New Delhi: The growth of food processing sector has nearly doubled to 13.7 per cent during the last four years, Minister of State for Food Processing Industries Subodh Kant Sahai said here on Wednesday.
"The food processing sector growth has reached the double digit at 13.7 per cent from 7 per cent when I took charge of the ministry (in 2004)," Sahai said at the award distribution function of the National Productivity Council.
Sahai said the ministry has set a target of growing at 20 per cent by 2015. "But to achieve it, there should be an investment of about Rs 1 lakh crore in the sector," he said while exhorting potential investors for making investment.
The minister said state governments should initiate steps for promoting the food processing sector, which caters to almost 70 per cent of the country's population. "The Centre has brought down duties on food packaging and other allied activities to zero level. State governments too should slash duties and taxes (Value Added Tax) to give a further fillip," he said.
According to Sahai, farmers could reap the benefits of industrialisation only if potential investors treated their products as raw material. This, if done, would improve the bargaining capacity of farmers, he added.
Sahai said the food processing sector is in turmoil at present because of the mismatch in agricultural production and processing.
Earlier speaking at the function, food processing secretary, P I Suvrathan said 80 per cent of the ideas envisaged for promotion of the sector "falls by the wayside" and does not fructify in becoming a product.
Source : IBEF
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