The Hindu Business Line : FICCI unveils 10-point strategy for food processing sector

New Delhi, Dec. 5 In an attempt at re-energising the agricultural sector and enabling it to reach the targeted 4 per cent annual growth during the Eleventh Plan, the Federation of Indian Chambers of Commerce and Industry (FICCI), on Wednesday advocated a 10-point strategy to boost the food processing sector.

At a meeting, earlier in the day, with senior officials of the Ministry of Food Processing Industries, FICCI said that the processed food segment would be able to grow at more than 10 per cent per annum driven by consumer demand, organised distribution and policy initiatives taken by the Government, provided the obstacles coming in the way are removed and fiscal sops given on an urgent basis.

FICCI pointed out to the Ministry officials that infrastructure constraints, wastage of agricultural produce, rationalisation of customs and central excise, uniformity of VAT rate, focus on R&D and lowering of packaging cost should be looked into to achieve the desired growth in the sector.

In its presentation before the Ministry of Food Processing Industries, the Chamber emphasised, “It is crucial to bring about a complete integration of the food chain with a view to shifting from a ‘green’ to a ‘food’ revolution.”

There should be establishment of cold chain and other modern technology for upgradation of storage; handling and transportation should be granted ‘infrastructure status’ and the tax benefit provided under section 80IA of the Income Tax Act.The package also asked for a complete removal of VAT on persishable food items, with a reduction of VAT on processed foods, while bringing non-perishable items under the 4 per cent VAT regime. The package also made a request to the Ministry to revisit the duty structure and classification problems in case of sugar and chocolate confectionery, tea and coffee vending machines, biscuits, mixed-condiments and mixed seasonings.

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