Harsimrat Kaur Badal calls meeting to discuss food processing sector issues

New Delhi, Oct 11 Union minister Harsimrat Kaur Badal has called a meeting on October 13 to discuss various issues facing the food processing sector, including foreign investments, with various government departments and other stakeholders.

Harsimrat Kaur Badal

The meeting assumes significance as the government is considering certain relaxations in the FDI policy for the food processing sector. The issue would come up for deliberation in the meeting convened by the Food Processing Minister, sources said.

The government is considering allowing stores which would attract FDI to sell personal and home care products up to 25 per cent of their total turnover, they said.

"Issues like constraints in attracting investments, easy and smooth flow of FDI. Problems related with taxation, state government approvals, environmental clearances and matters related with GST will be discussed in the meeting," sources said.

In June, the government allowed 100 per cent FDI in trading of food products, including through e-commerce, to boost food processing sector in the country.

As per the policy, foreign retailers can sell food products produced and manufactured in India.

Earlier, the minister had pitched for putting condition for foreign players looking to invest in the food processing sector to mandatorily invest a portion of the funds in building infrastructure at the farm gate level for the benefit of farmers.

Representatives from the commerce and industry ministry, Department of Revenue and micro small and medium enterprises among others would attend the meeting.

FDI in the country grew by 29 per cent to USD 40 billion in 2015-16 as against USD 30.94 billion in the previous financial year.


Please Wait while comments are loading...