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In a bid to develop the food processing ecosystem, the Union Ministry of Food Processing Industries will soon call for expression of interest (EoI) to set up agro processing clusters, implementing backward and forward linkages and food processing units.
The Ministry has finalised guidelines for selecting the candidates for these projects.
“EoIs will be called for establishing agro processing clusters and food processing units shortly. EoIs for setting up backward and forward linkage projects will be invited next month,” Anuradha Prasad, Joint Secretary at the Ministry, has said.
The Ministry is planning to set up 100 agro processing clusters that will attract grants up to ₹10 crore each.
These clusters, which will have common facilities, should have at least five processing units each with an investment of ₹25 crore. Besides, the Ministry will facilitate the setting up of 400 food processing units with grants of up to ₹5 crore.
Supply chain gapsWith regard to backward and forward linkages, the Ministry proposes to create 50 projects with a maximum grant of ₹5 crore. These are targeted at plugging gaps in the supply chain of perishable agriculture and horticulture produce.
These were being set up under the ₹6,000-crore Kisan Sampada Yojana launched in May.
Prasad, along with Harsimrat Kaur Badal, Union Minister for Food Processing Industries, presented a growth plan for the development of the sector here on Thursday. They were here for a roadshow on World Food India 2017, scheduled for November 3-5 in New Delhi.
Badal said the Centre aims to increase the quantum of food processing by 5 per cent from the present 10 per cent.
The nation’s retail industry, with food and groceries forming a good chunk, will grow to $1.3 trillion in three years from the current $600 billion, she said, adding: “Of this, 70 per cent is food.”
The proposed investments and policy changes in the food processing sector are expected to generate investments of ₹31,400 crore.
This is seen to create infrastructure that can handle 3.34 crore tonnes of agri produce with an aggregate value of ₹1,04,125 crore, she said.
This in turn will benefit 20 lakh farmers and generate 5.30 lakh direct or indirect jobs.
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