Complex regulatory regime and lack of access to affordable credit are impacting the development of food processing sector despite various fiscal incentives given by the Government, lok Sabha was informed on Tuesday.
Union Minister Harsimrat Kaur Badal said the overall level of food processing in the country was estimated to be less than 10 pc 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 Minister said that various fiscal incentives were being given for the development of the sector, like reduction of excise duty on food processing and packaging machinery have been reduced to 6 pc from 10 pc.