Agri-foodstuffs wastage is estimated to be Rs 58,000 cr a year

New Delhi, Aug 7 (UNI) The wastage of the agricultural foodstuffs is estimated to be about Rs 58,000 crore per annum occurring at various stages of handling after harvesting like inadequate post-harvest infrastructure, lack of cold chain facilities, transportation and proper storage facilities, the Rajya Sabha was informed today.

In a written reply to the Upper House, Minister of State for Food Processing Industries Subodh Kant Sahai said the Government has formulated and implemented several Plan Schemes to provide financial assistance for establishment and modernisation of food processing units, creation of infrastructure, support for R&D, human resource development besides other promotional measures to encourage development of food processing industries.

He said to give a boost to this sector, the Government has allowed under Income Tax Act, a deduction of 100 per cent of profit for five years and 25 per cent of profit for the next five years in case of a new agro processing industries set-up to process, preserve and package fruits and vegetables.

Excise duty of 16 per cent on dairy machinery has been fully waived for promotion of dairy processing industries. Excise duty on meat, poultry and fish products reduced from 16 to 8 per cent and on food grade hexane used in edible oil industry, has been reduced from 32 per cent to 16 per cent.

In the Budget of 2005-06, customs duty on refrigerated vans was reduced from 20 to 10 per cent and in the 2006-07 Budget, customs duty on packaging machines has been reduced from 15 to 5 per cent, excise duty on condensed milk, ice cream, preparations of meat, fish and poultry, pectins, pasta and yeat are fully exempt, excise duty on ready-to-eat packaged foods and instant food mixes, like dosa and idli mixes, reduced from 16 to 8 per cent.

Excise duty on aerated drinks has been reduced from 24 to 16 per cent and on packaging paper reduced from 16 to 12 per cent, Mr Sahai said.

On investment in this industry, the Minister informed that according to estimates Rs 38,000 crore was invested during the 9th Plan in the food processing sector and investment is likely to be of the order of Rs 62,000 crore during the 10th Plan period.

He also said that no licence is required from the Ministry of Food Processing Industries for starting new unit. The Ministry has implemented schemes to extend financial assistance in the nature of grants to entrepreneurs willing to set up food processing industries, like Scheme for Technology Upgradation, Establishment and Modernisation of food processing industries in all the states and union territories.

Rate of grant-in-aid is 25 per cent of the Plant and Machinery and Technical Civil Works in general areas subject to a maximum of Rs 50 lakhs and 33.33 per cent of the Plant and Machinery and Technical Civil Works in difficult areas including Sikkim and other North Eastern States subject to a maximum of Rs 75 lakhs, the Minister added.

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