The draft National Food Processing Policy proposes a ten-year tax holiday for food processing units, simplification of documentation and procedures under taxation laws and other infrastructural initiatives to create an appropriate environment for entrepreneurs to set up food companies.

The draft also proposes setting up an Equalisation Fund to ensure sustained raw material supply at a particular price level and the development of marketing capabilities.

It moots development of a futures market to ensure minimum price stability to farmer and a sustained supply of raw material to processors and a mechanism to reduce the gap between farmgate prices of agro-produce and the final price paid by consumers.