Mega Food Park to take off in India’s most ‘agri-rich’ state

By Ankush Chibber

- Last updated on GMT

Related tags: States and territories of india

Mega Food Park to take off in India’s most ‘agri-rich’ state
The Indian state of Uttar Pradesh is set to launch a food park project that is expected to give food processing in the state and the country a mega boost, government sources said.

The UP Infrastructure and Industrial Development Commission has given an approval to the proposal submitted in 2010, joining the Union Ministry of Food Processing Industries in approving it.

“The project was, until now, caught in a web of technical complications regarding the land lease. That has been resolved,”​ a spokesperson for the commission told FoodNavigator-Asia.

Value chain development

The spokesperson said the ‘mega food park’ would leverage the state's position as a leading Indian supplier of agri resources such as wheat, sugar, potatoes, milk and livestock.

“The food park would develop the value chain in the state from the farm to the market. We expect major national and multinational investments into food processing after the park comes up,”​ he said.

“We are looking at increased realisation for farmers, creation of high quality rural processing infrastructure, reduction in wastage, and capacity building of the producers and processors,” ​he added.

The food park approach would help local food processing units to meet environmental, safety and social standards that would boost exports.

“The park will also provide processing, packaging, environmental protection systems, quality control laboratories and trade facilitation centres,”​ he added.

The project is part of the central government’s ambitious programme to raise India's processing of perishables from the existing 6% to 20%, value addition from 20% to 35% and the share in global food trade from 1.5% to 3% by 2015.

Uttar Pradesh is the second state to recently approve a food park, after Gujarat set up a mega food park that is already showing benefits.

In January, Gujarat became host to the first Indian plant by Indonesian confectionary maker INBISCO under a memorandum of understanding (MoU) signed between the company and the state's industry facilitation arm, iNDEXT­b.

Under the MoU, INBISCO said that it would set up a green field facility in the food park at Sanand at an investment of US$200m, which would manufacture confectionary products like cookies and chocolates.

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Ministry of Food Processing Industries

Posted by Saumil Patel,

Ministry of Food Processing Industries has also pointed out a few important aspects in the last weeks, one being FDI in food processing.

To increase the Foreign Direct Investment (FDI) in the food processing sector, the Government had permitted 100% FDI in all the processed food items through the automatic route, which means that there is nor approval required, companies are free to decide. This happened several years back already.

The total inflow of FDI in Food Processing Sector during the last 3 years gives a mixed picture, it was 858 RS crore (USD 188 million) in 2010-11, 1314 Rs. crore (USD 279 million) in 2009-10, after 456 Rs. crore (USD 103 million) in the year 2008-09.


Saumil Patel
Atcomaart Services Limited
www.atcomaart.com

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