Food and agro-processing
₹15 crore duty position on an expanding product line in 2021
A food and agro-processing manufacturer.
Background
An established Indian food processor adding a new product line, needing high-value imported capital goods, selling into domestic and export markets.
The problem
Export volumes were uncertain, which ruled out EPCG and its export obligation.
What they did
Imported capital goods under MOOWR, began production, imported raw materials under the same licence, and paid duty on the imported content of goods sold domestically.
What happened
Project cost down 12–15%, payback period shortened, and a significant export order secured within the first year.
Why it matters
They could not commit to an export obligation, and MOOWR did not ask them to.
The figures
- ~₹
1515 crore - Duty deferred on capital goods
- 12–15%
- Project cost reduction
- ~₹
1818 crore - Duty deferred on raw materials over 6 years
- ₹
5555 crore - Capital goods imported
What would this be worth in your factory?
Work it through with your own import values. Indicative only.
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