Wednesday, May 16, 2012: 01:32:45 PM

Food Processing News

Centrally sponsored scheme, more FDI for food processors

Launch of National Mission on Food Processing scheme and inflow of more FDI to bolster the domestic food processing sector

Post the positive announcements for the sector in Union Budget 2012-13, the food processing industry has been on an upsurge and making announcements that augur well for its growth. In a latest development, the Ministry of Food Processing Industries (MoFPI) has announced that the Centrally sponsored scheme ‘National Mission on Food Processing’ will come into effect from 2012-13. To boost the sector further, the government is taking steps to encourage inflow of foreign investments into the food processing space.

 
In written replies in the Lok Sabha, minister of State for Food Processing Industries, Dr Charan Das Mahant said that the Working Group constituted on food processing sector under MoFPI for the Twelfth Five-Year Plan (2012-17) has recommended the launch of the National Mission on Food Processing scheme, which is aimed to provide further impetus to the food processing sector through decentralisation and better reach. He added that the government has given a go-ahead to a proposal for state governments to start preparatory activities for this scheme and has sanctioned release of Rs 51 crore for this purpose.  
 
Stepping up FDI inflow
 
In a separate statement, Dr Mahant said that the government is taking steps to attract foreign direct investments (FDI) into the food processing sector and one of the significant measures in this regard was declaring the sector under 100% FDI through automatic route.
 
In a written reply in the Rajya Sabha, Dr Mahant said that FDI brings in new products, new technology and improved quality in the food processing sector, which leads to decrease in wastage of agri products, safe and hygienic foods, higher employment and increases export potential of processed foods.
 
The latest announcements by MoFPI are certainly encouraging for the food processing sector. Sectoral players would be eagerly waiting for the implementation of the food processing scheme and inflow of more FDI into the industry.
 
Prasenjit Das
 

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