State agriculture minister Radhakrishna Vikhe-Patil told The Financial Express on the eve of four-day Agro Advantage Maharashtra on Thursday. Maharashtra Agro Industries Development Corporation (Maidc) which has been made a nodal agency for the promotion of agri-business and related projects will pick up an equity alongwith private companies.

"Maharashtra will be the first state to have this fund exclusively devoted to the development of agriculture, horticulture, dairy, fisheries and related sectors," Vikhe-Patil said, adding that a cabinet decision in this regard would be taken soon.

He said that Maidc and private sector companies will beallowed to raise money from the open market and other sources to promote agri-business. Agriculture contributes more than 22 per cent of the state's annual income and has helped it emerge as the largest producer of alphonso, Thomson seedless grapes, loose jacket Nagpur mandarins, sugar, cotton, oilseeds, cashew and alcohol.

Vikhe-Patil said despite this, a lot more will be needed for infrastructure development in the form of setting up of pre- and post-cooling systems, cold storages, pack houses, market yards and storehouses. The proposed agro-fund will mainly concentrate on this aspect.

The growth in horticulture exports will be an average 7.5 per cent over the next five years. Maharashtra's sale of produce to other region is expected to grow at 6 per cent. The growth of major metros such as Mumbai and New Delhi is expected to reach 8 per cent.

Vikhe-Patil said that 101 projects worth Rs 5,500 crore in agriculture, horticulture, cogeneration, seed farms, cold chains and dairy development will beoffered during Agro-Advantage conference. "Our goal is to bring professionalism and competition in the agro sector in Maharashtra. The state government has put in solid efforts to organise this event alongwith an exhibition spread over 2 lakh sq mt," he added.

Vikhe-Patil said that the recent policy decisions on incentive package for the agro sector taken by the state government were welcome as "they are investor-friendly with a sole objective to promote agro and related businesses in the state."

On the opening of the traditionally powerful cooperative sector with an overall investment of Rs 55,000 crore, Vikhe-Patil said that it was the need of the hour. "I agree that the cooperative sector has played a vital role in the state but it must become professional to keep pace with changing market conditions," he added.

Vikhe-Patil, who hails from the cooperative movement launched by his grandfather Padmashree Vikhe-Patil, said that the state government will encourage joint venture between cooperatives andthe private sector. A committee along with him and cooperation minister Jaiprakash Mundada has been set up to take necessary decisions in this regard. A report will be submitted to the state cabinet within the next two months.