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Govt preparing policy on investment in food sector
uusjio | June 10, 2008 at 08:24 pmby
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"The government is conducting a study for the formulation of a policy that will enable medium- and large-scale enterprises to enter the food sector," Bayu Krisnamurthi, deputy for agricultural and marine affairs to the coordinating minister for economic affairs, said here Tuesday.
Allowing medium- and large-scale investments in the food sector was one of the ways by which the government was hoping to increase national food production, he said.
"So far, there has been no investment in the food sector. This will be changed in the hope investments will increase domestic food production. But we must also make sure that our farmers` interest will not be harmed," he said.
The government would encourage investment in the food sector, especially in regions where agriculture was not yet well developed.
"Investments will be possible in regions where there will be no competition with local farmers. We will study this matter further," he added.
The surges in world food prices over the past three months had increased investors` interest in developing the food sector, according to Krisnamurthi.
Citing an example, he said investors from Middle East countries had recently expressed interest in investing in the food sector.