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Special Task Force to develop food processing in northern states: Badal
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Thursday, 09 July, 2015, 08 : 00 AM [IST]
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Our Bureau, New Delhi
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fiogf49gjkf0d Harsimrat Kaur Badal, Union minister for food processing industries, has announced setting up of a Special Task Force with key representatives from all northern states, ministry of food processing industries (MoFPI) and Confederation of Indian Industry (CII), with the aim to prepare a roadmap for the northern states of Punjab, Rajasthan, Haryana, UP, Uttarakhand and HP, to strengthen farm-market linkages and leverage the true potential of the sector. She made the announcement while addressing a conference on Driving Make in India in Food Processing, organised by CII on Wednesday.
“The Special Task Force would analyse the various impediments and bottlenecks existing and provide expert directions and guidance on key policy interventions to not just the states but also on issues where my ministry can help. I would even create a special committee within my ministry, with the representatives of CII and the respective state heads in this task force as the members, in order to resolve the issues and help the food processing industry realise its desired potential,” she stated.
Defending corporate farming, the minister said, “To improve the fate of farmers, we are ready to implement corporate farming on a trial basis in Punjab, if a model is worked out, where industry acts as a partner, bringing in latest technologies and advanced means of cultivation on large farms, while the farmers get guaranteed incomes and remain the ultimate owners of their lands with mitigated risks of losses due to weather. Industry will prosper if only the farms prosper, because farm produce is ultimately the raw material of food processing industry. Hence, the industry can strengthen the backward and forward supply chain integration.”
Badal pointed out, “Food processing industry has the potential to enhance the earnings of the farmers, but it lacks key infrastructure like cold chains and efficient logistics management systems. Today, there is a shortage of 29 lakh Metric Tonne of cold storage in India. Hence, we have planned to set up 138 new cold chain plants to tackle this shortage in the next four years. This would also provide employment to one million people.”
She added, “Cluster approach is the key to rapid success in this sector. Hence, we have recently sanctioned 17 new Mega Food Parks (MFPs) and 42 more are in the pipeline with an estimated direct and indirect investment of Rs 10,000 crore. We have also allocated Rs 2,000 crore to NABARD to give cheaper credit and encourage more and more mega food parks and quality circle clusters of food processing units at district level, which is attracting a lot of small and medium industry players.”
The minister stated, “I also feel that there is immense potential in the manufacturing of food processing machinery and equipment in India. Today, almost all companies import the machines. We would want them to Make in India. I would ensure decent fiscal and non-fiscal incentives to both the domestic as well as global companies to manufacture here in India and rather export from here.”
On the occasion, the minister released the CII – Rabo Equity Report on Driving Make in India in Food Processing.
Piruz Khambatta, co-chairman, CII national committee on food processing and dairy, and chairman & managing director, Rasna Pvt. Ltd, mentioned, “CII believes that there is a need to launch a massive campaign called Food from India as India can not only feed the country but can also feed the whole world. The campaign should showcase the potential and benefits of food processing sector for consumers as well as nation. For India to achieve its desired position in food processing, there is a need for massive market access fund, income tax deduction for market development as well as superior infrastructure and IT system to hasten exports. Further, ease of doing business in the true sense on regulatory issues is not a choice any more. The government, institutes and industry need to collaborate and put huge emphasis on quality with voluntary compliance to Indian and international standards.
Khambatta stated, “Further, CII believes that the government should give same advantage to food processing sector as agriculture in various government benefits like finance, taxation, etc. And then, this sector can do for rural India what IT did for urban India.”
Rajesh Srivastava, chairman, CII NR committee on agriculture & food, and chairman & managing director, Rabo Equity Advisors, said, “Considering India’s strong production base as well as huge consumption market, CII believes that this sector has an incredible capital and technology investment opportunity. The potential task force should primarily shortlist key product segments with specific growth opportunity based on production strengths and competitive advantages. It should also push the state governments to amend their food processing policies or provide separate schemes and incentives to encourage the ‘Make in India’ initiative in food processing sector.”
Shreekant Somany, chairman, CII (NR), and chairman & managing director, Somany Ceramics Ltd, said, “A flourishing food processing sector is crucial to ensure national food security. Proper farm linkages with the manufacturing are critical to leverage the potential of the sector and broad basing of the sector. In this regard, CII would proactively work with the Centre and the state governments on various policy issues to link Make in India campaign launched by the prime minister with the agriculture sector.
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