Venture capital support for investments in food processing, moving towards a tax free regime for processed foods are some of the initiatives planned to encourage food processing industry, according to Mr Ajit Kumar, Joint Secretary, Ministry of Food Processing Industries, Government of India.
Over the years taxes and duties on processed foods have been brought down and the trend will be sustained to eventually free the processed foods in the 12th Five Year Plan commencing next year. A venture capital fund will also be created to support small and micro enterprises enter food processing, he said addressing Farm to Fork IV – destination Tamil Nadu, a two-day seminar on food processing organised by the Federation of Indian Chamber of Commerce and Industry.
SUPPORT TO SECTOR
Over the next five years a mission to encourage the sector is being envisaged with a mission directorate set up in every State. The programme will be decentralised to ensure fast implementation. Infrastructure facilities such as mega food parks and cold chain investments will be supported on a larger scale, he said.
Mr A.D. Padmasingh Isaac, Founder Chairman, Aachi Masala Foods and convenor, agri business and food processing panel committee, said investments in food processing have the potential to catalyse the growth of rural economy by attracting investments into rural areas and job generation, apart from increasing farmers' income.
The Government should exempt processed food sector from the purview of taxes and duties and promote brand building and network creation. Fiscal support should be extended in the form of risk capital, he said.
Mr Chanchai Charanvatnakit, Thailand Consul-General in Chennai, said Thailand's food processing sector had grown rapidly since the 1980s when the Government promoted technology infusion and supported investments. It focussed on quality, hygiene, food safety, efficiency to bring down costs and compliance with environmental regulations.
Among the factors that have contributed to the growth of the industry are public-private partnership, competitiveness, infrastructure support and regional and global collaborations.
Mr Michael Carter, Commercial Consul, Australian Consulate in Chennai, said Australian companies were keen on collaborating with Indian counterparts. Australia is among the largest exporters of a range of agriculture and processed foods.