• India is the second largest producer of fruits & vegetables in the world. But it processes only 2% of its produce. Similarly, although India is the largest producer of milk, only 15% of its total produce are processed.
  
  
• Due to rich natural resources & large consumer market, Indian food processing industry has wide scope for development & growth. It also attracts foreign investment.

• The seafood sector has registered a record exports of Rs. 50.16 bn during the first nine months of the current fiscal against Rs 51.17 bn in the whole of the previous year.

• Quantitative restrictions (QRs) on 31 agricultural & meat products will be removed from 01/04/2001 to meet the WTO norms.

Previous year budget (FY 2000-01) announcements

• Basic customs duty on agriculture & horticulture processed items was increased to 35%.

• 16% basic excise duty and 24% Special Excise Duty (SED) was made applicable to soft drink concentrates supplied to vending machines & aerated soft drinks.

• Items like concentrated milk put up in unit container, cocoa powder & other food products containing cocoa, waffles or wafers coated with chocolates or containing chocolates, fruit pulp & fruit juice based drink were brought under the MRP based assessment of excise.

Pre-budget industry Wish List

CII has recommended following amendments to be made in the budget

• Most of the products in this industry are perishable hence cold storage facilities should be made available at all ports and major airports so as to accelerate the growth rate of the industry.

• Existing excise duty difference between "branded" and "unbranded" food products to be removed.

• Excise duty on sugar boiled confectionery up to retail price of Re 2 should be reduced from 16 % to 8 %.

• SED on aerated soft drinks / waters should be reduced to nil from present 24% by FY 2002-03.

Measures to develop the infrastructure facilities of the industry are expected in the budget.