Union Budget 2011: Food processing sector welcomes Pranab Mukherjee's move

KOCHI: The incentives announced for the creation of cold storage chains, the focus on warehousing facility and the decision to set up mega food parks were widely welcomed by the food processing sector. In the spice sector, climate controlled warehouses is a vital infrastructure for pepper trade, said Kishor Shamji, former president of India Pepper and Spice Trade Association (IPSTA).

While stating that the proposals are “favourable” for the food processing sector, he said that conditions are not good in the case of a few warehouses under the commodity exchanges. “Some of the spices like pepper can be stored only in temperature controlled warehouses”, he said. There is an urgent need to create adequate infrastructure facilities in the sector and the proposals on cold storage chains and food parks will go a long in this direction.

The move to create more cold storages will help the spices industry to a great extent particularly in commodities like chilli and ginger, George Paul, director of Synthite Industries Ltd. said. In chillies, the crop has to brought into a cold storage condition as soon as they are harvested to prevent fungus growth. So a chain of cold storages with government support will benefit the spice farmers," he said. The development of 15 more food parks is also a welcome step provided they are managed properly, he added.

Though the credit flow to farmers has been increased to 4.75 lakh crore concerns on whether it will reach the deserving persons still remain. Cardamom Growers Association president Michael said three per cent interest subvention for famers on prompt payment of loans is available only in nationalized banks. But majority of farmers take loans from private banks. "We will have to see whether Rs 10,000 crore provided to Nabard’s short term rural credit fund will be given to private banks," he added.