?Food processing minister asks Finance minister to keep food products in lowest tax bracket of 5%

खाद्य प्रसंस्करण उद्योग मंत्री हरसिमरत कौर बादल ने हिमाचल प्रदेश के ऊना जिले के ग्राम सिंघा में क्रेमिका फूड पार्क का उद्धाटन किया। 52.40 एकड़ भूमि में 107.34 करोड़ रुपए की लागत से मेगा फूड पार्क स्थापित किया गया है।

मंत्रालय ने कहा, 'खाद्य प्रसंस्करण उद्योग मंत्री हरसिमरत कौर बादल ने आज वीडियो कॉन्फ्रेंसिंग के जरीए क्रेमिका मेगा फूड पार्क प्राइवेट लिमिटेड का उद्धाटन किया। ये पार्क हिमाचल प्रदेश के ऊना जिले के ग्राम सिंघा में में स्थित है।'

यह हिमाचल प्रदेश का पहला मेगा फूड पार्क है। इसका लाभ ऊना जिले और आस-पास के जिलों कांगरा, हमीरपुर और बिलासपुर के लोगों को होगा।

क्रेमिका मेगा फूड पार्क में उपलब्ध सुविधाओं में सड़न रोकने वाली पैकेजिंग के साथ मल्टी क्रॉप पल्पिंग लाइन (24 मीट्रिक टन/घंटा), डीप फ्रीज, फ्रोजेन स्टोरेज (1000 मीट्रिक टन), ड्राई वेयरहाउस, क्यूसी लेबोरेटरी और अन्य खाद्य प्रसंस्करण सुविधाओं के साथ बहु-फसल पुलिंग लाइन शामिल है।

बादल ने कहा, 'मेगा फूड पार्क इस पार्क में 25-30 खाद्य प्रसंस्करण इकाइयों में लगभग 250 करोड़ रुपए का अतिरिक्त निवेश करेगा और सलाना लगभग 450-500 करोड़ रुपए का करोबार करेगा। यह 5000 व्यक्तियों को प्रत्यक्ष और अप्रत्यक्ष रोजगार भी प्रदान करेगा और सीपीसी और पीपीसी कैचमेंट क्षेत्रों में लगभग 25000 किसानों को फायदा पहुंचाएगा।'

Harsimrat Kaur Badal, Minister of Food Processing Industries, has inaugurated Cremica Food Park at Village Singha in Una District of Himachal Pradesh. The mega food park has been established at a cost of Rs 107.34 crore in 52.40 acres of land. 

The Ministry said, "Food Processing Industries Harsimrat Kaur Badal today inaugurated Cremica Mega Food Park Pvt Ltd via video conference. The Park is located at Village Singha in Una District of Himachal Pradesh."

This is the first mega food park in Himachal Pradesh. It will be benefitting the people of Una district and nearby districts of Kangra, Hamirpur and Bilaspur. 

The facilities available at the Cremica Mega Food Park include Multi-crop pulping line with bulk aseptic packaging (24 MT/ hour), Deep Freeze, Frozen storage (1,000 MT), Dry Warehouse, QC Laboratory and other food processing facilities. 

Badal said, "The mega food park will leverage an additional investment of about Rs 250 crores in 25-30 food processing units in the park and generate a turnover of about Rs 450-500 crore annually. It will also provide direct and indirect employment to 5,000 persons and benefit about 25,000 farmers in the CPC and PPC catchment areas."

The second edition of Indus Food saw business deals and agreements worth $1 billion negotiated which would materialise in the upcoming months. "We had 800 global buyers from 78 countries who participated in Indus Food. In the first edition, we had participation from 43 countries which generated business worth $650 million, and this year, we managed to secure business transactions worth over $1 billion," said Trade Promotion Council of India (TPCI) Chairman Mohit Singla. TPCI had organised the two-day Indus Food Supermarket at India Expo at Greater Noida. 

"Indus Food-II saw the participation of 500 exhibitors who displayed products in 14 zones. We had 12,500 business meetings between Indian producers and foreign buyers. Over 10 MoUs were signed during 14 B2B meetings and one multilateral dialogue on Indian tea. We also had three government-to-government meetings with Vietnam, Iraq and UAE and one government-to-business with Bangladesh. Odisha Government was our partner which had organised investor meet," said Singla.

Must Read: Only 10% of Food Produce is Utilised in India, says Harsimrat Kaur Badal

Supported by the Department of Commerce, Ministry of Commerce & Industry, Indus Food is the flagship global trade show to maximise business opportunities for F&B (food and beverage) industry. Indus Food has been developed as the World Supermarket, to enable rest of the world meet their F&B requirements. 

