Food sector survey stresses need for one-point registration

The food processing industry - the sunrise segment - needs significant support from the policy makers in terms of simplification of registration procedures and rationalisation of taxes.

The industry also needs support on the human resources front as well as it struggles with the poor supply of trained manpower - especially in the supervisory cadres.

These were among the findings of a survey of the food and food processing industry, conducted by the Mahratta Chamber of Commerce, Industry and Agriculture (MCCIA).

Discussing the survey with media, MCCIA's economist Manasi Phadke said that the chamber surveyed 450 food-processing units in the district engaged in different segments like spices, dairy, fruit processing, grain processing, bakery and confectionery, ready-to-cook and ready-to-eat, edible oils, meat and poultry products and ice creams.

Among the common observations about these units was the difficulty they faced due to the multiplicity of agencies that register and monitor them. "Being mostly in the small segment, and run and managed by the same individual, these units are overburdened by the plethora of regulatory compliances they need to adhere to," Phadke said.

It was unanimously stressed by the respondents that they need a single registration authority for them, Phadke said. This authority can keep all records and share them with the agencies concerned such as the local municipal body, health department, the revenue or labour departments.

Phadke said that the food industry in the district has attracted an investment of Rs 300 crore and it employs about 300,000 people.

The turnover of the industry is Rs 1,800 crore, contributed largely by players like Pravin Masalewale, Universal Spices, Chordia Food Products, Weikfield, Gits Products, Venky's and Dynamix Dairy, she said.

Thanks to the rapid urbanisation and expansion of the market, the industry is growing very fast and most players feel that it will flourish better if infrastructure is improved, she pointed out.

The industry is also facing problems with the taxation structure as the value added tax system has not been fully implemented, she said, adding that the prices of food products contain nearly 30 per cent tax element.

As most units are small and are run by one or two individuals, they face the problem of non-availability of trained manpower at the supervisory level.

The players expected the setting up of more facilities to train food technologists so that the entrepreneurs have the time to manage the marketing, distribution and finance functions, Phadke informed.