.5 million tonnes. This crop is good raw material of poultry feed. Similarly, Rajasthan is a leader in other crops like Sorghum, Pearl Millet (Bajra), Pulses, Oil Seeds, Wheat and Rice, all of which in some way or other, form parts of compound livestock feed.
  5. Rajasthan, contrary to the popular belief is a significant producer of agricultural produce – both food and cash crops. Rajasthan is a leading producer pearl millet, wheat, seed spices, mustard and rapeseed, soybean, pulses and more. Rajasthan also produces high value basmati rice. Further a wide variety of vegetables and fruits like oranges, kinnow, guava etc. are produced in the state.
  6. The potential of Agro and Food processing is extremely high in Rajasthan as is the potential for setting up industries related to livestock feed. Moreover, it is the need of the hour to have modern storage /warehousing, cold chains and logistics infrastructure. Such industries have tremendous potential have providing employment, both direct and indirect and also have a significant role in supplementing farm incomes.
  7. In this backdrop the state government has gone about formulating a forward looking Agro-Business and Agri-Marketing policy.
  8. It has been proposed to include Agro Processing and Agri-Marketing as a THRUST SECTOR under RIPS 2014 and to grant additional incentives these activities under RIPS 2014.
  9. The incentives which would be available under this Policy will be in addition to the various incentives and concessions available under RIPS 2014.

Incentives under the Agro Processing & Agri-Marketing Policy


  • Surface Transport – 25% on. Maximum Rs. 1000 per tonne.
  • Marine Transport – Rs. 5000/10000 per container (20 MT / 40 MT) Maximum Rs. 1000 per tonne.

A + B = Maximum Rs. 15 lacs per beneficiary / per year for a maximum period of 3 years


Rs. 4.50 per Kg. or 20% of FOB, whichever is less

Maximum Rs. 10 lacs per beneficiary / per year for a maximum period of 3 years


More than 300 Kms.

25% of the Rail Freight.

Maximum Rs. 15 lacs per beneficiary / per year for a maximum period of 3 years


Patent & Design Registration – Rs. 2 lac per beneficiary per year

Quality Certification – Rs. 2 lac to each Enterprise for each certification

Sending agri-products for test marketing abroad – 40% of the actual cost subject to a maximum of Rs 50000 per beneficiary for one sample of one commodity to one country


50% of the cost. Maximum Rs. 10 lacs during a period of 5 years


50% of the cost of development of prototype subject to a maximum of Rs. 20 lacs for each undertaking in a year


  • 50% exemption on payment of stamp duty on purchase or lease of land and construction/improvement on such land
  • 50% exemption on stamp duty for the first conveyance of plots/buildings for the development of the Park.

< Back to Rajasthan Reforms main page