"We have to visualise the growth"
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22/03/2008
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Business India (Mumbai)
Subodh Kant Sahai is a man known to have donned different hats. In charge of the ministry for food processing industries, he believes that the industry's growth is remarkable and real. In conversation with Justin Thomas, he speaks about how the sector would be a focus and the effects it will cast on rural India.
What are the major infrastructure initiatives of your ministry?
The ministry for food processing industries (mfpi) has envisaged common infrastructure facilities for food processing industry - such as integrated cold chain facility for non-horticulture produce, as well as modern packaging systems to enhance shelf life of products and make them internationally acceptable. We will be also setting up value-addition centres, which will enhance the value of total realisation and facilitate tractability through bar coding.
Will mega food parks ever become a reality?
Yes, of course. It is a well thought-out strategy to provide maximum resource to farmers and entrepreneurs. We are creating an interface between producers and utilisers. The mega food parks will also have cold storage, irradiation and similar such facilities.
What are the steps taken by your ministry to improve processed dairy products?
It is a matter of pride that India is the number one milk producing country in the world and mfpi is providing financial assistance to various institutions and universities for developing human resource for dairy processing Industry. In Budget 2008-09, some provisions has been laid like reduction of customs duty on Bactofuges to nil, full exemption of excise duty on milk containing edible nuts with sugar or other ingredients.
Are we equipped to provide food safety and hygiene to the consumers?
This ministry prepared the Food Safety & Standards Act, which were passed by both houses of Parliament. The objective of the act was to consolidate many existing laws related to the subject and establish an apex Food Safety & Standards Authority of India, which will also ensure manufacture, storage, distribution, sale and import of food articles that is safe, hygienic and wholesome for consumption.
We are equally concerned about hygiene and quality of food sold by street vendors. We have to ensure that neither the vendor nor the consumer gets affected by the law.
What is mfpi doing to raise technically qualified and competent human resources?
The ministry has taken upon itself to create a modern institution to fill the gap and setting up a modern, world-class institute on a 100-acre campus at Kundli, on the Delhi-Haryana border. The National Institute of Food Technology Entrepreneurship and Management (niftem), in collaboration with Cornell University, considered the best in the world, will partner in our endeavour. The idea is to integrate all facets of food technology, entrepreneurship, research and management.
What has mfpi done to boost the agri business and rural sector?
Food and agri business in India has tremendous potential for growth in the coming years. As against the country's gdp growth of about 9 per cent, the growth of food processing sector alone is 13.7 per cent in 2006-07. This shows the strength of the sector to drive the rural economy. The objective of the government is to create off-farm infrastructure in the rural areas, which will generate employment opportunities and provide long-term economic sustainability to the farmers. The enabling environment is necessary to go in for demand-driven agri-horticulture produce by farmers, so that it can be utilised by the industry as a raw material.
What is your message to the potential investor, regarding foreign investment opportunities in India?
Investment opportunities in food processing sector are high -1 can say that the sky is the limit. Also, 100 per cent foreign direct investment (fdi) is allowed in the food-processing sector. A large number of fiscal concessions and incentives are available to attract investment. The potential of agri-horticulture produce in India can be used as an outsourcing hub by the foreign investors. Secondly, investment possibilities are enormous in terms of technology transfer, building cold chain facilities, establishing modern quality control food testing laboratories, capacity building in terms of imparting skills at different levels.
When will the government notify permission of 100 per cent fdi in cold storage and warehousing? What are the reasons for the delay?
fdi is not a hurdle in cold storage, while, in retail, it is a roadblock. We have to make sure that anything we do doesn't hurt the small and marginal vendors.