The centre government has asked the state government in Orissa to continue the perks it offers to attract investment in the food processing sector in the state.

The state government is offering free land, electricity along with other incentives for attractive incentives in the field. The food processing units can be set up in villages and can reduce the migration of people from rural areas.

The union minister of state for food processing industries Subodhkant Sahay said that this can improve productivity and bring higher income to the farmers. He said that he met state chief minister, Naveen Patnaik and appraised him about the importance of such units.

The minister was speaking at the launching of Bharat Nirman organized by the Press Information Bureau (PIB) of the Government of India (GoI) when he said that industrialization would enable farmers to aim at market driven products.

Mr. Sahay added that the state should replace the Orissa Agricultural Produce Markets Act, 1956 with the Contract Farming Act. The state should also focus on food processing policy to develop the sector.

The Union minister of state for chemicals and fertilizers, Srikant Jena indicated that the union government is planning to bring in the food security bill. He also said that health insurance benefits under the Rajiv Gandhi Rastriya Swasthya Vima Yojana will be expanded to include all people living below poverty line in the state.

The panchayatiraj minister from the state said that National Rural Employment Guarantee Scheme and other schemes are implemented effectively in the state.