Lok Sabha Question No. 488 (UNSTARRED), answered on 2019-06-25
Subject: Implementation of PMKSY
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: Amol Ramsing Kolhe, Kuldeep Rai Sharma, Supriya Sadanand Sule, P.P. Chaudhary, Rajeshbhai Naranbhai Chudasama, Subhash Ramrao Bhamre, Heena Vijaykumar Gavit, Sunil Dattatray Tatkare, Sudhakar Tukaram Shrangre

## GOVERNMENT OF INDIA

## MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA UNSTARRED QUESTION NO. 488

ANSWERED ON 25 TH  JUNE, 2019

## IMPLEMENTATION OF PMKSY

## 488.     DR. AMOL RAMSING KOLHE:

SHRI KULDEEP RAI SHARMA:

SHRIMATI SUPRIYA SULE:

SHRI P.P. CHAUDHARY:

SHRI RAJESHBHAI CHUDASAMA:

DR. SUBHASH RAMRAO BHAMRE:

DR. HEENA GAVIT:

SHRI SUNIL DATTATRAY TATKARE:

SHRI SUDHAKAR TUKARAM SHRANGARE:

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

- (a) the  various  schemes/projects  that  are  being  implemented  under  Pradhan  Mantri  Kisan Sampada Yojana (PMKSY), along with the details of investments committed and status of these schemes/ projects, State-wise;
- (b) the funds utilised, allocated and released to various States under the scheme during the last three years, State-wise;
- (c) whether the funds released are sufficient to achieve the desired objective for which it has been set up and if so, the details thereof;
- (d) whether  implementation  of  PMKSY  has  helped  in  ensuring  remunerative  prices  for agriculture  produces  to  the  farmers  and  doubling  their  income,  if  so,  the  details  of  the benefit that have reached the farmers through this scheme since inception of the scheme;
- (e) whether the Government has been able to attract foreign investment in the field of food processing sector under the PMKSY and if so, the details thereof along with the quantum of investment generated; and
- (f) the other steps taken/being taken by the Government to boost the growth of food processing sector in the country by reducing wastage of agricultural produce, increasing the processing level, enhancing the export of the processed foods, enabling availability of hygienic and nutritious food to consumers at affordable price?

## ANSWER

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

(a) to (c) : The following schemes are implemented under Pradhan Mantri Kisan Sampada Yojana (PMKSY):

- (i) Mega Food Parks;
- (ii) Integrated Cold Chain and Value Addition Infrastructure;
- (iii) Creation / Expansion of Food Processing & Preservation Capacities;
- (iv) Infrastructure for Agro-processing Clusters;
- (v) Creation of Backward and Forward Linkages;
- (vi) Food Safety and Quality Assurance Infrastructure; and
- (vii) Human Resources and Institutions

Under PMKSY, the Ministry of Food Processing Industries (MoFPI) mostly provides creditlinked capital subsidy in the form of grants-in-aid to the individuals, farmers, Farmer Producer Organisations (FPOs), Entrepreneurs, Cooperatives, Societies, Self Help Groups (SHGs), Private Companies  and  Central/  State  PSUs  etc.  for  setting  up  of  food  processing  industries/  units/ projects.  These  Schemes  are  demand  driven.  Financial  assistance  to  the  eligible  applicant  is provided as per the Scheme guidelines against the Expression of Interest issued by the Ministry from time to time and as such no State/UT-wise allocation of funds are made.

The State/UT-wise major projects sanctioned under PMKSY is Annexure.

- (d): The PMKSY is expected to leverage investment of ₹ 31,400 crore, handle of 334 lakh MT agro-produce  valuing  ₹  1,04,125  crore,  benefit  20  lakh  farmers  and  generate  5,30,500  direct/ indirect employment in the country by the year 2019-20.   No assessment has since been made on the impact of PMKSY.
- (e):  100% FDI is permitted under the automatic route in food processing sector. 100% FDI is also allowed  through  Government  approval  route  for  retail  trading,  in  respect  of  food  products manufactured and/or produced in India. The sector has witnessed FDI equity inflow of US$3.28 billion during April 2014 to March 2019. Seven FDI proposals for retail trading in food products have been approved amounting to about US$ 705 million during 2017-18.
- (f): The other steps/measures  taken to boost the growth of food processing sector in the country are:  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.

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ANNEXURE

ANNEXURE REFERRED TO IN REPLY TO PART (a) TO (c) OF LOK SABHA UNSTARRED QUESTION NO. 488 FOR ANSWERED ON 25 TH  JUNE, 2019 REGRADING IMPLEMENTATION OF PMKSY.