"The most remarkable aspect of Indus Food-II was that it focused on SMEs for export business by bringing buyers to their doorstep and creating business opportunities for producers of value-added and organic products. Doubling of farmers’ income will happen if the business grows. With the Indian Government itself now working towards the identification of most prominent global buyers and creating their interactions with quality Indian suppliers through Indus Food, the benefit will percolate to the farmers. Moreover, the target of $60 billion exports, as envisaged in our Agri-Export Policy is now within reach,” said Singla. 

“Indus Food especially promotes value-added and organic products. India is ranked first in terms of the total number of organic producers with 11 lakh farmers practising organic. With the Government removing all restrictions on the export of organic farm products, the organic food export is sure to contribute in a much bigger way now, in meeting the target of $60 billion food and agriculture exports by 2022, as set by the Agriculture Export Policy 2018,” added Singla. 

Significantly, at the inaugural of Indus Food-II, Union Food Processing Minister Harsimrat Kaur Badal had said the Centre had roped in NAFED to ensure food procurement direct from farmers to help them get a better income and save their perishable items.

Harsimrat Kaur Badal, Union Minister for Food Processing Industries, and Vijay Rupani, Chief Minister of Gujarat, have launched Gujarat's first Food Agro Infrastructure Mega Food Park at Shahu village in Mangrol taluka of Surat district.

The central and state governments have given financial assistance of Rs 120 crore to build the mega food park on 70 acres of land. 

Rupani said, "There were more than 600 cold storages in Gujarat and that an investment to the tune of Rs 3,000 crore has been made in the food industries sector in the past few years. We want to double the income of farmers and this park forms the base of our plan. MoUs of investment worth Rs 5,000 crore would be signed at the upcoming Vibrant Gujarat Summit."

Harsimrat Kaur stated, "The Union government has allocated Rs 7,000 crore for the food processing industries in the recent past. The government is giving Rs 10 crore for setting up of a cold storage, Rs 5 crore for a food processing unit and Rs 35 crore for a mini food park."

Harsimrat Kaur Badal, the Food Processing Minister, has said that the foreign direct investment (FDI) in the food processing sector has already touched the $1-billion mark so far this year.

Badal said, "When we took over the government in 2014, FDI in the food processing sector used to be USD 500 million every year. This year, we touched USD 1-billion mark. This is a tip of the iceberg, we have to go a long way."

In 2017-2018, FDI in the food processing sector was $904.9 million. While, in 2016-17, 2015-16 and 2014-15, it stood at $727.22 million, $505.88 million and $15.86 million, respectively.

The minister said that the FDI in multi-brand retail was allowed keeping in mind the need to boost food processing level and provide an alternative market to farmers to sell their produce.

"I am happy to see companies like Metro and Walmart are keen to tie up directly with farmers," she said.

Ashok Dalwai, CEO of National Rainfed Area Authority (NREA), said, "We have seen that the captive investment in agriculture, which is pre-requisite for any kind of accelerated growth, has not really happened through the corporate sector."

"Agriculture, which is the primary economic activity and in a way it is the economic sector which generates the demand for services and industry sectors, was not subjected to the liberalisation. But in the last four years, the emphasise has been on bringing in reforms in the sector and make it a private sector enterprise," Dalwai further added.

Union Minister for Food Processing Industries Harsimrat Kaur Badal has inaugurated the second mega food park in Uttarakhand, an official statement said.

The Himalayan Mega Food Park Private Ltd with over 50-acre area has been set up at a cost of Rs 99.96 crore and will benefit around 25,000 farmers in this and neighbouring districts, Ministry of Food Processing Industries said in a statement.

Minister of State for Food Processing Industries Sadhvi Niranjan Jyoti and Uttarakhand State Finance Minister Prakash Pant and Transport and Social Welfare Minister Yashpal Arya were also present at the event.

The first Mega Food Park in the state at Haridwar has become functional.

Badal said the mega food park, which has been set up in an area of 50.14 acres, will have a central processing centre as well as well as three Primary Processing Centres (PPCs) at Ram Nagar, Ramgarh, and Kaladungi.

The park will also have facilities for primary processing and storage near the farms and would not only benefit farmers of Udham Singh Nagar but also those of nearby districts - Nainital, Garhwal, Almora, and Champawat.

