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Rajya Sabha
The food processing sector in India aims to grow at about 10 per cent per annum upto 2015. The investment needed to build the processing capacity, infrastructure and market development during this period is estimated to be Rs. 99,700 crore.
The Government has formulated and implemented several Plan Schemes to provide financial assistance for setting up and modernization of food processing units, creation of infrastructure, support for research and development and human resource development in addition to other promotional measures to encourage the growth of the processed food sector. The Minister of Food Processing Industries, Shri Subodh Kant Sahai, stated this in the Rajya Sabha today in a written answer to a question. He informed the House that in order to boost the food processing sector, the Centre has permitted under the Income Tax Act a deduction of 100 per cent of profit for five years and 25 per cent of profit in the next five years in case of new agro processing industries set up to package and preserve fruits and vegetables. Excise duty of 16 per cent on dairy machinery has been fully waived to promote the dairy processing industries. Excise duty on meat, poultry and fish products has been reduced from 16 per cent to 8 per cent. Excise duty on food grade hexane used in normal oil has been reduced from 32 per cent to 16 per cent. A National Horticulture Mission has been launched since April this year to boost the horticulture sector. In the Budget of 2005-06 excise duty of Rs. 1.00 per kg on refined edible oil and Rs. 1.25 per kg on vanaspati was abolished. Customs duty on refrigerated vans was reduced from 20 per cent to 10 per cent, the Minister said.
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