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FOOD PROCESSING INDUSTRIES – SECTORAL

OVERVIEW UNDER THE SCHEME FOR
TECHNOLOGY UPGRADATION/ESTABLISHMENT
OF FPIs
The Ministry of Food Processing Industries is concerned with a number of food processing sectors
such as grain processing, meat processing, poultry & egg processing, milk products, fish
processing, fruit and vegetable processing, consumer food industries. Besides providing policy
and promotional support, in order to create demonstrative and cascading effect on potential
entrepreneurs, Government has implemented the Scheme for technology upgradation/
establishment/expansion/modernisation of the food processing industries. Under the Scheme
assistance is provided @ 25% of the project cost in general areas and 33.33% in difficult areas
subject to a maximum of Rs. 50.00 lakh and 75.00 lakh respectively. Sector wise details are as
under: -
FRUITS AND VEGETABLE PROCESSING
Over the last few years, there has been a positive growth in ready-to-serve beverages, fruit juices
and pulps, dehydrated and frozen fruits and vegetable products, tomato products, pickles,
convenience vegspice pastes, processed mushrooms and curried vegetables. The domestic
consumption of value added fruit and vegetable products is also low compared to the primary
processed food in general and fresh fruits and vegetables in particular, which is attributed to
higher incidence of tax and duties including that on packaging material, lower capacity
utilisation, nonadoption of cost effective technology, high cost of finance, infrastructural
constraints, inadequate farmers-processors linkage leading to dependence upon intermediaries.
The smallness of units and their inability for market promotion are also reasons for inadequate
expansion of the domestic market. In order
to give fresh impetus to processing of fruit and vegetables, Government in 2004-05 has allowed
under I.T. Act, 100% deduction of profit for first five years for new upcoming Fruits & Vegetables
Processing Units. The Assistance released to fruits & vegetables processing units from 2006-07
onwards are as follows:

Year Assistance released
(Rs. In Lakh)

2006-07 2557.42
2007-08 1910.00
2008-09 1584.00
Total 5719.82