The food processing ministry has called for the inclusion of commission agents in the supply chain of organised retailing, which prefers to source goods directly from producers."I have asked the retail sector to make arthiyas (commission agents) a part of their supply chain," Subodh Kant Sahai, minister of state for food processing industries (MOFPI), told reporters after United Progressive Alliance (UPA) chairperson Sonia Gandhi laid the foundation stone for the National Institute of Food Technology Entrepreneurship and Management (NIFTEM) at Kundli, Haryana.NIFTEM, which will be set up in 100 acre land, is the first institute of its kind in the country. The government has allocated Rs 245 crore for the construction of the institute. "Looking at the market, the allocation is expected to go up to Rs 300 crore," P I Suvarathan, secretary, MOFPI said.The ministry has tied up with Cornell University, New York, which will help in creating world-class leaders in food industry, develop globally competitive processes and technologies and international best practices in the area of food technology, entrepreneurship and management.Commenting on the closure of retail outlets in Uttar Pradesh and Orissa, Sahai said: "It is very unfortunate that retail outlets are being made a political debate." Such outlets will generate huge demand for processed food, he added.The minister also expressed concern over the low levels of foreign direct investment (FDI) in the processed food sector even though 100% FDI is allowed in the sector. "Production is not enough for economic viability. We will have to go for value addition as only 6% of agricultural produce is processed in India as compared to 70-80% in other parts of the world," the minister said.
