Food processing sector may get tax holiday, hopes ministerJune 22nd, 2009 - 9:40 pm ICT by IANS
New Delhi, June 22 (IANS) The food processing industry has the potential to become the engine growth of the economy and it may get a 10-year tax holiday to attract more investments, Minister for Food Processing Industries Subodh Kant Sahay said Monday.
“The food processing sector can be the growth engine of the economy, and is eligible for a 10-year tax holiday,” Sahay said here at a conference organised by the Confederation of Indian Industry (CII).
Describing the importance of the industry, the minister said the sector needed investments worth Rs.100 crore and could generate up to 70 percent employment in the rural population.
Sahay added that his ministry would develop a national programme for the food processing sector to ensure preservation of agricultural produce, storage infrastructure and provide support to farmers under distress.
“Properly developed storage and processing infrastructure will prevent suicide of farmers and processing and packaging infrastructure will also ensure safe and balanced diet for consumers,” Sahay said.
The food processing sector received investments worth $760 million during April 2008-January 2009.
India will likely register 443 percent increase in mass grocery retail during 2007-12, according to CII.
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