Indian food processing industry poised for huge growth
given the go-ahead as the country rapidly forges ahead with plans
to develop its food processing industry
In India some 36 proposals to establish business parks have been given the go-ahead as the country rapidly forges ahead with plans to develop its food processing industry.
According to a report from Business Line, the Union Minister for food processing industries, N. T. Shanmugam, has confirmed that Rs650 crore (€133m) has been earmarked for the development of the parks and the food processing industry in general.
At the Inauguration of an Rs12 crore private sector industrial park for food processing units at Palavanatham, Tamil Nadu, Shanmugam said the development of the Indian food processing industry afforded great scope for rural prosperity but that thus far all efforts have been hampered due to poor infrastructure.
However, the extra investment earmarked by the Indian Government for the food processing industry is now expected to support that infrastructure, helping to develop areas such as cold storage and research and development facilities. Subsidies of up to 25 per cent of the total project price are to be offered by the government. Slightly smaller subsidies are also being offered to newly established operations for the food packaging industry.
The Government confirmed that the subsidies will be given for establishing new rice mills, modernisation and expansion of existing rice mills, oil mills, flower mills, bakery units, chilling centres, confectionaries and manufacture of ice-cream.
Currently one of the biggest challenges facing the progress of the Indian food processing industry is the lack of existing infrastructure. Currently it is estimated that only 2 per cent of agricultural produce is preserved for processing because of a lack of facilities for storage. In the US some 70 per cent of agricultural produce is currently processed.
Many industry observers believe that the Indian food processing industry is a sleeping giant and that such initiatives will encourage the rapid growth of the industry, which could eventually make it a world-wide force to be reckoned with.
