The food processing sector has persuaded the Indian government to rise capital allocation in the upcoming India budget. India’s food processing sector is one of the largest in the world. Its output expects to reach US$ 535bn by 2025-26. It contributes 12.8% to Indian GDP. Many reports indicate that by 2030, Indian annual household consumption is expected to triple. This will make India become the fifth-largest consumer in the world. To get more market opportunities, it is important to rise the processing rate by modernization and technological upgradation
Mayank Jalan, CMD of Keventer Agro said “Investments are important to the growth of food processing industry. So he would request the government to ensure adequate capital is available for the sector.”
He said further “To support upgrade, any capital spending in existing food processing
projects ought to be expanded to 50% of quick depreciation. That will possibly be useful in
taking the food processing units up to it with other sectors like energy, environment, textile,
etc which uses quick reduction to 150%. Concurrently reviving investing developing
allowance would possibly be supportive.”
The other steps can be expanding the right now underutilized Rs.2000 Crore fund made by
NABARD for upgrade of processing units in nominated meal parks, to whole food
processing units that will possibly lend a hand lead the units up to complete capability.
Expanding perks of the SAMPADA plan to the aside from massive meal gardens is going to
lend a hand in more numberless pecuniary resources as well as equal opportunity, told Jalan.
For existing food processing projects, any further capital spending of other than 50% of the
existing book price of mill and equipment ought to be handled as renewed investments as
well as should too be suitable for a 5-year levy vacation, under section 80IB (11A).
Right now, Processing, conservation and packing of fruits & greens, dairy farm products, meat & meat products, fowl, naval are allowed under revenue levy deduction.
But preparing and price additions are not encompassed. Therefore, would possibly demand the government to change that to integrate preparing and price adding of the snack food products to be qualified for an revenue levy deduction, the Keventer Agro CMD claimed.
Jalan claimed “One of the crucial backbones of the government`s vision of supporting ‘brand
name India’ is supporting Indian marked meal items. in there background, a 200% deduction
on expense induced on supporting Indian marked meal items would possibly be supportive.