What is India's share of processed food export presently in the world? It is just 1.5 percent. Forced by this negligible presence, the government has accorded it a high priority area, with a number of fiscal incentives to encourage and boost up the commercialisation and value addition to the agricultural produce.

Subodh Kant Sahai, Minister of State for Food Processing Industries told the Parliament on Tuesday that his ministry is assisting food processing units to improve their quality standards so that they can compete better in the international markets and exports increased.

Following are the plans the ministry has chalked out:

Upgradation/Modernization/Establishment of food processing units in the form of grant-in-aid @ 25% of the cost of plant and machinery and technical civil works subject to maximum of Rs. 50 lakh in general areas or 33.33% subject to a maximum of Rs 75 lakh in difficult areas such as Jammu & Kashmir, Himachal Pradesh, Uttarakhan, Sikkim and North Eastern States, Andaman & Nicobar Island, Lakshadweep and ITDP areas.

Under the Mini Mission IV of Technology Mission for Integrated Development of Horticulture in North Eastern States including Sikkim, J & K, Uttarakhand and Himachal Pradesh, assistance at still higher rates i.e. @ 50% upto Rs 4 crore for promotion of new units and upto Rs 1 crore for upgradation/modernisation of existing units is available for processing of horticulture produce.

This effort towards modernization would further improve their cost competitiveness and quality levels in the world markets & result in growth of exports. Government has also provided several excise/customs duty reduction and income tax exemption so as to increase cost competitiveness of food processing units.

The quantity of export can be increased by expediting research and testing work in this industry. In this regard this Ministry has been providing financial assistance to institutions for research and development work and also for setting up food testing laboratories.

Ministry has provided financial assistance amounting to Rs 16.01 crore till December 2006 for 41 R & D projects. Ministry has also provided financial assistance to the tune of Rs. 52. 83 crore to 36 food testing laboratories so far.