BHUBANESWAR: The State Government is planning to adopt PPP (Produce, Process and Prosper) route to drive the food processing sector with a target of utilizing 25 per cent of the State’s agriculture produce by 2025.
While the Government has announced its Food Processing Policy providing a host of fiscal incentives like capital investment subsidy, tax and duty exemptions including electricity to entrepreneurs, the focus now is on providing infrastructure and facilitation services to boost the sector.
Currently, the sector uses only 0.7 per cent of the produce which is envisaged to be raised to 10 per cent by 2017. The State has immense potential for food processing industries by virtue of being a dominant agricultural region. It is a leading producer of rice, pulses, vegetables, oilseeds, groundnut, coconut and different varieties of spices.
Agriculture production in the State has gone up significantly over the past decade, nearly doubled from 46.32 lakh tonne in 2002-03 to 87.47 lakh tonne in 2009-10. But the agro and food processing sector is still languishing in unorganized operations due to lack of infrastructure facilities and a proper productive atmosphere. On the other side, absence of processing activities has been leading to colossal wastage of horticulture produce year after year.
A policy paper prepared by a committee on Food Processing and Post Harvest Management has underscored development of clusters with required infrastructure, facilities, raw material and material linkages, common testing centers.
While focusing on developing a strategic action plan for growth of food processing in Odisha, it has recommended setting up of an autonomous organisation for promoting the industries as well as establishment of a dedicated food processing cell in Directorate of Industries and DICs.
Proactive steps should be taken for skill development in the sector through food processing training centers at different parts of the State. Food processing incubation centers should also be started at educational institutions and Universities to encourage students and youths to launch innovative start-ups in the field, the committee has stressed.
There are around 27,284 enterprises in the State involving investment of more than `1557.86 crore. The industries have given employment to around 1.47 lakh people. But almost the bulk of the enterprises is unorganized. The potential still remains untapped due to high packaging costs, lack of storage, cultural preference for fresh food, seasonality of raw materials and lack of quality control.