Wednesday, Sep 30, 2020 | Last Update : 02:29 PM IST

189th Day Of Lockdown

Maharashtra1351153104994735751 Andhra Pradesh6811616123005745 Tamil Nadu5863975307089383 Karnataka5824584697508641 Uttar Pradesh3908753312705652 Delhi2730982407035272 West Bengal2505802198444837 Odisha212609177585866 Telangana1872111564311107 Kerala179923121264698 Bihar178882164537888 Assam169985139977655 Gujarat1332191132403417 Rajasthan1288591077181441 Haryana1237821059901307 Madhya Pradesh117588932382207 Punjab107096840253134 Chhatisgarh9856566860777 Jharkhand7770964515661 Jammu and Kashmir69832495571105 Uttarakhand4533233642555 Goa3107125071386 Puducherry2548919781494 Tripura2412717464262 Himachal Pradesh136799526152 Chandigarh112128677145 Manipur9791760263 Arunachal Pradesh8649623014 Nagaland5768469311 Meghalaya5158334343 Sikkim2707199431 Mizoram178612880
  360 Degree   30 Jun 2019  Food processing can help farmers

Food processing can help farmers

THE ASIAN AGE.
Published : Jun 30, 2019, 6:51 am IST
Updated : Jun 30, 2019, 6:51 am IST

India produces large amounts of fruits, which is much more than what we consume.

Also to sustain the growth trajectory, it is expected that there would be further significant enhancements in the budgetary allocations to facilitate the growth and development of the food processing industry, since the last budget.
 Also to sustain the growth trajectory, it is expected that there would be further significant enhancements in the budgetary allocations to facilitate the growth and development of the food processing industry, since the last budget.

India is largely dependent on its agrarian economy and a significant number of the people in rural economy depend on the agriculture sector for their livelihood. By investing in food processing, the industry can play a crucial role in providing better market access and stability for our farmers, who are subjected to the vulnerability posed by nature.

The food processing industry, therefore, creates a virtuous cycle, as first (value chain), it provides the farmers an additional channel to the market beyond the mandi where he can expect better prices for his commodities and an assured off-take while ensuring lower wastage; second (job creation), it warrants local on-farm jobs and near-farm work as local youth are trained for sorting, grading and separating commodities needed for food processing factories; and third (exports), India produces large amounts of fruits, which is much more than what we consume. We could turn this to our advantage if we process the excess produce and tap export markets thus earning foreign exchange. These benefits finally ensure a trickle down affect on farmers’ income.

 

While we work towards the rationalisation of corporate tax rate, in the interim, with a view to provide a growth fillip to the food processing industry, CII suggests few fiscal incentives in the Union Budget to push investments in this sector. The incentives could include a five-year tax holiday for new plants; the same give-year tax holiday can also be extended for existing plants if they invest more than 50 per cent in plant and machinery; accelerated depreciation of 50 per cent for all existing projects (which invest in upgradation and modernisation below 50 per cent) and an increase in income tax exemptions for new employment generation.

 

Also to sustain the growth trajectory, it is expected that there would be further significant enhancements in the budgetary allocations to facilitate the growth and development of the food processing industry, since the last budget.

The writer is a member of CII Committee on Food Processing Industries and CMD of Rasna Ltd

Tags: farmers, food processing