The Ministry of Food Processing Industries (MoFPI) has released a draft food processing policy. It would be a model Act, on the basis of which the states can draft their respective Acts.

Harsimrat Kaur Badal, minister of food processing industries said, “The National Food Processing Policy will document the best practices of the states and allow them to draft regulations in accordance with their specific needs.”

“We discussed with the state food processing ministers about the policy for food processing in the country. We have released a draft and will put it out for discussion. The new policy will drive the food processing sector in the country. It would comprise the best practices from various states,” she added.

Badal said that since there was no uniform policy for the food processing industry currently, this model Act would help reorganise the sector.

“We are bringing in the National Food Processing Policy, which shall focus on building India’s national food grid and national cold chain grid, and create retail markets in every nook and corner of the country,” she added.

Badal stated, “The draft has come out after considering the best practices across states and the world. We will bring about a comprehensive national policy on food processing.”

“We would like all states to be a part of, and follow, the comprehensive National Food Processing Policy,” she added.

“We have brought an Approach Paper on the National Food Processing Policy, which has been uploaded on MoFPI’s website. Suggestions have been invited from all stakeholders and the general public,” the minister stated.

Badal said the government had introduced reforms like allowing 100 per cent foreign direct investment (FDI) in multi-brand retail.

She added that the proposal of allowing the sale of non-food items alongside food was being actively considered by the government.

In this regard, a proposal had been sent to the cabinet, and it was likely to be discussed soon.

The minister also stated that the ministry may consider allowing the sale of foreign foods, but they should be made in India.

She added, “The government has taken several initiatives and announced attractive incentives, including capital subsidies, tax rebates and reduced custom and excise duties.”

“Increasing focus is also being given to supply chain-related infrastructures, such as cold chains, abattoirs and food parks. The objective is to spur greater growth in the food processing sector, as well as connect farmers with the value chain to increase their returns,” Badal said.

MoFPI is slated to host the World Food India summit in November 2017. It is expecting a huge response from foreign companies, particularly after the minister’s visits to Europe (last year) and Japan (recently).

She met a number of ambassadors, and the countries expressed their desire to participate in the event and possibly engage with the food processing sector under the FDI policy.