Union Minister Harsimrat Kaur Badal said the overall level of food processing in the country was estimated to be less than 10 percent compared to "very high" levels in certain developed and developing nations.

She said lack of efficient supply chain infrastructure, inadequate processing capacity, complex regulatory regime and lack of access to affordable credit are "some important causes of slow development of food processing sector in the country".
During Question Hour, the Food Processing Industries Minister said that various fiscal incentives were being provided for the development of the sector, like reduction of excise duty on food processing and packaging machinery have been reduced to 6 percent from 10 percent.

The food processing units have also been allowed 100 percent Income Tax exemption on profits for the first five years of operation and after that, 25 percent exemption for the next five years, she said.

Under the National Mission on Food Processing (NMFP), financial assistance is provided to entrepreneurs to help them increase food processing capacity.
"NMFP has been delinked from central government support from current financial year excepting the union territories," she said.

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