food at Rs 58,000 cr a year due to lack of facilities

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New Delhi, Mar 10 (UNI) Minister of State for food Processing Industries (FPI) Subodh Kant Sahai today informed Rajya Sabha that wastage of harvested food items is estimated to be around Rs 58,000 crore at various stages of handling due to lack of adequate post-harvest infrastructure, cold chains, transportation and proper storage facilities.

He said to give boost to growth of FPI sector the government in 2004-05 allowed under Income Tax Act a deduction of 100 per cent profit for 5 years and 25 per cent of profits for the next 5 years in case of new agro processing industries set up to process, preserve and package fruits and vegetables.

In the Budget 2006-07, the Government has announced to exempt excise duty on condensed milk, ice cream, preparations of meat, fish and poultry, pectins, pasta and yeast. Excise duty on ready to eat packaged foods and instant food mixes, like dosa and idli mixes reduced from 16 per cent to 8 per cent and on aerated drinks from 24 to 16 per cent.

Processing facilities in NER; The Minister said processing facilites in the North Eastern Region are generally inadequate and his Ministry under its Plan Schemes provides financial assistance in the form of grant in aid for setting up/expansion and modernisation of food processing industries at the rate of 25 per cent of the cost of the plant and machinery and technical civil works subject to a maximum of Rs 50 lakh for general areas and 33.33 per cent upto Rs 5 lakhs for difficult areas.

Mr Sahai further informed that under the Mini Mission IV of Technology Mission for development of Horticulture in North Eastern States, Jammu & Kashmir, Himachal Pradesh and Uttaranchal, high level of assistance is available upto 50 per cent of the capital cost subject to Rs 4 crore for the new units and upto Rs 1 crore for modernisation of the existing units.

The Ministry does not set up FPIs of its own, he added.

The Minister pointed out that the assistance is provided to private industries, public sector undertakings, non-governmental organisations and cooperatives for technically feasible and financially viable projects.

Litchi based processing industries also qualify for such assistance. The Ministry also issues licences under Fruit Product Order, 1955 for ensuring sanitary and hygienic conditions in of fruit and vegetable products.