Lok Sabha Question No. 3447 (UNSTARRED), answered on 2019-01-01
Subject: Lack of Food Processing Industries
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: POONAMBEN HEMATBHAI MAADAM

## GOVERNMENT OF INDIA

## MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA

## UNSTARRED QUESTION NO. 3447

ANSWERED ON 01 ST  JANUARY, 2019

## LACK OF FOOD PROCESSING INDUSTRIES

## 3447.   SHRIMATI POONAMBEN MAADAM:

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

- (a) whether farmers are facing losses due to lack of sufficient Food Processing Industries (FPIs) in the country;
- (b) if so, the details thereof;
- (c) whether  the  Government  has  sought  help  from  developed  nations  to  establish  food processing industries and if so, the details thereof, country-wise;
- (d) the amount of assistance provided by these countries to develop food processing industries in the country; and
- (e) the  steps  taken/proposed  to  be  taken  by  the  Government  to  establish  food  processing industries under Public-Private Partnership mode?

## ANSWER

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

(a) & (b):   As per a study, 'Assessment of Quantitative Harvest and Post-Harvest Losses of Major Crops and Commodities in India' by Central Institute of Post-Harvest Engineering and Technology (CIPHET),  Ludhiana,  the  estimated annual  value  of  harvest  and  post-harvest  losses  of  major agricultural produces at national level was Rs. 92,651 crores. The study was based on production data of 2012-13 and wholesale prices of 2014.

(c)  &  (d):    The  Government  has  allowed  100%  Foreign  Direct  Investment  (FDI)  in  the  food processing sector through automatic route subject to applicable laws/sectoral rules/regulations/security conditions. Also, 100% FDI with Government approval for retail trading, including  through  e-commerce,  is  allowed  for  food  products  manufactured  and/or  produced  in India.

The food processing industries sector in the country has received US$ 904.90 million worth of  Foreign  Direct  Investment  (FDI)  equity  inflows  during  2017-18.  The  country-wise  Foreign Direct Investment (FDI) equity inflows received in food processing industries sector in the country during 2017-18 are at Annexure .

(e):         The Ministry of Food Processing Industries (MoFPI) does not set up any food processing industries/units/projects  on  its  own.  It  provides  financial  assistance  in  the  form  of  grants-in-aid under  component  schemes  of  Pradhan  Mantri  Kisan  SAMPADA  Yojana  (PMKSY)  to  the individuals, Farmer Producer Organizations (FPOs), entrepreneurs, cooperatives, Self Help Groups (SHGs),  Private  Companies  and  central/State  PSUs  etc.  for  setting  up  of  food  processing industries/units/projects.

*****

ANNEXURE  REFERED  TO  IN  REPLY  TO  PART  (c)  AND  (d)  OF  LOK  SABHA UNSTARRED  QUESTION  NO.  3447  FOR  ANSWERED  ON  01 ST   JANUARY,  2019 REGAREDING  LACK OF FOOD PROCESSING INDUSTRIES

Statement on Country-wise FDI Equity Inflows in Food Processing Industries Sector during 2017-18.

| S.No                                                         | Name of the Country                                          | Amount of Foreign Direct Investment Inflows                  |
|--------------------------------------------------------------|--------------------------------------------------------------|--------------------------------------------------------------|
| 1                                                            | Singapore                                                    | 211.05                                                       |
| 2                                                            | Mauritius                                                    | 177.11                                                       |
| 3                                                            | South Korea                                                  | 162.39                                                       |
| 4                                                            | Japan                                                        | 77.39                                                        |
| 5                                                            | Netherlands                                                  | 61.55                                                        |
| 6                                                            | British Virginia                                             | 50.25                                                        |
| 7                                                            | Luxembourg                                                   | 48.24                                                        |
| 8                                                            | U.S.A                                                        | 46.14                                                        |
| 9                                                            | Spain                                                        | 14.07                                                        |
| 10                                                           | Cyprus                                                       | 8.55                                                         |
| 11                                                           | Italy                                                        | 6.81                                                         |
| 12                                                           | UAE                                                          | 5.85                                                         |
| 13                                                           | Cayman Islands                                               | 5.61                                                         |
| 14                                                           | Kuwait                                                       | 5.51                                                         |
| 15                                                           | Denmark                                                      | 5.50                                                         |
| 16                                                           | Switzerland                                                  | 4.25                                                         |
| 17                                                           | East Africa                                                  | 3.86                                                         |
| 18                                                           | Taiwan                                                       | 2.64                                                         |
| 19                                                           | Indonesia                                                    | 2.21                                                         |
| 20                                                           | Belgium                                                      | 1.66                                                         |
| 21                                                           | Israel                                                       | 0.67                                                         |
| 22                                                           | Tunisia                                                      | 0.63                                                         |
| 23                                                           | China                                                        | 0.50                                                         |
| 24                                                           | Canada                                                       | 0.48                                                         |
| 25                                                           | Australia                                                    | 0.38                                                         |
| 26                                                           | Malaysia                                                     | 0.30                                                         |
| 27                                                           | United Kingdom                                               | 0.26                                                         |
| 28                                                           | NewZealand                                                   | 0.20                                                         |
| 29                                                           | Trinidad &Tobago                                             | 0.16                                                         |
| 30                                                           | Sweden                                                       | 0.16                                                         |
| 31                                                           | Germany                                                      | 0.13                                                         |
| 32                                                           | Finland                                                      | 0.09                                                         |
| 33                                                           | Turkey                                                       | 0.08                                                         |
| 34                                                           | Norway                                                       | 0.06                                                         |
| 35                                                           | France                                                       | 0.05                                                         |
| 36                                                           | Russia                                                       | 0.05                                                         |
| 37                                                           | West Indies                                                  | 0.04                                                         |
| 38                                                           | Austria                                                      | 0.02                                                         |
| 39                                                           | Brunei Darussalam                                            | 0.00                                                         |
|                                                              | Grand Total                                                  | 904.90                                                       |
| Source: Department of Industrial Policy and Promotion (DIPP) | Source: Department of Industrial Policy and Promotion (DIPP) | Source: Department of Industrial Policy and Promotion (DIPP) |