The Ministry of Food Processing Industries (FPI) increased its interactions with the State Governments for developing the FPI sector as the State Nodal Agencies (SNAs) have a crucial role in the overall development of the food processing industries in the concerned State /UT. The Government of India has allocated Rs.103 crore in 2005-06 as against Rs.62 crore in the Budget 2004-05 for the food processing projects in the North-East.
Technology MissionThe Technology Mission for an integrated development of horticulture produce has been extended to Jammu & Kashmir, Himachal Pradesh and Uttranchal. Under the Mission, the special category states are given certain incentives. They get 50% of the capital cost pertaining to technical civil works and plant and machines upto Rs.4 crore to promote new units. The Government of India has sanctioned assistance for setting up three food parks and six fruit and vegetable processing units in Jammu & Kashmir, one in Himachal Pradesh and one in Arunachal Praesh.
Market Intervention Scheme (MIS)
The Central Government also implements the Market Intervention Scheme (MIS) in association with the concerned States for procuring agricultural and perishable horticultural commodities not covered under the price support scheme. This is intended to protect the farmers from distress sale of their produce in case of glut in production and market crash.
New Technologies
Parliamentary Standing Committee on Food Processing Industries has recommended to the Government to adopt the technology used by Japan, Thailand and Bangladesh to exploit the vast marine and inland fishery resources in the country. India is the fourth largest producer of fish in the world. In terms of fresh water fish production its global ranking is second. The Committee has recommended to the Government to introduce solar dryers on a mass scale and popularize the existing mechanical dryers in cooperation with all concerned to raise the output of processed fish.
Food Processing Industries proposes to set up a National Institute of Food Technology and Management (NIFTEM)
The Ministry of Food Processing Industries proposes to set up a National Institute of Food Technology and Management (NIFTEM). NIFTEM’s role would be to develop world-class food technologists and train entrepreneurs and managers in the food industry, providing business incubator services and undertake services and undertake research. The
project cost as per the feasibility report is Rs.166 crore. The proposal has been cleared by the Planning Commission in principle. The Centre has asked the States and the Union Territories to maintain a strict vigil on violation of food product norms. Any violation of the food product norms attracts penal action under the Prevention of Food Adulteration Act, 1954. This Act governs the use and extent of various artificial colours and flavouring agents in food products.
Foreign Direct Investment (FDI)
The Government approved 105 proposals between January, 2002 and May, 2005 from foreign industrialists to set up food processing industries in India involving Rs.643.47 crore. The Government has promoted a 100% FDI in the food processing sector excluding food retailing, plantations and alcoholic beverages.
Food Parks
The Ministry has released a total assistance of Rs.105.22 crore to implement the Food Parks Scheme. It has so far approved 50 food parks for assistance across the country.
The Centre also plans Rs.100 crore subsidy for mega food processing parks and will consider supporting the proposal for setting up one on the premises of ailing PSU fertilizers and Chemicals Travancore (FACT). Only 6% of the food and vegetables grown in the country was being processed and if it needed to be raised to at least 20% which would call for an investment of around Rs. 1 lakh crore.
Promotional Schemes
The Government has formulated and implemented several Plan Schemes to provide financial assistance for setting up and modernization of food processing units, creation of infrastruture, support for research and development and human resource development in addition to other promotional measures to encourage the growth of the processed food sector. In order to boost the food processing sector, the Centre has permitted under the Income Tax Act a deduction of 100 percent of profit for five years and 25 percent of profit in the next five years in case of new agro processing industries set up to package and preserve fruits and vegetables. Excise Duty of 16 percent on dairy machinery has been fully waived off and excise duty on meat, poultry and fish products has been reduced from 16 percent to 8 percent.
National Productivity Awards
The National Productivity Awards for 2002-03 and 2003-04 to boost the productivity of food processing industries and to recognize outstanding achievements of the organizations and units of this sector, have been given away in 8 sub-sectors namely, cereal (flour milling) processing industries, marine and sea food processing, consumer edible products, dairy processing industries, meat processing industries, food processing training centers and fruit and vegetable processing industries.
World Food Fair
India’s potential in the food processing sector has been recognized at the World Food Fair - Anuga - at Cologne, Germany. The biennial event was held from October 8-12, 2005. The fair was attended by 108 countries. Altogether 49 Indian companies participated. The Indian pavilion was set up prominently to attract all visitors.
Indian FairAn India Fair was held in Mauritius from October 19-23, 2005 to promote economic linkages between the two countries. It would showcase the wide range of products made in India. The fair is intended to highlight the high level of industrialization and manufacturing capabilities developed by India.
Food Safety and Standards Bill, 2005
The Food Safety and Standards Bill, 2005 is under consideration of the Parliamentary Standing Committee. The Bill is intended to give a fillip to the country’s food processing sector. The Government had initiated measures to evolve a uniform food law earlier this year by inviting suggestions on an updated food processing policy. India ranks as the world’s second largest producer of food. But for want of adequate value addition, it is lagging behind several European, North American and Asian countries. The Group of Ministers has approved the draft of the Integrated Food Law.
ALM/SK