She said the mega food park will leverage an additional investment of about Rs 250 crore in 25-30 food processing units in the park and would eventually lead to a turnover of about Rs 450-500 crore annually. "The park will also provide direct and indirect employment to 5,000 persons and benefit about 25,000 farmers in the CPC and PPC catchment areas," the minister added.

The food ministry is creating mega food parks with modern infrastructure facilities for food processing along the value chain, from farm to market with strong forward and backward linkages through a cluster-based approach.

The sector will contribute towards doubling farmers' income in the coming years by working to achieve this goal through implementation of projects under the flagship scheme of Pradhan Mantri Kisan Sampada Yojana, Badal added.

Union Minister Harsimrat Kaur Badal has said the food sector is set for a quantum jump in the country with the Union Cabinet allocating Rs 6,000 crore for restructuring Scheme for Agro-Marine Processing and Development of Agro-Processing clusters (SAMPADA).

In a statement, the food processing minister said that the huge and much-needed investment in the food sector would leverage an investment of Rs 31,400 crore.

She said, "It will also result in handling of 3.34 crore metric tonnes of agro-produce valued at more than one lakh crore and benefit 20 lakh farmers. It will also generate 5.30 lakh direct and indirect jobs in the country by 2019-20."

Disclosing that the Rs 6,000 crore investment for the period 2016-20 was coterminous with the 14th Finance Commission cycle, the minister said SAMPADA would supplement agriculture, modernise processing and decrease agri-waste.

She said, "It will go a long way in doubling income of farmers and creating much-needed jobs in rural areas."

She said that the implementation of SAMPADA would result in creation of modern infrastructure with efficient supply chain management from farm gate to retail outlet.

"It will not only provide a big boost to the growth of food processing sector but will also help in reducing wastage of agricultural produce and enhance the export of processed foods," she said.

Various measures taken by the NDA government had led to seven per cent growth in the food processing sector, she said.

She said this growth had been made possible by according approval to 42 mega food parks and 236 integrated cold chains for creation of modern infrastructure for food processing along the value chain from the farm to the market.

She said besides this, 100 per cent FDI in trading, including e-commerce, had been allowed with respect to food products manufactured in India.

The government will organise a global food fair in November this year to provide a platform to Indian farmers and manufacturers to showcase their products and explore partnerships with foreign companies, Food Processing Minister Harsimrat Kaur Badal said.

The three-day 'World Food India 2017' is being organised on November 3-5 by the Food Processing Ministry, where industry body CII will be an event partner.

Badal said, "World Food India is an international level fair which we are organising in November this year. The event will have participation from those who are involved in food sector from farm to fork."

The minister said it is for the first time that such platform is being provided where farmers to manufacturers to retailers will showcase their products and innovations, and explore business opportunities with foreign companies.

She added, "Foreign food companies would also explore how and with whom they want to partner in India."

Badal said this event will provide a big boost to food processing sector as well as farmers’ income.

She said many small, big and multinational companies from the world over will take part in this event.

The event will focus on showcasing achievements and opportunities of the Indian food processing sector and fostering maximum investment commitments.

The World Food India is a step aimed at creating India a 'Global Food Factory' and 'Global Food Retail Market', she said.

The government had last year allowed 100 per cent FDI for marketing, including through e-commerce, of food products manufactured and produced in India.

The government could decide by November this year to allow foreign food retailers to sell non-food items, food-processing minister Harsimrat Kaur Badal said while releasing a draft on the model food processing policy.

The government last year allowed 100% FDI in food retailing, but dropped plans to include some general merchandise, such as soaps and shampoos, in the policy, which retailers have been pushing for.

Badal said, "I think before November, when the World Food India 2017 fair is held in Delhi, the government will take a decision on this (allowing non-food items in FDI in food retailing)."

According to the draft policy, the suggested incentives and support measures include credit to set up new food-processing units or buy new equipment as part of technology up gradation, exemption of electricity duty for a few years, availability of water on a priority basis and VAT refunds.

To support marketing and promotion of Made in India brand for processed food, the draft policy has suggested to establish a special-purpose-vehicle fund in public private partnership to brand and market products followed by giving freight subsidy — air, sea and road — and support in research and development.

"Once we get comments from the state governments on the draft policy, we will fine-tune it and adopt it. This will then drive the national policy," Badal said, adding that despite a large production base, the level of processing is low — less than 10%. According to official figures, approximately 2% of fruits and vegetables, 8% marine, 35% milk, 6% poultry are processed in the country.

