Lok Sabha Question No. 127 (STARRED), answered on 2020-02-11
Subject: Expansion of Food Processing Industries
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: Magunta Sreenivasulu Reddy

## GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA STARRED QUESTION NO. *127

ANSWERED ON 11 TH  February, 2020

## EXPANSION OF FOOD PROCESSING INDUSTRY

## *127.  SHRI MAGUNTA SREENIVASULU REDDY:

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

- (a) the  steps  taken/being  taken  by  the  Government  for  settingup/expansion  of  food  processing industries in the country, as on date, State/UT-wise particularly in Andhra Pradesh;
- (b) whether the Government has conducted any study regarding setting up and expansion of such industries in the country;
- (c) if so, the details thereof; and
- (d) the  other  measures  taken/being  taken  by  the  Government  in  the  current  year  for  expansion  of food processing industries in the country?

## ANSWER

THE MINISTER OF FOOD PROCESSING INDUSTRIES (SMT. HARSIMRAT KAUR BADAL)

- (a) to (d): A statement is laid on the table of the House.

## STATEMENT REFERRED TO IN REPLY TO PART (a) TO (d) OF LOK SABHA STARRED QUESTION NO.  *127  FOR  ANSWER  ON  11.02.2020  REGARDING 'EXPASION  OF  FOOD PROCESSING INDUSTRIES'.

- (a)  For  the  overall  development  of  the  Food  processing  Sector,the  Ministry  of  Food  Processing Industries  is  implementing  a  Central  Sector  Umbrella  Scheme  PRADHAN  MANTRI  KISAN SAMPADA YOJANA - (PMKSY). The scheme components are: (i) Mega Food Parks, (ii) Integrated Cold  Chain  and  Value  Addition  Infrastructure,  (iii)  Infrastructure  for  Agro-processing  Clusters,  (iv) Creation  of  Backward  and  Forward  Linkages  (v)  Creation  /  Expansion  of  Food  Processing  & Preservation Capacities, (vi) Food Safety and Quality Assurance Infrastructure, (vii) Human Resources and  Institutions  and  (  viii)  Operation  Greens.  The  scheme  provides  financial  assistance  for  setting up/expansion of new food processing industries in States/UTs.
- (b)  &  (c)  No  study  has  been  conducted  regarding  setting  up  of  and  expansion  of  food  processing industries in the country.
- (d)  The  following  policy  initiatives  have  been  taken  by  the  government  for  promotion  of  food processing industries in the country.
- 100%  Foreign  Direct  Investment  (FDI)  through  automatic  route  in  manufacturing  of  food products.
- 100% FDI under Government approval route for retail trading, including through e-commerce, in respect of food products produced and/or manufactured in India.
- A  special  fund  of  Rs.2000  crore  in  National  Bank  for  Agriculture  and  Rural  Development (NABARD) has been created to provide affordable credit to food processing projects/units.
- Food & agro-based processing units, cold storage units/cold storage chains  have been brought under the ambit of Priority Sector Lending (PSL).
- 100 percent income tax exemption for profit derived from activities such as post-harvest value addition to agriculture by FPOs' having annual turnover up to Rs.100 crore,
- 100% income tax exemption for new food processing units for a period of five years,
- 100%  deduction  for  capital  expenditure  incurred  on  setting  up  and  operating  of  cold  chain facility  is  allowed  and  concessional  import  duty  is  provided  for  plant  and  machinery  under project imports benefit scheme.

The above scheme benefits and other measures are in operation during the current year i.e. 2019-20.

*****