January 08, 2002

'27'

COMMITTEE SET UP TO LOOK INTO EXCISE POLICY OF STATE GOVERNMENTS

    The Union Minister of State for Food Processing (Independent charge), Prof. Chaman Lal Gupta today expressed his unhappiness about States/other agencies not utilising funds released by the centre. While addressing the meeting of the State Nodal Agency of the States/UTs in the food processing sector, Prof. Gupta said that the first instalment of the fund released by the centre for 22 food parks in different states/UTs have not been utilised leading to delay in release of second instalment. He said that food parks conceived as infrastructure hubs for providing common facilities to small and medium enterprises in food processing needs to be set up on priority. The food park could follow either pattern of industries located in one identified location of an industrial estate or it could follow the structure adopted by states like Punjab which involves common facilities set up in a State farm along with nursery for raising of appropriate planting material and industry dispersed within a radius of 20 to 30 Kms.

    The Minister said that each State/Union Territory must develop commodity-differentiated strategies in areas where they have comparative advantage so that the entire food chain from farm to consumer both in domestic and in export market is addressed. The core strength of each State whether in the nature of fruit and vegetable or other products need to be identified and work commenced on each of them, he said. Prof. Gupta said the Ministry of Food Processing Industries can assist in the commissioning of studies for such commodity based profiles, the food park and agri-export zone can be set up primarily around these commodities, infrastructure for research and development of planting material can be converged through the agency of Agricultural Universities in addition to the Regional Research Laboratories and other National/State R & D Institutions.

    The Secretary of the Ministry, Shri D.K. Tripathi later reviewed projects already approved by his Ministry in different States/UTs, their future projections, especially in view of the ensuing meeting of the Ministry with the Planning Commission for finalisation of the Tenth Five Year Plan. New areas where food processing could be successfully applied were discussed with the State representatives. Some of the States suggested that wine could be processed from several fruits grown in the temperate climate of the country, which has tremendous export potential. Mr. Tripathi informed the meeting that a Committee has been formed in his Ministry under the Chairmanship of a Joint Secretary with representations from several State Governments to look into various aspects of the excise policies of the States. The meeting also discussed various incentives that could be given to the private entrepreneurs in the food-processing sector including equity participation by Small Farmers Agri-business Consortium (SFAC).