Union Govt pushes for low-interest loans to food processing units

The Union Government has set up a ₹2,000-crore corpus for Nabard to help lend to food processing units at a “lower interest rate”.

According to Harsimrat Kaur Badal, Union Minister for Food Processing Industries, loans would be provided to units located both inside and outside mega-food parks.

“Initially, the idea was to facilitate loans for units inside mega-food parks. But then it was extended to include all units – both inside and outside food parks,” she told reporters on the sidelines of a food processing seminar organised by the Bharat Chamber of Commerce (BCC) here on Monday. According to sources, Nabard under the new scheme is supposed to provide loans for an expected seven year period with a “lower interest rate”.

The fund will be provided to large food chains and units and also for creation of infrastructure in these parks.

Badal, however, reiterated the need to amend or abolish the State Agri-Produce Market Committee Act. The need of the hour was value-addition to agri-produce, thereby ensuring uplift in farmer conditions. Contract farming too could be explored as an alternative solution. Without naming West Bengal or criticising the States against the amendment of the APMC Act, the minister said, “The APMC Act has to be abolished.”

She added, “Our idea is to see that each farmer family works as a self-help group with family members looking after the food-processing and sale of final product segments.”

Meanwhile, the West Bengal Government on Monday said that it would consider amending the Act if required. “The matter will be taken up for discussion with the finance and other ministries. There are a few concerns which we need to address,” Krishnendu Narayan Choudhury, State Food Processing Industries and Horticulture Minister, who was also present at the seminar, said.