Lok Sabha Question No. 3165 (UNSTARRED), answered on 2017-03-21
Subject: Programme for Food Processing Industries
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: VINAYAK BHAURAO RAUT, ANANDRAO  ADSUL, Shrirang Appa Barne, SHRIKANT EKNATH SHINDE

## GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA

## UNSTARRED QUESTION NO. 3165

ANSWERED ON 21 ST  MARCH, 2017

## PROGRAMME FOR FOOD PROCESSING INDUSTRIES

## 3165.   SHRI VINAYAK BHAURAO RAUT: SHRI ANANDRAO ADSUL: SHRI SHRIRANG APPA BARNE: DR. SHRIKANT EKNATH SHINDE:

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

- (a) whether the country's food processing sector is a small scale and unorganised sector and if so, the details thereof;
- (b) whether the country's food processing sector lacks access to credit, marketing network, efficient tool/ technology and managerial knowledge and if so, the details thereof and the response of the Government thereto;
- (c) whether this sector needs targeted programmes to improve access to credit, technology, market and productivity, if so, the details thereof along with the assistance provided for procurement  of  machineries,  credit,  technical  advice  on  productivity  improvement  and machinery selection and trainings on adopting standardized processing system; and
- (d) whether employment intensity in the food processing sector is higher as compared to that of organised sectors for the same level of investment and if so, the details thereof?

## ANSWER

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

- (a) The country's food processing sector  is  both  organized  and  unorganized.  As  per  latest Annual  Survey  of  Industries:  2014-15,  the  total  number  of  factories  in  the  registered  food processing sector in the country was 38, 594.  As per the NSSO 67 th Round, 2010-11, the number of food processing industries in unorganized sector was 22,41,192.
- (b)  &  (c)  Ministry  of  Food  Processing  Industries  is  implementing  central  sector  schemes  for upgradation  of  technology.  A  fund  of  Rs.  2000  crore  has  been  constituted  with  NABARD  to provide loans at concessional rate to designated Food Parks and units established therein. Loans to  food & agro-based processing units and Cold Chain have been classified under Agriculture activities for Priority Sector lending. Under the Scheme  for Technology Upgradation/ Establishment/ Modernization of Food Processing Industries implemented during 11 th Plan, the

financial  assistance  has  been  provided  for  setting  up  of  new  food  processing  units  as  well  as Technology  Upgradation  and  Expansion  of  existing  units.  This  scheme  was  subsumed  in  the Centrally Sponsored Scheme (CSS)-National Mission on Food Processing (NMFP) with effect from  01.04.2012.  The  said  scheme  got  delinked  from  Government  of  India's  assistance  with effect  from  31.03.2015.  The  committed/spillover  liabilities  of  11th  Plan  are  being  liquidated during 12th Plan under the said scheme as per availability of funds and merits of proposals. To encourage  the  development  of  food  processing  industries  Government  has  provided  various fiscal  incentives.  The  Government  has  reduced  excise  duty  on  food  processing  and  packaging machinery from 10% to 6%; Excise Duty on refrigerated containers from 12.5% to 6% and Basic Custom  Duty  on  refrigerated  containers  from  10%  to  5%.  The    Government  has  extended concessional 5% Basic Custom Duty under project import for cold storage, cold room including pre-cooling unit, pack house, sorting & grading lines and ripening chambers under cold chain projects. The  National Institute  of  Food  Technology  Entrepreneurship  and  Management (NIFTEM) and Indian Institute of Crop Processing Technology (IICPT) under Ministry of Food Processing  Industries  are  conducting  regular  programmes  /  courses  on  skill  development  and entrepreneurship for the youth, farmers, self help groups and industry on self financing mode and also sponsored programmes by various organizations including PMKVY.

(d) As per the Annual Survey of Industries 2014-15 conducted by Central Statistical Office, Ministry of Statistics and Programme Implementation, number of persons engaged in registered food processing industries was 17.73 lakh and that of the manufacturing sector was 138.81 lakh.

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