Government Initiatives

• The new trade policy places increased focus on agro-based industires.
• Food processing industires have been put in the list of priority sectors for bank leading. The Centre has also announced a series of new initiatives which include a separate policy at the state level, thrust on contract farming and making the sector tex-free.
• The Government plans to open 30 mega food parks by the end of the 11th Five Year Plan (2007-2012)
• Fruit and vegetable processing units have been completely exempted from payment of excise duty.
• Automatic approval for foregn equity up to 100 per cent is permitted for most of the processed food items.
• Items like fruit and vegetable products, condensed milk, ice cream, meat production have been completely exempted from Central Excise Duty.
• Excise duty on ready-to-eat packaged fooda and instant food mixes has been brought down to 8 per cent from 16 per cent.
• Excise duty on aerated drinks has been reduced to 16 per cent from 24 per cent.
• The Ministry of Food Processing Industry would assist in the setting up of more food processing units to enable the industry create 10 million jobs by 2015.