Setting Up Of Food Processing Cell
The A & N Islands is lagging behind in agro food based and marine food based Industries even though it has the resources. Realizing the vast potential, Govt. of India provides a high priority to this sector with special emphasis on promoting Food Processing. The subject of Food Processing is handled by separate departments in most of the states requiring concerted efforts. In order to give boost to agro processing the GOI has decided inter alias to allow under Income Tax benefit as below :
The tax benefit applies to new agro processing Industries set up to process, preserve and package fruits and vegetable.
The tax deduction is 100% of Profit for first five years and 25% of profits for the next five years.
The standing committee of Parliament on Agriculture and Food processing in its 44th report on "Demands of Grants of Ministry Food processing industries for 2004-05" has recommended that for the speedy development of Food processing industries, the Ministry of Food processing Industries should persuade the state Government for creation of separate Department exclusively to deal with issues and polices for the Development of Food processing Industries in the State/UT. The department would then become the focal point in the state to guide, assist and monitor development of Food processing Industries in all its facets.