Lack of Infrastructure and complex taxation ails the food processing industry: Manmohan Singh

merisarkar news service.
New Delhi, October 07, 2009

Prime Minister Dr. Manmhoan Singh has said that despite India being at the first place in the production of milk, pulses and tea and second in production of fruits and vegetables fares very poorly in global food trade. He said that India accounts for only 2 per cent of global food trade.

Speaking on the occasion of a meeting with state food ministers he said, “The level of processing in India is extremely low at around 6% compared to 60-80% in developed countries and over 30% even in most other Asian and Latin American developing countries.”

Prime minister said that its clearly a very high wastage and results in less farm income for our rural people.

Prime minister urged for development of value based agree industries and supporting infrastructure like cold storage houses, collection center and air-conditioned transportation system.

He said there is a need to develop world-class food testing laboratories and research center.

“Processed foods are subjected to multiple levies. There is therefore an urgent need to rationalize and simplify the tax structure”, said the prime minister.

He also urged the states to enforce the food laws strictly.

Prime Minister Dr. Manmohan Singh
Prime Minister Dr. Manmohan Singh

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