With a view to promote exports from the North Eastern Region, a North East Cell has been set up in the Department of Commerce. An Empowered Committee under the Chairmanship of the Commerce Secretary was set up to monitor and implement the initiatives for the North Eastern Region. Consequent to the announcement made by the Prime Minister for the development of exports from the Region, an Export Development Fund (EDF) was set up with the objective of promoting exports from the Region. Activities which have a linkage with exports from the region are eligible for assistance from the Export Development Fund. The Agricultural and Processed Food Products Export Development Authority (APEDA) works as nodal agency for sanctioning projects received under the EDF (NER).

During financial year 2007-08, an amount of Rs.16 crore has been allocated for Export Development Fund. Upto 31/3/2007, 48 projects with an outlay of Rs. 40.84 crore have been sanctioned under this scheme.

The following major projects have been undertaken with the support from EDF:

• A project for setting up of laboratory at Guwahati to carry out testing of Agri and food products has been sanctioned at the cost of Rs.296.25 lakh with the Govt. of India contribution Rs. 203.37 lakh. Total fund has been released.
• A project for setting up of International Marketing Cell in for North Eastern States by EPCH at the cost of Rs. 106.06 lakh.Total funds have been released.
• Project on Bamboo Shoot Processing in Nagaland with the Govt. of India contribution of Rs.115.16 lakh. Full amount has been released.
• Project for Export Promotion of Infrastructure for 2 TPH Passion Fruit Processing plant in Manipur with the Govt. of India contribution of Rs. 250.00 lakh which envisages the following benefits for passion fruit juice exporters:
  Ø Remunerative prices for farmers growing passion fruit in Manipur and neighboring states.
  Ø Reduced wastage and value loss.
  Ø Stimulation of agricultural production of horticultur crops by obtaining marketable products with higher value addition.
• Project for creation of integrated trade information and stay facility centre for traders at Moreh, Manipur with the financial support of Rs. 370.00 lakh.
• Project for floriculture in Mizoram with the support of Rs. 210.94 lakh.

In its meeting held on 3rd December 2007, the Empowered Committee on EDF has taken the following decisions:

Land Customs Stations are gateways for transit of goods, services and human beings between neighboring countries. India has 136 notified Land Customs Stations, out of which 11 Land Customs Stations in the North East have been identified for development of infrastructure on a priority basis. These Land Customs Stations are:

During the year 2007-08, Rs. 60.00 crore have been allocated to North East States under the Assistance to States for Infrastructure Development and Allied Activities (ASIDE) Scheme, during the year 2007-08. 13 projects have been sanctioned for the North East States and all of them are under implementation. Some of the major projects undertaken under ASIDE Scheme/EDF Scheme are as under:

Zokhawthar Land Customs Station (Mizoram)

The Zokhawthar Land Customs Station (Mizoram) was inaugurated on 30th January 2004. The Department of Commerce has released Rs 4.2208 crore to the Border Roads Organization under Critical Infrastructure Balance Scheme for construction of a composite building at Zokhawthar. The Border Roads Organisation (BRO) in cooperation with the Government of Mizoram had completed the infrastructural work at Zokhawthar Land Customs Station and the Composite Land custom Station at Zokhawthar has been taken over by Trade & Commerce Department, Govt. of Mizoram on September 14, 2007.

Rubber Wood Base Door Manufacturing Unit in Tripura

During 2007-08, an amount of Rs.5.0840 crore has been approved under Export Development Fund for setting up of Rubber Wood Base Door Manufacturing Unit in Tripura. The project is proposed to be implemented by Tripura Forest Development and Plantation Corporation.

Trade-cum- Exhibition Centre at Guwahati

A Exhibition-cum-Trade Centre at Guwahati was sanctioned under ASIDE scheme at the total cost of Rs. 20.74 crore. The project has been completed in December, 2006 and has been taken over by AIDC on 05.04.2007. It has 3 centrally air-conditioned exhibition halls including facilities like Conference Room, Fire fighting facilities and toilets etc. and 8 Nos. of craft shops.

