Budget 2012: Incentivize supply chain investments, says FICCI

FICCI in its pre-budget memorandum to the government on the retail sector says that supply chain investments need to be incentivized.

By Agencies | Updated: Feb 18, 2012, 06.13 PM IST

NEW DELHI: Supply chain investments by retailers help support infrastructure development in logistics across the country and positively impacts industries like agriculture. FICCI in its pre-budget memorandum to the government on the retail sector says that supply chain investments need to be incentivized as follows:

>> Exemption for capital imports of supply chain equipment including hand held scanners, fork-lifts, cold chain equipment etc.

>> Duty and tax exemption on supply chain automation products (Hand-held scanners, Ware-house management software and associated services)

>> Special tariff loans for warehousing and back-end processing

>> Increase in the maximum limit of reimbursement (currently expected to be 50% of Rs 10 cr) proposed by the Ministry for Food Processing under the scheme for financing building up of cold chains by the Industry for:
- Refrigerated storage centre
- Refrigerated transportations

- Refrigerated processing centre

>> Amendment in Prevention of Food Adulteration Act: Manufacturer should be solely responsible for contents of packed products to avoid unnecessary harassment of retailers.

>> Amendment to Legal Metrology Act 2009 particularly in relation to the offence by the Company wherein Director can sub-delegate and nominate one of the supervisory level employees who is directly responsible to the Company for the conduct of day to day business.

>> Review stock limits under Essential Commodities Act.

>> Mandate the adoption of Bar Codes using global identification standards by all manufacturers and exports under the "Legal Metrology Act".

>> Uniform legislation allowing shops to operate 365 days and extended hours.

>> Incentivize states for a model Shops & Establishments Act.

>> Amendment in APMC Act that would allow the retailers directly procure vegetables and fruits from the farmers, invest in them to help drive yields, quality of yield, storage and processing capacities.

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