Subodh Kant Sahay, federal food processing minister, said the move was part of the government’s 11th plan to boost the amount of food processed in India.

"Currently we process only about 10 per cent of the food produced in the country and this is expected to go up to 18 per cent by 2012," he said.

The minister also said he is asking state authorities to loosen up the Agricultural Produce Marketing Act (APMC) so that retailers can buy produce direct from food growers.