New Delhi, Jan 17 (KNN) All India Food Processers’ Association (AIFPA) seeks increase in limit of budget for Ministry of Food Processing along with some subsidies for MSME entrepreneurs in the sector.

While talking to KNN, President of AIFPA said that finance minister should focus over increasing the budget limit of the food processing Ministry.

“Budget for Ministry of food processing definitely should be increased; there are many subsidies which need to be incorporated in the budget. Value addition is very important as far as MSMEs are concerned as the sector has major role in the progress of the country,” said Sagar Kurade, President, AIFPA.

He stressed that government should encourage the Small and medium enterprises (SMEs) with a view to widen their growth.

“In the de-globalization environment where every country is looking inwards it is important that we also have an environment where our SMEs are encouraged to play a larger role,” said Kurade.

He also emphasized the fact that, “such environment from government to MSMEs is very critical as the system SMEs have, probably do not matches the system of multi-nationals,” added Kurade.

According to him the government should make new policies for enhancing technology and capability of the MSMEs.

“Turnover based criteria should be substituted with the technology and the capability of the company,” added Kurade.

On being asked about Danone claim that the French nutrition and dairy major plan to double its business in India by 2020 for which it will bring in more global brands here and has lined up ten new launches for this year, he said that such things certainly bring opportunity for the Indian SMEs.

“Industries in a way should not be seen as self-orientated because there are many opportunities that arises with the introduction of any multi-national industry like outsourcing, third party contract manufacturing, employment generation etc,” said Kurade.

He added that after decentralization, it becomes important that all the states should provide priority to subsidies to food sector.

“Subsidies need to be prioritized, infra related subsidies are fine but ever since the subsidies got decentralized not every state government is looking to prioritized food processing,” said Kurade.

Considering the statement of the Danone he said that Indian food market is a free market and every company which come in the Indian market has its own space of business. (KNN)