|
|
|
You can get e-magazine links on WhatsApp. Click here
|
|
|
|
|
|
Budget 2010 proposals are half-cooked for food industry: AFTPAI
|
|
Monday, 08 March, 2010, 08 : 00 AM [IST]
|
|
Our Bureau, Mumbai
|
THE Agro & Food Processing Technology & Equipment Providers Association of India (AFTPAI) is disappointed as no concrete measure has been included in the budget for the food processing industry and its allied sectors. AFTPAI, a newly formed association, had presented a "Pre-Budget Memorandum 2010-11" to the union finance ministry.
The memorandum had 10 suggestions to promote agro and food processing industry in order to boost volume and quality of food processing in the country for domestic and international consumption and thus enable the government to achieve the envisaged targets by 2015.
Although the government has seemingly understood the importance of the allied sectors of the food processing industry, it has not given clear views on several other issues.
The government has agreed to provide agriculture and related sectors "project import status" with a concessional import duty of 5 per cent for the setting up of mechanised handling systems and pallet-racking systems in 'mandi' or warehouses for food grains and sugar as well as full exemption from service tax for the installation of and commissioning of such equipment.
It has also agreed to provide "project import status" at a concessional customs duty of 5 per cent with full exemption from service tax to the initial setting up and expansion of cold storage, cold room including farm pre-coolers for preservation or storage of agriculture and related sector produce; and processing units for such produce. But there is no clear definition given about the phrase "processing units".
President of AFTPAI , Sanjeev Gupta, had commented that the government should set up of R&D (research and development) centres by machinery / equipment manufacturers and solution providers by providing this set up an industry status, allowing duty free imports of such machines and equipment, allowing full investment subsidies as provided to a food processing unit and making it eligible for all tax holidays as given to an R&D unit. Then only the purpose of setting up this kind of mega-food parks would be solved.
The Finance Minister has also announced that the government would add five more mega-food parks. Earlier the government had agreed on 10 mega-food parks, now there will be a total of 15 such foods parks. Fiorz H, Naqvi, secretary of AFTPAI, has revealed that most of the proposed mega-food parks have still not seen the light of day. Therefore, the additional five more will not add any more value to the food processing industry and its allied sectors unless the proper infrastructure is not in place. There are only two food parks which are working.
AFTPAI had suggested in its memorandum that the government should define food processing industry with a broader perspective and all allied players like food processing and packaging machinery and packaging materials, and raw materials for food processing, and other service providers should also be included in it. There should be exemption in import duties of machinery and raw materials for a certain period and 100 per cent tax holiday from state and central governments till the units get sustained development.
AFTPAI had also suggested that the government should support food processing and packaging units which will definitely have a positive impact on the food processing industry and its sustainability. Excise duty / countervailing duty (CVD) on local / imported machines and equipment should not be levied as this directly increases the cost of the machines which the processors do not find affordable.
"There is a long way to go. We need to have more interaction with the government in the near future. By announcing relaxation on duties on clod chain machinery and full exemption to specified equipment for preservation, storage and processing of agriculture and related sectors the government has no doubt shown that it has understood the importance of the machinery for agro and food industry," said Naqvi.
Naqvi further said, "The government needs to give definition to the word 'thrust.' The finance minister has delivered a sentence, "A thrust to the food processing sector" but we don't see any, except a few changes here and there. The finance minister should clarify and make a simple formula for the entire machinery and raw materials sectors involved in food processing".
Gupta informed that the association is seeking an appointment with the minister of food processing industries, Sobodh Kant Sahai, and after that they would seek a similar appointment with Pranab Mukharjee before the budget gets approval in parliament.
|
|
|
|
|
|
|
|
|
|