Tamil Nadu unveils own food processing policy

CHENNAI: With farm distress making headlines, the state government on Wednesday unveiled its own food processing policy keeping an eye on increasing farmers’ income, reducing wastage of food products and value addition of farm products, to ensure a healthy food processing industry. The objective is also to encourage setting up of food processing industries by agro-entrepreneurs, availing financial assistance from Union government.

Chief minister Edappadi K Palaniswami unveiled the ambitious policy note announced in the state budget in March. “The state will offer interest subvention of 3% per annum on the term loan availed for fixed capital investment, and 5% 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 10 crore, excluding land cost for three years from the date of commencement of business,” agriculture secretary Gagandeep Singh Bedi said. This is to process medicinal plants, minor millets, poultry, fish, fruits, and vegetables.
The processing of agricultural commodities is less than 2% in the state. The state has planned to increase the percentage of processed food, especially that of fruits and vegetables to 10%. The food processing industries will be prioritized for allotment of SIPCOT/SIDCO land. Investment above 10 crore will get long lease up to 99 years, while outright or lease-based sale to small and micro enterprises as per SIDCO policy. Market fee will be exempted for fruits and vegetables purchased directly from farmers/farmer producer organizations and brought to food parks.
Agriculture minister R Doraikkannu said, “Single window clearance facility and other labour related concessions are the highlights. We expect large-scale exports and investments,” he said. Department of agricultural marketing and agri-business will offer technical training assistance for branding and packaging, while training subsidy will be extended for employees of food processing parks under state skill building mission. Quality research and development labs and quality certification labs will be set up in food parks.