The Hindu Business Line : Govt keen on farmers, food processing industry tie-up

Visitors watching a demonstration of food processing equipment at Foodpro 2003 organised by the Confederation of Indian Industry in Chennai on Saturday. The four-day exhibition displays food processing technology, refrigeration, packaging equipment and machinery and processed foods. — Shaju John

Chennai , Dec. 13

THE Government is keen on bringing farmers and food processing units together to exploit business opportunities in food processing.

Addressing reporters after inaugurating Foodpro 2003, an exhibition on food processing here on Saturday, Mr N.T. Shanmugan, Union Minister of State for Food Processing, said the Government was implementing schemes to encourage tie-ups between farmers and processors.

Such relationships would help address the industry's requirement for fruits and vegetables, which constitute their raw materials, and help farmers get better prices for their produce. The Ministry pays the units a subsidy of 10 per cent of the cost of the produce it purchases from farmers through contract farming.

Due to lack of sufficient processing facilities, over Rs 20 crore-worth of produce was wasted every year, he said.

In the current Five-Year Plan, the Government had earmarked Rs 650 crore, nearly three times more than in the previous plan, to help food processing units tap world markets. These initiatives were aimed at creating an ideal environment for food processing industries, he said.

Increasing quality and keeping costs low are essential to compete in the global market. The Ministry is funding over 40 food parks throughout the country. These will have common facilities such as water supply, waste treatment plant and quality control labs for the processing units in the parks. Such food parks are eligible for a subsidy of Rs 4 crore and the units there can also be supported through subsidies.

To encourage research and development, the Paddy Processing Research Centre in Thanjavur district was being upgraded to conduct research on pulses and oilseeds in a Rs 25-crore project, he said.

Foodpro 2003 is the fifth edition of a biennial conference and exhibition on food processing industries organised by the Confederation of Indian Industry. A two-day conference on `India as the food factory to the world' is to be inaugurated on Monday.

Nearly 150 exhibitors are participating in the four-day exhibition, which showcases some of the recent developments in food processing technology, machinery and products, according to the organisers.

On show are machinery and equipment by 50 manufacturers, a range of packaged food products and 20 stalls of Indian government agencies. Stalls also have been set up by representatives from Australia, Poland and the Netherlands.

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Govt keen on farmers, food processing industry tie-up