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Dedicated food processing policy will help growth in K’taka: KAPPEC chief
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Thursday, 07 July, 2016, 08 : 00 AM [IST]
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Nandita Vijay, Bengaluru
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fiogf49gjkf0d Karnataka is gearing up to achieve the food processing target of 10 per cent of agro processing by 2020 and 25 per cent by 2025. This is from the current three per cent of the total agro and allied produce is processed, according to Dr Shivamurthappa, managing director, Karnataka State Agricultural Produce Processing & Export Corporation Ltd.
In order to bolster the agri processing activity, early this year, the state government, in sync with the Invest in Karnataka-2016 event, focussed on giving an additional thrust to agri-business and food processing to attract investments. To supplement this effort, the state government unveiled the Karnataka Agribusiness and Food Processing Policy 2015 covering the entire spectrum of agriculture, horticulture, animal husbandry, fisheries and food processing.
“With a vast pool of natural resources, diverse agro climatic conditions, excellent infrastructure in place coupled with industry-friendly policy measures, the entire south India in general and Karnataka in particular have strong comparative advantages and an attractive investment destination for the food processing industry,” he said, at the recently concluded All India Food Processors Association (AIFPA) seminar on ‘Opportunities for food processing industries in south India.’
According to him, India has witnessed a radical shift in consumption of food. The shift has been away from low value food products such as cereals, towards high value food products like fruits, vegetables, beverages and processed foods. Fast expanding middle-class, increasing urbanisation and rising disposable incomes are some of the major reasons contributing to this change.
Rapid change in lifestyle, especially among those living in urban areas, has resulted in a dramatic increase in the demand for food - processed, packaged and ready-to-cook. These changes are resulting in demand-led growth in the food processing industry which has witnessed growth of about 14 per cent in the recent past. Factors such as vast population base and a positive macro economic outlook of the country are expected to further fuel growth of this industry going forward.
A well developed agri business and food processing sector with higher level of value addition helps in the reduction of wastage, promotes crop diversification, ensures better return to farmers, promotes employment as well as increase in export earnings. This sector is also capable of addressing critical issues of food security, food inflation and providing wholesome and nutritious food.
Looking into the vast potential for the development and growth of food processing sector, both the Government of India and state government have announced attractive incentive schemes in the form of investor-friendly policy measures, the ministry of food processing industries (MoFPI) is making all efforts to encourage the sector. “South India produces variety of food grains, oil seeds, fruits and vegetables, medicinal and aromatic plants, besides spices, dairy and milk and fisheries,” stated Dr Shivamurthappa.
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