Food Processing Sector to get its own Bank
With the food processing sector facing problems in accessing credit, the government is all set to launch a dedicated financial institution for the industry. Due to the high risks involved, the food processing sector finds it difficult to access credit for various projects.
The new financial institution could provide specific products for food processing projects with an easy repayment schedule that could give a boost to the small and medium enterprises sector.
According to PTI, Food Processing Secretary Jagdish Prasad Meena said the corpus for the non-banking financial institution — tentatively called the agro-processing financial institution — will be Rs 2,000 crore with the government contributing 20% or Rs 400 crore.
The government is ready with the draft policy on 'Operation Green' scheme which will be launched next month. Under this scheme, a group of farmers would be encouraged to form clusters in key growing areas to boost production and marketing of tomato, onion and potato said Harsimrat Kaur Badal, Union Minister fir Food Processing Industries while addressing the Press Conference