"Economic development of North East through food processing industry will enhance local livelihoods and also strengthen national integration" -- Naga LJP (Ram Vilas) legislator Dr Dr Sukhato A Sema urged Union Minister and his party chief Chirag Paswan
"Despite abundant production of fruits, vegetables, spices, and other perishable commodities, post-harvest losses remain high due to inadequate processing and storage facilities. Enhanced Central funding would enable rapid creation of processing infrastructure, directly benefiting farmers and rural communities," the medico-turned-neta said in his letter to the Union Minister for Food Processing Industry.
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| Dr Sukhato with Mrs Hokhuli Sema and union Minister Chirag Paswan |
The memorandum was submitted by the Pughoboto MLA in New Delhi on Tuesday, July 22.
The letter also stated that most North Eastern States fall under the Special Category status, historically eligible for 90 percent grant and 10 percent loan under Central Sponsored Schemes. Continuing this approach for food processing projects is essential to match their special needs.
"The development of food processing infrastructure in our region is vital to address post-harvest losses, generate employment, and ensure equitable growth despite the geographical and economic constraints faced by our States," Dr Sukhato stated.
"Food Processing Sector in Nagaland is still at its nascent stage with dominance of cottage and micro enterprises which is still unorganized," the letter ran; further adding:
"There is a severe lack of large-scale industries and limited entrepreneurial ecosystem to venture in food processing. In order to formalize unorganized cottage and micro units with an aim to provide better technology, quality control and market access, a high funding support is the key for this transition".
Dr Sukhato also says: "Due to inherent risk, high capital investment and low expected return in challenging environment, private investor are hesitant to invest in food processing without substantial government incentives".
He also spoke about limited 'access' to finance by northeastern states and added:
"Local entrepreneur often from rural areas have limited access to credit from bank and financial institute due to lack of collateral or credit history. High financial support from the government will be crucial to de-risk investment and make project viable for them".
He said considering these factors, an "enhanced Central funding" of 80-90 percent is crucial to make food processing projects viable in the North Eastern Region.
"Such support will directly promote rural development, employment generation, and national economic integration," he said.
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