Union Govt sets up task force for food processing sector

Kochi: The Union Government has set up a task force to attract investments to the tune of Rs 1 lakh crore for modernisation and value-addition in the food processing sector during the 11th plan, Mr Subodh Kant Sahai, Minister of State for Food Processing Industries, has said.

Speaking to reporters after an interactive session with various food processing industries here, the Minister said the volume of investment in the food processing sector would fetch more returns to the farmers and they would be able to plough it back into farming activities. He said India had to build its food processing industry in a big way as 70 per cent of population depended on agriculture.

The food processing industry, according to Mr Sahai, is presently growing at 13.5 per cent as against 6.5 per cent clocked in 2003-04. Market-driven farming will provide farmers a bargaining capacity and this will lead to economic sustainability, he added.

The Minister stressed the need to amend the APMC (Agriculture Marketing Produce Committee) Act to facilitate contract or cooperate farming in the country. The National Development Council has recommended that the country needs these types of farming in order to generate more rural employment. He said cluster farming approach would provide an opportunity for a third party to invest in the food processing sector.

Mr Sahai said 2008-09 was being celebrated as the Food Safety Year and that food safety was a major concern in the food processing industry. He said the setting up of the Food Quality and Standard Authority of India would serve the purpose of making Indian food processing industry quality conscious and competitive in the area.

He added that his ministry was ready to fund a second marine park and a second rice value-addition cluster in Kerala provided there was initiative either from the State Government agencies or private investors. The focus in the 11th plan was on marine, coconut and spice sectors and Kerala should be able to tap potential in these sectors.

The Minister also highlighted the issue of high rate of tax prevalent in Kerala. The tax rate here was 20 per cent, while the Minister recommended zero per cent tax on perishable items and a maximum of four per cent on non-perishable items. He called upon the industrialists to approach the State Government to reduce taxes and promised that the Centre too would request the State to consider lowering the tax rates.