New Delhi, June 26 (KNN) Since 80 per cent of the country’s food processing is done by Micro, Small and Medium Enterprises (MSMEs), the All India Food Processors’ Association (AIFPA) has pinned hope  on the government to extend some incentives for activities that involve primary processing.

Sharing the expectations with KNN India over General Budget 2019, President of AIFPA, Dr. Subodh Jindal said, “Government should give incentives for activities that involve primary processing like making of pulp from fruits & vegetables.”

Not expecting any GST relief from this budget for food processing sector as this budget is different from GST, he mentioned that for economic development of farmers there should not be any tax during the primarily processing of any items.

Demanding removal of tax on such activities, he said that primary processing is nothing but the conversion of farm produce into something which makes the produce stable for longer shelf. Basically, the processing increases its shelf life.

Despite making several representation to reduce the tax rate to 5%, most of the food items taxed in the bracket of 12%-18%, he pointed.

He said that the above mentioned recommendations will not only facilitate doubling of farmers’ income but also save food from further wastage. (KNN/YV)