The Hindu Business Line : Integrated agri-biz strategy to boost food processing sector

FOOD FOR THOUGHT: The Minister of State for Food Processing Industries, Mr Subodh Kant Sahai (left), with Mr Piruz Khambatta, Chairman, CII - National Committee on Food Processing, at a seminar in the Capital on Monday. — Ramesh Sharma

New Delhi , Sept. 19

AFTER introducing the Food Safety and Standards Bill 2005 in the Lok Sabha, the Department of Food Processing Industries is working on an integrated agri-business strategy that will enable the industry to grow from Rs 4,50,000 crore to Rs 13,50,000 crore in the next 10 years.

Addressing a CII seminar on the new Food Law, the Minister for Food Processing Industries, Mr Subodh Kant Sahai, said, "We have already circulated a note to related Ministries. Once we receive feedback on the proposal, we would take the package to the Cabinet for approval. This process, in all probability, would take a month or so."

He said that Indian cuisine and ready-to-eat food has really caught on in the international market and, hence, Brand India would have to be built.

The Minister urged the industry to take collaborative steps with big players working on building the brand. Mr Sahai identified cold chain, packaging, poultry and meat as virgin sectors that could be explored.

The 10-point vision document includes steps to rationalise taxation for the sector, incentivise food retailing including foreign direct investment, improve food management, build capacity for small-scale industries (SSI) and improve access to funds for the sector. Currently, food worth thousands of crores of rupees are wasted each year due to inadequate processing facility.

Mr A.N.P Sinha, Joint Secretary, Department of Food Processing, said, "In order to achieve our vision, the industry will need investments of Rs 100,00,000 crore.

"Will the financial institutions be able to make so much investment?"

Also, a proposal to set up an Agro Processing Development Bank and another Development Fund are being worked on.

Capacity building of small and medium enterprises and developing a cold chain are also necessary to grow the sector.

Mr Sahai said that the Integrated Food Law is just one of the steps that has been proposed and the Department will have to work with various other ministries on implementing its vision.

The Food Law has been referred to the Parliamentary Committee and the Minister hopes that the Bill will be enacted by the end of the year.

The Minister also added that the shortfall in manpower would be addressed by setting up a national institute of food training and management. The institute will offer courses in food processing technology and management.

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