• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

Chitra Phadnis

The Karnatkaka Government has taken upon itself to provide infrastructure such as roads, water, power and cold storages.

BANGALORE, July 8

THE Food Park concept is getting a fillip in Karnataka as a new industry-led initiative has been launched to accelerate its growth in the State. A new company, Food Karnataka Ltd (FKL), has been proposed with investment from ICICI and the State Government.

FKL will work towards wooing private investments into food parks and also plans execute the project, which is currently being done by KIADB (Karnataka Industrial Area Development Board).

Food Parks, promoted by the Union Government on the lines of industrial parks, are meant to bring together food processing and related industries in one area. The parks were planned to be located in growing areas to help bring down post harvest losses by processing agricultural produce immediately.

However, progress on the food park front has been very slow all over the country and this is one reason that the industry stepped in, according to Mr S. Mazumdar, Chairman, Agri-Business, Greater Mysore Chambers of Industry (GMCI).

"The biggest roadblock has been getting the investments in," he said. Three food parks have been sanctioned in Karnataka and work has already started on two of them in Malur and Bagalkot. The State Government has taken upon itself to provide infrastructure such as roads, water, power and cold storages.

However, the Industries Minister, Mr R V Deshpande, had earlier said it was up to the private companies to come in and use the facilities.

FKL plans to fill this gap and go out proactively and get private companies. "We have to find out from the big guys how the parks would synergise with their business strategy," Mr Mazumdar said. The company plans to hold road shows to attract investment. It has already been talking to food processing and machinery companies, Mr Mazumdar said.

FKL will also facilitate backward linkages and contract farming agreements between the companies and the growers. It is looking at roping in retailers such as RPG's FoodWorld and the German company Metro, the cash and carry outlet, which recently came into India to source their agri-produce from the proposed NDDB market for fruits and vegetables.

The model has been entirely designed by GMCI. With food processing being an industry that comes under a number of ministries, FKL will also provide inter-ministerial coordination. With a new Agriculture Commissioner, the project is expected to take off soon, Mr Mazumdar said.

A total of 29 parks have been sanctioned in the country. The former Union Minister for Food Processing, Prof Chaman Lal Gupta, had said the gestation period for the parks would be 3-5 years. The allocation for food parks has also been raised to Rs 650 crore in the Tenth Plan from Rs 250 crore.

Send this article to Friends by E-Mail

Stories in this Section
Kerala: Exclusive zone mooted to promote fisheries

Copyright © 2002, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line