Bangalore: Union government has constituted a group of ministers to rationalise tax structure in the food processing industry and create an authority to simplify procedures in the sector, Minister of State for Food Processing Industries Chaman Lal Gupta said on June 19.

Gupta told reporters here food processing has been identified as thrust area by the government, and allocation for the ministry for the Tenth Plan has been hiked to Rs 650 crore, from Rs 250 crore in the previous Plan.

He said it is estimated that only two per cent of vegetables and fruits produced in India is processed, while the figure is more than 80 per cent in the case of Brazil and not less than 70 per cent in countries such as the US and Britain.

It is also estimated that 25 per cent to 30 per cent of vegetables and fruits produced in India are wasted, and in money terms, the wastage is to the tune of Rs 50,000 crore annually, the minister said.

The centre is making efforts to bring down this wastage, Gupta said.

An investment of Rs 1,000 crore in food processing sector can generate 54,000 jobs, Gupta, who earlier held a review meeting of food parks and food processing industries in the Southern states, said.

Secretary in the Ministry of Food Processing Industries, D P Tripathi, said the Centre has so far sanctioned 29 food parks in different states.

There is a need for "harmonisation of food laws and conducive atmosphere" for foreign direct investment to flow into India in this sector, he said.

Gupta said his ministry would definitely try to enhance the assistance given for setting up food processing park during the tenth plan from the present Rs four crore.

PTI