In a study on `Agricultural Development in Punjab,' the PHD Chamber of Commerce and Industry (PHDCCI) has pointed out that the state has a tremendous surplus of wheat and rice and can offer these commodities as raw material to the processing industry on a long term basis. The state also offers good scope for fruits and vegetables processing industry particularly for crops like potato, tomato, chillies, garlic, okra, knnow and guava, it said.

There is also need to build up effective backward linkage through contract farming and captive farming. An amendment in the land ceiling laws is required so as to enable the farmers to avail of the benefits of large scale farming, the Chamber's study said.

Further, a post-harvest handling system isrequired to be set up to take care of the agro products from farm to retail markets. This comprehensive system would consist of processes of picking, cleaning, storing, grading, pre-cooking, processing, packing and transporting. This would result in reduction of wastage as well as increase in value addition at the farm itself.

At present, large quantities of agricultural produce are exported to other states for processing and the processed products are brought back into the state. Hence, it would be necessary to set up modern food processing facilities in the state, the study said.

Since the processed food products are perishable by nature, it is essential to have best quality packaging so as to prolong the shelf life of the products. There is a need to make efforts to undertake research and development for sophisticated yet low cost and hygienic technology.

Punjab also needs to set up a strong research and development centre for the food industry.

Any new process and technology that has beendeveloped by a research organisation within or outside the country has to be tested with respect to the raw materials and other inputs available in the state before it could be used successfully.

As the state lacks modern marketing techniques for the agro-based products, it should take initiatives for assisting the food processing industry in marketing their products. This could be done through the co-operative bodies and private marketing companies for the purpose.

The chamber suggested that since the agro-based industry is a thrust area in Punjab, there is a need to provide financial assistance for, R&D efforts by research institutes and agricultural universities for specific projects, dissemination of scientific information by professional and voluntary organisations, public and quasi public bodies and techno-economic feasibility studies and services.