Saving The Farm Ship From Sinking: Tamil Nadu Moves To Revamp Archaic Food Processing, Unveils New Policy

The Tamil Nadu government unveiled their own food processing policy on Wednesday (12 December) with the objective to encourage the setting up of food processing industries by agricultural entrepreneurs and availing finance from the Union government, reported The Times of India. It is aimed at increasing income of farmers in the state, reducing the wastage of food products and value addition of farm products while ensuring a healthy food processing industry.

The policy was announced in the state budget in March and was unveiled by Chief Minister Edappadi K Palaniswami. The policy was made for processing minor millets, medicinal plants, fish, poultry, vegetables and fruits.

“The state will offer interest subvention of 3 per cent per annum on the term loan availed for fixed capital investment, and 5 per cent per annum for women or SC/ST entrepreneurs. There will be reimbursement of state goods and services tax paid for new industrial units with investment above ten crores, excluding the land cost for three years from the date of commencement of business,” said agricultural secretary Gagandeep Singh Bedi.

The state plans to increase the percentage of processed food with particular emphasis on vegetables and fruits by ten per cent. The proposed food processing industries will be prioritised during the allotment of SIDCO/SIPCOT land.

An investment of over ten crore is said to get a lease of up to 99 years, while lease-based sale to micro enterprises per SIDCO policy. Fruits and vegetables purchased directly from the farmers or the farmer-producer organisations and brought to the food parks are set to be exempted from paying a Market Fee.

“Single window clearance facility and other labour related concessions are the highlights. We expect large-scale exports and investments,” said agricultural minister R Doraikkannu.

Technical training assistance for packaging and branding will be provided by the Department of agricultural marketing and agri-business. Training subsidies will be offered to employees of food processing parks under the State’s skill building mission. ‘State of the art’ research and development labs along with quality certification labs will be established in these food parks.