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| Monday,
January 15, 2001, Chandigarh, India   
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R & D Grid mooted for food-processing industry
Food stocks trigger debate on MSP
India wastes 70,000 cr worth food articles ‘Take
lesson from US economy’ Van Norman launches hi-tech CNC
machines |
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LIC rules out
VRS 75th Indica
showroom at Patiala Prices of cellular
services to crash
No need for
second airport at Mumbai
Good results fail to lift
sensex
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R & D Grid mooted for food-processing industry NEW DELHI, Jan 14 — The Associated Chambers of Commerce and Industry (Assocham) has mooted a proposal for setting up a National Research and Information Grid for Horticulture Trade (NRIGHT) jointly by industry and the government. In a note to the food processing industry, Assocham has stated that the need for the proposed body has been necessitated for a continuous assessment in the size of the market, commodity composition, geographical distribution and changing consumer preferences. The Chamber has stated that trade opportunities in fruits, vegetables and flowers are expanding nationally and internationally. Because of rising incomes and population, the demand for fruits and vegetables will grow in our country, and also the demand internationally will grow because of an increasing emphasis on “health foods”, in which fruits and vegetables find a pride of place. All these objectives can be attained by setting up a National Research and Information Grid for Horticultural Trade feels the Chamber. Assocham has further stated that, the National Horticulture Development Board unfortunately has not developed along the lines the committee had envisaged. It was hoped that the Board will be like the National Dairy Development Board, a friend, philosopher and guide to the numerous small-scale growers of fruits, vegetable and flowers in our country. These growers generally get less than 20 per cent of the price paid by the end consumer, unlike in milk, where the producer gets nearly 70 per cent of the end price. There are also violent fluctuations in prices, such as those we often witness in onion, potato and tomato. The establishment of an effective storage, processing, packaging, transportation and distribution system is vital for sustaining a dynamic and producer-oriented horticulture industry, sanitary and phyto-sanitary standards and regulations will have to be developed and popularised. Cold storages and refrigerated vans are needed in large numbers, the Assocham note says. The promotion of the horticultural seed villages in every block in the country will multiply and distribute pure seeds of both self-pollinated and hybrid strains, superior planting materials through a combination of tissue culture and mist propagation, undertake micropropagation of improved varieties and distribute planting material derived from tissue culture in polyethylene bags and encourage grafting and other methods of propagation in villages.
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Food stocks trigger debate on MSP NEW DELHI, Jan 14 — The Government’s inability to handle huge surplus stocks of foodgrains has triggered off a debate on whether increasing minimum support price every year was feasible. The first missive against the regular increase in MSP was fired by the Union Minister for Food and Public Distribution, Mr Shanta Kumar, who felt that over the years the MSP had turned into “Maximum Support Price”. The MSP of wheat and paddy have been raised on several occasions during the past years and incentive bonus over and above MSP have been granted following pressure from the wheat growing states like Punjab and Haryana. Total stock levels are today touching 44 million tonnes with the average buffer stock expected to be around 17 million tonnes. The minimum support price is fixed by the Commission for Agricultural Costs and Prices (CACP) on the basis of the input costs incurred by the farmer in growing his produce. However, it has been seen in the past that the government improves upon the CACP recommendations due to political compulsions. The Expenditure Reforms Commission too is of the opinion that the Government in future should accept the prices recommended by a body of experts like CACP without making further increases while processing their recommendations. There is a need to moderate the increases effected every year in the MSP for foodgrains, the Expenditure Reforms Commission has said. Adding grist to the debate has been a report by the CACP itself in which it has said that the MSP for wheat for 2000-01 should be maintained at last year’s level to limit procurement by Central agencies. Since 1996, procurement of wheat has grown from 8.16 million tonnes in 1996-97 to 16.35 million tonnes in 2000-01. While procurement has been increasing, offtake under the Targetted Public Distribution System has not been satisfactory, leaving surplus stocks with the Government. Since there was a consistent gap between procurement and offtake, the CACP is of the opinion that the Government should balance this by limiting procurement by keeping the MSP at previous year’s level. An unattractive MSP would force the farmers to sell their produce to the private agencies and this would be a healthy sign for the future development of the food market, a senior official said. However, it remains to be seen if the Agriculture Ministry would be able to take a bold step like moderating the MSP increases. Even last year, despite stiff resistance from the Union Food and Public Distribution department, the Centre went all out to oblige the farmers of Punjab. The pressure is only expected to increase in the coming period, especially as Punjab goes to polls sometime next year.
