4th September, 2002
Ministry of Agriculture  


NATIONAL FOOD PROCESSING POLICY ON ANVIL

INTERNATIONAL EXPO ON DAIRY AND FOOD PROCESSING TECHNOLOGY INAUGURATED


Following the policy of librelisation, 6657 Industrial Entrepreneur Memoranda (IEM) for setting up of Food Processing Industries have been filed during July, 1991 and April, 2002 involving an investment of Rs. 53,869 crore. Out of this, 712 IEMs have been filed indicating the implementation of projects worth Rs.7612 crore and an employment of 92,000 persons during the same period. Besides 729 approvals have been granted by the Government for setting up of 100% Export Oriented Units. This was stated by Union Minister of State (Independent Charge) for Food Processing Industries, Shri N.T. Shanmugam while inaugurating the 3rd International Dairy and Food Processing Technology Exposition and Conference here today.

The Minister also revealed that a draft National Food Processing Policy and Processed Food Development Bill to create enabling environment for investment and growth has been prepared by his Ministry. Shri Shanmugam said that growth in the Food Processing sector will immensely benefit the economy by raising agricultural yield, increasing productivity, reducing wastage and creating employment, specially in the rural areas and added that the industry is poised for a major thrust. The Minister said that the important stimulant for processed food has been the rapid economic growth in the country resulting in increased disposable income of the people. Besides, Shri Shanmugam said, an average Indian spends 52% of his income on food, which is much higher than in developing countries.

Shri Shanmugam said that his Government has taken a number of initiatives to promote the Food Processing Industry including regulating and delicensing of the entire sector except alcoholic beverages and items reserved for SSIs. He said that automatic approval for foreign investment is permissible in this sector up to 100% except in a few cases and 100% Export Oriented Units are permitted to import raw material and capital goods free of duty. The Minister said that the main thrust of the Ministry during the 10th Plan would be on creation of infrastructure facilities which will include facilities for Food Processing and their synergy with creation of cold chain from the production to the processing centers and ultimately to the retail outlets. Shri Shanmugam said that during the 9th Plan Rs.196 crore has been provided as assistance to several.

The Union Minister of State for Agriculture, Shri Hukum Deo Narayan Yadav said that the Dairy and Food Processing Technology should take care of the needs of the rural people. He said the short-term and the long-term impact of any technology should be considered besides its sustainability before adopting the same. He said that Indian farmers have traditional knowledge which should be combined into the modern technology for better results.

The four-day International Expo showcases dairy, food processing and packaging products, processing equipments, separation technology, preservation machinery, health-care equipment of animals, vaccination equipment, refrigeration milk chilling plants and milk storage plants.