Food processing policy on cards

HYDERABAD: The Centre is working on a comprehensive national food processing policy to give a fresh impetus to the sunrise industry.

The policy is expected to look at a gamut of issues like trends, sectoral guidelines, government funding, human resource development needs, research and easing procedural bottlenecks.

At a special session of FoodTec India ’04, food processing secretary DP Singh said, “the government is preparing a policy document and it will come out in a few months�.

The Centre has already constituted a government of ministers (GoM), led by the agriculture minister, to look at the issue of multiplicity of laws that are proving to be a hurdle for private sector investment.

The projections for the Tenth Plan investment in food processing stand at Rs 62,000 crore, which is nearly twice the size of the Ninth Plan investment at Rs 38,000 crore. Mr Singh said, bulk of the investment is envisaged from the private sector.

“The government will take a holistic approach in providing infrastructure. Government funding will be for purposes like R&D, renovation and modernisation of plants, human resource training, entrepreneurial development and quality control projects,� he said.

Only 2% of the country’s agricultural produce is converted to processed form and the wastage on account of this stands at a colossal Rs 25,000 crore-Rs 30,000 crore. Mr Singh cited the lack of value addition as one of the key challenges for the economy.

He also called on the packaging industry to work on cost-effective solutions to make packaged and processed foods cheaper and competitive. He said, packaging forms 20%-70% cost of any processed food.

The government is also studying the human resource potential in the food processing industry. While there is no dearth of technology in the sector, it is estimated that there would be a huge void in the availability of skilled and semi-skilled labour in food processing. In fact, the ministry of food has roped in the Indian Institute of Applied Manpower Research to study the human resource situation.

“There will be a requirement of 190,000-200,000 workers in the food processing industry by the end of the decade going by the targets of achieving 10% processing of agri produce against the current level of 2%,� Mr Singh said, adding the government was examining the report on manpower requirements.