Financial Daily from THE HINDU group of publications
Thursday, Sep 29, 2005

Port Info

Group Sites

Industry & Economy - Foods & Food Processing

Minister for zero duty VAT on perishable items

Our Bureau

The Minister of State for Food Processing Industries, Mr Subodh Kant Sahai, with Mr M.K. Sanghi, President, Assocham, at a conference on `Emerging opportunities in processed food sector & role of integrated food law' in the Capital on Wednesday. — Ramesh Sharma

New Delhi , Sept. 28

IN order to give greater thrust to food processing and agri-business, the Ministry of Food Processing is finalising a Cabinet note, which aims at reducing the excise and other domestic levies below four per cent in these sectors, said Mr Subodh Kant Sahai, Minister for Food Processing Industries.

While speaking at a conference on `Emerging opportunities in processed food sector and role of integrated food law' organised by the Associated Chamber of Commerce and Industry (Assocham) on Wednesday, Mr Sahai said, "In addition, the Ministry has been negotiating very hard with all State Chief Ministers and the Empowered Committee on value added tax (VAT) so that zero per cent VAT is imposed on perishable food items and not beyond four per cent application of VAT is levied on non-perishable food items."

The Minister said that the Government would shortly constitute a committee comprising industry bodies, in which, major players in the food processing industry would be drawn to deliberate on the integrated food package, before it is presented to the Cabinet. He announced that the new integrated food law will be implemented before March next year, as the Bill will be passed in the forthcoming winter session of Parliament.

Mr Sahai added that the Government would consider to interact with industry bodies for a detailed study, on how the food taste of the people will undergo a change in the future, so that industry gears itself up to make processed food items as per future consumer requirements.

In his address, the Assocham President, Mr Mahendra K. Sanghi, said that turnover of total food market in the country is approximately Rs 2,50,000 crore, out of which value-added food products comprise Rs 80,000 crore. He, therefore, called for bringing in technologies so that a large chunk of the estimated food market is processed to bring in revenue for the Government, industry and all the concerned stakeholders.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Share Infoline Tata Safari Dicor

Stories in this Section
New `low' forecast as monsoon exits northern rim

Solar photo-voltaic project in Bengal
Kerala Govt forms task forces to implement Kalam's plan
Coca-Cola can't tap ground water, says Jayalalithaa
Metropolis ties up with UAE hospital for lab outsourcing
Survey calls for timely steps to promote blood donation
Left says vote on Iran will have severe implications
LNG deal still in force: Iran
Volatility may continue in crude oil market
Bengal to set up polymer parks
Nuclear power plant to come up in Ratnagiri district
APERC outlines co-generation norms
Orissa clears steel projects
Zee, Malaysia's Astro team up to launch customised Hindi channel
IIM-A students get attractive placements
New Zealand woos Indian students with job prospects
Minister for zero duty VAT on perishable items
Costly glitter
AP proposes permanent housing in flood-hit areas
Kerala chamber gets ISO certification
PM concern over science grads not finding gainful jobs
Kasturirangan gets Asia-Pacific SatCom award
Conference on mining industry begins in Goa
Sania joins film stars to help out ailing kids
`Be innovative on farm credit' — As rural income rises, so does credit need, says Rakesh Mohan
ITC seeks Rs 200-cr carbon credits
Nabard sanctions Rs 51.87 cr to Kerala
Goa offers single window clearance for IT projects
Strike may disrupt air travel, banking — Rlys, BSNL, MTNL workers to stay away from stir
BHPV unions to join strike
In Hyderabad today
Plan for EET-based savings taxation system by Oct 31
Jute exports on the upswing
Soyameal exports: Trade on wait & watch mode
1.5 lakh tonnes shipments contracted; China buys 50,000 t

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2005, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line