Food Subsidy

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Food Processing Industry

The Food Processing Market constituted 14% of India’s GDP through manufacturing in FY15. The Indian Food & Retail market is projected to touch USD 482 billion by FY2020. The Food Processing sector has the potential of attracting USD 33 billion of investment in the coming years and generating employment for 9 million person-days.

• More than 30,000 food processing units are operating in Gujarat, providing employment to over 1 million people.

• 560 cold storage and fish processing units with a capacity of 20,30,873 MT.

Mega Food Parks

• The Gujarat Agro Mega Food Park Pvt. Ltd. (project SPV) in Surat district is under development.
• Adani Food & Agro Processing Park Ltd. (AFAPPL) located in Mundra has been principally sanctioned.

Cold Chain Projects

• 4th highest share in India’s total cold chain storage capacity.
• 8 projects have been approved by the Ministry in Gujarat.

Food Processing Sector Major Initiatives

• Income Tax – 100% Tax Exemption for the first 5 years of operation for new units in the business of processing, preservation, and packaging of fruits and vegetables.
• Service Tax – Exemption of service tax for storage, handling, and transportation of processed food.
• Customs Duty – Benefits for projects related to cold storage and handling systems for processed food.
• FDI & Credit Availability – 100% FDI allowed under the automatic route. Soft loan is extended of up to 95% of the project cost.

Chief Minister’s Mission on Food Processing Scheme

Scheme for Skill Development

• 50% of the training cost, subject to a maximum of Rs. 10,000 per person and Rs. 0.5 lakhs per Food Processing unit.
• Rs. 1.00 per unit maximum for 5 years and 100% exemption on electricity duty for the first 5 years.
• Reimbursement of VAT for 5 years, subject to 70% of eligible fixed capital investments for MSMEs.
• 100% stamp duty reimbursement to infrastructure projects and 50% stamp duty reimbursement to agro and food processing units.
• 50% (maximum of Rs. 5 lakhs) assistance for expenditures incurred by institutes/entrepreneurs to obtain a certification mark.

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