Rs. 7.5 m loans to be allocated for machinery upgrades in food processing sector

Industry and Commerce Minister Rishad Bathiudeen

By Shannine Daniel

Industry and Commerce Minister Rishad Bathiudeen recently stated that up to Rs. 7.5 million loans will be made available at 8% for machinery upgrades in the food processing sector.

He made this statement at the launch of Pro Food Pro Pack and Ag-Biz exhibition 2016.

The loans will be facilitated under the SMILE III project which is one of the initiatives that will be brought in to develop this sector, especially since 40% of the country’s small and medium enterprises are a part of it. 

“With the Industrial Development Board (IDB) we are currently conducting a pilot project to upgrade Sri Lankan SME Food Processors to enhance their food manufacturing technology and international standards and also to move them one step above their current SME status,” Bathiudeen stated.

The focal point of this project is to upgrade small enterprises to become medium scale enterprises and medium scale enterprises to become large scale operations.

“This pilot project for MSME food industry is part of our bigger plan to link them to our exports,” he declared.  

The Minister went on to reveal that Sri Lanka’s first laboratory for processed food testing is presently being set up by the Industrial Development Board (IDB) under the patronage of the Ministry of Industry and Commerce. This lab is expected to perform at least 500 processed food tests per month and services of this lab will be made available at very low costs.

It is scheduled to be launched this year and it will perform many well-known processed food tests such as microbiology shelf life testing for salmonella among many others. Bathiudeen went on to stress that these tests are also important to obtain SLS certifications for processed foods going to the stores.

Another initiative that has been brought in to place is the assistance scheme called Food Quality Certification Program. This was established to support food and packaging industry firms to receive international certifications such as ISO 22000 HACCP and GMP.

Speaking about the exhibition the Minister stated that it is a trade exhibition and one of the largest food and beverages, packaging and Agri business fairs in South Asia. It was one of the initiatives by the Ministry to develop the processed food and packaging sector.

He pointed out that it is to be a one stop shop for business trade and also a networking platform. Prospective agents and manufacturers will also attend this event. “Since the launch of this exhibition series in 2001 there has been much progress in the processed food sector by way of improvements in technology packaging product development and marketing,” he stated. “It is also good to note that the local and overseas participation have been significantly improving and growing.”

One reason for this is an immense number of micro and SME enterprises active in this industry.

Bathiudeen also declared that from 2009 onwards the Ministry of Industry and Commerce has been actively involved in financing the regional Micro, Small and Medium Enterprises in this exhibition for their own pavilion. “This year’s exposition will showcase a special pavilion for MSMEs. We understand that innovation research and development are vital in the development of this sector,” he elaborated.

“Therefore Research and Development organisations such as the Universities of Wayamba, Sabragamuwa, Peradeniya and Sri Jayawardenepura and the Industrial Technology Institute of Post-Harvest Technology will partake in this exhibition,” he stated. 

Furthermore Bathiudeen highlighted the importance of introducing the latest global food trends such as ‘Nutraceuticals’ to Sri Lanka’s food processing sector. “With such new initiatives I believe that there are great prospects for this sector in future,” he concluded.

For the 15th consecutive year Pro Food/Pro Pack and Ag-biz Exhibition 2016 will take place from 12 to 14 August at the BMICH.

The exposition which has seen a progressive increase over the decade will be held under the theme ‘From the Farm to the Fork’ denoting the entire chain of the food industry from the inception of food which mainly revolves around the farms, to the processing of it and then finally, the food table of the consumers.                  Pix by Upul Abayasekera

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