Unity Infraprojects and Deepak Fertilisers and Petrochemicals to set up India's first terminal market

PUNE: Unity Infraprojects, a Mumbai-based construction company, and Deepak Fertilisers and Petrochemicals ( DFPCL) will set up India's first ultra modern terminal market in Mumbai heralding the entry of corporates into agricultural marketing, a sector now dominated by the government.

A terminal market ( TM) is a market for wholesale trade of agricultural produce and it is on the lines of agricultural produce marketing committees established by state governments.

The central government has been trying to modernise agricultural marketing with the setting up of private markets and direct marketing. The private sector has not shown much interest due to reasons including the fact that the APMCs are controlled by local politicians.

Maharashtra had proposed to set up TMs in Mumbai, Nashik and Nagpur. The bidding was for minimum demand for viability gap funding (VGF).

The state recommended Unity's name to the central government as the company demanded zero VGF. Maharashtra agriculture minister Radhakrishna Vikhe Patil told ET, "The central government insisted that someone with an expertise in the agricultural sector must also be part of the project. Thus DFPCL became part of the project. The central government has given approval to award the project to the Unity-DFPCL joint venture."