Border Trade with China through Nathula

After resumption of border trade with China through Nathula, the development of infrastructure at the trade mart at Sherathang was undertaken by the Government of Sikkim with financial assistance from the Department of Commerce in following manner:

Inland Transport Assistance Scheme

The Inland Transport Assistance Scheme was formulated to bring down the heavy expenditure on transportation involved in transport of goods with a view to boosting the export of fresh and processed horticulture products from the North Eastern Region. The scheme came into operation with effect from July 15, 2002. Based on the persistent demand from the various North Eastern State Govts, the scheme for export of horticulture products in the North Eastern Region has been liberalized. Inland Transport Assistance would now be available in respect of identified products to all the North Eastern States. The rates of inland transport assistance have been modified as follows:

• 90% if the air freight charged by the airline from any airport in the North Eastern States or Bagdogra to Guwahati or Kolkata for exports and in case of highly perishable commodities, 50% of the air freight charged by the airline from any airport in the North Eastern States to Delhi or Mumbai Airport for exports.
• Rs. 1 per kg or actual freight paid whichever is less, if the goods are transported from anywhere in the North Eastern States by road for exports through any notified Land Customs Station in the North Eastern States or through Guwahati airport.
• Rs. 2 per kg or actual freight paid whichever is less, if the goods are transported from North Eastern States to Kolkata or any other port by rail through ICD, Guwahati for exports.
• Rs. 2 per kg or actual freight paid whichever is less, if the goods are transported from North Eastern States by rail through ICD, Guwahati to any place in West Bengal for processing and export.

APEDA who is the implementing agency has given wide publicity of the scheme. As a result of revision and wider publicity given to the scheme, claims aggregating to Rs. 8.6 lakh have been received during 2006-07.

Major projects taken under ASIDE scheme for North East

Bamboo Industrial Complex for Export (BICE), Kanhmun Area in Mizoram at the cost of Rs. 250 lacs with assistance of Rs. 209.88 lacs under ASIDE. The project will for create infrastructure for export of bamboo and bamboo products and other exportable goods with focus on Bangladesh through Sutterkandi (Assam)

Industrial Centre for Export (ICE), Tlabung, Mizoran at the cost of Rs. 200 lacs with contribuition from ASIDE as Rs. 200 lac. The project will boost export to Bangladesh through Khawthlangtuipui (Karnaphuly) Tlabung - Chittagong waterways.

Other Activities undertaken in the North East Region

State Trading Corporation

The State Trading Corporation has a branch office at Kolkata which is engaged in international and domestic trading from West Bengal and other north eastern states of the country. This office imports Vanaspati from Nepal to cater to the requirements of the states of Assam, Meghalaya, Mizoram and rest of India. It also regularly supplies Pulses and Tea to Defence. Supply of Tea in the domestic market is also being undertaken. During April –November 2007, domestic sale of Pulses worth Rs 55 crore have been made including online sale through NCDEX. Besides, over Rs 320 crore worth of Pulses have been imported on behalf of the Govt. of India. STC, Kolkata also undertakes imports of Hydrocarbons. During April-November 2007, Rs 348 crore worth of Hydrocarbons have been imported for power plants generating power mainly for Eastern and North Eastern States. The Corporation has been making continuous efforts to develop business in the North Eastern Region. Currently, the Branch is making concerted efforts to purchase Rubber from Tripura to cater to various factories located in Bengal, etc. Efforts are also being made to import Bamboo Pulp from Myanmar for supply to newsprint/paper manufacturing mills.

Shellac & Forest EPC (SHEFEXIL)

Recognizing the need for boosting the exports from the North Eastern State, which have diverse variety of forest and horticultural products especially medicinal plants, Shellac & Forest EPC (SHEFEXIL) has been designated as nodal Export Promotion Council for North Eastern States. Would

demand for forest & mineral based products including their value added variants such as bio-medicine, bio ceramics etc. is picking up fast. North East Region is endowed with rich natural resources & bio diversity. SHEFEXIL proposes to establish Satellite Offices/Export Promotion cells in each of the 7 North Eastern States.

SHEFEXIL has taken measures to organize and motivate the local trade to step up their export development activities. So far 45 firms of the North Eastern States have joined SHEFEXIL as members. 35 Firms the North East Region participated in the North East Investment Trade & Opportunities Week organized by Ministry of DONER, Govt. of India and Ministry of Commerce, Govt. of Thailand, from 1st -4th October, 2007.

Rubber

During the 11th Five Year Plan, the Rubber Board proposes to implement the scheme for Rubber Development in North Eastern Region with the five components viz. (i) Rubber Plantation Development, (ii) Research, (iii) Processing, Quality Upgradation and Product Diversification, (iv) Market Development and Export Promotion and (v) Human Resource Development, with a total financial assistance of Rs.173.05 crore. The activities, inter-alia, include:-

• Rubber will be planted in 25000 ha. new areas in the region and productivity enhancement measures will be adopted in these areas.
• Worn out plantations in 1750ha will be scientifically replanted.
• 6825 ha of rubber plantation will be undertaken in the integrated village level rubber development programme.
• Tribal settlement programmes through rubber planting in 500 hectares will be taken up.
• Research, Processing & Quality upgradation, market development and HRD progress will be taken up for the development of rubber sector in NE region.
• In order to take up extensive rubber plantation in the NE region, the Board proposes to set up 10 new Regional Offices in the NE region.

