Lok Sabha Question No. 426 (STARRED), answered on 2019-07-23
Subject: Investment in Food Processing Industry
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: Hemant Patil

## GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA

## STARRED QUESTION NO. *426

ANSWERED ON 23 RD  JULY, 2019

## INVESTMENT IN FOOD PROCESSING INDUSTRY

## *426.   SHRI HEMANT SRIRAM PATIL:

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

- (a) the details of the measures taken by the Government to promote investment in food processing industry since 2014, year-wise;
- (b) the details of the funds and resources allocated for promoting food processing industry, State and year-wise since 2014;
- (c) the  details  of  the  steps  taken  by  the  Government  to  improve  and  augment  the  cold storage facilities in the country, State and year-wise since 2014;
- (d) the details of additions to the capacity of cold storage between 2014-2018, State-wise; and
- (e) the details of the major challenges faced by the food processing industry and the steps taken to ease these constraints, State and year-wise since 2014?

## ANSWER

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

(a) to (e):  A Statement is laid on the Table of the House.

## STATEMENT  REFERRED  TO IN REPLY TO PART (a) TO (e) OF LOK SABHA STARRED  QUESTION  NO.  *426 ANSWERED  ON  23 RD JULY, 2019 REGARDING INVESTMENT IN FOOD PROCESSING INDUSTRY

- (a): The year-wise major policy/fiscal measures and other steps taken by the Government to promote investment in the food processing industry is at Annexure-I.
- (b): No  state-wise  allocation  of  funds  is  made  under  the  schemes  implemented  by  the Ministry  of  Food  Processing  Industries  (MoFPI)  as  the  schemes  are  demand-driven  and financial assistance to eligible applicants is provided against expression of interest issued by MoFPI from time to time. The year wise allocation of funds under the schemes of MoFPI for setting up of food processing industries is as below:
- (c) & (d): The Ministry of Food Processing Industries (MoFPI) does not set up stand-alone cold  storage  projects.  However,  under  the  scheme  of  'Integrated  Cold  Chain  and  Value Addition Infrastructure' of Pradhan Mantri Kisan Sampada Yojana (PMKSY) implemented by MoFPI, a total capacity of 3.67 lakh MT cold storage has been created during the last 5 years, the state-wise details of which is at Annexure-II. In addition, the Department of Agriculture, Cooperation & Farmers' Welfare (DAC&FW) assists setting up of cold storage projects under its scheme, 'Mission for Integrated Development of Horticulture (MIDH)'. During the last 5 years, a total 799 projects have been sanctioned with a total capacity of 32.03 lakh MT, the state-wise  details  of  which  is  at Annexure-III .  Also,  the  National  Horticulture  Board  of Ministry of Agriculture and Farmers' Welfare is implementing a scheme of 'Capital Investment Subsidy  for  Construction/  Expansion/  Modernization  of  Cold  Storages  for  Horticulture Products' providing financial assistance for setting up of cold storage facilities. A total 236 number of projects have been sanctioned with a total capacity of 12.59 lakh MT during last 5 years, the state-wise detail of which is at Annexure-IV.
- (e): The major identified challenges faced by food processing industry are lack of modern infrastructure,  efficient  supply  chain,  cold  chain  infrastructure,  food  testing  laboratories, trained manpower and availability of cheaper credit. To address the infrastructural and logistic challenges, the Ministry of Food Processing Industries (MoFPI) has been implementing various Central Sector Schemes under Pradhan Mantri Kisan Sampada Yojana (PMKSY). To meet the credit requirement at concessional rates of interest for the food processing industries, a Special Food Processing Fund of Rs.2000 crore has been created with National Bank for Agriculture and Rural Development.  Further, food and agro processing sector has been brought under the ambit of Priority Sector Lending (PSL). The MoFPI has two institutes viz; Indian Institute of Food Processing Technology (IIFPT), Thanjavur, Tamil Nadu and National Institute of Food Technology  Entrepreneurship  and  Management  (NIFTEM),  Sonipat,  Haryana  offering academic programmes on food processing/technology and also undertaking research activities pertaining to food processing to bridge the human capital gap in the sector.

