New Delhi, Aug. 29: Octagona, the Italian food processing company, is planning to set up a food park in India. It is scouting for a suitable location and an Indian joint venture partner.

The company has shortlisted Bengal, Andhra Pradesh, Tamil Nadu and Maharashtra for the project, which will house food processing units. Some of these will act as suppliers within the park, while others will sell outside.

Alessandro Fichera, a senior partner of Octagona, said, “We are interested in setting up a food park in India. Otherwise why would our chairman, Perego Enrico, along with members from Ficci and Unione Parnense Degli Industriali (Italy’s apex chamber of commerce) visit a number of probable sites in India?”

Sources said the Italians were more interested in Bengal as it had adequate raw materials, technically qualified manpower and was well linked to the Far East.

Fichera was, however, unwilling to reveal the amount of investment his group was considering in its maiden food park in India.

The Italian company will provide technological knowhow and funding. It is looking for an Indian company, which is familiar with local conditions, laws of the land and distribution network.

Octagona has submitted its feasibility report to the Centre. After finalising its site, a logistic partner, farmer co-operative allies, distribution centres and retailers, the company will submit a second project report, which will have more details, to the government.

The food processing ministry plans to set up 30 food parks all over the country.

The government will provide a seed capital of Rs 50 crore for each park, which will come up as public-private initiatives.

A special-purpose vehicle will be formed to bring in investment for these parks. There will be forward and backward integration of farm products in the park.

It will have facilities for procurement, processing, packaging, cold storage and market linkages such as logistics, distribution facilities and selling points.

This system will ensure that a farmer gets to produce according to the needs of a retailer, who can feel the pulse of a consumer better.

The government is laying stress on food processing as nearly 30-35 per cent of the total fruit and vegetable crop is wasted because of a lack of proper storage. This losses are estimated to be worth nearly Rs 60,000 crore.

The food processing ministry feels that the parks will benefit all stakeholders. It will give farmers an assured buyback guarantee, retailers an assured quality and consumers a better choice at affordable prices.