MSME Bakery industry are facing Great Crisis in our country
RAJKUMAR DAS
The bekers federation of india has-been
playing a proactive role
in promoting the
development of the Bakery Industry in the different part of our Country. More than thousands
of bakers’ as members are under our umbrella.
The bakery industry is the important industry in Food Processing Sector in our Country.
Although our units fall under Micro and small scale Industries sector where crores people are
working as labours, workers and sales persons. All of them are involved directly with this
industry. Directly or indirectly are engaged not to mentioned their family members who are
solely dependant on this industry.
The principle product of this industry, i.e., bread, is a staple food of the common people
which is the cheapest and at the same time most nutritious food available not only to the
urban middle class but also to the people below poverty line including farmers, labours,
etc… Bread is common people but also
used in Hospitals and Nursing homes as healthy diet for patients.
The bakery segment is highly unorganized not only some states, but also in our country.
Almost 85% Indian Bakery Industry is unorganised due to the lack of professional training,
trade skill and this is a major hindrance and estimated 70,000 bakeries of tiny, small, medium
and large size are operating across the country feeding a market of over 1.5 million tonnes of
BREAD and 1.2 million tones of BISCUITS. Majority of bakeries operate in small
unorganized sector in our country. Prospects of growth in mechanised bread, biscuit & cake
pastries industries is enormous. Apart from a good demand for bread and allied products,
possibilities for items like rolls, cream bread, luccha bun, pav bread fast food outlets, pizza
bases, kulchas, mid-eastern varieties and such new opportunities are growing.
However, we are trying our level best to develop bakery industries of our state in our own capacity.
But we are suffering from various problems since the last 30 years due to the following reasons:-
The slogan of every government both (Union / State) to take special care to the MSME sector. It is
very surprising that huge imbalance the particular of basic needs of MSME Sector that structure of
taxation including Central Excises, Licenses and Power to be obtained are as similar as heavy or
medium industries. It has been well aware the profit sharing of MSME industries is decreasing
day by day due to our
multinational companies. However, we have to pay all taxes and obtain licenses like heavy industries
in our country. It is also to be noted that last ten years it is very significant that our industry faces
trouble tremendously due to Reliance Petrochemical Industries. They captured entire petrochemical
products in our country by the help of Union Govt. not to enter the good quality of foreign
petrochemical products.
The policy of Dept. of Agriculture & Supply, Govt. of India, has ensured that the multinational
companies like Reliance, ITC, Adani Wilmar, Kargil, etc. have been given license to procure wheat
and essential commodity agriculture products, with permission to keep unlimited stock. Licenses have
been granted during the time of UPA-Govt. and withdrawal of essential commodities Act in 2006. We
had already protested against this decision through our previous Minister, Dept. of Agriculture, Govt.
of West Bengal. It is no doubt about it that the decision of Govt. of India has badly hit the entire
bakery, biscuit & allied industry. Not only that wheat is the basic cereal food most of the people in
every society of our country and they are also being deprived by the said decision of the Govt. of
India.
This industry is already heavily burdened with statutory licenses and taxes, such as :-
1) Trade License, 2) Food License (FSSAl), 3) Health License, 4) Agricultural product use
License, 5) Fire License, 6) Factory License, 7) Godown License, 8) Packaging License, 9)
Profession Tax, 10) S.S.l. Certificates, 11) Consent for Pollution, 12) Delivery Van License, 13)
Garbage License, 14) Income Tax, 15) GST, 16) ESI, 17) Provident Fund, 18) Electricity
Permission and 19) Police Harassment.
The policy making authorities of our country, which imposing any law or introducing any new program,
focusing on a class of people of society for their own benefits fail to understand its reaction or
viability in practical field and it leads to disaster and create a horrible scenario to the other part of
the society. They don’t back away until a huge panic is created affecting both economy or law and
order. They impose one scheme / law after another from time to time and section of the general
people face a great crisis eg. the hundred days job secure program for the rural people and the mid-
day meal program for school students, Annoday Yojana and BPL and APL Card, etc. introduced by
the Union Govt. of our country, for the popularity of its own Govt. or their own political party. They
don’t understand that due to imposing such programs the entire MSME Sector is facing great crisis.
The fact is most of the labours and workers comes to earn for living in MSME sector and they are the
backbone of the unorganised industrial sector in our state as well as our country.
Now, they don’t come and create a huge shortfall of demand for labour in this sector. So the entire
MSME sector is facing a great crisis and most of the units are facing financial trouble and profitability
of their manufacturing products and day to day most of the units are in the verge of closure.
OUR DEMAND
Review / reconsideration / minimum percentage tariff of the GST for bakery industry as early
as possible.
Withdraw immediately any program like 100 days jobs security, mid day meal, Annaday
Yojana, etc. it is our earnest request to Union Govt. to save MSME Sector.
Withdraw the unlimited stock license for essential commodity agriculture product to
multinational companies like, Reliance, ITC & Kargils, Adan Wilmar & others immediately.
Single Window license system with immediate effect.
Immediate review the charges of electricity for MSME Sector.
Instead of several assurances from the Hon’ble Prime Minister, the structure of GST and filling
of such return remains at par with multinational companies which requires immediate revision.
