Kerala - Kochi   

Centre to fund second marine park

KOCHI: Union Minister for Food Processing Subodh Kant Sahay has said that his Ministry was ready to fund a second marine park and a second rice value addition cluster in Kerala, provided there was initiative either from government agencies or private investors. The Minister, addressing a press conference after a long interaction with food processing industry representatives here on Monday, said that Kerala should be able to tap potential in seafood, spices and coconut processing.

The focus of the 11th Plan was on these areas, said the Minister as he pointed out that the food processing industry was the fastest growing in the country at more than 13.5 per cent. This gives sufficient hope for the industry, he said. While during 2003-04, the growth of the food processing industry was just 6.5 per cent, its current rate of growth implied that the industry had a great future.

With about 70 per cent of its population depending on agriculture, India had to build its food processing industry in a big way, the Minister said. He said he wanted investments to the tune of Rs. 1 lakh crore in the sector in the 11th Plan period.

This volume of investment will ensure that the farmers got good remuneration and were able to plough back some of it into farming.

The Minister raised the issue of high rate of tax prevalent in Kerala. The tax rate here was 20 per cent while the Minister recommended zero per cent tax on perishable items and a maximum of four per cent on non-perishable items.

Mr. Sahay said that Kerala and West Bengal governments had problems with contract farming. But he said that it was now necessary for third party investments in farm lands so that the farmers benefited. The National Development Council, he said, had recommended this and had given the option of going in for cooperative farming too. In either case, it is necessary that clusterised farming takes place.

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