Policy-makers urged to include food processing sector under infrastructure
Policy-makers in the country have been asked to include food processing under the definition of infr…Policy-makers in the country have been asked to include food processing under the definition of infrastructure as that would give some assurance to SMEs.
This appeal was made by Piruz Khambatta, CMD, Rasna, and former president, All India Food Processors’ Association (AIFPA), while speaking at a meeting of CII’s Exports and Imports Committee held on Monday in Mumbai.
The meeting was followed by an interactive session with key policy-makers and both the meeting and session looked at strategies for achieving export target and reducing transaction costs in view of the fall in percentage of exports from the country.
Further, Khambatta urged the Reserve Bank of India (RBI) to declare SEZ status for mega food parks under the ministry of food processing industries (MoFPI). He added that mega food parks deserved to get the benefit of SEZ.
However, given a choice between SEZ and MoFPI, a food processor would opt for MoFPI, he pointed out. Because for a food processor, it would be convenient to approach MoFPI, which was well equipped to meet its needs, he explained.
Khambatta said that under the Vishesh Duty Scheme not all food products were allowed support. He added that 5% subsidy, which was allocated to food processor under the scheme, was too low to help the exporter. He wanted it to be extended to 7%.
Khambatta stressed on the need to have exemption on marketing duties abroad so as to make Indian food products popular overseas. G Padmanabhan, executive director, RBI, assured that he would look into the matter.
Those present at the meeting included D K Singh, additional DGFT; Sanjay Budhia, chairman, CII National Committee on Exports & Imports, and MD, Patton International Ltd; T C A Ranganathan, CMD, EXIM Bank; C S Prasad, chief commissioner of customs, Jawaharlal Nehru Custom House; and Sunil Thapar, director, Shipping Corporation of India.
