Food Processing Industries

FOOD PROCESSING INDUSTRIES – SECTORAL OVERVIEW UNDER THE SCHEME FOR TECHNOLOGY UPGRADATION/ESTABLISHMENT OF FPIs The Ministry of Food Processing Industries is concerned with a number of food processing sectors such as grain processing, meat processing, poultry & egg processing, milk products, fish processing, fruit and vegetable processing, consumer food industries. Besides providing policy and promotional support, in order to create demonstrative and cascading effect on potential entrepreneurs,

Government

has

implemented

the

Scheme

for

technology

upgradation/

establishment/expansion/modernisation of the food processing industries. Under the Scheme assistance is provided @ 25% of the project cost in general areas and 33.33% in difficult areas subject to a maximum of Rs. 50.00 lakh and 75.00 lakh respectively. Sector wise details are as under: -

FRUITS AND VEGETABLE PROCESSING Over the last few years, there has been a positive growth in ready-to-serve beverages, fruit juices and pulps, dehydrated and frozen fruits and vegetable products, tomato products, pickles, convenience vegspice pastes, processed mushrooms and curried vegetables. The domestic consumption of value added fruit and vegetable products is also low compared to the primary processed food in general and fresh fruits and vegetables in particular, which is attributed to higher incidence of tax and duties including that on packaging material, lower capacity utilisation, nonadoption of cost effective technology, high cost of finance, infrastructural constraints, inadequate farmers-processors linkage leading to dependence upon intermediaries. The smallness of units and their inability for market promotion are also reasons for inadequate expansion of the domestic market. In order to give fresh impetus to processing of fruit and vegetables, Government in 2004-05 has allowed under I.T. Act, 100% deduction of profit for first five years for new upcoming Fruits & Vegetables Processing Units. The Assistance released to fruits & vegetables processing units from 2006-07 onwards are as follows: Year

Assistance released (Rs. In Lakh)

2006-07

2557.42

2007-08

1910.00

2008-09

1584.00

Total

5719.82