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P S Bhatnagar, secretary, department of food processing industries, says the government is contemplating a change in the PFA (Prevention of Food Adulteration) Act to enable the food processing industry to tap export markets.

Delivering the inaugural address at FoodPro `99, an exhibition-cum-seminar organised by the Confederation of Indian Industry (CII) here yesterday, he said, although the World Trade Organisation promises a liberalised trade regime, it is rather vague about specifying health standards.

This allows the possibility of potential importers erecting non-trade barriers in the form of health standards.

The other aspect of this would be the increased responsibility and accountability that manufacturers have to live with. In the domestic market, it will mean that there can be no legal restriction on imported food and local manufacturers will have to work toward improving quality and delivery systems.

It will also be in the interests of processed food manufacturers to harmonise quality standards between countries. This way, they need not cater to differing standards for different markets which will go a long way in reducing costs.

The government, says Bhatnagar, is also in the process of formulating a national policy for the food processing industry.

Based on the report submitted by the Murari Committee which was asked to look into all aspects of the food processing industry and suggest ways to overcome critical problems, the government is to initiate dialogue with industry associations.

Two areas of focus will be infrastructure and ways to improve financing to the industry. Although food processing industry has been classified for priority lending by banks, this has not solved the problem of adequate funds for the industry. To become competitive and exploit overseas markets, it is imperative for the industry to reduce costs by improving technology and reaping the benefits of economies of scale.