 "Food processing minister asks 25% of FDI investment for agriculture infrastructure")
Finance Minister Arun Jaitley in the Budget had announced that 100% FDI would be allowed through FIPB route in marketing of food products produced and manufactured in India.
"I was pushing for the 100% FDI in food processing sector with a purpose to raise farmers' income," Badal said.
Therefore, now I have suggested that there should be a mechanism to ensure that at least 25% of FDI inflows are invested on infrastructure at the farm level, directly benefiting the farmers," Badal said.
The Minister further said the budget was focussed on agriculture and farmers and this decision will also help in overall growth of the agriculture sector.
"The investment should be such which leads to more mechanised farming, better irrigation facilities among others, so that the quality of produce improves and above all helps in doubling the farmers' income," she said.
The Minister has also raised this issue with the Department of Industrial Policy and Promotion (DIPP) and the Finance Ministry, a senior official said.
More From This Section
After the finalisation of the details on the subject, the DIPP will prepare a Cabinet note for approval, an official said.
Earlier, Badal had said FDI in food processing would lead to creation of 'swadeshi' (local) infrastructure with 'videshi' money (foreign investment).
The processing of agri-produce is also expected to double with the FDI inflows and the wastage of agriculture produce will come down, resulting in lower inflation, the Minister had said.
During April-December 2015, FDI inflows grew by 40% to $29.44 billion. Out of which $385.45 million was invested in the food processing sector.
The food processing sector has attracted $5,285.66 million FDI during April 2012 to December 2015 period.