Lok Sabha Question No. 2454 (UNSTARRED), answered on 2018-01-02
Subject: Supply Chain in Food Processing Sector
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: DUSHYANT SINGH, HEMANT TUKARAM GODSE

## GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA UNSTARRED QUESTION No. 2454 ANSWERED ON 02 ND  JANUARY, 2018

## SUPPLY CHAIN IN FOOD PROCESSING SECTOR

## 2454.  SHRI DUSHYANT SINGH: SHRI GODSE HEMANT TUKARAM:

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

- (a) whether the Government has taken any steps like contract farming to deal with long and fragmented supply chain in the food processing sector and if so, the details thereof and if not, the reasons therefor;
- (b) whether the Government has devised any strategic plan to attract private investments in the sector under the Public Private Partnership (PPP) mode and if so, the details thereof and if not, the reasons therefor;
- (c) whether the Government has launched any scheme for human resource development / skill development to address the issue of skill gap in the food processing sector in the country, if so, the details thereof along with food processing training centres set up and financial assistance sanctioned, released and utilized for the purpose during each of the last three years and the current year, State-wise;
- (d) whether the Government has received any complaints with regard to misappropriation of funds in these centres; and
- (e) if so, the details thereof and the action taken by the Government in this regard?

## ANSWER

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

(a): Agriculture  marketing  is  a  subject  under  State  regulation.  However,  in  order  to  assist  the States in liberalizing the agriculture market, to provide better access to farmers for marketing of their produce, Department of Agriculture, Cooperation & Farmers' Welfare had provided a model Agricultural Produce Market Committee (APMC) Act, 2003 for adoption by States as agriculture marketing is a state subject. Model APMC Act, 2003 provides for contract farming provision. 21 States  have  adopted  contract  farming  provision  in  their  APMC  Act  and  Government  of  Punjab has  legislated  a  separate  Contract  Farming  Act, 2013,  which  helps  contract  sponsors  including food processing industry to enter into contract agreement with farmers for agriculture produce.

(b): The Ministry of Food Processing Industries does not envisage private investments in the food processing sector under the Public Private Partnership (PPP) mode. However, Ministry of Food Processing  Industries  is  implementing  an  umbrella  scheme  'PRADHAN  MANTRI  KISAN SAMPADA YOJANA' (PMKSY) with an allocation of Rs.6,000 Crore for the period 2016-20 coterminous  with  the  14 th Finance  Commission  cycle  for  promotion  and  development of  Food Processing Sector in the Country. Under the PMKSY  following are the Central Sector Schemes:

- i. Scheme for mega Food Parks;
- ii. Scheme for Integrated Cold Chain and Value Addition Infrastructure;
- iii. Scheme for Creation / Expansion of Food Processing & Preservation Capacities;
- iv. Scheme for Infrastructure for Agro-processing Clusters;
- v. Scheme for Creation of Backward and Forward Linkages;
- vi. Scheme for Food Safety and Quality Assurance Infrastructure; and
- vii. Scheme for Human Resources and Institutions

(c): Under  the  PMKSY  the  Ministry  has  launched  a  new  sub-scheme  i.e.  Scheme  for  Human Resources and Institution - Skill Development (SHRISD) for assisting skilling infrastructure and Development  of  Course  Curriculum  with  a  budget  outlay  of  Rs.27.50  Crore  from  2017-18  to 2019-20.

The Scheme has Following two Components:-

1. Development  of  Course  Curriculum  /  Training  Module  in  English,  Hindi and translation  of  the  same  in  recognized  regional  languages  based  on  the  Qualification Packs  (QPs)  validated  by  National  Skill  Development  Corporation(  (NSDC)  as National Occupational Standards.

Grants-In-Aid is provided to the eligible Institutions upto a maximum of  Rs.5.00 lakh per QP for development of training module both in print and Multi media for each job role and, up to a maximum of Rs. 0.50 lakh per QP is provided for the translation of already  developed  training  modules  in  recognized  regional  languages  as  per  8 th schedule.

2. Establishing Training Centre (TC) / Expansion of Existing Training Centre to   impart skill/ training on various job roles in food processing as per National Skill Qualification Frame work (NSQF).

Grants-In-Aid is provided at the rate of 50% of cost of plant & machineries required for  a  National  Skills  Qualifications  Framework  (NSQF)  validated  training  module subject to maximum of Rs. 15 lakh per training module and limited to maximum two training modules per Training centre(TC).

Following Institutions / organizations are eligible to apply under the scheme-

- i. Recognized  Central  /  state  /  Deemed  Universities  or  its  Department  of  Food Processing Technology.
- ii. Colleges  /  Institutions  of  Food  Technology,  affiliated  with  central  /  state  Govt. Universities.
- iii. Govt. approved Industrial Training Institutes (ITIs),
- iv. NABL accredited Food Labs,
- v. Training  Centers  affiliated  to  or  accredited  with  Food  Industry  Capacity  Skill Initiative  (FICSI),  National  Skill  Development  Agency  (NSDA)  or  State  Skill Councils.

Ministry has finalized detailed Guidelines for the Scheme and has invited proposals  from eligible and interested Institutions / organizations.

(d) & (e): No. Not applicable.

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