Food Processing Budget: Union Minister Chirag Paswan's Demands

New Delhi, Jul 21 (PTI) Union Food Processing Minister Chirag Paswan feels that his ministry "deserves a good budget" allocation for setting up of processing units across the country which will help in providing job opportunities to local people and also boost farmers' income.

Without disclosing contents of his ministry's request from the Finance Minister Nirmala Sitharaman, Paswan said his ministry has sent the Budget wish list to the finance ministry and was not sure of how much of that will be accepted in this budget, considering the limitations.

But, he was hopeful that the wishlist would be accepted in the subsequent years.

In an interaction with PTI, he also outlined his top three priorities -- setting up of food processing units, taking Indian brands to global markets and clearing various misconceptions regarding processed foods.

Paswan highlighted that proposals for setting up of processing units are coming from all states, particularly agro-based ones.

Asked about his wishlist for the upcoming Budget, Paswan said, "My wishlist is really high. But then yes, I do understand because this is the budget for the rest of the financial year.

So, I do understand there will be a lot of concerns, a lot of limitations in it."

"Though I have sent my proposal, but then I don't know how much of that gets accepted, but then, yes, in due course of time, I think by the next financial year. Because I think that this ministry deserves, and we do demand also, a good budget because through this, we can actually do something like carpet bombing, you know, by not only setting up these food processing units, but also giving employment to the local people," he said.

Paswan said this ministry is "very very close" to Prime Minister Narendra Modi and expressed confidence that under his guidance the sector will flourish in the coming years.

Regarding his top priorities, Paswan said, "Setting up of the processing units is definitely there in my priority" as the level of processing is low in India compared to developed nations.

Further, Paswan said creating right awareness about the benefits of processed food would be his priority.

"Also, an awareness because there are a lot of misleading advertisements, misleading theories that pops up concerning the processing of the food because in India we still come with that mindset that food should be fresh and direct from the farm and all that concept that we have," he said.

Paswan said there is a need to promote the food processing sector.

He noted that demand for processed food is also growing now because of nuclear families and working couples.

Paswan said he wants to see Indian brands in international markets.

Summing up his top priorities, he said, "So, yes, to take Indian brands to that level, setting up processing units, and also getting rid of all the misconceptions that are being given about food processing."

He said food processing is all about value addition and not loss of value and hence clearing misconceptions would be one of his top priorities.

Asked about likely foreign direct investment (FDI) in the food processing sector in the next 10 years, the minister said he has not set any target.

"We have not worked on that yet. But then, definitely, as a ministry, we are looking forward to a huge expansion plan" not only at the national level, but also at block levels.

Food processing sector has been able to attract nearly USD 7 billion worth of FDI in the last 10 years.

Paswan highlighted the schemes run by the ministry for providing financial assistance in setting up processing units.

The minister also talked about the huge potential of food processing in the Northeast and states like Bihar.

Paswan said processing units could be set up for banana chips in his constituency Hajipur, which is famous for banana production.

Similarly, he said, processing units could be established at Muzaffarpur in Bihar known for 'litchi' fruit.

Paswan informed that he recently had a meeting with Punjab's food processing minister for creating processing infrastructure in the state.

"...a lot of proposals from the Northeast," he said, adding that more proposals are coming from agro-based states.

Paswan said the demand is coming for setting up processing units at districts and block levels as well.

Paswan also expects positive outcomes from the upcoming World Food India event to be held in September this year, in terms of participation of all stakeholders and also likely investment commitments from foreign food companies.