Lok Sabha Question No. 2989 (UNSTARRED), answered on 2018-03-13
Subject: Challenges of Food Processing Sector
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: ANANDRAO  ADSUL, PRITAM GOPINATH MUNDE, VINAYAK BHAURAO RAUT, SHRIKANT EKNATH SHINDE, SHIVAJI ADHALRAO PATIL

## GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA UNSTARRED QUESTION NO.2989

ANSWERED ON 13 TH  MARCH, 2018

## CHALLENGES OF FOOD PROCESSING SECTOR

## 2989.  SHRI ANANDRAO ADSUL: DR. PRITAM GOPINATH MUNDE: SHRI VINAYAK BHAURAO RAUT: DR. SHRIKANT EKNATH SHINDE: SHRI ADHALRAO PATIL SHIVAJIRAO:

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

- (a) whether the Government is focusing on areas such as modern machines/technology and bio-degradable packaging to overcome the challenges that are being faced by the food processing sector and to promote its growth;
- (b) if so, the details thereof;
- (c) whether the food processing sector is facing non-availability of credit related facilities;
- (d) if so, the steps taken by the Government to resolve issues related to credit availability to the industry; and
- (e) whether there is a need to work on improving infrastructure for food processing sector to increase exports, reduce wastage and supply the products in every nook and corner of the country and if so, the steps taken by the Union Government in this regard?

## ANSWER

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

(a) & (b): For overall growth and development of the food processing industries emphasis has been given, inter alia, on modern machines and technology including improved packaging of the food products. The Ministry of Food  Processing Industries (MoFPI)  has been implementing  its  Research  and  Development  (R&D)    scheme  with  the  objective  that  the  end products/outcome/findings  of  R&D  work  benefits  the  food  processing  industries  in  terms  of product  and  process  development,  improved  preservation,  packaging,  storage  and  distribution technologies, value addition, standardization of additives, coloring agents, preservatives, pesticide residues etc. with focus on enchantment of production, quality, consumer safety, public health and trade. Since Tenth Five Year plan and till date a total of 200 number of R&D projects have been financed by MoFPI  to Science and Engineering Research Board (SERB) under the Ministry  of  science  and  technology  to  get  the  research  conducted.  Of  the  220  projects,  151 projects  have  been  completed  and  49  are  ongoing  projects.  According  to  Indian  Institute  of Packaging (IIP), Department of Commerce, Ministry of Commerce & Industry, bio-degradable packaging materials have got poor barrier properties against moisture and oxygen gas. Due to this fact, bio- degradable packaging materials, if uses for processed food products, in that case, product  will  have  limited  shelf  life  as  most  of  the  processed  food  products  do  need  barrier properties  against  moisture  and  oxygen  gas.  The  hygroscopic  food  products  like  bakery  items and spices do require less permeation of moisture to avoid lumpy formation, sogginess and fatty foods like Snack foods, Cashew nuts etc which need moisture as well as oxygen barrier to avoid hydrolytic as well as oxidative rancidity resulting into change in taste like bitter and thus reduce the shelf life of processed food products. However, the efforts are being taken through R & D by introducing nano-technology to improve upon the barrier properties .

(c) & (d): A special fund of Rs.2000 crore has been created in National Bank for Agriculture & Rural Development (NABARD) by Reserve Bank of India in 2014-15 for providing affordable credit to designated Food Parks and Agro Processing Units located in the designated Food Parks. The Ministry of Food Processing Industries has notified 176 designated Food Parks in various states  for  the  purpose  of  availing  credit  from  this  fund.  Also,  Loans  to  food  &  agro-based processing  units  and  Cold  Chain  have  been  classified  under  agriculture  activities  for  Priority Sector Lending as per the revised RBI Guidelines issued on 23/04/2015 which facilitates availing of affordable credit under these activities.

(e): 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  Parks;  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  Backward  and Forward 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 with a view to, inter alia, reduce wastage, improve the supply position of quality food products  to  various  locations  and  thereby  increase  the  exports.  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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