## STATE/UT-WISE NUMBER OF MAJOR PROJECTS SANCTIONED UNDER PMKSY

| Sl. No.   | Name of the States/ UTs   | Cold Chain   | Mega Food Park   | Unit Scheme   | Agro Processing Clusters   |   Backward & Forward Linkages |   Food Testing Labs |   Total of all projects |
|-----------|---------------------------|--------------|------------------|---------------|----------------------------|-------------------------------|---------------------|-------------------------|
| 1         | ANDAMAN& NICOBAR          | 1            | 0                | 0             | 0                          |                             0 |                   0 |                       1 |
| 2         | ANDHRA PRADESH            | 21           | 3                | 0             | 1                          |                             1 |                   3 |                      29 |
| 3         | ARUNACHAL PRADESH         | 1            | 1                | 0             | 0                          |                             0 |                   0 |                       2 |
| 4         | ASSAM                     | 2            | 1                | 2             | 1                          |                             0 |                   5 |                      11 |
| 5         | BIHAR                     | 3            | 1                | 0             | 1                          |                             0 |                   0 |                       5 |
| 7         | CHHATTISGARH              | 2            | 1                | 2             | 0                          |                             1 |                   0 |                       6 |
| 8         | DELHI                     | 0            | 0                | 0             | 0                          |                             0 |                   8 |                       8 |
| 9         | GUJARAT                   | 21           | 2                | 10            | 2                          |                             7 |                  13 |                      55 |
| 10        | HARYANA                   | 11           | 2                | 12            | 5                          |                             1 |                  15 |                      46 |
| 11        | HIMACHAL PRADESH          | 15           | 1 1              | 9             | 1                          |                             2 |                   2 |                      30 |
| 12 13     | JAMMU&KASHMIR JHARKHAND   | 6 0          | 1                | 12 0          | 1 0                        |                             3 |                   2 |                      25 |
|           |                           |              |                  |               |                            |                             0 |                   1 |                       2 |
| 14        | KARNATAKA                 | 14           | 2                | 8             | 5                          |                             2 |                   6 |                      37 |
| 15        | KERALA                    | 8            | 2                | 4             | 1                          |                             2 |                   2 |                      19 |
| 16        | MADHYAPRADESH             | 6            | 2                | 7             | 4                          |                             1 |                   4 |                      24 |
| 17        | MAHARASHTRA               | 67           | 3                | 24            | 8                          |                            12 |                  22 |                     136 |
| 18        | MANIPUR                   | 2            | 1                | 1             | 1                          |                             1 |                   1 |                       7 |
| 19        | MEGHALAYA                 | 0            | 0                | 1             | 0                          |                             0 |                   0 |                       1 |
| 20        | MIZORAM                   | 2            | 1                | 1             | 0                          |                             0 |                   0 |                       4 |
| 21        | NAGALAND                  | 2            | 1                | 4             | 0                          |                             0 |                   1 |                       8 |
| 22        | ODISHA                    | 2            | 2                | 2             | 0                          |                             2 |                   2 |                      10 |
| 23        | PUDDUCHERY                | 0            | 0                | 0             | 1                          |                             0 |                   0 |                       1 |
| 24        | PUNJAB                    | 18           | 3                | 4             | 2                          |                             4 |                   7 |                      38 |
| 25        | RAJASTHAN                 | 10           | 1                | 7             | 1                          |                             6 |                   1 |                      26 |
| 26        | SIKKIM                    | 0            | 0                | 0             | 0                          |                             0 |                   1 |                       1 |
| 27        | TAMIL NADU                | 11           | 0                | 17            | 0                          |                             9 |                  13 |                      50 |
| 28        | TELEANGANA                | 9            | 2                | 0             | 1                          |                             1 |                   4 |                      17 |
| 29        | TRIPURA                   | 0            | 1                | 0             | 0                          |                             0 |                   1 |                       2 |
| 30        | UTTAR PRADESH             | 26           | 3                | 19            | 4                          |                             7 |                   7 |                      66 |
| 31        | UTTARAKHAND               | 25           | 2                | 5             | 1                          |                             2 |                   2 |                      37 |
| 32        | WEST BENGAL               | 11           | 2                | 4             | 0                          |                             1 |                   8 |                      26 |
|           | TOTAL                     | 296          | 42               | 155           | 41                         |                            65 |                 131 |                     730 |