Lok Sabha Question No. 3818 (UNSTARRED), answered on 2019-07-16
Subject: Food Processing Industries
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: Nihal Chand Chauhan, Rajendra Agrawal

## GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA

## UNSTARRED QUESTION NO. †3818

ANSWERED ON 16 TH  JULY, 2019

## FOOD PROCESSING INDUSTRIES

## †3818. SHRI NIHAL CHAND: SHRI RAJENDRA AGRAWAL:

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

- (a) the details of the progress made in establishment/expansion of food processing industries in various States/UTs of the country including Rajasthan during the last two years; and
- (b) the  steps/remedial  measures  taken  by  the  Union  Government  for  expansion  of  food processing industries in the country along with the progress made therein and the outcome thereof?

## ANSWER

## THE MINISTER OF STATE FOR FOOD PROCESSING INDUSTRIES (SHRI RAMESWAR TELI)

(a): The Ministry of Food Processing Industries (MoFPI) is implementing the Central Sector Umbrella  Scheme-  PRADHAN  MANTRI  KISAN  SAMPADA  YOJANA  (PMKSY)  for establishment / expansion of food processing industries across the country including in the State of Rajasthan.  Under the scheme components of PMKSY viz: (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, capital subsidy in the form of grant-in-aid is provided for setting up of food processing industries. The Ministry is also implementing the scheme "Operation Greens" as a vertical  of PMKSY since November, 2018 for integrated development of value/supply chain of tomato, onion and potato (TOP) crops in selected States on pilot basis. A Statement indicating State/UT-wise number of projects approved under these schemes of PMKSY including Rajasthan during the last two years is at Annexure.

(b): In  addition  to  the  implementation  of  various  central  sector  schemes  under  PMKSY, Government has taken a number of policy initiatives/steps/measures to attract investment in the sector for establishment and expansion of food processing industries in the country that include: permitting 100% FDI through automatic route in manufacturing of food products and 100% FDI under Government approval route for trading, including through ecommerce, in respect of food products produced and/or manufactured in India, Creation of a special fund of ₹ 2000 crores in National Bank for Agriculture and Rural Development (NABARD) to provide affordable credit to food processing industries, classification of food & agro-based processing units and cold chain infrastructure as agricultural activity for Priority Sector Lending (PSL), lower Goods & Services Tax (GST) rates for majority of food products, 100% exemption of income tax on profit for new food processing units, 100 percent  income  tax  exemption  from profit derived by FPOs having annual turnover of Rs.100 crore for activities such as post-harvest value addition to agriculture,  100% deduction of expenditure incurred on investment on establishment and operation of cold chain/warehousing facility for storage of agricultural produce, concessional import duty for plant and machinery under project imports benefit scheme, import duty exemption on import of raw material under advance authorization scheme.

By 2016-17, a total 39, 748 number of food processing units/factories have been set up with invested  capital  of  Rs.4,17,690.89  crore  as  per  the  Annual  Survey  of  Industries,  Ministry  of Statistics and Programme Implementation.

ANNEXURE  REFERRED  TO  IN  REPLY  TO  PART  (a)  OF  LOK  SABHA UNSTARRED  QUESTION  NO.  †3818  FOR  ANSWERED  ON  16 TH   JULY,  2019 REGARDING FOOD PROCESSING INDUSTRIES

A  Statement  indicating  State/UT-wise  number  of  Food  Processing  Projects  approved under the schemes of PMKSY including Rajasthan during the last two years.

| Sl. No.   | Name of State/UTs       |   MFP |   Cold Chain |   Unit |   Scheme Agro Clusters |   Processing Backward & Forward Linkages |
|-----------|-------------------------|-------|--------------|--------|------------------------|------------------------------------------|
| 1         | ANDAMAN &NICOBAR ISLAND |     0 |            1 |      0 |                      0 |                                        0 |
| 2         | ANDHRA PRADESH          |     0 |           18 |      0 |                      1 |                                        1 |
| 3         | ARUNACHAL PRADESH       |     0 |            1 |      0 |                      0 |                                        0 |
| 4         | ASSAM                   |     0 |            0 |      2 |                      1 |                                        0 |
| 5         | BIHAR                   |     0 |            1 |      0 |                      1 |                                        0 |
| 6         | CHHATTISGARH            |     0 |            0 |      2 |                      0 |                                        1 |
| 7         | GOA                     |     0 |            0 |      1 |                      0 |                                        0 |
| 8         | GUJARAT                 |     1 |           12 |      9 |                      2 |                                        7 |
| 9         | HARYANA                 |     1 |            5 |     11 |                      5 |                                        1 |
| 10        | HIMACHAL PRADESH        |     0 |            5 |      9 |                      1 |                                        2 |
| 11        | JAMMU &KASHMIR          |     0 |            2 |     12 |                      1 |                                        3 |
| 12        | KARNATAKA               |     1 |            9 |      8 |                      5 |                                        4 |
| 13        | KERALA                  |     0 |            6 |      4 |                      0 |                                        2 |
| 14        | MADHYA PRADESH          |     0 |            2 |      7 |                      4 |                                        1 |
| 15        | MAHARASHTRA             |     0 |           39 |     19 |                      8 |                                       13 |
| 16        | MANIPUR                 |     0 |            1 |      1 |                      1 |                                        1 |
| 17        | MEGHALAYA               |     0 |            0 |      1 |                      0 |                                        0 |
| 18        | MIZORAM                 |     0 |            0 |      1 |                      0 |                                        0 |
| 19        | NAGALAND                |     1 |            2 |      4 |                      0 |                                        0 |
| 20        | ODISHA                  |     0 |            1 |      2 |                      0 |                                        0 |
| 21        | PUDDUCHERY              |     0 |            0 |      0 |                      1 |                                        0 |
| 22        | PUNJAB                  |     0 |            8 |      4 |                      2 |                                        4 |
| 23        | RAJASTHAN               |     0 |            6 |      7 |                      1 |                                        6 |
| 24        | TAMIL NADU              |     0 |            8 |     17 |                      0 |                                        8 |
| 25        | TELEANGANA              |     0 |            6 |      0 |                      1 |                                        1 |
| 26        | UTTAR PRADESH           |     2 |           16 |     18 |                      4 |                                        6 |
| 27        | UTTARAKHAND             |     0 |           10 |      5 |                      1 |                                        2 |
| 28        | WEST BENGAL             |     0 |            4 |      3 |                      0 |                                        1 |
|           | TOTAL                   |     6 |          163 |    147 |                     40 |                                       64 |