Date:04/06/2006 URL: http://www.thehindubusinessline.com/2006/06/04/stories/2006060403160300.htm

Back Assocham moots food development bank

Our Bureau

New Delhi , June 3

Assocham has proposed setting up of a food development bank that can lend to small farmers at concessional rates.

The chamber argues that this will help the food processing industry as its access to institutional finance for term loans and working capital requirement continues to be restricted.

In a paper on `Indian Food Processing Industry' submitted to the Government, the chamber has suggested that the proposed bank be set up as an autonomous body so that farmers are given loans expeditiously.

The chamber has also suggested further strengthening backward linkages between the processing industry and the farmer, existing institutions, local bodies, co-operatives and self-help groups.

There is an equally urgent need to develop forward linkages of farmers and processors with consumers to remove intermediaries and reduce high cost to the consumer and low returns to farmers and processors.