(GIST OF YOJANA) Allocation for Food Processing Sector [MARCH-2018]

(GIST OF YOJANA) Allocation for Food Processing Sector


Allocation for Food Processing Sector

In the Budget 2018-19, the Government has moved forward towards achieving the goal of doubling the income of Farmers by 2022 and has charted a road map for arresting price volatility of TOP (Tomato, Onion and Potato) in the country. Allocation for the Ministry of Food Processing has been doubled in the current Budget 2018-19 to Rs. 1400 crore. Under Operations Greens we shall be creating a sustainable road map to ensure that Tomato Onion Potato (TOP) are available in every nook and corner of the country round the year without any price volatility. A sum of Rs. 500 crore has been earmarked for this purpose in the Budget 2018, the Minister said. The Government is looking at compressing the supply chains and creating appropriate climate infrastructure for natural preservation of Tomato Onion Potato (TOP) and promoting Farmers Producers Organizations, Agri Logistics Processing facilities, and professional management. One of the most revolutionary initiatives announced in Budget 2018-19 to give impetus to the food processing sector is establishing Specialized Agro Processing Financial Institutions to unlock finance for establishing food processing industries. These institutions would help overcome the deterrents faced while installing food processing projects that are capital intensive and have long gestation period, by ensuring timely, accessible and affordable credit to this sector. Thrust provided for promoting agri-clusters and Mega Food Parks in the Budget to strengthen farmers. The initiatives taken by the Government are:

Promotion of cluster based development of agri commodities and regions in partnership with Ministry of Agriculture, Commerce and allied ministries;

100 per cent income tax deduction from profit derived from activities such as post~ harvest value addition to agriculture to F POs having annual turnover of Rs. 100 crore;

Setting up of state of art testing facilities in all the 42 Mega Food Parks to encourage export of agri-commodities realizing their full potential.

Food processing sector constitutes around 8 per cent and 10 per cent of Gross Value Added (GVA) in manufacturing and agriculture sector in 2015-16. Value of processed food export has increased to USD 13.9 billion on 2016-17 which constitutes 11.2 per cent of India’s total export. The Minister added that the Government has been able to bring central focus to food processing industry in terms of its potential to increase farmer’s income, provide employment and reduce wastage.

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Courtesy: Yojana