CENTRE TO RATIONALISE TAXES TO HELP FOOD PROCESSING SECTOR
SHANMUGAM URGES STATES TO SHORTEN
GESTATION PERIOD OF FOOD PARKS
The Centre is trying to further rationalise taxes which are affecting
the Food Processing Industries. Stating this at a review meeting
on Food Parks and Food Processing Industries with several State
Governments and other implementing agencies, The Minister of State
(Independent Charge) for Food Processing Industries, Shri N.T.
Shanmugam said here today that his Ministry has requested the
State Governments to consider granting zero sales tax status to
Food Processing Industries, particularly in the perishable sector.
As part of the policy support, his Ministry has been successful
in obtaining zero excise duty status for processed fruits and
vegetables, he added.
Speaking on the food laws, Shri Shanmugam said that a Group of
Ministers (GoM) has been constituted to deliberate on integration
of food laws and recommend a draft statute. He said that in the
plan scheme of the Ministry, an attempt has been made to rationalise
both areas of support as well as pattern of assistance during
the 10th plan period. The Minister said that up to
the 9th plan, 29 Food Parks have been sanctioned in
the country. Admitting that the progress in opertionalising the
Food Parks has been slow, Shri Shanmugam urged upon the States
to ensure that all necessary conditions for the success of the
Food Parks are put in place quickly. He said that the purpose
of the Food Park for integrating food chain, providing key common
facilities like uninterrupted power supply, water supply, cold
storage, quality control and analytical laboratories and major
processing facilities will be served only if these are completed
at the earliest. Apart from the common facilities it is also critical
that the promoting and implementing agencies are able to ensure
the presence of atleast 10 industrial units in the premises of
the Food Parks in the current financial year.
Stating that his Ministry would like to assist in setting of
Food Parks in each of the States, Shri Shanmugam requested the
Delhi and Himachal Pradesh Governments, which do not have Food
Parks as yet, to forward viable and cogent proposals which can
be quickly approved.
Later, speaking to newsmen the Minister said a Food Park at Virudh
Nagar in Tamil Nadu is going to be inaugurated shortly. He said
that another Food Park in Haryana is being set up at a cost of
Rs. 53.2 crore and yet another Food Park set up by KINFRA has
become functional in Kerala. Shri Shanmugam said that his Ministry
is making all out efforts to shorten the gestation period of the
Food Parks which is generally long and characteristic of all infrastructure
projects.
The review meeting was called to discuss with the State agencies
the concept and modalities that can be fine tuned to shorten the
gestation period of Food Parks and to ensure that these parks
specifically benefit the farmers, processors and consumers. The
meeting aimed to help the Food Processing Ministry learn about
the other identified thrust areas of the State Governments.
There is a huge potential in the country for giving industrial
orientation to the agricultural crops and other food products
available within the State. Value addition to the food products
through scientifically developed industrial process, meeting the
present day national and international standards, is need of the
hour and it will go a long way in bringing ablaut improvements
in the current level of income generation.
