The food processing units in Punjab are lagging behind other states in seeking fund allocation from Agriculture and Processed Food Products Export Development Authority (Apeda) to set up export-oriented food processing outfits and agricultural infrastructure for storage.
Talking to Business Standard on the sidelines of a seminar on ‘Strategies for promoting Food Exports from Punjab’, APEDA Chairman Asit K Tripathy said there was lack of awareness among Punjab entrepreneurs about setting up projects in synergy with the government, under schemes like the National Horticulture Mission and Rashtriya Krishi Vikas Yojna (RKVY).
He added that funds to the tune of Rs 1,000 crore remained unutilised with the Punjab government under RKVY due to non-availability of viable projects. He further added that the state had a complete flexibility over fund utilisation under RKVY.
According to Tripathi, the state of Punjab can benefit by growing fruits and vegetables for the export markets in Middle East Asia as there the demand and distribution is in the hands of people from Indian subcontinent.
He added there was a tremendous potential for the entrepreneurs in the food processing industry in Punjab to access market in Middle East.
Tripathi also said the state topped in production of kinnow (citrus fruit) in 2005-06. Punjab also has the highest ranking in per hectare yield of grapes and per hectare potato seed production in the country. Punjab topped in production of mushroom too.
He added, “If the farmers and entrepreneurs in the state get closer and join hands to cater to the export market it can work wonders for farmers and the state exchequer.”
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He told that the largest part of Indian processed food is meant for the countries bordering India like Nepal, Bangladesh, Sri Lanka and Pakistan. “We can explore new markets like south-east Asia and Middle East that can fetch better remuneration.”
He extended invitation to the entrepreneurs to come forward with proposals to tap new markets. Tripathy also suggested them to send their proposal through state agencies (as there was a ceiling of Rs 50 lakh on R&D and Rs 25 lakh on infrastructure for the private people putting up projects) and later sign an MoU with government agencies or make PPP model to seek assistance from Apeda.