Lok Sabha Question No. 481 (UNSTARRED), answered on 2018-02-06
Subject: Losses in FPIs
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: KAMLA DEVI PATLE

## GOVERNMENTOF INDIA

## MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA UNSTARRED QUESTION NO. 481

ANSWERED ON 06 FEBRUARY, 2018

## LOSSES IN FPIs

## 481. SHRIMATI KAMLA DEVI PAATLE:

Will the Minister of FOOD PROCESSING INDUSTRIES be pleased to state:

- (a) whether farmers are facing losses due to lack of sufficient Food Processing Industries (FPIs) in the country;
- (b) if so, the details thereof;
- (c) whether  the  Government  has  sought  help  from  developed  nations  to  establish  food processing industries and if so, the details thereof, country-wise;
- (d) the  amount  of  assistance  provided  by  these  countries  to  develop  food  processing industries in the country; and
- (e) the steps taken/proposed to be taken by the Government to establish food processing industries under Public-Private Partnership mode?

## ANSWER

THE MINISTER OF STATE FOR FOOD PROCESSING INDUSTRIES (SADHVI NIRANJAN JYOTI)

- (a)   & (b): No such assessment has been done by this Ministry.
- (c) & (d): No, Madam. However, Government has allowed Foreign Direct investment (FDI) upto 100% in food processing sector through automatic route. Foreign Direct Investment (FDI) equity inflows in Food Processing Sector in India since 2010-11 are as follows:

| Year(April-March)   |   FDI Equity inflows (US $ Million) |
|---------------------|-------------------------------------|
| 2010-11             |                              188.67 |
| 2011-12             |                              170.21 |
| 2012-13             |                              401.46 |
| 2013-14             |                             3982.89 |
| 2014-15             |                              515.86 |
| 2015-16             |                              505.88 |
| 2016-17             |                              727.22 |
| 2017-18(Apr-Oct)    |                              484.82 |

Source:  DIPP

(e) No  such  proposal  is  under  consideration.  However,  the  Ministry  of  Food Processing  Industries  has  been  implementing  various  Central  Sector  Schemes  for  overall development  of  food  processing  sector  in  the  country.      The  Ministry  of  Food  Processing Industries  has  re-structured  its  schemes  under  the  new  Central  Sector  Scheme  of  PRDHAN MANTRI KISAN SAMPADA YOJANA with an allocation of           Rs.6,000 crore for period 2016-20 co-terminus with the 14 th Finance Commission cycle. In addition to the existing scheme components of  Mega Food Park; Integrated Cold Chain and Value Addition Infrastructure; Food Safety and Quality Assurance Infrastructure; and  Human Resources and Institutions, PRDHAN MANTRI KISAN SAMPADA YOJANA encompasses three new schemes namely; Infrastructure for Agro-Processing Clusters, Creation of Forward and Backward Linkages  and Creation/Expansion of Food Processing & Preservation Capacities with the objective to create robust  modern  infrastructure  along  the  entire  value  chain  in  food  processing.  The  farmers, Farmer Producer Organizations, entrepreneurs, cooperatives, societies, Self Help Groups, Private Companies and State PSUs etc. are eligible to avail financial assistance under these schemes for setting up food processing projects in the country.

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