| Year    |   Allocation of Funds (Rs. in crore) |
|---------|--------------------------------------|
| 2014-15 |                               600    |
| 2015-16 |                               487    |
| 2016-17 |                               688.56 |
| 2017-18 |                               633.84 |
| 2018-19 |                               870.33 |
| 2019-20 |                              1101    |

**

***

ANNEXURE REFERRED TO IN REPLY TO PART (a) OF THE LOK SABHA STARRED  QUESTION  NO.  *426 ANSWERED  ON  23 RD JULY, 2019 REGARDING INVESTMENT IN FOOD PROCESSING INDUSTRY

Year-wise major policy/fiscal measures and other steps taken to promote investment in food processing

| Year    | Measures/Policy/Fiscal/Announcement/Steps taken                                                                                                                                                                                                                                                                                                                                                           |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 2014-15 | Setting up of Special Food Processing Funds of Rs.2000 crore with National Bank for Agriculture and Rural Development                                                                                                                                                                                                                                                                                     |
| 2015-16 | Bringing Food-processing and value addition and cold chain infrastructure under the ambit of Priority Sector Lending (PSL)                                                                                                                                                                                                                                                                                |
| 2016-17 | (a) Permission for 100% FDI under Government approval route for retail trading, including through e-commerce, in respect of food products produced and/or manufactured in India (b) Restructuring of the Schemes of the Ministry of Food Processing Industries under the Umbrella-Pradhan Mantri Kisan Sampda Yojana (PMKSY) by introducing three new schemes in addition to the existing schemes.        |
| 2017-18 | During the implementation of GST, it was ensured that 80% of the food items are in 0- 12% slab.                                                                                                                                                                                                                                                                                                           |
| 2018-19 | (a) 100 percent income tax exemption from profit derived by FPOs having annual turnover up to Rs.100 crore for activities such as post-harvest value addition to agriculture. (b) Launched a new scheme of 'Operation Greens' for integrated development of value chain exclusively of Tomato, Onion and Potato (TOP) crops and their price stabilization through short term price intervention measures. |

ANNEXURE  REFERRED  TO IN  REPLY  TO  PART  (c) TO (d) OF LOK SABHA STARRED  QUESTION  NO.  *426 ANSWERED  ON  23 RD   JULY,  2019 REGARDING INVESTMENT IN FOOD PROCESSING INDUSTRY

State wise cold storage facilities created under the completed Cold Chain Infrastructure Projects of MoFPI during the last five years.

| Sl.No.   | Name of the States/ UTs   |   Number |   Capacity (Lakh MT) |
|----------|---------------------------|----------|----------------------|
| 1        | ANDHRA PRADESH            |        3 |                0.06  |
| 2        | ASSAM                     |        2 |                0.08  |
| 3        | CHHATISGARH               |        2 |                0.09  |
| 4        | GUJARAT                   |        9 |                0.11  |
| 5        | HARYANA                   |        7 |                0.36  |
| 6        | HIMACHAL PRADESH          |        5 |                0.09  |
| 7        | JAMMU &KASHMIR            |        4 |                0.072 |
| 8        | KARNATAKA                 |        5 |                0.08  |
| 9        | MADHYA PRADESH            |        3 |                0.11  |
| 10       | MAHARASHTRA               |       27 |                0.93  |
| 11       | MANIPUAR                  |        1 |                0.03  |
| 12       | NAGALAND                  |        1 |                0.01  |
| 13       | ODISHA                    |        2 |                0.02  |
| 14       | PUNJAB                    |       11 |                0.37  |
| 15       | RAJASTHAN                 |        4 |                0.2   |
| 16       | TAMILNADU                 |        1 |                0.027 |
| 17       | TELEANGANA                |        3 |                0.075 |
| 18       | UTTAR PRADESH             |        9 |                0.346 |
| 19       | UTTARAKHAND               |       14 |                0.5   |
| 20       | WEST BENGAL               |        3 |                0.11  |
|          | TOTAL                     |      116 |                3.67  |

