The
Centre has called upon the Kerala Government to slash
down the 20 percent value-added tax (VAT) imposed on
food processing industry. “No other state in the
country has imposed such heavy taxation as in Kerala,
the 20 percent VAT would jeopardise the food processing
industry,” Union Minister of State for Food Processing
Subodh Kant Sahay told this website's newspaper here on
Friday.
This was raised by the Union Food Processing Minister
when he called on the Chief Minister V S Achutanandan
and Food and Civil Supplies Minister C Divakaran here on
Friday.
The
Union Ministry has asked the state to follow the Central
Government policy on taxation of 0:4, which means
‘0’ percent sales tax on perishables and four
percent tax on other food items. He said that the
rationalisation of taxes at the State and the Centre
would be essential for forward and backward integration
from the farm to the retail outlet.
The National Development Committee (NDC) has also
resolved to ensure that the required inputs reach the
farming sector, be it for contract farming or for
cooperative farming through clusters.
In the 11th five year plan, the aim will be to enhance
food productivity levels so that agricultural
productivity matches up with food processing. The plan
will also focus on the distribution network through the
cold supply chains from the farm to the retail outlets
across the states.
On the entry of genetically modified (GM) food products
into the market, the Union Minister said that the
implementation of the ‘Food Safety Act’ in about
three months will take care of that. The introduction of
technology in agriculture or food processing would in no
way risk the farmers right to land and cultivation.
Relating to the removal of bran from rice for the
production of ‘Rice bran oil’ in Palakkad district
which deprives rice from the essential ingredients of
betacarotene and other vitamins, he said such processed
rice should be clearly indicated in the pack and made
available at cheaper rates.
“I am for fortification of rice, wheat and other
cereals, not to deprive the essential ingredients
through food processing,” Sahay said. Rather than
casual farming, the whole process will be market-driven
and will enhance economic sustainability. The Union
Ministry has also set aside Rs 50 crore for the Mega
Food Parks across the country. Of that atleast one mega
food park will be in Kerala, he said. This would be in
addition to the two food parks in Kerala one at
Kakkanchery and the other at Adoor.
The Central grants will be provided to the food
processing industries and for courses in food technology
institutes across the country.
So far, the Union Ministry has offered grants worth Rs
43 crore to 113 food processing units in Kerala through
the nodal agency Kerala State Industrial Infrastructure
Development Corporation (KINFRA).
Now, the State Government through KINFRA has forwarded
86 proposals to the Centre for Rs 27 crore grant for
setting up food processing units.