Spices

• The Darjeeling Tea Research & Development Centre, Kurseong under the Tea Board is engaged in R&D activities for the benefit of the tea estates of the Darjeeling District along with other grantee institutions like Tea Research Association (TRA) and United Planters’ Association of Southern Indian – Tea Research Foundation (UPASI-TRF), which are conducting basic and applied research on tea cultivation, plant protection, quality, manufacture, value added items and allied fields. The TRA has its main laboratory infrastructure at Jorhat with seven advisory centres in the entire North East for transfer of technology to the tea estates.
• The Tea Research Institutes viz: Tocklai Experimental Station of TRA located at Jorhat have made significant contribution to the tea industry.
• It is proposed to cover an area of about 1 lakh ha in the North Eastern Region for replantation/rejuvenatiuon under Special Purpose Tea Fund (SPTF) over the next 15 years. The estimated investment (at present day prices) would be about Rs. 2500 crores over a 15-year period .
• It is also proposed to cover an area of about 8000 ha. under new/extension planting during 11th Plan period, with an estimated outlay of Rs.42 crore. However, new planting will be confined only to the hilly areas and small holdings (upto 4 ha) of North Eastern Region.

Coffee

“Coffee development in NER” is one of the components with an outlay of Rs. 20 crore for the 11th Plan under the Scheme of “Development Support”, which is presently under consideration of the Government.

• Production is targeted to improve from the present level of 200 tons to 600 tons and productivity from 75 Kg/Ha to 150 Kg/Ha by the terminal year XIth Plan.
• Targeted Expansion of coffee in 1600 Ha. by providing Rs. 20000/Ha as financial incentive for planting and aftercare and also supply of coffee seedlings/shade saplings. (Total planted area was 5,400 hectares at the end of Xth Plan.)
• 150 tons of coffee will be converted into value added coffees (washed coffees) by the terminal year. By providing processing and marketing support, the growers would gain value addition and improved realizations.
• Consolidation of coffee in 1500 Ha by providing Rs.15000/Ha (gap filling, Plant & Shade management, soil management, pest and disease control).
• Incentive of Rs.12/Kg to procure, process and market coffees produced in NER
• The Board has established Regional Coffee Research Station at Diphu (Assam State).
• To demonstrate scientific methods of coffee cultivation to the tribal coffee growers and supply improved seed material, the Board has established Five Coffee Demonstration Farms at Haflong (Assam), Kolasib (Mizoram), Deomali (Arunachal Pradesh), Kiruphema (Nagaland) and Agartala (Tripura).

To strengthen infrastructure for furthering export of agriculture & horticulture produce from NER, APEDA has provided assistance for establishment of the following facilities in the North Eastern Region:-

• A pack house along with 4 collection centres for processing Ginger for exports in Assam.
• A laboratory in Assam for conducting tests on food products for purposes of monitoring, pre-shipment testing and issue of test certificates.
• Passion fruit Juice project for export of Juice and concentrate in tetra pack in Manipur.
• Canned Mushroom project for exports in Nagaland.
• Beekeeping development project for exports in Manipur. It provides employment opportunities to women folk.
• Setting up Integrated Pack house facility for floriculture in Sikkim and Mizoram.
• Training programme for beekeepers in all the states on good beekeeping practices.
• Walk in type cold rooms at Agartala, Azwal, Imphal and Dimapur.
• Centre for Perishable Cargo (CPC) at Guwahati.

Agri Export Zones (AEZs)

There are 4 approved AEZs in NER (i)for Pineapple in Tripura, in which investment of Rs. 7.62 cr. has been made, (ii) for floriculture (Orchids) & Cherry Pepper in Sikkim where an investment of Rs. 1.15 cr in the form of green house, drip irrigation/Planting material has been made and exports of Orchids have started, (iii) for Ginger in Sikkim, in which an entrepreneur has been selected and (iv) for fresh & processed Ginger in Assam where an investment of Rs. 3.15 cr in the form of pack house and 4 collection centres is being made. During 2006-07 ginger exports worth Rs. 2.17 cr. have taken place from this area.