NATIONAL PLAN FOR AGRO-FOOD INDUSTRY
The Ministry of Food
Processing Industries has been interacting with the Industry Associations.
A Draft National Policy on Food Processing Industry has also been
prepared as a response to a felt need.
The post-harvest
wastage of food commodities has been estimated to be in the range
of Rs. 35,000/-crores per annum. The Plans of the Government are
designed to reduce this wastage over time.
The high rate of
taxation and multiplicity of food laws, as well as the cost of
capital have been pointed out as some of the factors impeding
the growth of the sector. Suggestions have been made to rationalise
and simplify the tax structure both at the central l and state
levels, as also, to harmonise food standards and bring about a
single law and single agency for this purpose.
The Government has
brought to zero level the excise duty on processed fruits and
vegetables. The excise duty on aerated soft drinks has been reduced
from 32 per cent to 24 per cent. Excise duty on biscuits, boiled
sweets, sugar confectionery (excluding white chocolate) has been
brought down from 16 per cent to 8 per cent. Further, the Ministry
has also requested the State/Union Territories to rationalise
and simplify the various taxes imposed by them so as to create
an enabling environment for the growth of food processing sector.
This information
was given by the Minister of State for Consumer Affairs, Food
and Public Distribution Shri Subhash Maharia in a written reply
to Smt. Shabana Azmi in Rajya Sabha today.
