Integrated Food Law to be effective in next two months: Sahai

New Delhi, June 13 (UNI) The new Integrated Food Law, which seeks to establish a regulatory authority for the food processing sector, will come into force within the next two months, Food Processing Minister Subodh Kant Sahai announced here today.

The new comprehensive food law entails bringing all laws under one Act to achieve coherence and holistic approach to the overall development of the sector.

The new Law is meant to set standards for processed and packed food for the domestic and international markets akin to the Codex code.

Addressing mediapersons here, Mr Sahai said that this is a taxless sector and VAT would not be more than 4 per cent. About Rs 1 lakh crore investment must come in this sector within the 11th Five Year Plan.

The Minister also informed that setting up of 30 Mega Food Parks is planned during the next five years and at least 5 are expected to be in place during 2008. Private investors are also invited to take part in this initiative.

Sixty five food parks are already existing in the country, which are smaller in size.

He said that of the planned one lakh crore rupees investment, the Government will provide assistance of Rs 10,000 crore, 50 per cent from the financial institutions and the rest would be borne by the private players.

Mr Sahai had recently visited Spain, the US, Italy, Brazil, the UK, Germany and other European Union countries for discussion with major companies in this sector and invited them to invest in India in the food processing sector in a big way as 100 per cent FDI is already allowed in this field.

The Minister has also visited many potential states of the country and campaigned there for setting up food parks and creating linkage between food parks and farm gates.

''India can become a BPO for food items as it is located in the middle of the West Asia and Far East and is on the investment mode. The big companies in world markets need persuasion and they will come to participate in our efforts,'' the Minister said.

This is a big employment generating sector and about 2.8 million direct employment opportunities exist within this Plan period.

The Minister pointed out that 11th Plan is focussed on Agriculture -- district clusters, cooperative and contract farming, water and seed management.

Public Private Partnership (PPP) and Special Purpose Vehicle (SPV) modes will be used for development of this sector and Government will give a grant of Rs 50 crore each for setting up of Mega Food Parks in the next two years.

UNI