Foreign Funding for Agri Business Companies?

Hi Adars !

I dont know if those companies are directly doing any Agricultural activities/business or they only provide any anciliary/incidental  services/equipments  to person who are in to agri/plantation business.If they are doing agricultural business on their own (cultivating/harvesting/curing/fishing/milking etc. ) then they certainly come under the FDI Regulation which prohibit the same.For your information FDI constitute Equity only; Not ECB/FCCB unless  requirement of Press note 2,3,4 (2009 series) are attracted .

However, I am bit confused wheather FDI is allowed for companies  those  are providing any direct "services" or deemed services  those are "primary produce" of a producer co's  who also does "agriculture business" u/s 581 of Comp Act  . Becoz as per concept of "Producer company" the defination of "primary produce" includes "agricultural activities" as wel as "activities/services  & activities which intend to increase the production OR improve quality there of"

A month back a company from Netherland aproched me for their business establisment  in India whose core activities are providing " pesticide/chemical free storing & packaging of agri products till export/marketing & availing International certification for same on behalf of producer co's " . To my confusion on Companies Act defination, I aproched  RBI official if this is allowed or not ; but nobody in FED gave me a satishfied ans.Now I am writing  to FIPB for a clarification.

Update you after FIPB response