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Recommendations for Operation of Food Industry - Dr. Subodh Jindal, President, AIFPA
W
e appreciate the steps taken by the Government to ensure operation of food processing industry and continuity of food supplies. Timely guidelines have helped to streamline the activities. We are grateful to have interacted with food industry clusters all over the country, regional chambers, product specific associations, raw material & packaging material providers, growers and would like to share with the inputs received on behalf of lakhs of small & medium food processing units in the country as below for early appropriate action. A. URGENT NEED TO SAVE PERISHABLES a. We are fast approaching harvesting seasons of perishables, e.g. Mango (Raw & Ripe), Tomato, Pineapple, Litchi, and Cherry. It is important to save these crops in the interest of growers & consumers and for maintaining employment & exports. All possible measures should be taken to save these perishable crops. Almost 35,000,000 MT of mango is processed for ripe and raw applications. b. Producing finished food products during the crop season cannot take care
of the glut crop. The best method is to undertake 'Primary Processing' all over the country. These steps include Salting, Brining, Syruping, Drying, Dehydrating, Pulping, Freezing, Ambient Controlled/Cold Storing. These processes need to be intensified and encouraged without loss of time. c. Units engaged in Salting, Brining, Syruping, Drying, Dehydrating, Pulping, Freezing, Ambient Controlled/Cold Storing perishables crops should be considered as 'Continuous Process Industries' and exempted from GST (or levied 0% GST). This will save the perishables which can be used to run the industry later. d. Entrepreneurs engaged in the above mentioned
processes will have to purchase the perishable crops, do Primary Processing on the same to be utilized subsequently by the industry over long periods of 3 to 12 months. These units will need financial support which should be provided to them in the form of working/stock loan at subsidized or nil interest rates and without any collateral security. e. To encourage entrepreneurs and workers to undertake the above Primary Processing activities in the current circumstances, they should be provided with adequate 'medical & risk insurance'. f. Units and storage facilities involved in the above activities of saving perishables should be given 'continuous electricity supply'
exempted from 'Fixed Electricity Charges'. g. If any of these entrepreneurs/units are new, FSSAI should help by registering them quickly in order to enable them to catch the crops. B. RELATING TO PRODUCTION & LOGISTICS (Permission for Manufacturing, Workforce Movement, Raw Material/ Packaging Materials/Finished Products/Fuel Transportation) a. It is learnt that enforcement agencies (DMs, SDMs, and Police) at different regions/locations are implementing Central Government Guidelines differently. Such variance leads to hurdles & critical blockages in the operation of food industry. b. It is proposed that District Industries Centre (DIC) may be authorized to issue permits to the Industry, their Workers, Suppliers and Distributors (as has been done in Odisha). c. District Magistrates and Police in every District may be instructed to honour permits issued by authorized persons from other States/Districts (as has been notified in Haryana). d. A 'Grievance Resolution
AgriBusiness & Food Industry
April 2020
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