Karnataka   

Union Minister favours contract farming

Special Correspondent

2007 to be observed as the year of food technology

MANGALORE: Union Minister for Food Processing Subodh Kant Sahai has called upon the Karnataka Government to take steps to take up contract farming and also amend the APMC Act to help the industry usher in new era in food management.

Addressing presspersons after a meeting with industrialists here, Mr. Sahai said due to the increase in population, the land holding was becoming smaller owing to fragmentation of land. If contract farming is implemented, the farmer will benefit from the fact that he would not only get the financial inputs and managerial help from the contractor but also his needs will be met through the 50 per cent profit, which will be his share.

He said contract farming allowed the farmer to plan and manage the crop pattern and also the quality of produce. He said with India's 60 per cent population still engaged in agriculture, the country could do wonders with contract farming.

Mr. Sahai said the year 2007 would be observed as the year of food technology. This would enable the food processing sector to get the required impetus in policy matters as well as financial backing. The Union Government has brought down food processing sector into a zero tax regime and in some segments 0 to 4 per cent on the VAT platform have been incorporated which is one of the lowest tax levels in the country, he said. The Central Excise has also been under zero level

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