Centre to make industry tax-free, encourage contract farming.
The food processing industry in India is all set for a robust growth with the Centre today announcing a series of new initiatives. This includes a separate policy at the state level, thrust on contract farming and making the sector tax-free.
Inaugurating Baba Ram Dev’s mega food park at Haridwar, Union Minister for Food Processing Industries Subodh Kant Sahay said the Centre would launch efforts to set up at least one mega food park in each state.
Stating that the sector was growing at 14 per cent, Sahay said the Centre had also decided to keep the food processing industry out of the tax net. “We have decided not to levy any tax on the industry,” he said.
For the further growth of the sector, he asked all the states not to levy VAT more than four per cent on the food processing industry. He said the industry would soon become the backbone of the country.
Sahay also asked all the states to come out with a separate food processing policy in order to attract investments in the rural sector and assured all support from his ministry.
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In lighter vein, he also urged Baba Ramdev to invite Planning Commission Deputy Chairman Montek Singh Ahluwalia to Haridwar for showing the working of the food processing industry which he said would help his ministry in getting more budgetary support.
“It is very difficult to make them (planning) understand about this industry, unless they come here and see themselves,” said Sahay.
Earlier speaking on the occasion, the yoga guru complimented efforts of the Centre in the food processing sector and announced that he would expand Patanjali Food and Herbal Park by setting up similar units in other states.
“I have already been promised land and other logistic support by the governments of Madhya Pradesh and Himachal Pradesh” Baba Ramdev said. In the food park at Haridwar, Baba Ramdev said thrust would be on agri and herbal-based cosmetics, juices and various food items.