Patna, Feb. 24: Development of infrastructure like storage capacity and road connectivity could give a boost to the food industries and change the fortunes of the farmers of Bihar.

This is what a report of the Associated Chambers of Commerce and Industry of India (Assocham), which was released today, said.

The report, which recognised the lack of infrastructure facilities as a big impediment for the growth of agro and food processing units, said even though Bihar was placed at the fourth position in horticulture production, investment in irrigation and other agriculture facilities such as post harvesting and processing is quite inadequate.

“I watched the budget speech wherein I heard that the state posted a record rice production but unfortunately 45 per cent of the total produce is wasted in the absence of proper storage capacity and the farmers have to go for distress selling. The wastage of grains could be checked by setting up cold-chains and warehouses with private sector participation,” Ravi Wig, the chairman of Assocham Bihar development council, told reporters.

Wig, accompanied by Bihar Chamber of Commerce President O.P. Sah, enumerated the lack of storage capacity, road connectivity, market accessibility and power as the factors hampering the growth of food processing sector, which has a vast potential to grow.

“The recommendations suggest the state government to take measures to integrate agriculture with industry and how to connect farmers with the market so that they get a fair and better price,” Om S. Tyagi, senior director of Assocham’s agriculture and food processing unit.

The recommendations included development of export-oriented agro clusters, promotion of contract farming, establishment of pack houses, freezing and processing plants and perishable cargo centres, priority should be accorded for expansion of dairy, poultry and fisheries as Bihar has great scope in the sector, strengthening the process of entrepreneurship development programme for a more skilled work force, among others.