Govt to spend Rs 1 lakh cr on food processing industry

New Delhi, July 26 (UNI) The government will spend Rs 1 lakh crore in the next five years to strengthen the Food Processing Industry (FPI) to enable it to achieve a 10 per cent growth rate, Union Food Processing Minister Subodh Kant Sahai said here today.

''In the next two to three years, 5000 retail outlets are expected to be opened in India. In order to cater to the growing demand for the 'ready to eat' food, and boost the growth in the FPI industry to 10 per cent from the present 2 per cent, the government plans to spend Rs 1 lakh crore in the sector,'' Mr Sahai told reporters here.

The industry in other developing countries like Brazil is growing at 70-80 per cent.

Mr Sahai also said the government would table the proposed 'Food Safety and Standards Bill-2006' in the Parliament in the current session.

He said the government would initiate awareness programmes along with various schemes like health cards, insurance policies and easily available loans, initially in 15 cities including metros after the Parliament session.

Speaking at the 'National Seminar on Packaging' conducted by CII, Mr Sahai said the challenge before the packaging industry is to keep the freshness of food intact and suggested the industry to change the mindset of Indian middle class, their eating habits to make them more hygienic.

He supported the Foreign Direct Investment (FDI) saying it would not eliminate the tiny and small scale industry, but would give them world class market.

Disclosing the government's plan, Mr Sahai said the ministry would change the street food vendors' approach into a hygienic one by launching awareness programmes.

He suggested the packaging industry to reach to the lower level and assured he would do more in the next budget for the industry.

Mr Sahai also suggested the states to lower VAT rates of zero per cent for perishable food and four per cent for non-perishable food respectively.

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