Plan allocation for food processing sector is set to grow six-fold to reach more than Rs 4,000 crore.Addressing the 57th AGM of Federation of Biscuits Manufacturers of India held in the capital, Goutam Sanyal, Joint Secretary, Ministry of Food Processing Industry said that the government was laying special focus on upgradation of technologies and equipment used in the food processing sector.Sanyal, also, added that the Ministry has proposed a number of steps for implementation during the 11th Plan so as to upgrade the food processing industry to bring it at par with international standards.Food Processing Industry is the only sector that has been registering double-digit growth over the last few years. Recognizing the potential of the industry and its impact on farmers' incomes, the government is keen to provide all possible assistance to the industry. Ranjit Sawhney, President, FBMI called for rationalization in the rate of VAT on biscuits. He said that while a number of other processed food items which are consumed by upper section of society such as jams, jellies, rasgullas attract either less or Nil rate of VAT, biscuits are subject to high rate of VAT of 12.5%. This, he said, was deterring the growth of consumption of biscuit in the country resulting in the capacity utilization of only around 60 to 65% for the organized biscuit industry.Sanyal said that the ministry would take up the matter with the empowered Committee of Finance Minister on this issue. He also responded positively to the Federation's suggestions for introducing biscuits as part of mid-day meal schemes in the schools all across the country.
