FIEO seeks Rs 100 cr for Mangalore air cargo complex in budget allocation

Our Bureau Mangalore | Updated on February 14, 2011 Published on February 14, 2011

The Federation of Indian Export Organisations (FIEO) has asked the Karnataka Government to earmark Rs 100 crore for infrastructure for export of perishable agro products from the proposed Mangalore air cargo complex.

In a press release here on Monday, Mr Walter D'Souza, FIEO Regional Chairman, Southern Region, said that industry circles and the Airports Authority of India have initiated the move to commission the air cargo complex from Mangalore airport.

“The potential for export of local vegetable and fruits from the region and hinterlands can be of the order of over Rs 1,000 crore a year, if backed by world-class infrastructure in the form of cold chains and storage facilities.

“FIEO is prepared to join hands with the Karnataka Government in this initiative and requests earmarking of Rs 100 crore for infrastructure for export of perishable agro products from Mangalore air cargo complex,” he said.


Mr D'Souza said that wastage of agricultural produce is massive in India and in Karnataka also.

Only 2.2 per cent of the country's fruits and vegetables are processed compared to the countries like the US (65 per cent), the Philippines (78 per cent) and China (28 per cent).

According to estimates, nearly Rs 58,000 crore worth agricultural and food items get wasted in the country every year due to the non-availability of adequate food processing infrastructure.

Stating that India's share in international food trade is less than 1.5 per cent of the global trade, he said provision of infrastructure for food processing industry would help increase this share.

Mr D'Souza said that better price realisation to farmers can be made possible only by increasing the percentage of value addition by giving greater thrust to food processing industries.

This will also help bring small farmers in modern value chain and linkages of small and micro enterprises with modern agri-business.

“Against this backdrop, we request you to consider earmarking Rs 250 crore in the State budget for development of agro and food processing sector in Karnataka,” he added.

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Published on February 14, 2011
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