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India wastes 70,000 cr worth food articles NEW DELHI, Jan 14 — For a country that takes pride in being one of the largest food producer and consumer in the world, it also has the dubious distinction of wasting as much as $ 15 billion worth of food items every year. However, it is precisely this colossal wastage of food every year that has had investors from India and abroad interested in the food processing industry. Food processing holds the key to prevent wastage of food items and extend their shelf life. Massive investments are called for to get them started. At the ground level, more and more Indians have to be encouraged to shed traditional food in favour of tinned food. According to one estimate, the food processing industry in India is one of the largest, both in terms of production and consumption and in value terms it is estimated at around $ 70 billion. It was former Prime Minister Rajiv Gandhi, who actually gave a thrust to the food processing industry and even set up a ministry for the sector. A decade later, not much has been achieved. Dr V. Prakash of the Mysore-based Central Food Technological Institute maintains that India wastes Rs 70,000 crore worth of food articles every year due to inadequate technologies. Agro-based products contribute more than 33 per cent of India’s GDP. Yet 30-40 per cent of the agricultural output is lost at the post-harvest stage, due to a variety of reasons. One reason is that the market for processed foods is confined to the metro cities, which has affected volume of processing. Inadequate roads in the agricultural areas, lack of cold storage systems and outdated agro-practices at all stages from pre-harvest through harvest, post-harvest handling, storage and packing to transportation to the market are also responsible for the colossal wastage of food items. Experts at the recently concluded Indian Science Congress maintained that a general lack of suitable technology to prepare, preserve and protect produce led to losses. A lack of standards for quality and packaging, preventing uniformity of product and reducing the consistent and assured supply of agro-products to processing units also leads to wastage. The present ceiling on land holdings was also not conducive to increasing productivity since small farmers find it unprofitable to establish post-harvest processing facilities. “Creating more efficient ways of sourcing by reducing wastage and the number of intermediaries in the system can unlock the vicious cycle that the industry is caught in today”, a study carried out by the CII and international consulting firm Mckinsey & Company says. The liberalisation of policies affecting the food processing industry has brought cheer to the investors and a majority of the country’s wastage problems are likely to be addressed in the near future. One advantage India has is its diverse agro climatic conditions and availability of wide-ranging raw material availability throughout the year that makes food processing industry more attractive. The use of foreign brands are now freely permitted and the duty structure on processed food items is low. A substantial amount of food items wasted relates to fruits and vegetables. Even though India is the second largest producer of fruits and vegetables, its wastage is equally high. India’s share in the world trade of processed foods and vegetables is insignificant as only around one per cent of its is processed commercially. However, according to the CII-Mckinsey study, the big opportunity in the food processing sector is not in the high-value added products like breakfast cereals, jams and sauces but popular foods like atta and biscuits. Another area of concern is the post-harvest losses, which are roughly 30 to 40 per cent of total production. Improved post-harvest technology is key to decreasing this wastage. The use of effective technology can also reduce microbiological spoilage during storage and the shelf life of popular items, like mangoes, can be increased. The changing lifestyle of the Indian populace, especially in the cities and the demand for packed food is expected to boost the country’s food industry significantly. It is estimated that the Indian food industry would grow to $ 140 billion in the next ten years, creating wealth from what is waste today.
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‘Take
lesson from US economy’ THIS year’s budget is most crucial to the economy. Situation demands some radical shift from conventional approach. Leading industrialists who had a meeting with Finance Minister have urged the later not to kill the industry. Emerging dismal picture of global economy too justify this approach. US economy which constitutes one fifth of global economy is heading for a recession. From a high growth of 5 per cent with trade deficit of over $ 400 billion USA’s imports are likely to shrink to $ 250 billion. This means loss of market for the developing countries including our own. Captains of industry have pressed upon Finance Minister to keep the peak tariff at 35 per cent with surcharge. This is the need of the hour. India is the third largest initiator of anti-dumping cases and imposing safe-guard duties. Budget should pave the way for enforcing VAT. Burden of indirect taxes is too high and increases the transaction cost. By rationalisation of taxes through VAT this cost can be brought down. Stress on revenue garnering should be shifted to service sector as its share in GDP is higher that of manufacturing. Unemployment rate is growing at an alarming rate and this demands special attention to SSI sector. Prime Minister gave special concession to this sector by enhancing the excise limit from Rs 50 lakh to Rs one crore. This was a good gesture. The intended concession remained short of expectation. After exemption limit no SSI unit can remain competitive if full duty has to be paid. No customer can absorb a jump of 16 per cent price. This fact had been well recognised by the government and after exemption limit duty rose gradually to full level. There is a long standing demand of SSI sector that branded products made by them for the buyer should not attract duty within the exemption limit. At present full duty is payable for such branded products even if the turnover is within the exemption limit. Government gave this concession to units in rural areas but that too has not been implemented. Incidence of such cases falling in rural areas is too small. SSI units irrespective of location should be given this concession. In the last Budget Finance Minister announced credit guarantee fund scheme for small and tiny units. The corpus for this scheme was Rs 125 crore. This is too meagre an amount and should be raised to Rs 2500 crore. Finance Minister intended to do this within years. The scheme has not taken root although time for new budget has come. Moreover, conditions to avail this benefit are very stiff and need softening. For instance bank loan should attract interest at PLR plus 3 per cent. Normally this rate is higher for this sector. We need little shift in our approach. It is the catch word and old economy is a bad word. In USA there is a recession in the knowledge industry and Nasdaq, an index of technology stocks have fallen to half. USA’s economy is suffering as it ignored old economy altogether and went whole hog for the new economy model. We have to learn a lesson from this and strike a balance.
