Lok Sabha Question No. 308 (UNSTARRED), answered on 2019-11-19
Subject: Food Processing Industries
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: Reddeppa Nallakonda Gari

## GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA

## UNSTARRED QUESTION NO. 308 ANSWERED ON 19 TH   NOVEMBER, 2019

## FOOD PROCESSING INDUSTRIES

## 308.   SHRI N. REDDEPPA:

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

- (a) whether the Government is encouraging the Food Processing Industries in the country and if so, the details thereof;
- (b) the role of private and public partnerships in this regard, State/UT-wise; and
- (c) the steps being taken to remove hurdles in this sector to achieve the desired results?

## ANSWER

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

(a)  to  (c):  Investment  in  food  processing  industries  are  largely  driven  by  private  sector.  Government supplements their efforts through various schemes and policy measures. The Ministry of Food Processing Industries (MoFPI) is implementing the Central Sector Umbrella Scheme- PRADHAN MANTRI KISAN SAMPADA YOJANA (PMKSY) with the scheme components 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 with the objectives, inter alia, to create modern infrastructure and efficient supply chain with a view to encourage and facilitate food processing industries for preservation and processing of all agro and marine produce in the country. The Ministry is also implementing the scheme "Operation Greens" since November, 2018 for integrated  development  of  value/supply  chain  of  tomato,  onion  and  potato  (TOP) crops in selected States on pilot basis.

The above schemes are demand driven. The Ministry provides 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.  under  its various schemes  for  setting  up  of  food  processing  industries/  units/  projects  against  the  Expression  of  Interest issued by the Ministry from time to time.

Besides the implementation of schemes, the Government has taken other steps/measures 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 (up to first five years), 100 percent income  tax  exemption  from  profit  derived  by  FPOs  having  annual  turnover  of  up  to  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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