The government today asked states to formulate investment-friendly policies to encourage inflow of funds to the food processing sector, which targets to attract Rs 1 lakh crore by 2015.
"We need Rs 1 lakh crore of investment for this important sector. States should formulate investment friendly policy to encourage investment," Food Processing Industries Minister Subodh Kant Sahai said while addressing the state food processing ministers conference here.
Sahai said the investment is needed for improving the post-harvest management of farm produce and to double the processing level to 20 per cent.
Under the vision 2015, the ministry has set a target of increasing the level of value addition to 32 per cent from 20 per cent, he added.
Sahai noted that food processing sector has witnessed a growth rate of 14.7 per cent in 2008-09 despite economic slowdown from 7 per cent three years earlier. This is the only sector where there was no retrenchment during the global economic crisis, he added.
The country has about 17.87 lakh food processing units, out of which about 80 per cent are in the unorganised sector. These units are suffering from lack of capital and market access, the Food Processing Secretary Ashok Sinha said.
Agriculture Secretary T Nand Kumar said there is need for addressing the delivery deficit issue and lack of convergence of schemes.
