Monsoon failure, a matter of serious concern: Govt

The failure of the monsoon so far, and the possibility of a drought is a matter of serious concern for the government, said Minister of State for agro and food processing industries Subodh Kant Sahay.

"We are awaiting the July 30 report on the monsoon, but on the basis of information received so far, a drought-like situation seems a reality," he said, speaking on the sidelines of an interactive meeting jointly organised by Federation of Indian Chambers of Commerce and Industry (Ficci) and the Confederation of Food Trade and Industry (CIFTI) on food processing.

The minister added that the government had accorded top priority for dealing with the problem. He however declined to comment on whether the situation was as bad as in 2002 when the country last experienced a failed monsoon.

"Measures are already in place to deal with the challenge as the chances of a good monsoon seem to have dimmed and all steps would be taken to ensure that farmers do not suffer," he said.

Earlier, addressing the interactive session, Sahay said that the government was planning to set up five hundred food processing centres in different parts of the country to achieve higher growth in the sector.

He also assured the industry that there would be only one regulatory authority for the food-processing sector. "The ministry is working on an integrated food law under the chairmanship of Union Agriculture Minister, Sharad Pawar. All efforts are being made to ensure that an integrated food law is framed in a time bound manner with a single regulator," he said.

D P Singh , secretary, food processing, said that currently the entire sector was hampered by low value addition and enormous wastage.

"The inadequate supply chain, limited packaging and storage facilities are affecting the sector badly," he said. He urged the private sector to invest in food processing infrastructure.

"The is an urgent need to standardise the quality of products. The taste of products vary from region to region and this is being used as an effective non tariff barrier by several countries," he said.