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Bihar’s agri & food sectors could touch Rs 1 lakh cr by ’15: ASSOCHAM
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Thursday, 17 April, 2014, 08 : 00 AM [IST]
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Our Bureau, New Delhi
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fiogf49gjkf0d The agriculture and food processing sectors in Bihar have the potential to touch the Rs 1 lakh crore- mark by 2015, with processed food products accounting for a 45 per cent share. This was stated by the Associated Chambers of Commerce and Industry of India (ASSOCHAM) in its recent study, titled ‘Opportunities for Food Processing in Bihar’.
It added that the state was uniquely placed, with abundant agro-based raw materials available at competitive prices, a large population of cattle, water resources and a proactive industrial policy.
“Bihar produces about 15 million tonne (MT) cereals (such as rice, wheat and maize), besides a variety of fruit and vegetables. These are attracting global food and beverage brands, which are seeking a prominent share in the state’s agro-food processing sector,” the study stated.
The agriculture and food processing sector in Bihar employs about 80 per cent of the state’s total workforce, and contributes over half the total gross state domestic product (GSDP).
The study noted that the establishment of a dry port by the UB Group in Bihar would bring down the cost of logistics in the state by half (i.e. from the current level of 16 per cent to about eight per cent.
“The rapid development of logistical facilities and infrastructure in areas of processing, warehousing and storage, production and others through effective use of modern technology would further propel the growth and development of the agro- and food processing sector in Bihar,” said D S Rawat, national secretary general, ASSOCHAM, while releasing the chamber’s study.
“Apart from facilitating import and export, cost-efficient logistics management would help Bihar in achieving the much-needed competitiveness in both the domestic and global markets,” he added.
“Besides, for the further development of the sector in the state, there is a need to ensure that the farmers get a fair price and requisite support on the farm (by way of agricultural extension support) and post-harvest linkages to ensure optimum price realisation,” Rawat stated.
”Considering that the development of the food processing industry is directly linked to sustainable agriculture, there is a need to adopt a holistic approach towards agriculture, procurement and development of processing industries close to the production centres,” the ASSOCHAM study stated.
“The industry should guide and provide required hand-holding support to the farmers, so that they too become stakeholders in the overall development of food processing industries in the state,” it added.
“The convergence of various schemes announced by the Central and state governments for the promotion of the food processing industry in Bihar, together with the establishment of a single-window monitoring and facilitation cell to quickly remove the various bottlenecks in setting up food processing units in the state is the need of the hour,” said Rawat.
“The slow and tardy progress of land allotment and completion of other formalities in setting up mega food parks in Bihar must be urgently addressed to strengthen the investors’ confidence in this regard,” he added.
The study recommended that the state government needed to focus on creating food parks and promoting food processing units in the public-private partnership (PPP) mode and standalone private mode through the requisite infrastructure for quick transportation of farm produce to processing centres and further movement of finished goods to consuming centres.
Besides, there was also the need to augment capacity-building in scientific storage and set up common service centres.
“Considering the huge scope for large-scale employment generation in the food processing sector, there is a need to impart organised training, promote skill development and placement to the rural workforce, which would benefit both the industry and rural folks,” the study added.
All the aspects of nurturing and promotion of food processing sector in Bihar must be taken care of, so that the aforesaid opportunities are realised; the industry, varied sections of the society (including farmers, the workforce, students and consumers) can enjoy the benefits, and there is economic prosperity in the state.
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