Lok Sabha Question No. 2183 (UNSTARRED), answered on 2018-07-31
Subject: Funds for Exporting Agro Products
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: CHHOTELAL

## GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA UNSTARRED QUESTION NO. 2183

ANSWERED ON 31 ST  JULY, 2018

## FUNDS FOR EXPORTING AGRO PRODUCTS

## 2183 .   SHRI CHHOTE LAL :

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

- (a) whether it is a fact that the country is the world's second largest producer of rice, wheat, fish, fruits and vegetables and the largest producer of milk;
- (b) if  so,  the  manner  in  which  the  Government  has  taken  advantage  of  this  favourable scenario in the Food Processing Sector; and
- (c) whether the Government has been infusing the necessary capital to export the aforesaid agro-products or depending on private partnerships?

## ANSWER

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

- (a): Yes, Madam.

(b): The Government is seized of the level of agricultural production in the country and taking all  out  measures  to  promote  food  processing  and  value  addition  activities  with  the  major objectives to increase processing level of agricultural produces, reduce harvest and post-harvest losses, increase employment opportunities and raise income level of farmers. For overall growth and development of food processing sector, Ministry of Food Processing Industries (MoFPI) has been providing capital subsidy under its central sector scheme, 'PRADHAN MANTRI KISAN SAMPADA YOJANA (PMKSY)' to create robust modern infrastructure and logistic network along the entire value/supply chain of food processing. Besides, capital subsidy is also provided for setting up of food processing units and/or expansion thereof. Under the scheme components of PMKSY  viz.  (i)  Mega  Food  Park;  (ii) Integrated  Cold  Chain  and  Value  Addition Infrastructure;  (iii)  Infrastructure  for  Agro-Processing  Clusters;  (iv)  Creation  of  Forward  and Backward Linkages; (v) Creation/ Expansion of  Food Processing & Preservation Capacities; (vi) Food Safety and Quality Assurance Infrastructure; and (vii) Human Resources and Institutions, capital  subsidy  ranging  from  35%  to  75%  of  the  eligible  project  cost  subject  to  a  maximum subsidy  ranging  from  Rs.5  crore  to  Rs.50  crore   (under  most  of  the  scheme)  in  the  form  of grants-in-aid are provided. Farmers, Farmers Producer Organizations (FPOs), Entrepreneurs, Cooperatives Societies, Self Help Groups, Private Companies and Central/State PSUs are eligible to avail grant to set up food processing projects.

To attract Foreign Direct Investment (FDI) into the food processing sector, Government has permitted 100% FDI through automatic route in manufacturing of food products. Also, 100% FDI in  food  retail,  including  through  e-commerce,  under  Government  approval  route  has  been permitted for retail trading of food products produced and/or manufactured in India.

Besides, to  further  give  leverage  to  investment  in  the  sector,  a  special  food  processing fund  of   Rs.  2,000/-  crore  has  been  created  with  National  Bank  for  Agriculture  and  Rural Development  (NABARD)  for  availability  of  hassle-free  and  affordable  bank  credit  to  set  up different food processing projects.     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.

(c): Ministry  of  Commerce  &  Industry  (MOC&I)  launched  the  Trade  Infrastructure  for Export  Scheme  (TIES)  in  the  year  2017.  The  objective  of  this  scheme  is  to  enhance  export competitiveness by bridging gaps in export infrastructure, creating focused export infrastructure, first  mile  and  last  mile  connectivity  for  export-oriented  projects  and  addressing  quality  and certification measures. The Central and State Agencies etc. are eligible for financial support under this scheme.   The Financial Assistance under Agriculture and Processed Food Export Promotion Scheme  of  Agriculture  and  Processed  Food  Export  Development  Authority  (APEDA)  is  the Medium Term Expenditure Framework for the period from 2017-18 to 2019-20. The scheme is available to private exporters for export development of Agricultural and Processed food products. Financial assistance is provided for Development of Export Infrastructure, Quality Development and Market Development.

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