At a time when India’s exports are growing, exporters from the food and beverage industry have submitted a slew of suggestion to the finance minister to give a much needed push to the food processing sector of the country.
In a recent communication sent to North Block, Trade Promotion Council of India (TPCI) on behalf of the Food & Beverage (F&B) industry have demanded to allocate capital for infrastructural setup for setting up CODEX standards-based R&D Labs.
The demand of the industry included: “seeking capital for infrastructural setup for setting up CODEX standards-based R&D Lab which will ensure SPS and TBT levels based on scientific justification. This will be under an amber box so will be a WTO compliant subsidy.”
The industry has also demanded window to avail input tax credits for F&B companies that incorporate organic, locally sourced inputs, and “green” technologies for a period of 3-5 years. Along with, the needs to incentivise bodies / institutions for traceability in the food supply system.
The industry has also sought, “cost of testing to be subsidized or incentivised across the food sector, to allow an exporter within the SEZ should be incentivized on the degree of value addition he brings to a product. He should be allowed to import raw material at zero duty and avail duty rebate proportionate to value addition,” among others, TPCI said.
The industry is also looking at other areas which could promote the sector, which includes, pre- shipment credit or credit against LC/LC should be discounted without collateral, funds allocation for physically setting up F&B tech machineries manufacturing plants to thrust PLI in food processing sector.
We have also sought financial capital for container manufacturing incentivizing. Due to container shortage, F&B exports got impacted from the last one year. Container manufacturing will give a boost to F&B exports. Subsidy for innovation and technological investment in food processing sector. And, Interest subvention scheme to be revoked to help MSMEs sector with advance license facility should be restored for import without custom duty for Food & packaging material meant for exports, TPCI added.
V K Gauba, Additional Director General TPCI said, “Looking at the great potential which the agri and food sector holds for the economy, this sector needs further thrust and renewed focus.” The agri and food sector has shown the resilient growth of more than 20 percent sustainably despite tough times. The agri and food exports may touch 40 billion exports this fiscal,” he added.
First Published: IST
