India’s food processing sector needs strong venture capital arrangements either from the government or Private Public Participation (PPP) mode, as
India’s food processing sector needs strong venture capital arrangements either from the government or Private Public Participation (PPP) mode, as the banks do not give priority to sectors which fall under perishable segment, according to Subodh Kant Sahai, Union Minister for Food Processing Industries, Government of India.
Speaking at a CEO’s interactive session on the food processing industry organized by the Confederation of Indian Industry (CII) Sahai suggested that at least ten incubation centres under PPP arrangements or private mode should be developed in the country. Sharing an infrastructural perspective for the sector, the minister mooted setting up processing hubs, cold chain facilities and supply chain settings.
Sahai also said, with large young population and changing eating habits, the food processing sector is India’s sun-rise sector and can set examples of entrepreneurship in the country. Relating the sector to the agricultural sector, the food processing sector can pave the way for cluster farming, which at present is highly fragmented.
According to Sahai, the food processing sector, which at present is growing at the rate of 15% per annum, is going to be the driving seat for the Indian economy. Future growth of the sector however, depends on adherence to safety and quality standards, infrastructure facility, capacity building, skilled manpower, rationalisation of tax structure.