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Van Norman launches hi-tech CNC
machines CHANDIGARH, Jan 14 — Van Norman Machine (India) —
a Chandigarh based ISO 9001 company is a house-hold name around the globe for precision cylinder boring systems have exported their products to over 55 countries around the world. They have started development of CNC Vertical Machining Centres and slant bed CNC Turning Centres to meet and exceed production and accuracy demands of automotive and general engineering industries. The company also plans to design and develop super-sonic high speed computerised machining centres with spindle speeds exceeding 20,000 RPM which are still being imported in India at present. Van Norman will soon start exporting these products to countries like USA, Italy, South Africa and UK, says Mr Amarjit Chera, Jt MD of the company in a press release. Van Norman & Sunnen USA products will be on display at forth-coming IMTEX-2001 exhibition which is being held in New Delhi from January 15 to 22. |
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LIC rules out VRS NEW DELHI, Jan 14 (PTI) — Moving away from the ‘popular’ trend in public sector, Life Insurance Corporation (LIC) has decided to absorb the extra flab to sustain its growth currently at over 40 per cent and increase its asset to Rs 2,00,000 crore by March 2001. The corporation has also initiated restructuring as suggested by international consultants Booz Allen & Hamilton to take on the emerging competition from new players like ICICI Prudential Life and HDFC Standard Life. “We are not thinking of voluntary retirement scheme (VRS),” LIC Chairman G.N. Bajpai told PTI ruling out fears that the financial power house may reduce staff strength further while going in for technology upgradation and computerisation. LIC reduced staff strength to 1,22,867 as on March 2000, as compared to 1,24,385 employees during the end of 1998-99, but revised wage structure to include a ‘productivity linked lumpsum incentive’ scheme last year. “Instead of VRS, we have chosen the other option — a growth model,” he said adding that if there is any extra flab it would be absorbed in the corporation’s growth process. Bajpai said “the corporation was growing at 44 per cent during the period April-December 2000 as compared to the first nine months of 1999.”
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75th Indica
showroom at Patiala CHANDIGARH, Jan 14 — Mr Rajiv Dube, General Manager (Commercial), Tata Engineering today inaugurated the 75th dealership of the Tata vehicles — Goyal Motors at Patiala, said that by now 90,000 vehicles have been sold at home and abroad since January ’99. By the end of this year the sale will exceed one lakh. Indica has found its way on the roads of countries like Malta Italy and Portugal due to its fuel friendliness and comfort ability. Mr Rajiv Dube said there was a proposal to introduce a 3-box sedan car in collaboration with a French automobile company Viz PSA. He denied any impact of implementations of WTO’s GATT. Mr Amit Goyal of Goyal Motors said they will provide the best services to the Tata vehicles owners in Patiala, Sangrur and Fatehgarh districts.
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Prices of cellular
services to crash NEW DELHI, Jan 14 (UNI) — It is going to be a boom time for cellular users in Delhi and Mumbai. In a desperate attempt to retain customers, price cuts from other cellular operators are on the anvil after Friday’s announcement of the state-run Mahanagar Telephone Nigam’s announcement that its new cellular service will charge over a quarter less than that charged by existing private operators. MTNL, a fixed-line telephone and Internet access service provider in Delhi and Bombay, will charge Rs 2.7 per minute on outgoing calls. This compares to Rs 4 per minute charged by private operators in Delhi, and about Rs 3 per minute by those in Bombay. Incoming calls will be charged at Rs 1.5 a minute. AirTel, a Bharati venture, said it would match its tariffs with MTNL’s rates. “We will adopt a strategy to match our tariffs ” said Sanjay Kapoor, Chief Executive Officer of AirTel.
