Around 1 lakh crore is needed to prop up the food processing sector to achieve its target of 4.40 lakh crore by 2015. The industry has registered a growth rate of 4 % ,with restrictions on foreign investment. Further, different rates of VAT in many states also hamper its growth, some state like Kerala have a VAT of 20%. Centre is considering a grant of Rs.10 crore for projects with backward integration in food sector and Rs.20 crore for meat processing facilities.

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