AP gets two more mega food parks

To be set up in Nizamabad and West Godavari districts, the new parks are likely to attract Rs 1000-crore investments

Hyderabad: Food processing industry in Andhra Pradesh has got new impetus with central government sanction two more mega food parks – one each in Nizamabad and West Godavari districts – which are likely to attract investments to the tune of Rs 500 crore each.

“The central government has sanctioned two more mega food processing parks to the State. Work on the two new food parks, which will come up in West Godavari and Nizamabad districts, will be completed by the end of 2015,” J S V Prasad, Principal Secretary (Food Processing), Industry and Commerce department, AP, told media on the sidelines of the national conference on ‘Mega Food Parks: Attracting Investment in Food Processing Sector’ organised by industry body Assocham here on Friday.

Each of the new parks will developed at an outlay of Rs 120 crore. “The food park at Nizamabad will focus on the industries related to processing of agricultural crops while the one at Bhimavaram in West Godavari district will be earmarked for aquaculture,” he explained.

It is estimated that the potential investment in each of these two new proposed food parks could be around Rs 500 crore, he said. "We will give all assistance to those willing to set up food processing units," Prasad added.

Meanwhile, Siraj Hussain, Secretary, Union Ministry of Food Processing Industries, who inaugurated the conference, said that food processing sector would register faster growth if the government and private sector worked together. “On our part, we have to create a single clearance window to obtain clearances effective and our system of governance faster. Businessmen have to ensure that they make investments on time," he said.

According to him, the mega food parks will bring together farmers, retailers and processors and link agricultural production to market in order to maximize value addition, minimize wastage and improve farmers' income.

Jagdish Prasad Meena, Additional Secretary (Food Processing), Union Ministry of Food Processing Industries, said that the sector logged in 8.6 per cent during the 11th plan as against 7.7 per cent of the manufacturing sector. Last year, the growth rate was more than 11 per cent and it is expected to do grow much faster in the coming years, he said.

"Our food processing capacity today is at a very nascent stage and therefore huge quantity food produced by farmers is wasted at various levels. A large quantity of agricultural produce is wasted due to lack of infrastructure, storage and processing facilities," Meena said.

Ravindra Sannareddy, Chairman, Assocham South and Managing Director, Sri City, said that food processing industry would promote vital linkages and synergies between two main pillars of the economy - industry and agriculture. “India’s food processing sector can help realize our huge potential in food production and make us a leading food supplier to the world. This can happen only when the state governments can take more initiatives to make this sector as priority sector,” he explained.