Lok Sabha Question No. 414 (UNSTARRED), answered on 2017-07-18
Subject: Promotion of Food Processing Industries
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: SHIVAJI ADHALRAO PATIL, SHRIKANT EKNATH SHINDE, DHARMENDRA YADAV, VINAYAK BHAURAO RAUT

## GOVERNMENT OF INDIA

## MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA UNSTARRED QUESTION NO. 414

ANSWERED ON 18 TH JULY, 2017

## PROMOTION OF FOOD PROCESSING INDUSTRIES

## 414. SHRI ADHALRAO PATIL SHIVAJIRAO:

## DR. SHRIKANT EKNATH SHINDE:

SHRI DHARMENDRAYADAV:

SHRI VINAYAKBHAURAO RAUT:

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

- (a)    the details of the steps taken by the Government to promote food processing industries with a view to increase the income of the farmers in the country;
- (b)    whether the Government is aware that a large area of food production has not been included under food processing industry;
- (c)      if  so,  the  details  thereof  along  with  the  details  of  the  State-wise  scheme  prepared  by  the Government in this regard;
- (d)    whether  the  Government  has  signed  any  memorandum  of  understanding  with  foreign countries  to  get  know-how/expertise  and  technologies  to  boost  food  processing  in  the country; and
- (e)   if so, the details thereof and the extent to which it will boost the food processing industries in the country and increase the income of the farmers?

## ANSWER

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

- (a) to  (c): Government  has  approved  a  new  Central  Sector  SchemeKISAN SAMPADA YOJANA (Scheme for Agro-Marine Processing and Development  of Agro-Processing Clusters) with an outlay of Rs. 6,000 crore for the period  2016-20 coterminous with the 14 th Finance Commission cycle to promote food processing in the country.

KISAN SAMPADA YOJANA is an umbrella scheme with the following components:

- (a) Mega Food Parks
- (b) Integrated Cold Chain and Value Addition Infrastructure
- (c) Creation / Expansion of Food Processing & Preservation Capacities
- (d) Infrastructure for Agro-processing Clusters
- (e) Creation of Backward and Forward Linkages
- (f) Food Safety and Quality Assurance Infrastructure
- (g) Human Resources and Institutions

The  schemes  being  implemented  under  the  KISAN  SAMAPADA  YOJANA  are  applicable throughout the country and these are not state specific. The schemes are private sector driven and provide freedom to the entrepreneurs to choose the project location based on availability of raw material, techno-economic feasibility and viability of the project.

The  govt.  has  taken  several  other  steps  to  promote  food  processing  sector  in  the  country.  A Special Fund. of Rs. 2000 Crore has been setup in NABARD  to make available affordable credit to  designated  food  parks  and  agro-processing  units  in  such  designated  food  parks.    Food  and agro-based processing units and cold chain infrastructure have been classified under agriculture activities  for  Priority  Sector  Lending  (PSL)  as  per  the  revised  RBI  Guidelines  issued  on 23/04/2015.

As per extant policy,  Foreign Direct Investment FDI upto 100%, under the automatic route is allowed in food processing industries. Further, 100% FDI is now permitted under Government approval route for trading, including through e-commerce,  in  respect  of food products manufactured and/ or produced in India.

(d) & (e): Ministry of Food Processing Industries has entered into agreements/Memorandum of Understating  (MoUs)  with  France  and  Italy  for  bilateral  co-operation  in  the  field  of  Food Processing Sector.

Salient  features  of  these  agreements/  MoUs  are  (i)  to  attract  investment  for  infrastructure development  of  food  processing  sector,  (ii)  developing  institutional  co-operation,  and  (iii) participation in food fairs, conferences workshops, etc.

In order to have collaboration in technologies, teaching, research and skill development in the food processing sector, Memorandum of Understandings (MoUs) have also been entered with institutions  in  some  countries  by  the  two  institutions  under  the  administrative  control  of  this Ministry  namely  National  Institute  of  Food  Technology  Entrepreneurship  and  Management

(NIFTEM) and Indian Institute of Food Processing Technology (IIFPT).

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