Lok Sabha Question No. 850 (UNSTARRED), answered on 2020-09-17
Subject: Inclusion of Agriculture/Tourism based Industries under MSME Sector
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Sunil Baburao Mendhe

## GOVERNMENT OF INDIA MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA

## UNSTARRED QUESTION NO.  850

TO BE ANSWERED ON: 17.09.2020

## INCLUSION OF AGRICULTURE/TOURISM BASED INDUSTRIES UNDER MSME SECTOR

850. SHRI SUNIL BABURAO MENDHE:

Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state:

- (a) whether the Government has any proposal to include agriculture and tourism based industries under the MSME sector and if so, the details thereof;
- (b) whether the Government has any proposal to encourage the producers and exporters of agricultural products with better infrastructure and also for adopting new techniques being used in other countries; and
- (c) if so, the details thereof and the steps taken by the Government in this regard?

## ANSWER

## MINISTER OF MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI  NITIN GADKARI)

- (a): As per existing guidelines, some of the activities under agriculture and tourism based enterprises are covered in the ambit of MSME sector.

The  National  Industrial  Classification  (NIC)  2-digit  activity  code  01-  crop,  animal production, hunting and related activities are not included in MSME except for the following sub-classes of activities at 5-digit level which are given below:-

|   NIC Code | Activity                                                                             |
|------------|--------------------------------------------------------------------------------------|
|      01462 | Production of eggs                                                                   |
|      01463 | Operation of poultry hatcheries                                                      |
|      01492 | Bee-keeping and production of honey and beeswax                                      |
|      01493 | Raising of silk worms, production of silk worm cocoons                               |
|      01612 | Operation of agricultural irrigation equipment                                       |
|      01620 | Support activities for animal production                                             |
|      01631 | Preparation of crops of primary market i.e. cleaning, trimming, grading disinfecting |
|      01632 | Cotton ginning, cleaning and bailing                                                 |
|      01633 | Preparation of tobacco leaves                                                        |
|      01639 | Other post-harvest crop activities, n.e.c                                            |
|      01640 | Seed processing for propagation                                                      |

Similarly, following activities are also not included under MSME:-

|   NIC Code | Activity                |
|------------|-------------------------|
|         02 | Forestry and logging    |
|         03 | Fishing and aquaculture |

(b) & (c): Promotion of agricultural export is a continuous process. The Government has introduced  a  comprehensive  Agriculture  Export  Policy  2018  to  promote  the  agricultural export with the following vision:

'Harness export potential of Indian agriculture, through suitable policy instruments, to make India a global power in agriculture, and raise farmers' income.'

The Government has also brought out a new Central Sector Scheme -'Transport and Marketing Assistance  for  Specified  Agriculture  Products'-  for  providing  assistance  for  the international  component  of  freight,  to  mitigate  the  freight  disadvantage  for  the  export  of agriculture products, and marketing of agriculture products.

The Department of Commerce also has several schemes to promote exports, including export of agricultural products, viz. Trade Infrastructure for Export Scheme (TIES), Market Access Initiatives (MAI) Scheme, Merchandise Exports from India Scheme (MEIS) etc. In addition, assistance to the exports of agriculture products is also available under the Export Promotion  Schemes  of  Agriculture  &  Processed  Food  Products  Export  Development Authority  (APEDA),  Marine Products  Export  Development  Authority  (MPEDA), Tobacco Board, Tea Board, Coffee Board, Rubber Board and Spices Board.

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