Initiatives to attract investment in FPI sector

New Delhi, Aug 31: Minister of State for Food Processing Industries Subodh Kant Sahai today said the Government has taken initiatives to make a conducive environment for investment in the food processing sector and the country has a vision to become the investment destination of choice for the best companies in the world.

Inaugurating the Food and Technology Expo-2006 here, Mr Sahai said the recently passed Food Safety and Standards Bill 2006 sought to do away with a multiplicity of laws, bring in transparent and scientific methodologies for setting up of standards, move towards self regulation by industry, improve compliance of food laws, with penalties being proposed in consonance with gravity of infractions.

At presents 13 different laws affect food and food processing sector. Multiple laws and regulations prescribe varied standards regarding food additives, contaminants, food colours, preservatives and labelling.

The Minister said that his ministry has also been running schemes and programmes to take this industry forward, and has sanctioned 54 food parks. These parks provide the basic facilities necessary for setting up food processing industry and would be beneficial in the sense that the external economies of scale shall be available to the units in existing schemes for Food Parks.

After discussion with the industry, a revised scheme for Mega Food Park has been formulated and is under discussion with Planning Commission, the Minister added.

Excise and Customs duty have been reduced on several food processing items over a couple of years besides providing several fiscal incentives to attract in FPI sector.

UNI