Lok Sabha Question No. 447 (UNSTARRED), answered on 2019-02-05
Subject: Promotion of FPI Sector
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: RAHUL KASWAN

## GOVERNMENT OF INDIA

## MINISTRY OF FOOD PROCESSING INDUSTRIES LOK SABHA UNSTARRED QUESTION NO. 447 ANSWERED ON 5 TH  FEBRUARY, 2019

## PROMOTION OF FPI SECTOR

## 447. SHRI RAHUL KASWAN:

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

- (a) whether the Government has any proposal to promote the Food Processing Industries (FPIs) in the country;
- (b) if so, the details thereof including the special action taken in this regard; and
- (c) the  details  of  the  growth  of  Food  Processing  Industries  during  the  last  three  years,  including Rajasthan?

## ANSWER

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

(a)  &  (b):  The  Government has taken a number of measures to promote food processing sector. It has permitted  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  ecommerce, in respect of food products produced and/or manufactured in India, a special fund of Rs.2000 crore has been created in National Bank for Agriculture and Rural Development (NABARD) to provide affordable  credit  to  food  processing  projects/units,  food  &  agro-based  processing  units  and  cold  chain infrastructure has been classified as agriculture activity for Priority Sector Lending (PSL), lower Goods & Service  Tax  (GST)  rates  for  majority  of  food  products  have  been  fixed,      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 crores have been provided to attract investment in the sector.

Further,  the  Ministry  of  Food  Processing  Industries  (MoFPI)  is  implementing  an  innovative Central  Sector  Umbrella  Scheme-Pradhan  Mantri  Kisan  SAMPADA  Yojana  (PMKSY).  The  period  of implementation of the PMKSY is 2016-20 with a total outlay of Rs.6000 crore. The PMKSY has seven component  schemes  viz;  (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.    Under  PMKSY,  capital subsidy in the form of grants-in-aid ranging from 35% to 75% of the eligible cost of the project subject to maximum  specified limit is provided to investors under the various schemes for undertaking infrastructure,  logistic  projects  and  setting  up  of  food  processing  units  in  the  country. The  MoFPI  has recently  launched  a  new  Central  Sector  Scheme  'Operation  Greens''  for  integrated  development  of Tomato, Onion and Potato (TOP) crops value chain, with an outlay of Rs.500 crore to, inter alia, promote Farmers Producers Organizations (FPO), agri-logistics, processing facilities and professional management of FPOs.

(c): As per  the  latest  estimates  of  the  National  Accounts  Statistics  (NAS),  Central  Statistics  Office (CSO),  Ministry  of  Statistics  and  Programme  Implementation,  the  growth  rates  (at  constant  prices  of 2011-12) in Gross Value Addition (GVA) by the food processing industries at all India level during 201415, 2015-16 and 2016-17 were at 2.66%, 9.70% and 3.53% respectively.