Lok Sabha Question No. 3005 (UNSTARRED), answered on 2017-03-21
Subject: Processing of Meat
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: VIKRAM USENDI

## GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA UNSTARRED QUESTION NO. 3005 ANSWERED ON 21 ST  MARCH, 2017

## PROCESSING OF MEAT

## 3005. SHRI VIKRAM USENDI:

Will the MINISTER OF FOOD PROCESSING INDUSTRIES be pleased to state:

- (a) the details of the types of meat produced, processed and being exported in the country at present;
- (b) whether any subsidy is being provided by the Government in this regard;
- (c) if so, the details thereof and the amount provided as subsidy during the last three years;
- (d) whether the Government proposes to withdraw this subsidy; and
- (e) if so, the details thereof?

## ANSWER

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

(a):  The meat products produced, processed in the country includes canned luncheon meat, canned cooked ham, canned chopped meat, canned chicken, canned mutton & goat meat and frozen mutton, chicken, goat and buffalo meat, etc.

As per Agricultural and Processed Food Products Export Development Authority (APEDA), which  regulates  export  of  agricultural  processed  food  products  (including  meat  and  meat products),  the  export  of  beef  is  prohibited  and  not  allowed  for  export  under  the  existing Foreign  Trade  Policy.  However,  boneless  buffalo  meat and  sheep  and  goat  meat  is  freely allowed subject to fulfillment of the conditions stipulated under the Policy. Following types of Meat is being exported from India:

- (1)Boneless Buffalo Meat,

(2) Sheep & Goat Meat,

(3) Processed Meat and

(4) Poultry Meat

(b) & (c): Details of the subsidy being provided by the Government of India under different schemes of different Ministries and Organisations for meat production, processing and export and the amount of such subsidy given during the last three years under these schemes is given below:

## I Ministry of Food Processing Industries (MoFPI)

(i) Ministry of Food Processing Industries is implementing a Plan Scheme since 2008-09 for  Setting  up/Modernisation  of  Abattoirs  under  which  grant-in-aid  is  given  to  Local Bodies/Public Sector Undertakings/Cooperatives/Boards under Government for establishment of modern abattoirs and modernisation of existing abattoirs.

The scheme envisages a grant of 50% in general areas and 75% in difficult areas for cost of Plant  and  Machinery  and  Technical  Civil  Work  and  other  eligible  items  subject  to  a maximum  of  Rs.15.00  crore  per  abattoir.  Difficult  areas  include  North  Eastern  States including  Sikkim,  Jammu  &  Kashmir,  Himachal  Pradesh,  Uttarakhand  and  ITDP  notified areas of the States.

The details of subsidy/grant released during last 3 years are as under:

| Sr. No.   | Year    |   Amount (Rs. Crore) |
|-----------|---------|----------------------|
| 1.        | 2013-14 |                25.8  |
| 2.        | 2014-15 |                10.61 |
| 3.        | 2015-16 |                27.71 |
|           | Total   |                64.12 |

(ii)  Ministry  of  Food  Processing  Industries  had  also  implemented  a  Central  Sector Scheme  for  Technology  Upgradation/Modernization/  Establishment  of  Food  Processing Industries including meat processing. This scheme is now being implemented for spill over liabilities of the 11th plan. Proposals received up to 31.03.2012 are being processed by the Ministry under the Central Sector Scheme. Under this scheme financial assistance is provided for  setting  up/  modernization/  expansion  of  food  processing  industries  including  meat  & poultry processing industries in the country. The scheme envisages a grant of 25% in general areas  and  33.33% in difficult  areas  for  the  cost  of  plant  and  machinery  and  technical  civil work and other eligible items subject to maximum of Rs.50 lakh per unit in general areas and Rs. 75 lakh per unit in difficult areas including North eastern states including Sikkim, Jammu &  Kashmir,  Himachal  Pradesh,  Uttarakhand  and  ITDP  notified  areas  of  the  States.  This Scheme  was  subsumed  under  the  Centrally  Sponsored  of  National  Mission  on  Food Processing with effect from 1.04.2012. However, the centrally sponsored scheme of NMFP has been delinked from Central support from Financial Year 2015-16 and it was left to the State  Governments  to  decide  on  its  continuance  from  their  increased  resources  as  per recommendation of 14 th Finance Commission.

