Lok Sabha Question No. 3806 (UNSTARRED), answered on 2020-03-17
Subject: Export of Processed Food
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: Gowdar Mallikarjunappa Siddeshwara

## GOVERNMENTOF INDIA

## MINISTRY OF FOOD PROCESSING INDUSTRIES LOK SABHA UNSTARRED QUESTION NO. 3806 ANSWERED ON. 17 TH  MARCH, 2020

## EXPORT OF PROCESSED FOOD

## 3806.   SHRI G.M. SIDDESHWAR:

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

- (a) whether it is a fact that India is  the second largest producer of food in the world but it's share in global food exports is  very low despite it's inherent  strength in  apple, apricots, peaches, cherries, pears and rice production due to lack of world class food processing industries;
- (b) if so, the details thereof; and
- (c) the steps taken by Government to overcome this issue?

## ANSWER

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

(a) & (b): India occupies mostly the first three positions in the production of most of the major agricultural and marine produce/products in the world accounting for as high as 79.41% of the world production, the prominent of  which  are:  first  in  buffalo  milk  (70.27%),  ghee  of  buffalo  milk  (79.41%),  ghee  &  butter  oil  of  cow  milk (57.18%), buffalo meat (42.17%) and second in rice/paddy (21.43%), wheat (12.48%), potato (11.62%), onion dry  (20.84%),  tomato  (10.39%),  tea  (21.03%)    and    fish  (7%).    The  food    processing  industries  in  India  is, however, a sunrise sector with the level of processing at  6.76% and accounts for only 2.31% of the global food export.

(c): To increase the share of food processing in the overall manufacturing sector of the Indian economy by increasing the level of food processing and, inter alia, to give a boost to  export of the processed food products by ensuring robust modern infrastructure along the entire value/supply chain of food processing, the Government is implementing various Central Sector Schemes under PRADHAN MANTRI KISAN SAMPADA YOJANA (PMKSY). The other various steps/measures/policy initiatives taken by the Government for promotion of food processing  industries  in  the  country  include  permission  to  100%  Foreign  Direct  Investment  (FDI)  through automatic route in manufacturing of food products and 100% FDI under Government approval route for retail trading,  including  through  e-commerce,  in  respect  of  food  products  produced  and/or  manufactured in  India, creation  of  a  special  fund  of  Rs.2000  crore  in  National  Bank  for  Agriculture  and  Rural  Development (NABARD)  to  provide  affordable  credit  to  food  processing  projects/units,  bringing  food  &  agro-based processing  units,  cold  storage  units/cold  storage  chains  under  the  ambit  of  Priority  Sector  Lending  (PSL), allowing  100  percent  income  tax  exemption  from  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, concessional import duty for plant and machinery under project imports benefit scheme.

Government is implementing the schemes of 'Trade Infrastructure for Export Scheme (TIES)', 'Market Access Initiatives (MAI) Scheme', 'Merchandise Exports from India Scheme (MEIS)' etc. to promote exports, including agri food products. It is also implementing a new Central Sector Scheme - 'Transport and Marketing Assistance  for  Specified  Agriculture  Products'  -  for  providing  assistance  for  the  international  component  of freight to mitigate the freight disadvantage for the export of  agriculture products and marketing of  agricultural products.  Further,  in  order  to  promote  the  agricultural  exports,  that  includes  processed  agri  food  products, Government  has  formulated  a  comprehensive  Agriculture Export    Policy  with  the  vision:  'Harness  export potential of  Indian agriculture through suitable policy instruments, to make India a global power in agriculture, and raise farmers' income.'.