Food processing may get Rs 50k cr investments

NEW DELHI: The government envisages an investment of Rs 50,000 crore in the food processing industry during the 11th Five Year Plan.

The investment would be directed towards building backward and forward linkages in the supply chain, testing facilities and setting up new abattoirs, said minister of state for food processing Subodh Kant Sahai.

Speaking at a CII event, Mr Sahai said that out of this proposed investment, the government’s share will be 10%, industry 40% and 50% would be invested by banks and financial institutions.

The government is setting up a national meat board to promote the meat processing industry, implement policies to develop the sector and oversee aspects such as R&D, quality assurance and hygiene. Also, 100 abattoirs will be set up through the public-private partnership route in different parts of the country, Mr Sahai said.

The other laboratories will help the industry overcome the technical barriers to exports of processed food. There is a need to decentralise cold storage units and take them closer to farms, said food processing secretary PI Suvrathan.

The industry, he added, has to work with farmers in developing low-cost, appropriate storage solutions right at the farm gate.

These will be small units that will harness the availability of local funds in small towns and villages and can be set up for groups of farmers to be viable. This will go a long way to creating a national market for processed food, Mr Suvrathan said.