A techno-feasibility survey is on the verge of completion and is being being carried out in collaboration with APEDA, according to highly placed sources in the ministry.

The techno-feasibility study aims at striking a balance between the supply, distribution and storage of processed food. The project is being carried out in collaboration with the ATO-DLO, a Netherlands-based research institute which is supported by the Government of the Netherlands.

The cold-chain linkages have been proposed to be set up initially in three states - which are yet to be shortlisted by the ministry, sources said.Amongst the proposal is also a suggestion for designing a supply chain grid which shall lead to a pilot project for the cold-chain linkages.

Faced with an unpredictable consumer demand pattern theministry has sought to strike a balance between the supply, distribution, storage and demand of various food products.

The project also aims to reduce the operating costs of distribution and storage as well as easier transportation of many of the perishable food products.

The move by the ministry comes in the wake of the recent thrust by the government to enhance the country's processed foods sector with the impending competition from multinationals.

With this, the government has also set afoot a special strategy to tap trained manpower for the sector as the need for it grows. This is more so as the current food processing technology would require further technology upgradation as well as diversifications, highly placed sources said.

Besides, management of quality control systems and trained manpower is also expected to acquire an essential dimension in the coming months for the sector. This is further expected to fuel the need for technical and skilled manpower.

Sources in the ministry feel thatwhile there will be a dearth of entrepreneurial initiatives besides the need for manpower. As such, entrepreneurial development has also to be looked into by the sector for future growth.

New centres for developing entrepreneurial skills would be required so that the new entrepreneurs can absorb new technologies for upgrading systems of the existing operations as well as introduce new products and processes that are being developed.

The programme for development of entrepreneurial skills would also address the requirement of tapping investments in many of the far-flung areas. Many of raw materials required for the sector come from areas which are far flung areas of the country.

Under the scheme, a special purpose fund has also been mooted which is to be offered to various human resources development institutes. The fund will be offered for human resource development particularly in the area of food processing industries.