'Swadeshi bark and
videshi bite'
The Congress has severely criticised the budgetary proposal to impose an eight per cent excise duty on packaged food items and warned that the move would hit both the farmers and consumers.
Congress joint secretary Jairam Ramesh said Finance Minister Yashwant Sinha's move would ruin the domestic small scale food processing units and would only help multinationals.
He pointed out that the previous Congress and United Front
governments had kept the processed food items free from excise duty to encourage value addition to agricultural commodities. This was also done to provide more income to farmers.
According to Ramesh, the Bharatiya Janata Party government, which professed swadeshi motto, was acting against the interest of the domestic farmer and the food processing industry. It is a swadesh bark and videshi bite, he added.
Ramesh pointed out that the finance minister's duty proposal
would push up the prices of all packaged farm produces like spices,
milk products, snacks, sweets and savoury items that are produced
and marketed by small units.
The Congress joint secretary said the levy on packaged food items
would promote selling of these items in loose form, opening up room
for adulteration and deterioration of the quality consciousness. He
demanded immediate withdrawal of the eight per cent duty proposed on food items.
The All-India Association of Sweetmeats and Savoury Items office-bearers were present at the media conference, giving a first-hand account of the adverse effects of the duty on the sector. They said it would hit the processing units, trade and consumers while encouraging 'inspector raj' and harassment by petty
officials.
UNI
Budget '98
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