Lok Sabha Question No. 1989 (UNSTARRED), answered on 2017-03-14
Subject: Employment in FPI
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: DEVJI MANSINGRAM PATEL, VIRENDRA  KUMAR, HARI MANJHI

## GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA

## UNSTARRED QUESTION NO. 1989

ANSWERED ON 14 TH  MARCH, 2017

## EMPLOYMENT IN FPI

## 1989. SHRI DEVJI M. PATEL: DR. VIRENDRA KUMAR: SHRI HARI MANJHI:

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

- (a) whether  there  is  an  ample  potential  and  opportunity  for  growth  of  food  processing industries  and  employment  in  the  food  processing  sector  in  the  country  and  if  so,  the details thereof and the steps taken by the Government in this regard;
- (b) whether labourers are shifting from farming sector towards food processing sector and if so,  the  details  thereof  and  the  steps  taken/being  taken  by  the  Government  to  boost employment opportunities in this sector;
- (c) whether  the  Government  has  set  any  targets  to  increase  turnover  of  food  processing sector and if so, the details thereof and the steps taken by the Government to achieve the targets;
- (d) whether private share is likely to be attracted towards food processing sector during the next ten years and if so, the details thereof; and
- (e) the steps taken/proposed to be taken by the Government to harness the potential of food processing sector in the country?

## ANSWER

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

- (a) Yes,  Madam.  There  is  a  scope  for  growth  of  food  processing  industries  and employment in the food processing sector in the country as India has huge diversified production base  and  low  level  of  processing.  The  level  of  processing  in  perishable  products  in  India  is estimated only at 2.1% in fruits and vegetables, 35% in milk and milk products, 21% in meat, 6% in poultry and 23% in marine. During the last six years ending 2014-15, the employment in registered food processing sector has been increasing at an Average Annual Growth Rate of 2.18 per cent.

(b) & (c) There  is  a  huge  potential  of  creating  off-farm  employment  in  food  processing sector especially in rural areas. To promote growth and employment in the sector the Ministry of food processing  industries  is  implementing  a  number  of  central  sector  schemes  for  promotion and  development  of  food  processing  industries  in  the  country.  This  includes  (1)  Scheme  for Mega Food Parks under which a total of 42 Mega Food Park projects have been approved. (2) Scheme  for  Modern  Abattoirs  under  which  38  Abattoir  projects  have  been  sanctioned.  (3) Scheme for Integrated Cold Chain and Value Addition Infrastructure under which 134 Integrated Cold  Chain  Projects  have  been  sanctioned.  (4)  Scheme  for  Creation/Expansion  of  Food Processing  and  Preservation  under  which  the  committed/spillover  liabilities  of  11 th Plan  are being  liquidated  during  12 th Plan.  (5)  Scheme  for  Quality  Assurance  under  which  101  Food Testing  Laboratories  have  been  approved.  (6)  Scheme  for  Human  Resource  and  Institutions under  which  200  R  &  D  Projects  have  been  assisted  by  this  Ministry.  The  schemes  of  this Ministry are demand driven and not specific to any region or state. Farmers, Farmer Producer Organizations,  Individuals,  Group  of  Entrepreneurs,  Cooperative  Societies,  Self  Help  Groups, NGO's, Central/ State PSU etc. are eligible to avail financial assistance under these schemes for setting  up  food  processing  industries  in  the  country.  The  detailed  guidelines  of  these  schemes having the pattern of financial assistance, eligibility criteria, procedure for approval of projects etc. are available on the Ministry's website at www.mofpi.nic.in.

(d) & (e)     Through the various schemes of this Ministry the private sector is encouraged to make investment in the food processing sector. Under the schemes, grant-in-aid is provided @ 35-50 percent of the eligible project cost in general areas and 50-75 percent in difficult areas and hilly areas i.e., North East Region including Sikkim, J&K, Himachal Pradesh, Uttarakhand and ITDP  notified  areas  of  the  states,  subject  to  a  maximum  limit  as  set  in  each  scheme.  To encourage  the  development  of  food  processing  industries  Government  has  provided  various fiscal incentives in terms of reduction and exemption of taxes. A fund of Rs. 2000 crore has also been constituted with NABARD to provide loans at concessional rate to Mega Food Parks and units  established  therein.  The  food  processing  industry  has  been  included  under  agricultural activity so that it can avail the benefit of priority sector lending. 100% FDI is permitted under the automatic route in food processing industries and through approval route for trading, including through e-commerce in respect of food products manufactured and/or produced in India.

*****