The minister recently met ambassadors and high commissioners of various states inviting them to invest in the country.

"The government wants to position India as a world food factory by creating a framework for the growth of the food processing industry," she said.

The food-processing ministry has suggested that states should focus on providing single-window clearance to improve ease of doing business and boost investors confidence, Badal said, pointing out that state governments should focus on commodity base cluster development, which would ensure farmers get remunerative prices for their produce.

Food processing minister Harsimrat Kaur Badal said that when she gets to discuss matters with prime Minister Narendra Modi, she will raise the issue of allowing foreign food retailers to sell other items also.

The government last year allowed 100% foreign direct investment (FDI) in food retailing, but dropped plans to include some general merchandise, such as soaps and shampoos, in the policy. Retailers have been pushing for an easing of this policy.

Badal said, "I will first be meeting global players — retailers, food processing companies, machine manufacturers, logistics providers— and consolidate a list of issues they have over the next 6-8 weeks. This I will take up with the ministries concerned and then the Prime Minister. Our prime minister is quick to take decisions."

Badal said, "Already there is a lot of interest among global companies to invest in India. However, they feel that we should allow non-food related items too as it happen worldwide. The non food items can be 'Made in India' products. This will generate employment, considering that 65% of population is under the age of 35 and is looking for jobs."

At the meeting, the minister invited the diplomats for a global food expo to be held in Delhi in November. The minister said it could be a win-win situation.

She added, "If it (FDI) creates jobs and increases revenue, it's a win-win situation. The government is seriously looking at this issue and whatever will be the outcome it will be positive."

The minister said that most of the issues faced by global players will be sorted by the time the World Food India 2017 fair is held on November 3-5.

Badal said, "For the first time, a mega international food event will take place which will showcase investment opportunities in India's growing food processing sector. It will facilitate companies to engage and strengthen linkages and opportunity for partnership. There is huge opportunity for companies to come and invest in India, considering that we have ample raw material-- fruits, vegetables, milk, meat etc available in abundance."

After the Punjab government announces tax sops for food processing sector, the state has received 55 investments proposals involving outlay of Rs 8,000 crore only for setting up food processing units.

The MoUs were signed in the presence of Union Food Processing Minister Harsimrat Kaur Badal, reported PTI.

In a major decision, Punjab government has announced exempting inputs of food processing sector from taxes to make the state as food processing hub of the country.

“Punjab contributes more than 40 per cent of the central procurement of wheat, 26 per cent of the central procurement of rice, 75 per cent of total production of kinnows and oranges, and 7.5 per cent of the total milk production in the country,” shared Badal.

Further, agricultural sector plays a pivotal role in boosting India's economy with about 21per cent of GSDP being contributed by Agricultural and allied sectors against an all India figure of 14 per cent.

Badal apprised the participants that Punjab heralded the first Green Revolution in the country, and has made rapid strides in improving the quality and quantity of the food grain production.

She said that endowed with high fertility, abundant natural resources and good quality of soil, the state enjoys high yield for various agricultural produce.

She said Food processing was the focus area of investment in Punjab, and concerted efforts were being made by the government to facilitate big investments in food processing industry.

The Union Minister also said Punjab has a strong base of a pre-existing ecosystem for the Agro & Food Processing sector, which provides it an edge over other states.

She said that now Punjab is looking forward to enhance the capabilities of this vital sector through the adoption of modern technologies for food processing, and ensuring significant linkages across the value chain.

The state is keen to clear the way for conducive regulatory environment of total transparency for smooth operations, she said.

Harsimrat Kaur Badal, Hon’ble Minister for Food Processing has launched Special Skill training program under the Pradhan Mantri Kaushal Vikas Yojana  (PMKVY)  at  the Assocom Institute of Bakery Technology & Management (AIBTM) through video conferencing. “The bakery industry is a lucrative endeavour, which can be set up with a relatively smaller capital outlay. Being the second biggest maker of rolls a bakery product, Indian bakery industry needs such skill training to be widely promoted throughout the country to remain in the driving seat. Skill training is a strong requirement to support bakery industry’s fast demand growth, and this program would definitely boost the industry,” shared the Minister.

Adding to the same line, Raj Kapoor, Managing Director, AIBTM said, "The bakery industry is one of the largest among the processed food industries in India, which is estimated at USD 200 billion".

Food Processing Industries also has a huge role in efficient utilization of agricultural products therefore we are planning to launch skill training to help in preparing base for all the grain based businesses, and associated field. Assocom Institute of Bakery Technology & Management (AIBTM) was set up three years back, with specialized inputs from all players who are working in the business.

