06 Sep 2010, Monday

Food processing Minister Subodh Kant Sahai once again sought renewed focus on his ministry and said that the food processing sector in India can generate a higher rate of employment than in any other sector.

Addressing a well attended Entpreneurs meet’, the Minister said that Food Processing sector has Finally arrived on the scene  as the Centre has recognised the food processing sector as one of the thrust areas.

“ Our  growth will not only  cut down wastage and increase level in processing, but the sector has great potential  to generate employment opportunities and provide long-term economic sustainability to the farmers,"  the Minister said “ As a part pf our awareness initiative, the Ministry has decided to give awards to the entpreneurs” Sahai said He said with a population base of 1.08 billion and yearly population growth of around 1.6 percent, India offered a huge and growing market for food products.

"The 350 million urban middle class, with its growing purchasing power and evolving food habits, presents a thriving market," Sahai said.
But what is concerning  is that t processing levels of agricultural and allied commodities in India is 6-8 percent  when compared to processing levels of 70-80 percent in developed countries.  How do we go and attain that level, the minister queried and made a strong pitch for technology upgradation in the sector.

"There is a huge technological gap for post harvest management and processing of agricultural produce, which is resulting in huge amount of wastage of agricultural produce," he said. "To develop and popularise new technologies for food processing and percolate them to the ground level end users is the need of the time for enhancing the level of processing and reduction of wastage of agricultural produce."

The Minister also pointed out the lack of cold chain management in the country. "I have asked many people abroad to invest in contract farming here. But after initial enthusiasm, they become reluctant because of the absence of cold chain infrastructure," he said. He also listed out the initiatives taken by his ministry to promote the sector.

Earlier, addressing the gathering, Secretary Ashok Sinha said that foreign direct investment in the sector in the last 12 months was 225 percent higher than what it was in the previous year.

Calling for increased focus on retailing of food products, Sinha said: "We should learn how to market. Then investment becomes easier, production becomes easier." During the meet, over 200 entrepreneurs were provided with assistance amounting to over Rs.60 crore (Rs.600 million). "By September 2010, another over 200 beneficiaries will be assisted under the ministry's various schemes and it would utilise more than two-thirds of its budget," Sahai said.