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Karnataka offers best investment option in food sector, finds study
DHNS
Last Updated IST

The study, accessed by Deccan Herald, says Karnataka provides two clear investment spaces for private players to tap into due to increased demand for processed food.

The first, its strong supply strengths in terms of fruits, vegetables, spices, plantation crops and cereals being one of largest producers in the country in many of these items. The second, in infrastructure opportunities in upstream activities of the value chain. Entrepreneurs, looking to exploit the business potential, the study says, can develop innovative products through creative models to carve out big share in this fast growing industry.

While, in commodity, State is flush with ragi, maize, rice, tur, sunflower and groundnut, in fruits and vegetables, it boasts of mango, banana, pomegranate, pineapple, grapes, gherkins, tomato, onion and potato. Among spices and plantation crops ginger, tamarind, garlic, turmeric, chillies, coffee and coconut.

Besides, agri-export zones at Chitradurga, Kolar, Bangalore, Tumkur and Bijapur to tap export potential in mango, grape, pomegranate, acid lime, gherkins and Bangalore rose onion are on anvil.

What makes Karnataka further attractive, it says, is demand for high quality skilled manpower which provides scope for setting up professional training institutes with government proposing food engineering management as specialised subject in enginnering colleges and also planning food processing technology institutes.

These can cater to technical and managerial skill set requirement for verticals across agri-value chain including procurement and commodity trading, logistics and distribution, R&D, technology management and implementation engineering and marketing et al to help promoters, it adds. Besides four food parks in Malur, Navanagar (Bagalkot), Jewargi (Gulbarga) and Hiriyur (Chitradurga), in addition, six more are planned at Belgaum, Bijapur, Telagi (Davangere), Doddaballapur, Sogane (Shimoga) and Tumkur, and spice park in Byadagi in Haveri district.

Furthermore, increased demand for safe food opens up immense scope for development of modern, state-of-the-art food testing labs, the study says adding  host of tax incentives, conducive business milieu and investor-friendly policies added bonus.  

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(Published 19 February 2011, 20:18 IST)