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Food Processing Industry in India

The Union Minister for Food Processing Industries Subodh Kant Sahai has said that India is set to witness the next revolution in Food Processing Industry. The Centre has set an investment target of rupees one lakh crore by 2015 in the sector. The sector is expected to grow by 20% and value addition to increase by 35% by 2015. Food Processing Industry is a potential source for driving the rural economy and is of great importance to an agrarian economy like India. – Source: PIB

Here’s a brief note on the Indian Food Processing Industry..

The Indian processed and packaged foods industry is estimated at US$ 10.87-13.05 billion. Key segments of the industry include processed fruits & vegetables, meat & poultry, dairy, fishery, grain and packaged/ready to eat food industries.

 “India can emerge as a leader in the global food processing industry,” said Dr. Manmohan Singh while addressing a conference of food processing ministers in December 2009. With 4.1% food consumption growth (2009), the country continues to offer a growing opportunity for domestic and international food processing companies.

Government Initiatives: Giving an impetus to the food processing industry, the government has taken several initiatives. The new trade policy places increased focus on agro-based industries.

•   Food processing industries have been put in the list of priority sectors for bank lending. The Centre has also announced a series of new initiatives which include a separate policy at the state level, thrust on contract farming and making the sector tax-free.

•   The government plans to open 30 mega food parks by the end of the 11th five-year plan (2007-2012).

•   Fruit and vegetable processing units have been completely exempted from paying excise duty.

•   Automatic approval for foreign equity up to 100% is permitted for most of the processed food items.

•   Items like fruits and vegetables products, condensed milk, ice cream, meat production have been completely exempted from Central Excise Duty.

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