PM highlights attractive fiscal incentives

Prime Minister Narendra Modi said India is now the most preferred investment destination in the food processing sector.

“It is a priority sector in our “Make in India” programme (as) 100% foreign direct investment (FDI) is now permitted, for trading, including through e-commerce, of food products manufactured or produced in India,” he said.

“A single-window facilitation cell provides handholding for foreign investors,” assured the Prime Minister at the opening of World Food India 2017 in New Delhi on 3 Nov 2017.

There are attractive fiscal incentives from the Union and State Governments. Loans to food and agro-based processing units, and cold chains, are classified under priority sector lending, making them easier and cheaper to obtain, he told delegates at the gathering.

“The unique portal – Nivesh Bandhu – or “investor’s friend” – that we have just launched, brings together information on central and state government policies, and incentives provided for the food-processing sector,” stressed Modi.

It maps resources up to the local level, with processing requirements. It is also a platform for business networking, for farmers, processors, traders, and logistics operators.

Private sector participation has been increasing in many segments of the value chain.

However, Modi called for more investment in contract farming, raw material sourcing and creating agri linkages.

“Many international companies in India have taken a lead in contract farming initiatives,” he noted.

This is a clear opportunity for global super-market chains considering India as a major outsourcing hub, said the Prime Minister.

He highlighted the recently launched national level programme, the Pradhan Mantri Kisan Sampada Yojana, to create world-class food processing infrastructure.

“This is expected to leverage investment of US$5 billion, benefit two million farmers and generate more than half a million jobs over the next three years,” he said.

“The creation of Mega Food Parks is a key component of this scheme. Through these food parks, we aim to link agro-processing clusters with key production centres.

“This will offer immense value proposition in crops such as potato, pineapple, oranges and apples. Farmer groups are being encouraged to set up units in these parks, thereby reducing wastage and transportation costs, and creating new jobs.

“Nine such parks are already operational, and more than thirty others are in the process of coming up across the country,” said the Prime Minister. fii-news.com