ANNEXURE REFERRED TO IN REPLY TO PART (c) TO (d) OF LOK SABHA STARRED  QUESTION  NO.  *426 ANSWERED  ON  23 RD JULY, 2019 REGARDING INVESTMENT IN FOOD PROCESSING INDUSTRY

State  wise  and Year wise cold storage projects sanctioned under the scheme of  National Horticulture Mission

|                  | 2014-15   | 2014-15           | 2015-16   |                   | 2016-17   | 2016-17           | 2017-18   | 2017-18           | 2018-19   | 2018-19           |
|------------------|-----------|-------------------|-----------|-------------------|-----------|-------------------|-----------|-------------------|-----------|-------------------|
|                  | Numb er   | Capaci ty (in MT) | Numb er   | Capaci ty (in MT) | Numb er   | Capaci ty (in MT) | Numb er   | Capaci ty (in MT) | Numb er   | Capaci ty (in MT) |
| Andhra Pradesh   | 8         | 38680             |           |                   | 10        | 49281             | 1         | 5000              |           |                   |
| Bihar            | 1         | 5000              |           |                   |           |                   |           |                   |           |                   |
| Chattisgar h     | 5         | 25000             |           |                   |           |                   |           |                   | 1         | 3243              |
| Gujarat          | 61        | 277032            | 61        | 211443            | 68        | 332661            | 116       | 564289            | 66        | 277169            |
| Haryana          | 1         | 3794              | 4         | 9009              | 23        | 60313             | 9         | 31554             | 3         | 10890             |
| Himachal Pradesh | 2         | 9371              | 17        | 31993             | 10        | 13441             |           |                   | 5         | 4078              |
| Jammu& Kashmir   | 1         | 5000              | 4         | 24207             | 3         | 12000             | 14        | 54284             |           |                   |
| Jharkhand        |           |                   | 1         | 5000              | 1         | 10000             |           |                   |           |                   |
| Karnataka        | 2         | 6600              | 1         | 4900              | 3         | 10770             | 5         | 18923             | 2         | 6026              |
| Madhya Pradesh   | 13        | 59375             | 14        | 63266             |           |                   |           |                   |           |                   |
| Maharasht ra     | 12        | 44391             | 6         | 14798             | 3         | 6980              |           |                   |           |                   |
| Manipur          |           |                   |           |                   |           |                   | 1         | 1600              |           |                   |
| Odisha           | 9         | 40060             | 47        | 156440            | 6         | 30000             | 2         | 1200              |           |                   |
| Punjab           | 3         | 12841             | 30        | 86904             |           |                   | 12        | 37368             |           |                   |
| Rajasthan        | 2         | 3998              |           |                   | 1         | 5000              |           |                   | 3         | 12933             |
| Sikkim           | 1         | 100               |           |                   |           |                   |           |                   |           |                   |
| Tamil Nadu       |           |                   |           |                   |           |                   |           | 10000             |           |                   |
| Telangana        |           |                   | 10        | 56029             | 5         | 23000             |           |                   | 4         | 20000             |
| Uttar Pradesh    |           |                   | 15        | 40437             | 27        | 108533            | 52        | 217566            | 1         | 5000              |
| Uttarakha nd     |           |                   | 9         | 19150             | 1         | 2500              | 1         | 2400              |           |                   |
| West Bengal      |           |                   |           |                   |           |                   |           |                   |           |                   |
| Total            | 121       | 531242            | 219       | 723576            | 161       | 664479            | 213       | 944183            | 85        | 339339            |

## ANNEXURE REFERRED TO IN REPLY TO PART (c) TO (d) OF LOK SABHA STARRED  QUESTION  NO.  *426 ANSWERED  ON  23 RD JULY, 2019 REGARDING INVESTMENT IN FOOD PROCESSING INDUSTRY

