The Hindu Business Line : Govt in talks with Dole Food for cold chain facilities

Sonepat (Haryana), Jan. 18 The Government is in talks with the US-based food processing company Dole Food Company to set up cold chain facilities and backward linkages in the country. It is also looking at easing infrastructure bottlenecks in the food processing industry.

“We are in talks with the US multinational to set up cold chain, backward linkages and contract-farming facilities across the country.

“The major factor standing in the way of agro-food processing in the country is inadequate infrastructure,” the Minister of State for Food Processing Industries, Mr Subodh Kant Sahai, told Business Line on the sidelines of an industry function.

Observing that the yielding capacity of India is far less compared to nations like China, he said, “the current yielding capacity in India stands at 3,000 tonnes while China stands at a whopping 60,000 tonnes annually”.

Reduce wastages

“A developed food processing industry would not only reduce the wastages but would also fetch remunerative income to farmers.

“Currently, the sector employs about 13 million people directly and about 35 million people indirectly,” he added.

According to an Assocham (Associated Chambers of Commerce and Industry of India) report, an estimated 25 per cent of fruit and vegetables valued at Rs 25,000 crore is wasted annually due to poor post-harvest technology and inadequate storage and transportation.

Attracting FDIs

Mr Sahai said that the industry is expected to mobilise around Rs 1 lakh crore in three to four years, if it gets the necessary thrust.

“We want to create enough investor confidence in the sector, which has immense potential in attracting foreign direct investment. Those investing in the sector will be given a 10 per cent relaxation on taxes. They may in turn seek this benefit while importing goods,” he said.

The Government has also set up a National Institute of Food Technology Entrepreneurship and Management to dovetail the growth in the sector.

Recently, the Government had inked an agreement with the Italian company FieldFresh Foods to open efficient supply lines in fresh and processed foods.

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