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Food processing one of the thrust areas for govt: Secretary to Govt of AP
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Thursday, 12 May, 2016, 08 : 00 AM [IST]
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Our Bureau, Mumbai
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fiogf49gjkf0d Food processing was one of the thrust areas of the government. Being a primary sector it provides lot of employment, remunerative prices to farmers, and economic and social benefits, according to Girija Shankar, secretary to government, FP (FAC), mines & geology, AP. He was speaking at a seminar on “Opportunities, Challenges – Food Processing Industry” in Vijayawada on Monday.
Shankar pointed out, “Abundantly rich with huge production levels of food grains, cereals, pulses, fruits, vegetables and spices, dairy, poultry, meat, plantations, horticulture and other agriculture allied products, the state offers enormous opportunities in food processing sector.”
According to him, the state government has come up with the best policy in promoting food processing sector offering benefits like input subsidy, power subsidy, exemption of stamp, NALA, and VAT. The state aims to attract investment of Rs 5,020 crore in food processing and generate employment around 50,000 by 2020.
Out of 66 MoUs signed in the partnership summit held in January 2016, 35 have responded so far with an investment of Rs 3,000 crore, which will create employment for 30,000 persons. A large production base is available in the state and the industry has to work in tandem with the farming community for optimal utilisation. The government shall take steps to promote FPOs (farmer producer organisations) to work collaboratively with the industry in improving the quality of food products which is essential to tap the overseas market.
Further, P Bhaskara Rao, executive director, Andhra Pradesh Chambers, while appreciating the proactive measures taken by the government in promoting the industry explained the need for setting up of a separate financial institution at macro level in line with NHB for easy credit flow to the industry which is capital-intensive. He also requested for lower power tariff as the food processing industry, being seasonal, holds higher inventory in cold storage. Lack of testing labs and research institutes are also hampering the growth in food processing. The state needs national level institutes - CSIR, ICAR and so on. A state-level consultative committee is to be formed with stakeholders and trade representatives to promote the industry.
Meanwhile, Y S Prasad, CEO, AP Food Processing Society, emphasised on the need to maintain quality of global standards to improve export trade and explore innovative products to capture the domestic market. Smart agriculture forums will be set up on pilot basis at Tirupathi, Vijayawada and Visakhapatnam.
Muthavarapu Murali Krishna, president-elect, AP Chambers; and Dr Vemuri Ravi Kumar, advisor to Government of AP, Non Resident Telugu Corp; were among the 150 members who participated in the seminar, which was organised by The Andhra Pradesh Chambers of Commerce and Industry Federation (APCCIF).
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