Centre proposes 15 more mega food parks

“An estimated 40 per cent of fruit and vegetable production in India goes waste due to lack of storage, cold chain and transport infrastructure. To address these issues, during 2011-12, approval is being given to set up 15 more Mega Food Parks,” Mukherjee said in his budget speech. So far, 15 such parks have been sanctioned, he said, adding the 11th Five Year target was to set up a total of 30.

Pointing out that recent rise in prices of vegetables and fruits has exposed serious flaws in supply chains, he said: “the government-regulated mandis sometimes prevent retailers from integrating their enterprises with the farmers. There is need for the states to review and enforce a reformed Agriculture Produce Marketing Act urgently.”

In 2011-12 Budget proposal, the allocation for food processing ministry has been enhanced by 50 per cent to Rs 600 crore as against Rs 400 crore of the revised estimates of the current fiscal. “To attract investment in this sector, henceforth, capital investment in the creation of modern storage capacity will be eligible for viability gap funding scheme,” he said.

He further said air-conditioning equipment and refrigeration panels for setting up of cold chain facilities would be exempted from excise duty from next fiscal. Conveyor belts for equipments used in cold storages, mandis and warehouses would be also exempted from excise duty, he added.

It is necessary to augment storage capacity, considering “very high level” of foodgrains procurement during 2008-10 and high foodgrains stock in the central pool, Mukherjee noted.