The finance minister’s announcement of extending tax holiday to promote meat and poultry processing is expected to give a boost to value addition. The Rs 20,000-crore poultry industry has always complained about high cost of transportation and poor condition of cold storages being a hindrance to the growth of processing in the sector.
?More than 90% of the broilers sold are in the wet market and only 10% are sold as processed chicken,? Ricky Thaper, treasurer, Poultry Federation of India, told FE.
The announcement is also likely to give a push to the milk processing sector. The country is the biggest producer of milk in the world, but due to rising domestic demand and inadequate infrastructure, the milk processing industry has not got a big boost.
Agricultural and Processed Food products Exports Development Authority chairman Asit Tripathy said, ?We need to take up processing of animals products for boosting our exports and value addition.?
According to APEDA, the country?s exports of dairy products doubled to 69,415 tonnes with a value of Rs 866 crore during 2007-8 against Rs 434 crore in 2006-7.