A draft bill on the proposed Processed Food Development Act is likely to be introduced in the budget session of the parliament. If the proposed Act comes through, it would help replace the existing 14 multiple laws shackling the industry. "These Acts are oblivious of various developments in science, disciplines of food-microbiology, food chemistry, food-technology and various trade developments that have taken place in the last few years", a policy paper of the ministry said.

The policy calls for creating an `enabling environment' in place of the `regulatory system' for the rapid development of a globally competitive food industry in the country. The policy promises to herald a new era of "infrastructural development, establishment of backward and forward linkages, besides special provisions in the north-eastern regions, hilly areas and islands". As part of its effort to create the enabling environment, the policy calls for "harmonisation and simplification of food-laws by an appropriate enactment, to cover all provisions relating to food products so that the existing system of multiple laws is replaced and also covering issues concerning standards, nutrition, merit goods, futures marketing, equalisation funds, etc".

As part of its thrust to develop infrastructure, the policy promises to set up cold chains, packing facilities, quailty upgradation. Application of biotechnology and remote sensing technology would be employed, to speed up the development of the sector, besides setting up area-specific agro-food parks and units capable of processing a cluster of trans-seasonal products."Sustained linkages between farmers and processors,

development of futures market to ensure minimum price stability,mechanism to reduce farm gate price and final consumer price and setting up of an equalisation fund to ensure sustained supply of raw material, at a particular price level are the major steps envisaged for the setting up effective backward linkages," the draft says.