The institute had taken counsel and backing from foundations from USA, South Korea, Canada and Australia. AIBTM plan to train over two thousand persons associated with the bakery industry through different centers operated by the institute in the current year.

In a move aimed at giving a boost to agro-processing industry in Andhra Pradesh, Chief Minister N Chandrababu Naidu has laid the foundation stone for an 'ultra mega food park' in this district, reported PTI.

The 'Jain Irrigation Food Park' is being established in 758 acres. Besides processing fruit, vegetables and spices, the facility will have agri biotech and R&D centres.

Under the manufacturing set up, the "ultra mega food park" includes micro-irrigation systems, PVC and PE pipes and tissue culture.

Technology innovations constitute product and crop demonstration centre, water-harvesting demonstration unit and renewable energy hubs, according to the Government.

"Given that food habits are changing with lifestyles and demand for food is a growing concern, we believe R&D will help us understand the existing trends, understand consumption of certain products and predict the need for future. We will continue to conduct research on various agriculture practices which will help increase the yield," Naidu said.

Later, he also the laid foundation stone for a facility of Gujarat Ambuja Exports which will come up in 200 acres with an investment of Rs 240 crore.

The company is setting up a maize processing unit in Orvakallu, Kurnool district which will offer both direct and indirect employment to locals.

"These investments reflect our decentralised development strategy for the state," the Chief Minister said, adding his Government plans to set up food parks in every district.

Expressing concerns over "fear" in the food processing sector following the regulatory steps taken by the FSSAI, Union Minister Harsimrat Kaur Badal today said the regulator needs to streamline its provisions and stress on innovations in the sector.

“A lot needs to be done as the FSSAI has created environment of fear in the industry. It needs to streamline its regulations as its steps are stopping innovations in the processing sector," said Badal.

The Food Safety and Standards Authority of India (FSSAI) is an agency established under the Food Safety and Standards Act.

The growth of food processing sector is very vital as it ensures food security and better remuneration to farmers for their produce, the Minister added.

Speaking at the conference on 'Driving Make in India in Food Processing sector' organised by the CII, Harsimrat said the government is keen and committed for growth of domestic food processing sector as well create a environment for its progress.

She also mentioned about a task force formed by Prime Minister Narendra Modi on her request for the growth of the sector.

The task force would analyse the various existing impediments and bottlenecks and provide expert guidance on key policy interventions to her ministry and states also, she added.

"I would even create a special committee within my ministry, with the representatives of the CII and the respective state heads in this task force as the members, in order to resolve the issues and help the food processing industry realise its desired potential," the Minister said.

The FSSAI has a mandate to look into the quality standards of food articles and regulate their manufacture, storage, sale and import to ensure availability of safe and wholesome food for consumption.

Last month, the FSSAI had banned Nestle's Maggi saying it was 'unsafe and hazardous' after tests found presence of lead and Monosodium glutamate above permissible limits.

Following the Maggi fiasco, FSSAI had ordered testing of noodles, pastas and macaroni brands such as Top Ramen, Foodles and Wai Wai sold and manufactured by seven companies, to check compliance with the norms.

Inaugurating a food park in Assam, Harsimrat Kaur Badal, the Union Minister for food processing said that the Assam park will leverage an investment of about Rs 250 crore and will provide employment to 6,000 people.

The food park sanctioned by the Centre at Nalbari was inaugurated by Assam Chief Minister Tarun Gogoi along with Union Minister of State for Home Kiren Rijiju and Harsimrat Badal, according to an official release.

"The Mega Food Park will leverage an additional investment of about Rs 250 crore in 30-35 food processing units in the Park and generate a turnover of about Rs 450-500 crore annually," added the minister.

According to the food minister the park will also provide direct and indirect employment to 6,000 people and will benefit about 25,000-30,000 farmers.

The park has been set up with an investment of Rs 76 crore along with a dry warehouse with 10,000 tonnes capacity, cold storages of 3,000 tonnes and common effluent treatment plant, and quality control labs among others.

There is also a proposal to set up 6 primary processing centres (PPCs) at Nagaon, Badarpur, Tinsukia, Barapani, Krishnai and Kajalgaon which will provide facilities for primary processing and storage near the farms.

The Centre provides financial assistance of up to Rs 50 crore for setting up Mega Food Parks for creation of modern infrastructure facilities for food processing along the value chain from farm to consumer.