5-year tax holiday sought to pull FDI in food processing
The Ministry of Food Processing Industries has proposed a five-year tax holiday for foreign investors to help attract a foreign direct investment (FDI) of Rs 1,00,000 crore over the next five years.business Updated: Jun 05, 2009 21:11 IST
The Ministry of Food Processing Industries has proposed a five-year tax holiday for foreign investors to help attract a foreign direct investment (FDI) of Rs 1,00,000 crore over the next five years.
The ministry is preparing a 100-day agenda to double growth in the processed foods sector from the current level of 13.5 per cent, Food Processing Minister Subodh Kant Sahay told mediapersons after meeting industry chief executives at a meeting organised by the Federation of Indian Chambers of Commerce and Industry (FICCI) on Friday.
The agenda will be in place in the “next two to three days,” Sahay said, adding that the plan is to ensure that food
processing receives fiscal benefits of the kind enjoyed by telecommunications and information technology.
“We are now working on a scheme to train farmers so that they become entrepreneurs by adopting scientific practices and technical knowhow,” the minister said, calling for research and consultancy services to aid the sector. He said the government was trying to help farmers through “demand-driven, market-oriented policies.”
Industry representatives said the government should consider bringing taxation to zero levels on essential food items and reduce custom duties on imported raw materials for the sector.