State  wise  and  Year  wise  cold  storage  projects  sanctioned  under  the  scheme  of  Capital Investment  Subsidy  for  Construction/  Expansion/  Modernization  of  Cold  Storages  for Horticulture Products

|         |                         | 2014-15   | 2014-15        | 2015-16    | 2015-16   | 2016-17            | 2016-17   | 2017-18    | 2017-18   | 2018-19            | 2018-19   |
|---------|-------------------------|-----------|----------------|------------|-----------|--------------------|-----------|------------|-----------|--------------------|-----------|
| Sl. No. | Name of the States/ UTs |           | NumberCapacity | (MT)Number | Capacity  | (MT)NumberCapacity |           | (MT)Number | Capacity  | (MT)NumberCapacity | (MT)      |
| 1       | ANDHRA PRADESH          | 1         | 3924           | 6          | 29037     | 1                  | 5499      | 1          | 9760      | 2                  | 17357     |
| 2       | ASSAM                   | 1         | 6165           | 2          | 19677     | 2                  | 10552     | 0          | 0         | 2                  | 15200     |
| 3       | BIHAR                   | 0         | 0              | 0          | 0         | 0                  | 0         | 0          | 0         | 3                  | 22172     |
| 4       | CHANDIGARH              | 1         | 246            | 0          | 0         | 0                  | 0         | 0          | 0         | 0                  | 0         |
| 5       | CHHATTISGARH            | 3         | 17742          | 1          | 5200      | 0                  | 0         | 0          | 0         | 0                  | 0         |
| 6       | GUJARAT                 | 1         | 5038           | 1          | 8515      | 4                  | 22954     | 0          | 0         | 1                  | 7398      |
| 7       | HARYANA                 | 12        | 63113          | 4          | 12685     | 1                  | 4518      | 0          | 0         | 0                  | 0         |
| 8       | HIMACHAL PRADESH        | 0         | 0              | 2          | 7099      | 0                  | 0         | 0          | 0         | 2                  | 10579     |
| 9       | JAMMU& KASHMIR          | 0         | 0              | 0          | 0         | 1                  | 2730      | 3          | 17825     | 1                  | 5094      |
| 10      | JHARKHAND               | 1         | 4400           | 0          | 0         | 0                  | 0         | 0          | 0         | 0                  | 0         |
| 11      | KARNATAKA               | 1         | 3551           | 0          | 0         | 2                  | 13809     | 1          | 2954      | 2                  | 11356     |
| 12      | KERALA                  | 0         | 0              | 0          | 0         | 0                  | 0         | 1          | 1300      | 0                  | 0         |
| 13      | MADHYA PRADESH          | 0         | 0              | 4          | 23863     | 0                  | 0         | 3          | 22102     | 3                  | 22340     |
| 14      | MAHARASHTRA             | 4         | 17639          | 2          | 10359     | 3                  | 10767     | 0          | 0         | 0                  | 0         |
| 15      | ODISHA                  | 0         | 0              | 0          | 0         | 1                  | 9982      | 0          | 0         | 0                  | 0         |
| 16      | PUDDUCHERY              | 0         | 0              | 0          | 0         | 0                  | 0         | 0          | 0         | 0                  | 0         |
| 17      | PUNJAB                  | 9         | 36799          | 3          | 15623     | 1                  | 8015      | 2          | 10292     | 19                 | 100015    |
| 18      | RAJASTHAN               | 1         | 1200           | 2          | 10979     | 1                  | 1506      | 1          | 6000      | 7                  | 28896     |
| 19      | TAMIL NADU              | 1         | 6135           | 1          | 5112      | 0                  | 0         | 0          | 0         | 3                  | 14576     |
| 20      | TRIPURA                 | 1         | 7173           | 0          | 0         | 0                  | 0         | 0          | 0         | 0                  | 0         |
| 21      | UTTAR PRADESH           | 27        | 139014         | 23         | 121447    | 15                 | 98565     | 9          | 55056     | 16                 | 92284     |
| 22      | UTTARAKHAND             | 1         | 4016           | 1          | 600       | 0                  | 0         | 0          | 0         | 0                  | 0         |
| 23      | WEST BENGAL             | 3         | 5217           | 2          | 6077      | 0                  | 0         | 0          | 0         | 0                  | 0         |
|         | TOTAL                   | 68        | 321372         | 54         | 276273    | 32                 | 188897    | 21         | 125289    | 61                 | 347267    |