The Hindu Business Line : FICCI seeks Govt sops for agri-processing industry

FOR providing support to the food-processing sector, the industry chamber FICCI has asked the Government to levy zero excise duty on all farm produce and processed foods.

The chamber has also asked reductions in duty on machinery to four per cent besides providing exemptions from interest income and capital gains from investments in shares of companies engaged in agri-product trade.

In a note to the Finance and Agricultural Ministries, the chamber has highlighted that Indian share in global exports of agricultural products, which areestimated at $500 billion, is only 1.5 per cent. The rate of growth of agricultural exports from the country has also remained constant at four per cent.

The chamber has also suggested 100 per cent tax holiday for a period of at least 10 years with the assessee given the option to claim this tax holiday for any consecutive 10 years out of first 15 years beginning from the year in which the undertaking commences business.

The chamber has said the level of processing in the country in case of fruits and vegetables is at two per cent compared with 70 to 80 per cent in countries such as France and the US. The food processing industry is highly labour intensive and incentives given by the Government would not only help in people gaining employment but also improve India's share in the international agri-products trade.

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