More funds sought for food processing

The grant-in-aid for setting up food processing units may be enhanced to 50 per cent from 25 per cent

The Karnataka government today asked the Centre to enhance budgetary allocation for food processing sector to at least Rs 100 crore per annum or to the extent of project proposals received in a year.

“Considering the vast potential of the food processing sector, the budgetary allocation of Rs 770 crore made for MoFPI programmes is too meagre (0.16 per cent of the  total plan outlay of Rs 4,84,532 crore of the Union government),” state minister for agriculture Krishna Byregowda said.

Speaking at a review meeting of the National Mission on Food Processing (NMFP) and other Central schemes of the Ministry of Food Processing Industries (MOFPI) jointly conducted by MoFPI and Assocham, in Delhi, he said the Central share of 75 per cent under NMFP may be enhanced to at least 90 per cent in the Agriculture Technology Management Agency (ATMA), a centrally-sponsored scheme of the Department of Agriculture and Cooperation.

Talking of an upward revision of subsidy for component-I of NMFP, he said the grant-in-aid assistance for setting up food processing units or expansion may be enhanced to 50 per cent from 25 per cent. The ceiling may be enhanced to Rs 1 crore from Rs 50 lakh in view of the high project cost.

Byregowda also suggested for increasing the capital subsidy for establishing warehouses and cold storages. “To augment the storage potential of foodgrains (required for implementing social security schemes like food security, MSP operations, mid-day meal), the present capital subsidy of 25 per cent for building warehouses under the Agriculture Marketing Infrastructure (AMI) scheme of the Union Government may be enhanced to 50 per cent in view of the increased construction cost,” he said.

Extension of a concessional rate of interest to all food processing units, decentralisation of all MoFPI schemes, instituting study to assess reasons for slow/poor progress of food parks of 10th Plan and inclusion of lending to food processing industry under agriculture lending are certain key suggestions given by the Karnataka Agriculture Minister to accomplish the objectives of NMFP/other central schemes of MoFPI.

Earlier, addressing the MoFPI-Assocham conference, Union minister for Food Processing Industries, Harsimrat Kaur Badal stressed on the need to bring down the percentage of losses in agricultural commodities, particularly fruits and vegetables from the present 18 per cent.

She also said that there are vast opportunities for processing in the food processing sector as presently only 2-3 per cent of the fruits and vegetables are processed.

Representatives from Goa, Manipur, Odisha, Andaman & Nicobar Islands, Mizoram, Meghalaya and Siraj Hussain, secretary, Ministry of Food Processing among others participated in the seminar and suggested new measures.