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MoFPI integrating farmers & food processing industry for RTE, RTC products
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Friday, 01 July, 2016, 08 : 00 AM [IST]
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Nandita Vijay, Bengaluru
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Ministry of food processing industries (MoFPI) is now working to support farmers and food processing industry in integrating to maximise the domestic demand for value-added ready-to-eat and ready-to-cook products among others. In this regard, the MoFPI is now giving boost to support infrastructure and easy access to credit. This includes the setting up of agro processing clusters which are miniaturised versions of the mega food park. These details on MoFPI’s efforts to give a fillip to the food processing sector in the country were among the key points discussed at a national seminar on ‘Opportunities for the development of the food processing industries in south India’ held here on Thursday.
Delivering the inaugural address at the seminar, J P Meena, additional secretary, ministry of food processing industries, revealed, “Efforts to invite applications for setting up cold chain infrastructure are on the cards. The call for applicants will be within the next one month and we are looking to set up 100 cold chain facilities across the country. There are already around 138 such units completed and to be commissioned shortly.” He added that entrepreneurs must take advantage of this situation where government was chipping in support.
For small-sized food processing units, the government is finalising the rules to provide Rs 5 crore subsidy which is 35 per cent of the project cost. This would bolster the small companies to storm into the food processing sector.
For agro processing clusters, the government will provide Rs 10 crore subsidy with no restriction on minimum area of land but mandates that at least five food processing companies should come under this with each of the units committing an investment of Rs 25 crore. “We are finalising this and would be ready for implementation by end of the year or early next year,” he said.
In the wake of cent per cent foreign direct investment (FDI), the need of the hour for small food entrepreneurs is to make his presence felt in the value chain. “There is need to take advantage of these opportunities given by the government to ensure that they are part of the expanding market dynamics and not lost out with global entrants with the FDI coming in,” pointed out the MoFPI additional secretary.
FDI is expected to spur the front-end operations with supply chain inputs. In the food retail sector, the government is ensuring that 40 per cent of the products could be sourced locally and this was an opportunity for our large, medium and small players to provide the required value-addition.
For instance, in bakery sector, wheat for these products is imported from Canada and Australia which should be stopped. Wheat growers should cultivate the imported versions and maximise their produce with the Indian bakery sector’s demand for the same. The ministry’s future efforts are also to strengthen the forward and backward linkages so that farmers and small industries can optimise their revenue generation, according to him.
Delving into the GST issue, Meena said, “The new tax regime would see changes which could either see a nil or low rate levy on the food processing sector. In general, the sector was protected from high tax as the government had reduced the excise duty to 6 per cent from 10 per cent and levied an import duty of a mere 5 per cent.”
Agriculture and food processing is considered to be sunrise sector because of its large potential for growth and socio-economic impact. It not only leads to income generation but also helps in reduction of wastage, value addition, and foreign exchange earnings and enhancing manufacturing competitiveness besides providing huge scope for employment opportunities.
The seminar was organised by All India Food Processors Association.
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