Lok Sabha Question No. 2499 (UNSTARRED), answered on 2019-07-09
Subject: Agro-Processing Sector
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: K. Subbarayan

## GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA UNSTARRED QUESTION NO. 2499

ANSWERED ON 9 TH  JULY, 2019

## AGRO-PROCESSING SECTOR

## 2499. SHRI SUBBARAYAN K.:

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

- (a) whether  it  is  a  fact  that  huge  opportunities  in  the  agro-processing  sector  are  not exploited properly and the rate of both private and public investment in this sector of industry is very low;
- (b) if so, the remedial measures proposed to be taken to improve this sector; and
- (c) whether the Government is considering a proposal to remove the Essential Commodities Act and Agricultural Produce Marketing Committee (APMC) which are considered  to  be  hurdles  in  developing  the  agro-processing  sector,  if  so,  the  details thereof?

## ANSWER

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

(a) & (b): To exploit the huge untapped potential and opportunities in the food processing sector by  leveraging  private  investment  in  the  creation  of  supportive  infrastructure  and  logistics requirement along the entire value/supply chain of the food processing, the Ministry of Food Processing  Industries  (MoFPI)  is  implementing  Pradhan  Mantri  Kisan  Sampada  Yojana (PMKSY) with the following scheme components to invest Rs.6000 crore during the entire Fourteenth Finance Commission period:

1. Mega Food Parks;
2. Integrated Cold Chain and Value      Addition Infrastructure;
3. Creation / Expansion of Food      Processing & Preservation Capacities;
4. Infrastructure for      Agro-processing Clusters;
5. Creation of Backward and      Forward Linkages;
6. Food Safety and Quality      Assurance Infrastructure; and
7. Human Resources and      Institutions

The Ministry is also implementing the scheme "Operation Greens" as a vertical of PMKSY since  November, 2018 to invest Rs.500 crore for integrated development of value chain of tomato, onion and potato (TOP) crops.

The  other  steps/measures    taken  to  boost  the  growth  of  food  processing  sector  in  the country are: 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 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, concessional import duty for plant and machinery under project imports benefit scheme, import duty exemption on import of raw material under advance authorization scheme  etc.

(c): The  Ministry  of  Consumer  Affairs,  Food  &  Public  Distribution  (Department  of Consumer  Affairs)  has  not  considered  removal  of  Essential  Commodities  Act,  so  far.  The Ministry  of  Agriculture  &  Farmers  Welfare  (DAC  &  FW)  has  no  proposal  to  remove  the Agricultural  Produce  Market  Committee.  However,  in  order  to  provide  better  marketing facilities to the farmers, the Government has released a new model "The Agricultural Produce and Livestock Marketing (Promotion & Facilitation) Act, 2017" in April 2017 for its adoption by States/ UTs. The Provisions therein provide for better Marketing channels such as setting up of private markets, direct marketing, farmer-consumer markets, special commodity markets, to facilitate farmers in marketing their produce at competitive & remunerative prices. This will help in strengthening Agriculture Produce Marketing Committee in making them efficient.

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