Corporate
News
Food processors want 100% tax holiday
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he CEOs of the several food processing and FMCG firms have demanded a 100 per cent tax holiday for food processing units. They pointed out that the sector is poised to be the growth driver of the country's economy. At a CEO round-table organised by Confederation of Indian Industry (CII), the industry representatives also urged the Union Government to concedre the long pending demands such as uniform implementation of Agricultural Produce Marketing
Committee Act, promotion of cold chain industry on prive public partnership basis, fast implementation of GST for a harmonised tax structure, exemption of import duties on machinery and raw materials, and establishment of quality food laboratories. Lack of proper infrastructure in the sector is resulting in wastage of Rs 30,000crore food every year. Rakesh Kacker, Secretary, Ministry of Food Processing Industries, said: “The sector grew by an average of 8 per cent between 2006 and 2010. This is higher
than the growth of the manufacturing sector. Agriculture has also been growing 2-3 per cent which means we are adding more value to agriculture.” However, the Government is looking at resolving certain problem areas of the sector such as land, he said. He said that cold chains have been doing quite well with eight already being set up. Another 10-15 will come up by the end of this fiscal and the Government had approved another 30 new projects last month.
Traders oppose cotton reserve proposal
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he Textile Ministry has proposed to create a cotton reserve to ensure supply of the fibre to the domestic mill sector. Cotton traders oppose this move. The President of the Cotton Association of India, Dhiren N. Sheth, says that such a scheme would distort the market and unsettle other sectors of the cotton value chain. Expressing concern over the proposal mooted by the Textile Ministry on procuring 25 lakh bales of cotton through the Cotton Corporation of India for creating a strategic reserve (for exclusive sales to
mills), he said: “it is wrong to cite China for creating the cotton reserve, since the situation between the two countries are not comparable. China is a cotton deficit country, whereas we have huge surplus and the fibre is available at the doorstep of the mills here.’’ “The total investment for procuring 25 lakh bales would amount to Rs 5,000 crore approximately, not withstanding the carrying cost and annual warehouse cost. In addition to this, CCI will have to bear the loss that might arise due to fluctuation in prices.’’ “If mills contend that they are unable to stock cotton due to non-availability of
funds, it would be appropriate to address this issue through banking channels, Reserve Bank of India and the Finance Ministry rather than create a scheme which distorts the market and unsettles other sectors of the cotton value chain,’’ Sheth said and urged the Government to refrain itself from setting up a cotton reserve.
India-Switzerland to have FTA by Dec
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he Free Trade Agreement between India and Switzerland is expected to be concluded by the end of 2012, Rolf Frei Rolf Frei, Consul General of Switzerland for India, said. “Both the countries were keen on having the FTA at the earliest. The agreement will give a significant boost to bilateral trade between India and Switzerland,” he said at an interactive meeting on business opportunities in Switzerland, organised by the Federation of Andhra Pradesh Chamber of Commerce and Industry here.
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Frei said “despite the global economic slowdown, our trade graph has been looking upwards.” The two-way trade expanded from $7 billion in 2005-06 to $35 billion in 2009-10, with India being one of the most important investment destinations for Switzerland. Switzerland has always been amongst the top foreign investors in India. It stands at the eleventh position overall and sixth in Europe in terms of investments, with a cumulative FDI inflow of $1,804.63 million from April 2000 to December 2010. The Swiss capital stock in India is estimated at $3.5 billion while Indian capital stock in Switzerland was in the range of $550 million. Referring to the eurozone crisis, Frei
AgriBusiness & Food Industry w June 2012
said the economic situation had resulted in a drop in exports from Switzerland. But recession was less substantial in Switzerland than in Europe, he pointed out. He said the areas where the two countries could engage in included infrastructure, clean-tech, lifesciences, automotive, food processing, retail and precision engineering. Earlier, Frei met with the Andhra Pradesh Minister for Major Industries, Dr J. Geetha Reddy. He expressed interest in bringing a trade delegation from Switzerland to Andhra Pradesh to explore the possibilities of expanding trade ties, especially in sectors such as chemicals, petrochemicals, biotechnology, pharmaceuticals and food processing.