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The Group of Ministers constituted to consider a modern integrated law for the processed food sector will also consider the proposal on the draft National Food Processing Policy.

NEW DELHI, May 24

EXPORTS of processed food from the country are set to get a fillip, with the Government planning to soon permit the extension of the coverage of the transport assistance in air freight to exports of processed fruits and vegetables, poultry and dairy products and products of wheat and rice.

Transport assistance in air freight is at present permissible for exports of certain fresh fruits and vegetables, eggs and floriculture.

It is also proposed to extend the scope of the transport assistance to cover sea freight as well. Currently, transport assistance is allowed for exports of certain fresh fruits and vegetables, hatching eggs and floriculture only in respect of air freight.

These announcements were made by Prof Chaman Lal Gupta, Minister of State (Independent Charge) for Food Processing Industries, at a seminar on `Promoting exports of fresh fruits and vegetables from North India', organised by the Federation of Indian Chambers of Commerce and Industry (FICCI).

Mr Gupta also said the Group of Ministers (GoM) constituted to consider a modern integrated law for the processed food sector would also consider the Ministry of Food Processing Industries' proposal on the draft National Food Processing Policy.

This GoM would also consider the multiplicity of regulations for food standards under the Prevention of Food Adulteration Act, Fruit Products Order, Meat Products Order, Bureau of Indian Standards, Milk and Milk Products Order. It is also expected to outline draft of Processed Food Development Bill.

The Minister said the Government would, during the 10th Plan, put more emphasis on the creation of cold chain from the production unit to the processing centre and ultimately to the retail outlet.

Mr Gupta held that opportunities exist in improving the efficiency levels and to reduce the current losses and wastages in the complete food chain at every stage. The wastages in the Indian food processing industry are currently estimated at about Rs 50,000 crore annually.

He also stressed the need for export-oriented production. ``The farmers will have to move up in the value chain by shifting from basic cereal crops to horticulture, dairying and the like. A logical alternative would be greater thrust on exports of the fresh farm produce, because while India is the leading producer of many agricultural products, our exports, however, have not matched our potential,'' Mr Gupta said.

The Minister held that there are also opportunities to increase the value realisation in the fresh and perishable products market.

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