Food Processing industry needs Rs 1 lakh cr investment: Sahai

By Staff
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Google Oneindia News

New Delhi, June 14 (UNI) The Food Processing Sector seeks about Rs one Lakh crore private investment to establish adequate infrastructural facilities and supply chain with farmers required to be linked for producing raw material for the industry as a part of long term economic sustainability.

The ruling UPA has already identified Food Processing Sector as a priority in its Vision Document and slated it for an investment of about rupees one lakh crore with the government's share of Rs 10,000 crore. There is, therefore, a need for larger private investment for achieving the projected target.

The farmers are required to be roped in to produce demand-driven crops for the market thus created by the industry.

To showcase India's potential in this sector, Food Processing Minister Subodh Kant Sahai recenly visited Washington, New York, Chicago, San Francisco and Los Angeles to invite the potential US investors for technology transfer, capacity building and creating of infrastructural facilities / supply chain and for setting up quality control laboratories in the country.

Mr Sahai also met with US Secretary for Agriculture Mike Johanns and discussed with him his country's possible initiatives in post-harvest and food processing areas in India under the India-US Agricultural Knowledge Initiative which was penned by both countries last year.

India is the largest producer of milk and second largest producer of fruits and vegetables. However, the food processing industry in India is at a nascent stage. Perishable food items in India have short shelf life and poor marketing facilities.

The Minister said the focus was needed to be on areas of reducing post-harvest losses, building supply chain, cold chain, and developing linkages of farming to the processing industry.

Mr Sahai suggested the US government for setting up a joint laboratory for SPS standards in India to facilitate trade in agricultural items as well as processed food.

The Ministry of Food Processing Industry is now holding talks with Cornell University for providing technical support for setting up a National Institute of Food Technology, Entrepreneurship and Management (NIFTEM) in India.

The Minister also held meetings with senior officials of World Bank as it considered the food processing sector as one of their priority areas and expressed its willingness to extend the support for building up supply chain and other infrastructure projects in India.

Mr Cal Dooley, President of the Association of Food Processing Companies, had also met the Minister and discussed about investment of the US companies in India. Mr Dooley is willing to visit India with a high-level delegation of the US companies.

Another large US company, Tyson Company, dealing in poultry and meat processing had expressed keen interest to have joint venture with India for setting up / upgradation of abattoirs and poultry processing.

The Minister visited Chicago Board of Trade and addressed a series of Road Shows in New York, Chicago, San Francisco, and Los Angeles on the opportunities in the Food Processing Industry in India which were attended by big US companies looking to invest in the sector in India.

Representatives from Pepsi, Hershey, Cargill, JP Morgan, P&G, Sara Lee etc and many others participated in meetings with Mr Sahai.

The Minister also visited the WalMart distribution centre at Pottsville, Pennsylvania, which is entering the Indian retail market in collaboration with Bharti sometime next year.

UNI

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