There has been a marked growth in the country’s food and vegetable processing industry. The installed capacity of this sector recorded over a two-fold rise between 1993 and 2003.
The quantity of processed fruits and vegetables as on January 1, 2004 was 23.28 lakh tons as compared to 11.08 lakh tons on the same day in 1993. In order to boost the growth of the agro processing industries, the Government has decided to allow under the Income Tax Act a deduction of 100% of profit for five years. For the next five years beyond this period 25% profit deduction will be allowed in case of new agro processing industries set up to process, preserve and package fruits and vegetables. Presently, financial assistance is provided to entrepreneurs for establishment, modernisation and expansion of fruits and vegetables processing units @ 25% and 33.33% of costs of plant and machinery and technical civil works subject to a maximum of Rs.50 lakh in general and Rs.75 lakh in difficult areas respectively.
(Release ID :4466)