NEW DELHI (Commodity Online) : In an attempt to increase processing levels of its agricultural produce, India has invited investment in the food processing industry.

Speaking on the sidelines of an exhibition here, Minister for Food Processing Industries Subodh Kant Sahai said, ‘In the 11th Five-Year Plan (2007-12) period, we need investments of around Rs.1 lakh crore to increase the processing level from the current 10 percent to 20 percent”.

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He asked for investment in the supply chain and cold chain infrastructure, and technology to provide forward and backward linkages.

'This sector requires no licensing and allows 100 percent FDI (foreign direct investment),' he said.

'Investors in this sector are allowed to borrow money from foreign banks,' he added.

Sahai said the food processing sector in India was the only sector that remained unaffected by the global financial crisis.

'Every year, the food processing industry has been growing. When the manufacturing sector was affected by the recession, this sector grew from 6 percent to 14.2 percent,' he said.

This year, 426 companies are participating in the Aahar exhibition.

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