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Food Processing Min struggles to utilize allocated fund under National Mission

Updated: Sep 19, 2013 02:14:23pm
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New Delhi, Sept 19 (KNN)  The government is finding it difficult to ensure utilisation of Rs 187 crore provided under the National Mission to develop the food processing industry which has a large presence of the small and medium enterprises.

In the budget estimate, an amount of Rs 708 crore had been provided to the Ministry of food processing industries under which Rs 187 cr was allocated for the (NMFP) ‐ National Mission on Food Processing.

In the Budget 2012-13, the total budget estimate for the National Mission on Food Processing was Rs 250 crore, while the revised estimate was Rs 185.32 crore and the actual expenditure incurred was Rs 184.69 crore.

According to an official release, one of the key areas for discussion during the national level conference of state ministers of food processing industries (FPI) to be held tomorrow will be the utilization of funds available under the National Mission on Food Processing and other schemes.  

The conference to be inaugurated by Agriculture and FPI Minister, Sharad Pawar will seek solutions to problems being encountered by the food processing sector.  The minister will also launch an e-portal on the high potential food processing sector.

This mission launched in 2012, is the umbrella programme for a number of promotional activities for food processing.  Many states have not been able to properly utilise funds allocated to them in 2012-13 and this year. 

The participation of state ministers is vital for proper implementation of the schemes.  In addition, the Conference is likely to find solutions to constraints faced by states and address their concerns.

Matters relating to taxation - especially mandi tax on processed food - and market reforms will also be discussed. 

India's exports of processed food were Rs 41,309.04 crore in 2012-13.

In the five years ending 2011-12, it grew at an average annual rate of 8.6 per cent; during this period, the manufacturing sector grew at 7.7 per cent and agriculture at 3.8 per cent per year.
 
In 2011, nearly 17 lakh people were employed by food processing industries and another 48 lakh in the unorganized food processing activities.

The food processing ministry runs programmes under which assistance is given for a range of activities including setting up of mega food parks and cold chain infrastructure, modernising abattoirs, upgrading food testing labs and quality control. 

Food processing sector is one of the largest sectors in India in terms of production, growth, consumption, and export. India's food processing sector covers fruit and vegetables; spices; meat and poultry; milk and milk products, alcoholic beverages, fisheries, plantation, grain processing and other consumer product groups like confectionery, chocolates and cocoa products, soya-based products, mineral water, high protein foods etc. (KNN/SD)

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