Karnataka, a southern Indian state, is poised to become the leading food processing hub in India, thanks to a strong and expanding physical infrastructure base, specific supply strengths and opportunities in the food value chain, a report said.

In urban Karnataka, while monthly per capita expenditure on low value food items like cereals and pulses increased by about 73% and 102% between 1993-94 and 2006-07, spending on beverages and processed food has increased by a massive 144%.

"Clearly, the food processing industry is on the threshold of demand-led growth in the country and within the state of Karnataka," the report added.

With 10 agro-climatic zones and land topography highly suitable for agriculture, Karnataka is one of the most agriculturally diverse states in India. It is estimated that about 83% of the geographic area of the state is suitable for agriculture, of which 64.60% is under agricultural cultivation.

The state also has a wealth of livestock and marine resources that augur well for processing of dairy, meat, fish and shrimp.

According to the report, Karnataka has an excellent road network of about 52,000 km, a railway network of about 3,180 km, two major and eight minor ports, five domestic airports and two international airports.

The state also has very strong agri-infrastructure, including 146 main market yards, 352 sub-market yards, 138 cold storages of about 0.4 million tonnes capacity and warehousing capacity of about 1.95 million tonnes.

These strengths are further augmented by policy-makers' efforts to promote development of supporting agri-infrastructure, especially through initiatives like crop cluster development, food parks, agri-economic zones and agri-SEZs among others, according to the report.