MP food processing policy by April 30

To attract more investment, the MP government will launch its food-processing policy by the end of this month. After a long wait, industries seasonal in nature and the soya industry in particular will heave a sigh of relief.

The state government will make provisions to charge consumption-based tariffs from the seasonal food-processing industries. Further, the policy will bring a number of commodities--soya, wheat flour, edible oil processing, and sugar--out of the negative list. Sugarcane-based units will be in the thrust sector.

A number of food-processing units are on the negative list and get no sops from the state government.

"A sub-committee has been formed to discuss the policy. The Cabinet will hopefully approve the policy by end of this month," said a well-placed source in the state government.

It has reported that with a view to attracting private investment in food processing, the Madhya Pradesh government will delete the "food processing" clause from Industry Policy 2004

The policy will envisage promoting exports from the state and will offer transport subsidy to the exporters. Since Madhya Pradesh is a land-locked state, exporters have a meet additional haulage expenses.

Food-processing companies interested in investing in the state will be offered grants. Similarly private sector firms, non-government organisations and nodal agencies will also be offered grants if they organise awareness camps about food processing.

Farmers, exporters and processors will be offered grants or a certain portion of travel and daily allowance if they participate in a national or international level trade fairs on food processing.

The state will also share grants with Union government on World Trade Organisations related studies. The newly created state Food Processing department will run new Food Parks if proposed. However the state industries department will continue to run the existing food parks.

The policy also envisages opening new institutes on food processing courses, improvement in contract farming rules and regulations, financial assistance to the joint ventures in food processing sectors.

Food-processing industries have a very thin presence in the state. Six food parks created by Central government financial assistance failed to take off.