Lok Sabha Question No. 29 (STARRED), answered on 2019-02-05
Subject: Growth of Food Processing Sector
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: KUNWAR PUSHPENDRA SINGH CHANDEL, SHRIKANT EKNATH SHINDE

## GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA STARRED QUESTION NO. *29

ANSWERED ON 5 TH  FEBRUARY, 2019

## GROWTH OF FOOD PROCESSING SECTOR

## *29. SHRI KUNWAR PUSHPENDRA SINGH CHANDEL: DR. SHRIKANT EKNATH SHINDE:

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

- (a) whether the Government is focusing on areas such as modern machines, technology and bio-degradable packaging to overcome the challenges facing the food processing sector and  promote  its  growth  in  the  country  including  the  Bundelkhand  area  and  if  so,  the details thereof and the plan prepared therefor;
- (b) whether there is a need to work on improving the infrastructure for the food processing sector  to  increase  exports,  reduce  wastage  and  supply  the  products  in  every  nook  and corner  of  the  country  including  Bundelkhand  and  if  so,  the  steps  taken  by  the Government in this regard;
- (c) whether the Government has any plan to open Mega Food Park in Bundelkhand and if so, the steps taken by the Government in this regard;
- (d) whether currently there is no mechanism to measure the level of pesticides in fruits and vegetables and if so, the steps taken by the Government to develop such a mechanism and minimize high level of pesticides in fruits and vegetables; and
- (e) whether the food processing sector is facing the non-availability of loan facilities and if so, the details thereof along with the steps taken by the Government to address the issues related to non-availability of loan for the industry?

## 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.  *29  FOR  ANSWERED  ON  5 TH   FEBRUARY,  2019 REGARDING GROWTH OF FOOD PROCESSING SECTOR

(a) &  (b):  An  innovative  umbrella  scheme,  'Pradhan  Mantri  Kisan  SAMPADA  Yojana (PMKSY)' has been launched in 2017 to promote modernisation and capacity enhancement of food processing industries in the country in all aspects including infrastructure and environment friendly  packaging.  The  implementation  period  of  the  scheme  is  2016-2020  with  a  total allocation  of  Rs.6000  crores.  The  PMKSY  has  seven  component  schemes  viz;  (i)  Mega  Food Parks, (ii) Integrated Cold Chain and Value Addition Infrastructure, (iii) Infrastructure for AgroProcessing Clusters, (iv) Creation of Backward and Forward Linkages, (v) Creation/Expansion of  Food  Processing  &  Preservation  Capacities,  (vi)  Food  Safety  and  Quality  Assurance Infrastructure and (vii) Human Resources and Institutions.  The PMKSY is implemented in all the  States  of  India  and  is  not  any  region  specific.  The  schemes  under  PMKSY  are  demand driven. The objectives of PMKSY are to create modern infrastructure with efficient supply chain management  from  farm  gate  to  retail  outlet,  to  give  a  major  boost  to  the  growth  of  food processing sector in the country and help government's initiative in doubling of farmers' income, create  huge employment  opportunities  especially in the rural areas, reduce wastage  of agricultural  produces,  increase  the  processing  level  and  enhance  the  export  of  the  processed foods.

(c):  The  Government  does  not  set  up  Mega  Food  Parks  in  any  State  or  region  on  its  own.  It provides Financial assistance as capital subsidy in the form of grants-in-aid under the Mega Food Park scheme of PMKSY at the rate of 50% of the eligible project cost in general areas and 75% in hilly and state notified Integrated Tribal Development Project (ITDP) areas and islands subject to maximum limit of Rs.50 crore. Individuals, farmers, Farmer Producer Organizations (FPOs), entrepreneurs,  cooperatives,  Self  Help  Groups  (SHGs),  Private  Companies  and  central/State PSUs etc. are eligible for financial assistance against the Expression of Interest (EoI) issued by the MoFPI from time to time.

(d):    The  Ministry  of  Agriculture  and  Farmers'  Welfare  is  implementing  'Monitoring  of Pesticides Residues at National Level' (MPRNL) scheme, under which agriculture commodities including fruits and vegetables are collected and analysed for the presence of pesticides.  During 2012-18,  a  total  of  1,21,944  samples  have  been  collected  and  analysed,  out  of  which  2,878 (2.4%)  samples  were  found  exceeding  Maximum  Residue  Limits  (MRL)  fixed  by  the  Food Safety and Standard Authority of India (FSSAI). The annual reports of MPRNL are shared with the States for taking corrective measures.

(e):    To  meet  the  credit  demand  of  the  food  processing  sector,  the  food  and  agro-based processing  units  and  cold  chain  infrastructure  have  been  brought  under  the  ambit  of  Priority Sector  Lending  (PSL)  by  the  Reserve  Bank  of  India  (RBI)  with  effect  from  23.04.2015.  A special  food  processing  fund  of  Rs.2000  crore  has  been  created  with  the  National  Bank  for Agriculture and Rural Development (NABARD) in 2014-15   for providing affordable credit to designated  Food  Parks  and  Agro  Processing  Units  located  in  the  designated  Food  Parks. Further,  under  various  schemes  of  the  PMKSY,  subsidy  is  provided  to  the  investors  in  food processing  sector  to  enhance  their  credit  worthiness  for  bank  loans  to  set  up  various  food processing industries.