Govt plans 20 mega food parks

In an effort to promote the food processing sector and attract foreign investment, the Centre plans to extend as much as Rs 75 crore (Rs 750 million) as financial help to states to set up mega food parks, Union Minister of State for Food Processing Subodh Kant Sahai said on Monday.

The government is aiming at 20 parks in various states in the near future, he said after inaugurating a conference organised as part of the ongoing food processing and food technology trade fair, Foodpro 2005, at the Chennai Trade Centre.

"The Centre will extend financial help to the tune of Rs 50-75 crore for each park. West Bengal government has already started some initiatives in this direction," Sahai said.

"We will invite investment from abroad with open arms," he said stating investors could enjoy various tax holidays in these parks.

Pointing out that availability of raw material (farm produce) was one of the crucial issues faced by the food processing industry, the minister urged states to initiate steps to implement contract farming.