Business Standard

Forward trading in pulps likely

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Rupesh Janve New Delhi
In order to give a boost to the food processing sector, the government is planning to allow forward trading of fruit and vegetable pulp on commodity exchanges.
 
The proposal has been mooted by the Ministry of Food Processing Industry. "This will help farmers get better price and reduce wastage of agricultural and horticultural products", Minister of State for Food Processing Industry Subodh Kant Sahai told Business Standard.
 
Sahai said his ministry had asked the government to treat pulps of mangoes, tomatoes and oranges, among others, as commodities.
 
"At present, many farmers have no linkage to the market or industry, and they are exploited by middlemen. This forced them to go for distress sales. By allowing forward trading at commodity exchanges, the over Rs 3,000-crore fruit and vegetables industry will grow significantly. It will also give farmers better returns," Sahai said.
 
India is the largest producer of fresh fruit and the second largest producer of vegetables in the world, accounting for about 10 per cent of global production. However, agricultural produce worth nearly Rs 50,000 crore is wasted annually.
 
Over the last five years, processing of agriculture and horticulture produce has gone up from 7 per cent in 2003-04 to nearly 10 per cent at present.
 
"The 3 per cent rise in the processing levels has come about in the last three years", Sahai said.
 
Export of processed fruit and vegetables was valued at Rs 1,551.29 crore in 2004-06. It grew by 58 per cent to Rs 2,454.60 crore in 2005-06.

 
 

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First Published: Jan 29 2008 | 12:00 AM IST

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