(a) whether the Government have examined the approach paper
on food processing industry;
(b) if so, whether the Government propose to rationalise the
tax structure for food processing industries;
(c) whether the food processing industries is at present
under utilising its installed capacity;
(d) if so, the reasons therefore; and
(e) the measures adopted/being adopted for full utilisation of installed capacity?
THE MINISTER OF STATE FOR FOOD PROCESSING INDUSTRIES ( SHRI TH. CHAOBA SINGH )
(a) Department of Food Processing Industries (DFPI) organized
four Regional Seminars at Kolkata, Mumbai, Bangalore and
Lucknow to elicit regional inputs towards formulation of
National Policy. Subsequently, a National Conference was also
held at Delhi in this regard. Accordingly, a draft National
Policy has since been drawn up.
(b): Rationalisation of Tax Structure is a continuing
process and Government has been taking measures in this
regard from time-to-time. It has been proposed in the
Budget 2001-02 to bring down the current Excise Duty of 16%
to Zero level for processed fruits and vegetables. It has
also been proposed to give tax holiday for Industrial
Estates.
(c): The present capacity utilization of processed food
industry in general is low and in the case of fruits and
vegetables, it is estimated to be around 50%.
(d): On account of low demand the volume of processed
food industry is low and the cost of production high. High
prices again result in low demand.
(e): The proposed National Food Processing Policy
envisages creation of conducive environment and consumer
awareness for the growth of this sector.