Set up NBFC to aid food processing sector: Ministry

NEW DELHI: Higher allocation of funds for the ministry, new schemes to promote processing at the village level, setting up of a nonbanking finance company dedicated to help the food processing industry get loans for capital-intensive projects are a few of the recommendation of the food processing ministry for this year budget, said sources in the ministry. With these measures, it aims to enhance rural employment and entrepreneurship, reduce food wastage, get higher investment by domestic and global companies. “We have proposed a scheme to bolster the unorganised food processing sector concentrated in rural areas. We have also suggested the setting up of a dedicated NBFC for the food processing sector. Also, a higher allocation for the ministry will enable us to expand cold chains, food parks and warehouse especially in the hilly states,” said an official. With about 66 per cent of unorganised food processing units in rural areas, there is a need to help cottage industry, farmer producers’ organisations and individual food processors to increase capacity, he said.