'Private sector should take steps in food processing'

Expressing concern over non-utilisation of special funds allocated for development of rural areas, the governor of Punjab, Shivraj Patil, today lamented the half-hearted approach of the private players in undertaking initiatives in the food-processing sector, at an Assocham event in Chandigarh.

Patil said this releasing an Assocham study, 'Value Addition in Agricultural Products in India'.

In its study, the apex chamber has suggested industry switch to renewable sources of energy like solar and wind power, as the rural sector suffers from acute power shortage, which hampers infrastructure like cold chain/storage, continuous process plants and information technology-based innovation for supporting farmers.

"The government should adopt a stable and far-sighted policy for encouraging private trade procurement and this requires reforms on credit availability, storage limit, movement of grains and others to be made industry-friendly," highlighted the ASSOCHAM study. "There is a compelling need to establish post-harvest infrastructure and encourage contract farming for faster growth, besides, there is scope for private sector and even non-governmental organizations (NGOs) to help expand farmers' awareness levels."

A liberal credit policy for farmers, large investments in infrastructure for storage of fruit and vegetables, logistics support and a friendly approach in encouraging organic cultivation are some of the pre-requisites to achieve the desired results in the food processing sector in rural India, said the study.

"The industry should set up research and development (R&D) centres in rural areas to help the farmers in getting due share for their produce, thereby, avoiding the middle man and making agro-products available to common man at affordable prices," said Mr Patil while inaugurating a national conference on 'Linking Growth Drivers of Food Processing Industries,' organized by The Associated Chambers of Commerce and Industry of India (ASSOCHAM).

"Food processing sector can bring prosperity, growth and development in the rural India, but unfortunately, today farmers are being exploited, consumers are being cheated, while the middle man is minting big money," said Patil. "The corporate sector needs to work directly with farmers without engaging the middle men as it would also help to curb food inflation."

Lack of skilled manpower is proving to be a big constraint for the growth and development of food processing sector, said Patil.