Grants-in-Aid  to  Meat  &  Poultry  Sector  during  2013-14,  2014-15  and  2015-16  under  the Scheme for Technology Upgradation/Modernization /Establishment under committed liabilities of 11th Plan:

| Sr. No.   | Year    |   Amount (Rs. Crore) |
|-----------|---------|----------------------|
| 1.        | 2013-14 |                 4.89 |
| 2.        | 2014-15 |                 4.38 |
| 3.        | 2015-16 |                 1.57 |
|           | Total   |                10.84 |

## II. Agricultural  and  Processed  Food  Products  Export  Development  Authority (APEDA) under Ministry of Commerce & Industry.

Agricultural  and  Processed Food Products Export Development Authority (APEDA) under Ministry of Commerce & Industry is implementing Agricultural Export Promotion Scheme during XII plan Period. Financial assistance is provided to all registered exporters. As regards the meat exporters the following assistance is available:

- (1) Infrastructure  Development: Financial  assistance  is  provided  to  the  exporters  for purchase  of  specialized  transport  units  for  maintaining  cold  chain  during  transportation  of meat and for setting up of Effluent Treatment Plant (ETP).
- (2) Quality Development: Financial assistance is provided to the exporters for setting up of in-house lab and implementation of quality assurance system such as HACCP and ISO.

Development of quality  standards  for  meat  and  meat  product  and  R&D  activities  are  also undertaken under the component.

- (3) Transport  Assistance :  This  was  being  extended  for  export  of  meat  to  West  African countries till 31.12.2013 and has since been withdrawn w.e.f. 1.1.2014 vide Department of Commerce letter dated 5.9.2014. The objective of the component is to mitigate high transport cost.

Total subsidy provided to Meat Exporters in last 3 years is as below:

| Rs. In Crore                                                                          | Rs. In Crore   | Rs. In Crore   | Rs. In Crore   |
|---------------------------------------------------------------------------------------|----------------|----------------|----------------|
| Name of the Components                                                                | 2013-14        | 2014-15        | 2015-16        |
| Development of Infrastructure (Specialized Transport Vehicle for meat products)       | 0.00           | 0.00           | 0.00           |
| Quality &Quality Control (In-house laboratory&HACCP implementation for meat products) | 0.06           | 0.26           | 0.07           |
| Transport Assistance for meat Products                                                | 14.61          | 3.71*          | 3.32           |
| Grand Total                                                                           | 14.67          | 3.97           | 3.39           |

- (d)  &  (e):    The  Central  Sector  Scheme  for  Setting  up/  Modernization  of  Abattoir  was transferred to the State Governments for implementation under the Centrally Sponsored Scheme  of  National  Mission  on  Food  Processing  (NMFP)  with  effect  from  1.04.2014. Proposals received up to 31.03.2014 are being processed by the Ministry under the Central Sector  Scheme.  Fresh  proposals  with  effect  from  01.04.2014  are  to  be  submitted  to  State Governments. However, the Centrally Sponsored Scheme of NMFP has been delinked from Central support from Financial Year 2015-16.

The Central Sector Scheme for Technology Upgradation/Modernization/ Establishment of Food Processing Industries was subsumed under the Centrally Sponsored of National  Mission  on  Food  Processing  (NMFP)  with  effect  from  1.04.2012.  However,  the centrally sponsored Scheme of NMFP has been delinked from Central support from Financial Year 2015-16 and it was left to the State Governments to decide on its continuance from their increased resources as per recommendation of 14 th Finance Commission.

Transport subsidy which was being extended by APEDA for export of buffalo meat to West Africa only has been withdrawn w.e.f. 1.1.2014.

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