Memorandum & Articles of Association of KAPPEC

• Karnataka is predominantly an Agriculture State.
  
  
• 24% of the total GDP comes from Agriculture.
  
  
• 66% of the work force is depedent on Agriculture.
  
  
• 70% of the population still in rural areas is depending on agriculture for their lively hood
  
  
• Agro products grown in an area of 107.90 lakh hectares and the production is 92 lakh Mts.
  
  
• Horticulture crops grown in 14.27 lakh hectares and the production is 114.90 lakh Mts.
  
  
• Total gross Annual income from Horticulture is Rs. 7152 crores which is 40% of the gross annual income from combined agriculture sector.
  
  

The main obstacles and hindrances for development of horticulture are as under:-

• Low productivity per unit area.
  
  
• Subdivision and fragmented land holdings because of which mechanised cultivation is not possible.
  
  
• Inadequate post-harvest infrastructure facilities like procurement centres, grading, washing, waxing, packing units, refrigerated transport, pre-cooling and cold storages, intermediate cold storages, processing units and export house.
  
  
• These products are seasonal in nature and the season is so short that the entire produce enters the market at a time which makes the market to collapse and the farmers are not getting remunerative prices.

To overcome these problems in the interest of the farmers and as per the recommendations of the agricultural policy of the state and to develop and promote the production, processing and export of agriculture, horticulture and floriculture products, Government has established Karnataka State Agricultural Produce Processing and Export Corporation Limited (KAPPEC) on 22nd April 1996. 

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