Food processing ind utilises less than half fund in 11th Plan

New Delhi, Mar 22. The government today expressed concern that the food processing industries utilised only Rs 1,600 crore out of Rs 4,000 crore allocated during the 11th Five Year Plan period under various central schemes. Addressing a conference, Minister of State for Agriculture and Food Processing Industries Tariq Anwar said the government is giving great emphasis on this sector but the industry has failed to utilise the incentives. He sought to know from the industry the reason behind the lukewarm response to the various schemes including setting up of mega food parks and cold storage. "I would like to point out that against a total allocation of Rs 4,000 crore for the food processing sector in the 11th Plan, the industry could avail only around Rs 1,600 crore under the various schemes. "I would like to know from you (from the industry) as to why the industry could not uses these resources and if there is something that needs to be done at our end, we would be willing to do it," Anwar said at a conference organised by Indo-American Chamber of Commerce. The minister emphasised that the country has one of the most favourable fiscal incentive structures for promoting the food processing sector. He highlighted several tax incentives being offered by the government. Anwar noted that the food processing sector out-performed manufacturing in 2011-12 fiscal. "While food processing industry grew at 15.1 per cent, manufacturing growth was close to 3 per cent." The minister said although the country is one of the largest producers in foodgrains, fruits and vegetables, but the processing level is less than 10 per cent. The growth in this sector would have a much larger impact on the economy as it would contribute in tackling various concerns such as disguised unemployment in agriculture, rural poverty, food security, food inflation, food wastages and improved nutrition, Tariq said.