1. Government of Karnataka (GoK) has established the Food Karnataka Limited (FKL) with an objective to formulate exclusive policies for the agro food processing industries, to set up agro export zone with private sector investment and to undertake various activities to position Karnataka as the ideal location for investors in India's food industry.

2. Food Processing Industry has been identified as one of the priority sectors for expansion and growth in India and is considered a `sunrise' industry. The Ministry of Food Processing Industries (MFPI), Government of India has provided a number of promotional schemes and the incentives for the development of food processing industries. In the 10th Five Year Plan Scheme, MFPI had approved setting up of Food Parks at Malur in Kolar District, Hiriyur in Chitradurga District, Navanagar in Bagalkot District and Jewargi in Gulbarga District. Under the scheme, MFPI provided grant-in-aid to the extent of Rs.400 lakhs per park. The State Government is also providing the matching grant. The Food Parks in the above said locations are in the advanced stage of implementation.

3. The 10th Five Year Plan came to end on 31-03-2007. In the 11th Five Year Plan, MFPI has made significant allocation for the food processing sector for establishment of 30 Mega Food Parks, creation of integrated cold chain, modernization of abattoirs, establishment of laboratories for research and development, human resources development and capacity building, for up gradation of quality and hygiene of sea food / creation of food street in the tourism destination. Initially, MFPI has plans to establish 10 Mega Food Parks and Chikkamagalur is one of the locations identified in the country. Under the scheme, MFPI would provide grant-in-aid to the extent of 50% of the project cost and not exceeding Rs.50 crore.

4. The State Government during the financial year 2008-09 had announced for setting up of Food Parks at Shimoga, Davanagere, Bijapur, Belgaum and Tumkur districts. FKL has obtained the Feasibility Reports and sought the State Government for Viability Gap Funding. It has also notified in the leading newspapers seeking Request for Proposal from private parties for establishing the Food Parks in the above said locations.

5. During the FY 2009-10, the State Government has announced for establishing a Spice Park at Byadagi in Haveri District. KIADB has already identified 120 acres of land for the Spice Park project. FKL is in the process of obtaining the Feasibility Report from a reputed consultant.