Ficci demands tax sops for food processing sector

Ahead of the Union Budget, industry body Ficci today demanded tax concessions and waivers for the food processing sector to help minimise wastages, which are estimated at around Rs 30,000 crore per annum.

"The excise duty on the refrigeration machinery components and material handling equipment (used in the food processing sector) should be totally waived," Ficci said suggesting a 16-point agenda for the sector.

The industry body also asked for extending cost subsidies to all cold chain projects ranging from 25-50 per cent of the total cost.

"Investments in physical infrastructure by the private sector in agriculture and the entire agri-value chain should be given 100 per cent tax holiday for a period of at least 10 years," it said.

Apart from initiating steps to make it easier for corporates to enter into areas like contract farming, post-harvest management, warehousing and development of cold chains, the need of the hour is sustained development in agriculture and large investments in technology and infrastructure development, Ficci said.

Ficci also suggested that the government grant infrastructure status to cold chain and other modernised technology for upgradation of storage handling and transportation.

India is one of the largest producers and consumers of vegetables, but the lack of basic infrastructure in the food processing area is halting the growth of the industry.

The current size of the food industry is pegged at $181 billion and is expected to go up to $258 billion by 2015.