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by R. N. Lakhotia *PAN *Tax queries * Rebate Q. I am 74 years old, having no house. I have K.V.P worth Rs 75, 000-00 only. 2. My monthly pension is Rs 5801.00 only and no other income please. 3. Kindly advise if I am required to apply for PAN. 4. If yes, will I be required to file IT Return next year if I have no taxable income, please. — Om Parkash, Patti A. The yearly accrual interest on Kisan Vikas Patra is to be shown in your Income-tax return. From your monthly pension you will be eligible to claim standard deduction. A senior citizen is allowed tax rebate of Rs 15,000 u/s 88B. On the facts stated by you there is no liability to Income-tax. You therefore need not file your Income-tax return. It is also not necessary for you to apply for Permanent Account Number. Q. Is one required to file income-tax return, even if no tax is payable after taking into account all the deductions & rebates available? It is clarified that he does not own any of the items mentioned in “1 in 6” tax scheme. 2. What is the relaxation for a man of over 85 years of age who is unable to take care of himself & his accounts & is content with whatever he gets by way of interest etc without much effort. 3. Is deafness a disability & what deduction is admissible for it. 4. What is Cost Inflation Index for current year 2000-2001? 5. What are rules for self-assessment? For what period records are to be preserved? — Malhotra, Patiala. A.
As you are a senior citizen and the net taxable income is not exceeding the maximum exemption limit you need not file Income-tax return. You are also not fulfilling any of the economic indicators. You are a senior citizen. Therefore, no question of compulsory filing of Income-tax return. The Cost Inflation Index for the Assessment Year 2001-2002 is 406. The tax deduction for permanent disability, etc is permissible as per section 80U to the tune of Rs 40,000 per annum. Self assessment means that you have to pay Income-tax on the basis of the tax calculation by yourself before filing Income-tax return. The tax records are to be kept for 10 years. Q. In reply to a question of Sh. Avtar Singh of Mohali (The Tribune dated 7th August, 2000), it has been stated that a maximum of Rs 80000/- can be invested to claim a income tax rebate of Rs 16000/- under section 88. However, on page 72 of book “How to save Income Tax through Tax Planning” by R.N. Lakhotia, it has been mentioned that qualifying amount for claiming income tax rebate under section 88 is Rs 70000/-. I would like to be clarified about correct position in this regard. — Mohinder Pal, Bathinda A. Please note that for the Financial Year 2000-2001 relevant to the Assessment Year 2001-2002 the maximum amount on which tax rebate can be claimed u/s 88 is Rs 80,000. However, in respect of Assessment Year 2000-2001 this limit stands at Rs 70,000. |
by K.R. Wadhwaney No need for second airport at Mumbai THERE are several countries, which are much colder than India. There visibility and weather conditions during winter months are much worse than obtaining in the northern belt of this country. But these countries care for their reputation in the world of aviation. They have installed ultra-modern gadgets which are serviceable when the visibility or Runway Visibility Range (RVR) is the poorest. The Category-C of the Instruments Landing System-III helps commanders land when the visibility is between 50 metres and zero. This, in the words of aviation, is known as blind landing. There is Category-B of the ILS-III which helps pilots land when the visibility is between 200 and 50 metres. In these countries, like the USA, and Europe’s airports, like, in London, Germany, Paris and also Moscow, fog or any other element of weather seldom disrupts schedule of flights. Air traffic moves in and out of these countries without any hindrance. Contrary is the situation at Delhi’s International Airport where flight schedule in December-January goes haywire every year causing insurmountable problems to passengers and airline officials engaged in handling flights. Though pampered and highly paid. Indian pilots and engineers are no inferior to foreign commanders and engineers. There are many, who are in demand by foreign carriers. The Indian cabin crew, particularly air hostesses, are as smart and efficient as hostesses of many affluent foreign carriers. What prevents them displaying their skill and prowess is that they are not provided the facilities that they should help them show their potential. When the Indian Airlines flight from Kathmandu was hijacked to Kandahar, it was air hostesses who handled violent terrorists carefully and meticulously. Their performance on this ill-fated flight was much more praise-worthy than that of the commander and co-pilot. But who remembers them? Had air hostesses panicked, there might have been more casualties than merely one! In emergent and hazardous situations, it is air hostesses who soothe nerves of irate passengers and pacify crying children and ladies. In foreign countries, VIPs, ministers included, behave at airports like common passengers. They willingly undergo security drills and fully cooperate with ground-staff. In this country, VIPs arrive late at airports, gossip in their luxurious lounges not realising that their actions are causing delays and inconvenience to the passengers, who are already seated in the aircraft. Shocking as it may seem, there is absolutely no need to have another international airport at Mumbai. Sahar Airport, like, at Delhi, has enough space and scope for expansion. The aviation analysts say that it can be easily enlarged and even runway improved upon considerably. But politicians are hall-bent on having another international airport. It may provide convenience to a few affluent persons but the construction of the new airport will hurt, harm and dislocate many poors staying nearby. |
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Inflation up Trade2Gain SBP |
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