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Announcing this at ASSOCHAM Summit on Food Processing here on today, Minster of State (Independent Charges) for Food Processing Industries, Mr. Subodh Kant Sahai also declared that this proposal has been moved to GoM, Planning Commission and NMCC and would also be shortly forwarded to Cabinet for its consideration.

The minimum and maximum area prescribed for proposed mega food parks is between 100 and 100 hectares of land with adequate refinancing facilities from NABARD with a minimum central allocation of Rs.1 lakh crore, said the Minister.

Mr. Sahai also that the Finance Ministry has also agreed to make food processing industry a zero excise tax based industry by fiscal 2007-08 following recommendation from Food Processing Ministry.

He added that in the last 2 and half years, the excise taxation rates have been brought down to 8% from 32% and by next fiscal, the taxation would be zero based with minimum possible local levies in view of growing significance of this sector.

Mr. Sahai said that the Finance Ministry would have to give tax concessions to mega food processing parks on the lines of SEZ just as such concessions are being made available to other sectors so why not the mega food processing parks.

The Minister said that agri business cannot be made 100% export oriented because domestic requirement has also to be met through setting up of mega food parks.

Mr. Sahai further stated that in December 2006, the full NDC would be meeting to submit their report and the Chief Minister of all states will unveil their vision on land allocations for mega food parks.

According to estimates of the Ministry, a minimum Rs 2.5 lakh crore would be needed in processing sector of which, the central government will create refining facilities to the tune of Rs. 1 lakh crore through NABARD as most of other banks have failed to extend fiscal support to this sector.

Mr. Sahai also said that FDIs should also be encouraged in retail sector in the absence of which large MNCs will operate in India through franchise route as 40% of them have already taken resort to this route in India.

In his address, Mr. Anil K Agarwal, ASSOCHAM President sought liberation of food processing industry from the hold of bureaucracy if this industry has to grow and acquire its potential which is massive.  He also demanded that mega food parks should be established in all states and UTs in a proportionate manner and SEZs tax concessions should be made applicable to them.

Mr. K L Chugh, Chairman, ASSOCHAM Knowledge Council made his views public saying that the farmers should be the owners in the prosperity of the food processing sector as they must become a stake holder in it.

Mr. Pradeep Wig, Chairman, ASSOCHAM Food Processing Committee in his observation said that demands need to be created for food processing industries so that mis-match is restricted between its supplies and demand.