This would enable such units to get power from the railway's connection even if they are being set up in areas where rural electrification had not taken place.

'The railways have also introduced special trains for carrying perishables,' Sahai said.

As a result of all these incentives and government interventions, the food processing sector has now become a very attractive destination for both domestic and foreign investors. He urged investors to invest in a big way in food processing units, cold chain corridors, warehousing facilities and primary processing units.

The White Paper titled 'Food processing and agribusiness: Emerging opportunities and strategic thrust areas for the industry' has been prepared by consulting major KPMG.

Speaking on the contents of the white paper, KPMG executive director Ramesh Srinivas said that India's food processing sector represented a huge opportunity from many points of view.

First, food is the largest consumption category in India and demand for food will only keep rising, which cannot be said of other industries. The size of the Indian food industry was $180 billion while processing industry accounted for only $67 billion.

Second, 52 percent of India's land area was cultivable against a global average of 11 percent. Third, India has all the 15 different agro-climatic regions found on the planet and 46 different soil types making it ideal for cultivating all kinds of food crops.

As a raw producer, India was among the largest or second largest producer of many items. It was the largest producer of milk and cereals, the second largest producer of fruits and vegetables and so on. Yet, its share in the global food trade was a miniscule 1.6 percent due to a very low level of food processing.

India, therefore, offers a huge potential in terms of rising domestic consumption and as a sourcing hub for the world food market, Srinivas said.