Contract farming in India gets Cabinet approval

New Delhi, June 21 (UNI) The Government today gave a green signal to contract farming in the shape of clusters and detailed mapping of the food cluster in the country.

The approval was given ''in principle'' at the Cabinet meeting held here.

In addition, the integrated strategy for promotion of agri-business-vision, strategy and action plan for the food processing sector was also approved at the meeting.

The approved integrated strategy and action points will help realise the Vision 2015 in trebling the size of the processed food sector and enhance farmer income, Parliamentary Affairs Minister P R Dasmunsi told newsmen here.

It will generate employment opportunities, providing choice to consumers at affordable prices by increasing level of processing of perishables from six per cent to 20 per cent, he said.

It will increase value addition to 35 per cent from 20 per cent and share in global food trade from about 1.5 per cent to three per cent, he added.

The Government aims at strengthening backward and forward linkages and developing supply chains with cold mechanism, establishment of mega food parks in identified SSI, horticulture, meat, dairy, marine clusters, under the new schemes.

It also targets modernising abattoirs, upgrading quality of street food and food streets in association with local bodies and NGOs, enhancing capacity building in the areas of human resource development, research and development and quality control labs.

Development of infrastructure for an organised food retail market, adopting uniform and rationalised tax/ duty structure for the entire food processing industry, strengthening and restructuring of MFPI, will also be undertaken.

UNI