Seeing potential in the food processing industry, Punjab Governor Shivraj Patil on Monday stressed on setting up research and development centres for agro and food processing in rural areas.
“The industry should set up research and development (R&D) centres in rural areas to help the farmers in getting due share for their produce thereby avoiding the middleman and making agro-products available to common man at affordable prices,” said Patil, while inaugurating a national conference on ‘linking Growth Drivers of Food Processing Industries,’ organized by The Associated Chambers of Commerce and Industry of India (ASSOCHAM) on Monday.
Punjab Governor, expressing concerns over non-utilisation of special funds allocated for growth and development of rural India, lamented the half-hearted approach of private players for taking initiatives in food processing sector.
“Food processing sector can bring prosperity, growth and development in the rural India, but unfortunately today farmers are being exploited, consumers are being cheated while the middleman is minting big money,” said Patil.
He said: “The corporate sector needs to work directly with farmers without engaging the middleman as it would also help to abate food inflation.”
“The government should adopt a stable and far-sighted policy for encouraging private trade procurement and this requires reforms on credit availability, storage limit, movement of grains and others to be made industry-friendly,” highlighted the ASSOCHAM study.
“There is a compelling need to establish post-harvest infrastructure and encourage contract farming for faster growth, besides, there is scope for private sector and even non-governmental organizations (NGOs) to help expand farmers’ awareness levels,” it added.
To achieve desired results in the food-processing sector in rural India, the study recommended a liberal credit policy for farmers, large investments in developing infrastructure for storage and preservation of fruits and vegetables to avoid wastage, logistics support and a farmer-friendly approach in encouraging organic cultivation including certification.