Complex regulations impact food processing industry: Govt

Complex regulatory regime and lack of access to affordable credit are impacting the development of food processing sector inspite of various fiscal incentives given by the government, Lok Sabha was informed today.
Union Minister Harsimrat Kaur Badal said the overall level of food processing in the country was estimated to be less than 10 per cent compared to "very high" levels in certain developed and developing nations.
She said lack of efficient supply chain infrastructure, inadequate processing capacity, complex regulatory regime and lack of access to affordable credit are "some important causes of slow development of food processing sector in the country".

During Question Hour, the Food Processing Industries Minister said that various fiscal incentives were being provided for the development of the sector, like reduction of excise duty on food processing and packaging machinery have been reduced to 6 per cent from 10 per cent.
The food processing units have also been allowed 100 per cent Income Tax exemption on profits for the first five years of operation and after that, 25 per cent exemption for the next five years, she said.
Under the National Mission on Food Processing (NMFP), financial assistance is provided to entrepreneurs to help them increase food processing capacity.

"NMFP has been delinked from central government support from current financial year excepting the union territories," she said.