Food processing in Orissa to grow with Khurda park

The food processing sector in Orissa, one of the India?s leading producers of rice, fruits, vegetables, cereals, coconut and marine products, is set to grow with the food processing ministry clearing the proposal to set up a food park in Khurda. With more than adequate rainfall and 485-km coastline, the state is geared up to give the food processing sector a major boost.

?We have cleared setting up of ten food parks across the country at present and Orissa has a good chance of getting a few of them,? said a senior official with the ministry of food processing industries.

Last year, the Union minister for food processing industries, Subodh Kant Sahai, announced setting up of 30 ?mega food parks? with an investment of Rs 250 crore for each of them. Subsequently, ten proposals have been cleared in this regard.

?At present, the state government’s priority is to set up food processing units and formulate a food processing policy. With apt utilisation of bio-fertilisers, the state’s produces are of of high quality, but inadequate knowledge of farmers hampers production,? said Raghunath Mohanty, state minister for industries, steel and mines.

Under the Orissa agriculture policy 2008, the state government has been providing capital investment subsidy to 41 categories of agricultural enterprises including biofertiliser production, cattle or poultry feed plants, coconut based products, etc. The subsidy entails 25% of the fixed capital including the cost of land subject to the limit of Rs 25 lakh.

According to the official data, during the last three years?2005-06, 2006-07 and 2007-08 ?export of processed food products from the state was Rs 393.06 crore, Rs 410.33 crore and Rs 393.12 crore, respectively.

At present 23,026 small and medium enterprises (SMEs) engaged in agro and food processing have been set up with an investment of Rs 939 crore and the sector has provided employment to 1.2 lakh people.

Exporters feel there is an urgent need of setting up a food testing lab for ensuring quality of the products. The food processing ministry is providing 100% grant to the central and state governments and their organisations for setting up of food testing laboratories.

?Other agencies and private sector are also eligible for grant-in -aid of 50% of the cost of laboratory equipments and 25% of the cost of technical civil works,? the official from the ministry of food processing industries said recently at a seminar on export prospects of agro and processed food products of Orissa.