Sugar industry finally gets 'food processing' tag

The Orissa government has included ‘sugar industry’ in the list of industries treated as agro food processing industries. However, molasses and alcohol making have been left out of the list. The state industry department has come out with the required notification to this effect, official sources said.

According to the notification, fruit and vegetable processing (including grading and packing), food grain milling/ processing using modern technology, dairy products (including milk processing and milk based products), processing of poultry, eggs, meats, fish processing (including shrimp), bread, oilseed mills, fruit-based ready to serve beverages will be treated as agro-processing industries.

Similarly, floriculture, tissue culture laboratories, cold storage units, refrigerated transport vehicles/containers, units manufacturing food , units engaged in packing, canning and bottling, units manufacturing additives, bio-technology and bio-informatics products, processing of plantation crops and sugar industry is included in the list.

It may be noted the Orissa Federation of Sugar Industries (OFSI) had been demanding for inclusion of sugar in the list of food processing industries.

Since, sugarcane is the best cash crop in the state next to paddy, the association had urged the state government to consider inclusion of the sugar units among the food processing industries, said Trailokya Misra, vice-chairman, OFSI.

The latest measure is expected to help the sugar units attain maximum growth and enable the sector to avail various incentives including easy finance, he added.

He said, there is huge gap between the demand for sugar and supply of sugar in the state with the supply of sugar being about 7 percent of the total demand. The tag of food processing industry to sugar in Orissa is expected to stir demand for similar status to the industry in other state, from where sugar units have already started enquiries about the development and congratulated OFSI for its persistent effort to earn this tag.