Food processing ministry pushing for interest subsidy to agro units

New Delhi, Nov 14: The Food Processing Ministry is pushing a proposal with the Finance Ministry for giving interest subsidy to the agro-based industry which is seeking bank loans at rates charged to farmers.

"We are discussing with Finance Ministry a proposal to give credit to agro industries at 7 percent interest rate, which is charged on farm loans," Minister of State for Food Processing Industries Subodh Kant Sahai said at Economic Editors' Conference on Wednesday.

The Food Processing Ministry had taken the proposal to the cabinet, which in turn wanted the two ministries to do the groundwork. The ministry is also working for grant of infrastructure status to the food processing industry.

Talking about agricultural reforms, Sahai said he favoured "corporate farming" so that the problem of smallholdings and fragmented agriculture is addressed. He said rural areas could be integrated with the supply chain of food and retail companies if corporate farming was allowed.