Financial Daily from THE HINDU group of publications
Wednesday, Mar 01, 2006


Group Sites

Agri-Biz & Commodities - Budget
Government - Agricultural Policy
Industry & Economy - Foods & Food Processing

Priority in lending to food sector — Rs 1,000-cr corpus for refinancing loans

Our Bureau

New Delhi , Feb. 28

In an attempt to provide an impetus to the food processing industry, the Finance Minister, Mr P. Chidambaram, today announced that food processing would be treated as a priority sector for bank credit.

Mr Chidambaram said the National Agriculture and Rural Development Bank (Nabard) would create a separate window with a corpus of Rs 1,000 crore for "refinancing loans to the sector, especially for agro-processing infrastructure and market development".

Additionally, the Government would also set up a National Institute of Food Technology Entrepreneurship and Management and develop the Paddy Processing Research Centre at Thanjavur (in Tamil Nadu) into a "national-level institute".


With a view to giving a fillip to the food processing industry, the Government has proposed to fully exempt condensed milk, ice cream, preparations of meat, fish and poultry, pectin, pasta and yeast from excise duty.

Earlier, condensed milk, ice cream and ready-to-eat packaged foods were subject to a 16 per cent excise duty.

Processed meat, fish and poultry products were subject to 8 per cent excise duty.

With the Government's initiative to exempt both condensed milk and ice cream from excise duty, the dairy industry is now completely relieved of any such charges.

Duty cut

The excise duty on ready-to-eat packaged food and instant food mixes such as dosa and idli mix would be reduced to eight per cent from 16 per cent.

Besides, the concessional rate of 8 per cent excise duty applicable on scented supari, with retail sale price of 50 paise or less per pouch, has been extended to scented supari with retail price of Re 1 or less per pouch.

In addition, the Finance Minister has also proposed a reduction in customs duty on packaging machinery from 15 per cent to five per cent.

More Stories on : Budget | Agricultural Policy | Foods & Food Processing

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

Stories in this Section
Banks to cut lending rates on farm loans

Harrisons Malayalam bags 6 awards
Short-term credit at 7 pc — Farmers to get from kharif season
Priority in lending to food sector — Rs 1,000-cr corpus for refinancing loans
Going the extra mile for the farmer
Hails nod for tea protection fund
Cheer for Jain Irrigation Systems
Jute industry upset
Sugar sector feels let down — `No measures on de-control'
Customs duty hike — Vanaspati industry disappointed
5 pc hike likely in landed cost
Full credit on the farm front
Wah! Budget
`A boost to replantation'
Priority sector status hailed
`Greater credit flow likely'
Rice processing
Cheer for Jain Irrigation Systems
Steady trend in rubber
Boost for soya

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

Copyright 2006, 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