(a) whether the Government proposes to encourage the Food Processing Industries in all the States;
(b) if so, the details of the policy initiatives taken so far;
(c) whether the Government proposes to create more
marketing avenues within and outside the country for the
processed food; and
(d) if so, the specific steps taken by the Government in this direction?
THE MINISTER OF STATE OF THE MINISTRY OF FOOD PROCESSING INDUSTRIES (SHRI SUBODH KANT SAHAI)
(a) to (d): A statement is laid on the Table of the House.
Statement referred to in reply to Parts (a) to (d) of Lok
Sabha Starred Question No. 197 for 19th July, 2004
regarding encouragement to FPIs.
(a): Yes, Sir.
(b) to (d): Processed products of fruits & vegetables are
already exempted from payment of excise duty. The
Government has announced on 8th July, 2004 in Parliament to
allow under Income Tax Act, a deduction of 100% of profit
for five years and 25% of profits for the next five years in
case of new agro processing industries set up to process,
preserve and package fruits and vegetables. Present excise
duty of 16% on dairy machinery has been fully waived.
Excise duty on meat, poultry and fish products has been
reduced from 16% to 8%. Excise duty on food grade hexane
used in edible oil industry has been reduced from 32% to
16%.
In order to make food processing units more cost-
competitive, financial assistance @ 25% for general and
33.33% for difficult areas subject to a maximum of Rs. 4.00
crore is sanctioned for establishment of food parks which
provide common facilities such as uninterrupted power
supply, water supply cold storage/ice plant, warehousing
facilities, affluent treatment plant, quality control and
analytical laboratories, training/conference facilities etc.
Financial assistance is also provided for establishment,
modernization and expansion of food processing units @ 25%
and 33.33% of costs of plant and machinery and technical
civil works subject to a maximum of Rs. 50 lakhs and Rs. 75
lakhs in general and difficult areas respectively.
For market survey, test marketing, brand promotion
etc., of processed food, provisions have been made for grant
of financial assistance under forward integration scheme.
Financial assistance has been provided for organizing
seminars/workshops and also for participation in
national/international exhibitions/fairs for development of
market and popularization of processed food products.