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Govt steps to further cut down agri food wastage
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Monday, 16 August, 2010, 08 : 00 AM [IST]
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Joseph Alexander, New Delhi
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Agricultural food items worth Rs 30,000 crore are wasted every year in the country, though the level of wastage has come down in the recent years. Fragmented farming, lack of adequate post-harvest infrastructure such as lack of cold storage, cold chain facilities, transportation, proper storage facilities etc. cause this wastage, according to the data collected by the Centre.
However, the sources claimed that the measures initiated by the Union Food Processing and Agricultural Ministries have helped bring down the wastage during the recent years. The total losses incurred due to wastage of agricultural food items at various stages was worth Rs 58,000 crore in 2004 and it has come down to the current level of Rs 30,000 crore. Development of food processing industries, strengthening of post-harvest infrastructure and filling the gaps in the supply chain were the major steps taken to stem the wastage.
Ministry of Food Processing Industries has a scheme for cold chain, value addition and preservation of infrastructure during the current 11th Plan to provide financial assistance to project proposals received from public / private organisations for cold chain infrastructure development. The scheme envisages financial assistance in the form of grant-in-aid at the rate of 50% of the total cost of plant and machinery and technical civil works in general areas and 75% for North Eastern Region and difficult areas subject to a maximum of Rs.10.00 crore.
The initiatives are aimed at filling the gaps in the supply chain, strengthening of cold chain infrastructure, establishing value addition with infrastructural facilities like sorting, grading, packaging and processing for horticulture including organic produce, marine, dairy, poultry, etc. Other agencies like Department of Agriculture and Cooperation (DAC), National Horticulture Board (NHB), Agricultural and Processing Food Products Development Authority (APEDA), National Cooperative Development Corporation (NCDC) and state governments also provide assistance for cold storages under their respective schemes. Rs 210 crore has been allocated to MoFPI for the purpose of development of cold chain, value addition and preservation infrastructure during the 11th Plan.
Further, to promote setting up of more cold storages in the country, the Centre has announced to allow external commercial borrowings for cold storage or cold room facilities including farm level pre-cooling for preservation or storage of agricultural and allied produce, marine products and meat, as a part of the farm to market initiative and to promote private sector investment in setting up of cold storages. In addition, Government has also announced project import status at a concessional customs duty of 5% with full exemption from service tax to the initial setting up and expansion of cold storage, cold room including farm pre-coolers for preservation or storage of agriculture and related sectors produce and full exemption from custom duty to refrigeration units required for the manufacture of refrigerated vans or trucks, sources said.
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