Gujarat should reduce VAT to promote food processing industry: Union Minister    

Union Minister Subodhkant Sahay today criticized Modi government in Gujarat for lack of initiative in promoting food processing industry in Gujarat. Talking to newspersons at the Congress headquarters here, he said that Modi government did not send even a single proposal for the food park scheme while Chief Minister Narendra Modi talks about value addition.

The minister suggested that the Chief Minister Narendra Modi should change the tax structure in the food processing industry to promote the industry with great potential. The Union Minister said that while India had a meager two percent value addition, in the developed industries it was up to 80 percent.

Referring to the change in the tax structure, he said that it should be brought in 0 to 4 per cent range. Zero percent for perishable items and four percent for nonperishable items. At present there is 12.5 percent VAT. With record milk production, longest coastline and variety of horticultural crops the state had great potential for the growth.

Sahay said that while other states had set up food parks, Modi government in Gujarat did not send even a single proposal for Food Park in the state. At present, the union government offers a subsidy of Rs four crore for food park. Under the mega food park and zone scheme, the government will give subsidy up 50 crore. He said that the Union government would consider proposals even from private promoters of food parks.