Mizoram’s 2024 investment policy and focus on ginger

Mizoram hopes to harvest a million quintals next season

Aizawl: Mizoram has embarked on a massive venture into agricultural production and minor forest produce.

Known for a famine in the 1960s that spurred a decades-long insurgency, Mizoram is now one of the best performing states in the Northeast. Its ginger is consumed across the country and its broom grass (Thysanolaena maxima) cleans up Indian homes.

“Farmers across the state have already started the cultivation of 10 lakh quintals of ginger in this season,” public information officer (PIO) to the Chief Minister, Pu Saia, told Business North East.

State Chief Minister Pu Lalduhoma projected that Mizoram will see a harvest of 1 million quintals of ginger in the coming year – that’s 100,000 tonnes!

As done earlier, trading of the bumper cash crop will be in an open market system. In the event of market unavailability or if there is a risk of failure, or if there are no buyers, the state government will procure, purchase, and take up marketing as per state policy according to the rates that have been set.

Hard work and high morale

 Way south of Aizawl, farmer K. Denga lives in Mualchengvillage in Mizoram’sSerchhip district. He is one of the many faces on whose hard work, the success of the Agri policy will depend. Denga owns a little over an acre of land.

"I cultivate about 10 quintals ginger," he told Business North East.  He expects to harvest 50 to 90 quintals next season – ginger is harvested and later exported, between December and May every year.

For years, he has been supplying to traders inSilchar and Siliguri. 

"There is demand for Mizoram ginger, no problem in selling as of now," said Denga. He recalled that farmers did face difficulties and challenges in marketing in the past decades. "The prices were really low during those years and there was no government initiative or support," he said. 

Things are already getting better and with the government stepping in, the future is bright, he feels. 

Denga says ginger is currently priced wholesale between Rs 60-80 per kg.

Structuring agriculture

Presently, the government has set up two collection centres for ginger. Produce will be collected in these centres for purchase. Ginger collection centres are at Bairabi in Kolasib district and Sairang in Aizawl. 

The collection for broom, a minor forest produce, will be at Saipum, Vairengte, and Bairabi, said Saia.

Broom grass is a forest product. “Even though brooms are grown in the wild, this product has also been cultivated in some areas now by farmers due to its market potential,” said the officer.

Brooms are the plants that are used to sweep floors by millions of households and commercial establishments across India.

Saia said there are a good number of interested buyers for ginger and other agricultural products.

“Many companies and buyers have contacted the state government,” says the information officer. "Quite a few private investors have also evinced interest in signing agreements."

The Mizoram Sustainable Investment Policy 2024 will be the structure to engage with investors.

Mizoram’s agriculture sector and allied activities saw growth of 24.83% during 2011–2022, as per the data given in the Investment Policy Gazette notification 2024. The industry sector grew at 25.09%, while the service sector saw growth at 50.08% during the period. 

The government is now showcasing Mizoram as a viable investment destination.

Encouraging competition

 While Mizoram has not signed any MoU or agreement with any party or buyer yet, the PIO said that as of now they prefer open competition. Saia also mentioned that things will be taken up as they evolve. 

There is no fixed rate per unit for the produce as of now. Explaining the state government’s Minimum Support Price programs for farmers and cultivators, the Information Officer says that the MSP will be not less than 50 rupees per kilogram for produce like ginger. 

“If farmers do not find a market to sell the product at above 50 rupees per kilogram, then the government will buy,” said the PIO. A product like a grade A broom will be purchased at the rate of Rs 100 and a grade B broom will be for Rs 80. This is the policy rate, said the PIO.

Mizoram farmers are also commercially cultivating turmeric and chilli. 

Lalduhoma has assured farmers that his government will prioritize the sale and processing of ginger and other key cash crops as part of the new government’s flagship program. He said this at an event in late June. 

Challenging young local entrepreneurs, the state CM said the government will focus on farmers and exhorted them to make forays into both agriculture and business. Lalduhouma has promised support at every step.

After all, there is risk indeed. For farmers like Denga, challenges arise when the crop faces insect attacks or disease. "If that happens, the harvest is a total washout as the crops get destroyed totally. This is one of the most difficult periods for us,” he said. 

 Bana Kaih

Which is why, the Hand Holding Policy or “Bana Kaih Policy,” was introduced in February this year. It is aimed at providing institutional credit, particularly microcredit for agriculture and for small-scale industries.

By July end, one can expect to see a more crystallized version of the policy, said a source.

Agriculture and horticulture are two of the priority sectors for support by the state government. It may be mentioned that Mizoram has the Geographical Indication (GI) tag in Mizo Chilli and Mizo Ginger, which will be a focus of the market and investment. Other high-value crops include tea, coffee, and spices. Investments in modern farming techniques, processing units, and agro-based industries are some of the attractive avenues for private investments.

The plan is ambitious but for that the chief minister feels that an initial support is needed for farmers. This would include various kinds of training as well as financial and marketing support.

ALSO READ: Welspun One raises Rs 2,275 crore for second fund to build warehousing assets