MINISTER OF STATE FOR FOOD PROCESSING INDUSTRIES (DR CHARAN DAS MAHANT)
(a) 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.
(b) 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.
(c) Yes, Madam. 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.
(d) 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.
