According to Union minister of state for food processing industries Subodh Kant Sahai, the new policy will extend special economic zone status to the parks. The minister has asked all the state governments to develop such food parks.
To protect the interest of farmers and to support the processing industry, the state governments should also promote contract farming. Availability of processable raw material is one of the key issues affecting the processing industry, he said. He said 26% of the countrys GDP was contributed by the food and agriculture sector. Of this 4% comes under the food processing sector.
It is a huge market which is growing with rapidly changing food habits. There is a lot of scope for large investment in technologies, skills and equipment, he said.Prime Minister has constituted a committee to facilitate the industry. The food processing sector is still untapped, he added.