Steps to Increase Level of Processing of Perishable Food Items from 6% to 20%

As per Vision 2015, the level of processing in 2005 was 6%. It is estimated to have gone over 10%. The level of processing of fruit and vegetables in the country is estimated at 2.20%. The low level of fruit and vegetable processing is due to non availability of processable varieties of raw material of right quantity and quality, seasonable nature of industry, lack of adequate post harvest infrastructure such as lack of cold chain facilities, transportation, proper storage facilities etc.

In order to increase level of processing and to promote food processing industries to exploit both the domestic and international market potential for processed food products, Vision 2015 Document has been finalized by the Ministry of Food Processing Industries (MFPI), which envisages trebling the size of the processed food sector by increasing the level of processing of perishables from 6% to 20%, value addition from 20% to 35% and share in global food trade from 1.5% to 3% by 2015. An integrated strategy for promotion of agribusiness-Vision, Strategy and Action Plan for the Food Processing Sector has also been approved by the Government.

For the growth of processed food products and use of modern technologies available in foreign countries, the extant policy permits Foreign Direct Investment (FDI) under the automatic route for food processing sector except for items reserved for the Micro and Small Scale sector. FDI brings in, apart from capital, state-of-art technology and best managerial practices, thereby providing better access to the domestic industry to foreign technology and integration into the global market. Foreign Direct Investment will bring new products, improved quality and new technology in the Food Processing Sector resulting in higher employment, reduction in wastage of agri products, safe and hygienic foods as well as export potential of processed food.

Ministry of Food Processing Industries has entered into agreements with some developed countries viz. Germany & France for bilateral co-operation in the field of food processing which generally include processed food segments including fruits & vegetables. Besides, the Department of Agriculture & Cooperation has entered into number of umbrella agreements with some developed countries like USA, France, Canada, Netherlands, Argentina, Austria, Brazil for bilateral co-operation in the areas of agriculture and allied sectors which generally include agro and food processing. Apart from this, MoUs have been entered into by two institutions under the Ministry, namely National Institute of Food Technology Entrepreneurship & Management (NIFTEM) & Indian Institute of Crop Processing Technology (IICPT) with universities in such industrial countries. These MoUs relate to collaboration in teaching and research in the food processing sector.

This information was given in Lok Sabha today by Minister of State for Agriculture and Food Processing Industries, Dr Charan Das Mahant in a written reply.

MP: SS: CP: step (lok) 30.4.2013