Bhubaneswar, May 30: The Odisha government today announced its food processing policy aimed at promoting food-processing units.

“Less than one per cent of the total food produced in Odisha is being processed properly. Rest of it simply goes waste. We have set a target to process at least 10 per cent of the state’s total food production by 2017,” said micro, small and medium enterprises minister Damodar Rout.

Releasing the Food Processing Policy, 2013, Rout said: “This is in conjunction with Industrial Policy Resolution, 2007, and the MSME Development Policy, 2009. It emphasises on development of supply chain and infrastructure opportunities in rural areas and development of food parks providing various incentives to promote various food processing industries.”

He said the policy laid emphasis on establishment of sea-food parks and identification of agri-export zones.

“A sensitisation programme will be launched across Odisha on food policy. Agriculture education research institutes and skill development agencies will be encouraged to design specific programmes for food processing sector with focus on plucking, grading and storing,” he said.

The new policy says that capital investment subsidy would be given up to 25 per cent of the project cost subject to a limit of Rs 2 crore. “In case of women and people from SC and ST communities, the subsidy will be raised up to 33 per cent of the project cost to a limit of Rs 3 crore. Those willing to set up the food processing units in the Kalahandi-Balangir-Koraput region will also avail subsidy up to 33 per cent,” said Rout.

Industrial units in various food parks will also be eligible for reimbursement of 100 per cent of the value added tax for a period of 10 years.