India to Establish Fund to Encourage Investment in Food Processing Sector

The Indian government is looking into setting up a venture capital fund to encourage investment into the food processing industry.

India’s Ministry of Food Processing Industries is talking with banks and other financial institutions on how best to set up a fund with a credit base of between $200m and $240m. foodbizdaily.com reports.

The ministry wants to encourage investment into the sector for plants, equipment and machinery alongside promoting research and development into new product development.

The fund would lend to companies involved in the processing of perishable goods such as fruit, vegetables and poultry, the news service said.