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MoFPI encourages states to lay down pro-rural food processing policies

The ministry of food processing industries (MoFPI), which intends to make concerted efforts for the growth and development of the food processing sector, is encouraging state governments to frame food processing policies aiming at creating rural infrastructure, raising the level of food processing, generating farm-level employment and creating an overall enabling environment, keeping in view the requirements of the states.

According to a written reply to a query in the Lok Sabha, Charan Das Mahant, minister of state for agriculture and food processing industries, Government of India, the states of Karnataka, Uttar Pradesh, Bihar, Madhya Pradesh, Rajasthan, Andhra Pradesh and West Bengal have formulated separate state processing policies, whereas the food processing policies of Punjab, Tripura, Chhattisgarh, Haryana and Odisha are a part of the industrial policy.

The government has approved taking up preparatory activities/advance action by the states under the National Mission on Food Processing (NMFP) during the 12th Five-year Plan with effect from April 1, 2012. Approval has been accorded to the states to initiate action for the finalisation of the State Vision Document on food processing under the NMFP. The finalisation of the State Vision Document will enable the states to frame suitable food processing policies to cater to the specific needs of respective states.

NAS data

Mahant added that as per National Account Statistics (NAS) data, food processing industries generated output worth Rs 6,66,662 crore in 2010-11. It was Rs 6,02,477 crore in 2009-10, Rs 5,46,050 crore in 2008-09 and Rs 4,74,580 crore in 2007-08. The annual growth rate of production by food processing industries in 2010-11 is 10.7 per cent.

Funds to Units

In order to assist the entrepreneurs and agro-processing industries, Mahant said MoFPI implemented the scheme for technology upgradation/establishment/modernisation of food processing industries during the 11th Plan. The scheme is specifically aimed at the creation of new processing capacities and upgradation of existing processing capabilities for various sectors like milk, fruit and vegetables, meat, poultry, fishery, wine and grain milling.

Under the above scheme, the ministry extended financial assistance to food processing units, including fruit and vegetable units in the form of grants-in-aid to the implementing agencies/entrepreneurs at the rate of 25 per cent of the cost of plant and machinery and technical civil works subject to a maximum of Rs 50 lakh in general areas, or at the per cent of 33.33 per cent subject to maximum of Rs 75 lakh in difficult areas such as Jammu and Kashmir, Himachal Pradesh, Uttarakhand, Sikkim and the north-eastern states, the Andaman and Nicobar Islands, Lakshadweep and the Integrated Tribal Development Programme (ITDP) areas in the country.

The above scheme of technology upgradation/establishment/modernisation of food processing industries has been subsumed in the NMFP with effect fromn April 1, 2012. As on February 15, 2013), 966 units got assistance of Rs 14574.38 lakh.

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