Lok Sabha Question No. 1782 (UNSTARRED), answered on 2019-07-02
Subject: Gramin Agriculture Markets
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: Suresh Kodikunnil

## GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA UNSTARRED QUESTION NO. 1782

ANSWERED ON 2 ND  JULY, 2019

## GRAMIN AGRICULTURE MARKETS

## 1782. SHRI KODIKUNNIL SURESH:

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

- (a) the details of steps and initiatives introduced at a policy level to develop food processing industries in the country;
- (b) whether  the  budgetary  promise  of  upgrading  of  22,000  rural  haats  into  Gramin  Agriculture  Markets (GrAMS) is in progress and if so, the details thereof, State-wise;
- (c) whether any targeted  strategy  including  public-private  participation  and  technology  harnessing  has  been promulgated to enhance the capabilities of such rural haats as considered by the Government; and
- (d) if so, the details thereof?

## ANSWER

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

(a): The Ministry of Food Processing Industries (MoFPI) implements various central sector Schemes under the Central  Sector  Umbrella  Scheme-  PRADHAN  MANTRI  KISAN  SAMPADA  YOJANA  (PMKSY)  for  overall promotion  and  development  of  Food  Processing  Sector.   The  PMKSY  consists  of  (i)  Mega  Food  Parks,  (ii) Integrated  Cold  Chain  and  Value  Addition  Infrastructure,  (iii)  Infrastructure  for  Agro-processing  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 Ministry is also implementing the scheme "Operation Greens" as a vertical of PMKSY since November, 2018 for  integrated  development  of  value  chain  of  tomato,  onion  and  potato  (TOP)  crops  in  selected  States  on  pilot basis.

The  other  steps/measures   taken  to  boost  the  growth  of  food  processing  sector  in  the  country  are: permission for 100% FDI in manufacturing of food products through aromatic route, 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.

(b) to (d): Under MGNREGS Schedule 1, Section 4(3), Category D, 'Construction of Rural Haats at Village and Block level' is permissible. The works are approved & prioritized by the Gram Sabha. As on 24 th June 2019, Works of total 329 Rural Haats have been completed and works of 532 Rural Haats are ongoing as per the information of the  Ministry  of  Rural  Development.  These  Rural  Haats  will  be  upgraded  into  Gramin  Agricultural  Markets (GrAMs) by DoAC&FW. These GrAMs will be electronically linked to e-NAM and exempted from regulation of APMC." Department of  Agriculture, Cooperation & Farmers Welfare, has circulated a Model Guidelines to the States for operation and  management  of GrAMs.  In addition, the Government of India has approved setting up 'Agriculture Market Infrastructure Fund  (AMIF)'  with  NABARD  for  providing  assistance  to State for development of required  marketing  infrastructure  in  these  GrAMs.  As  agricultural  marketing  is  a  State  subject, Government  of  India  has  further  requested  States  to  exempt  GrAMs  from  State  Agricultural  Produce  Market Committee (APMC) Act, formulated under respective State regulations. Government of India has also constituted an Inter-Ministerial Committee to coordinate and monitor developmental work of GrAMs.