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Amul & Allansons to invest Rs 1,700 crore in UP food processing sector

Uttar Pradesh, a state that has been facing severe infrastructure issues like power outages till recently, has attracted investments to the tune of Rs 1,700 crore in some new food processing projects that are in the planning stages.

While dairy major Amul is likely to invest Rs 1,000 crore in a milk processing plant with a daily capacity of 10 lakh litre, Allansons Ltd, a leading exporter of processed food products and agro-commodities, may pump in Rs 700 crore for setting up five agri-based plants.

Interestingly, according to Rashid Kadimi, managing director, Allansons Ltd, Uttar Pradesh was better than a number of other states in several aspects, including power and the availability of affordable labour.

He added that pollution was under control, the road and rail networks were good, incentive schemes were implemented, water was abundant, the climate was conducive for the agri sector, officials were helpful, and last but not the least, there was an abundance of agricultural products in the state.

In fact, several other firms have evinced interest in tapping the opportunities offered by Uttar Pradesh, for example, cola major PepsiCo plans to set up a vodka plant in the state.

Uttar Pradesh is the leading state as far as potato output is concerned, and the cultivation of bananas has also picked up in the state, which now plans to enforce proper measures to curb calcium carbide ripening.

“The better infractructure projects will help in connectivity. We are also focussing on the area of food processing to enhance the agriculture production. We would also have direct farmer-consumer interface,” said Alok Ranjan, the state's infrastructure industrial development commissioner and agriculture production commissioner.

Speaking during a session titled 'Opportunities in Uttar Pradesh' at the recently-concluded Food World India 2013 [organised by the Federation of Indian Chambers of Commerce and Industry (FICCI)], Ranjan said, “Uttar Pradesh is larger than many nations. We have a population of approximately 200 million, which is the fifth-largest in the world.”

“About 16.5 per cent of India's population resides in the state. This shows that the state is among the largest consumers of food. Moreover, its per capita income is increasing. The food processing industry is poised for robust growth in the state. We produce about 20 per cent of the country's foodgrain output,” he added.

“In addition, the state produces 36 per cent sugarcane, 34 per cent potatoes, 11 per cent livestock and 17 per cent milk. About 60 per cent of the meat exported from India – amounting to approximately Rs 8,000 crore (out of a total of Rs 18,000 crore) – is from Uttar Pradesh,” Ranjan said.

Academia's viewpoint
Dr R K Khandal, vice-chancellor, Gautam Buddh Technical University, said, “I have had a good experience of working with the food processing industry. As far as food is concerned, Uttar Pradesh can become one of India's hubs. About 30 per cent of perishable foods are getting wasted across the country, which is avoidable. Technical intervention is the need of the hour.”

“The beneficiaries (farmers) should get the proper prices for their products. Uttar Pradesh has the potential for both nutritional and functional foods (of which it is one of the largest producers of the functional foods). The state is one of the largest producers of amla. Till date, we have invested more in inputs than in output,” he added.

Khandal also said that Uttar Pradesh was the right place to set up centres of excellency, and added, “We are one of the largest producers of meat, and also export some varieties of Indian mangoes to the United States. The state offers a host of opportunities, and the investors can look forward to them.”

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