Lok Sabha Question No. 4975 (UNSTARRED), answered on 2019-07-23
Subject: Global FPI Value Chain
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: Shrikant Eknath Shinde, Girish Bhalchandra Bapat, Chandra Sekhar Sahu, Sangeeta Kumari Singh Deo

## GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA UNSTARRED QUESTION NO. 4975

ANSWERED ON 23 RD  JULY, 2019

## GLOBAL FPI VALUE CHAIN

## 4975. DR. SHRIKANT EKNATH SHINDE: SHRI GIRISH BHALCHANDRA BAPAT: SHRI CHANDRA SEKHAR SAHU: SHRIMATI SANGEETA KUMARI SINGH DEO:

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

- (a) whether despite being one of the largest producers of agricultural and food products in the world, India ranks fairly low in the global food processing value chains and if so, the response of the Government in this regard;
- (b) whether some States have immense potential in food processing and agriculture sector and if so, the names of such States;
- (c) whether the Government has offered programmes to give a fillip to the food processing industry to double the farmer's income and generate employment, if so, the details and the present status thereof;
- (d) whether the Government urged Food Processing Industry members to avail the benefits of schemes offered by the Centre and if so, the details thereof; and
- (e) whether CII had organised summit of food processing industry recently and if so, the schemes discussed therein along with the outcome thereof?

## ANSWER

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

- (a): As per the estimates released by Food and Agriculture Organization of United Nations, India is among top three countries in production of many agricultural produce/products in the world,  the  prominent  of  which  are:  first  in  buffalo  milk  (71.67%),  ghee  of  buffalo  milk (79.41%), ghee & butter oil of cow milk (57.18%), and second in rice/paddy (21.89%), wheat (12.77%), potato (12.52%), onion dry (22.92%), tomato (11.36%) and tea (21.72%). The food processing industries in India is, however, a sunrise sector with the level of processing at 6.76% and accounts for only 2.31% of the global food export.
- (b): The  states  like  Uttar  Pradesh,  Madhya  Pradesh,  Punjab,  Rajasthan,  and  Bihar  have immense potential in food grain processing;  the states of Uttar Pradesh, West Bengal, Madhya Pradesh, Maharashtra, and Andhra Pradesh have immense potential for  processing in fruits and vegetables;    the  states  of  Uttar  Pradesh,  Rajasthan,  Madhya  Pradesh,  Andhra  Pradesh  and Gujarat have large potential for dairy processing and   in the fishery sector, the states of Andhra Pradesh, West Bengal, Gujarat, Odisha and Tamil Nadu have immense potential in the fish processing.

(c)  &  (d):    The  Ministry  of  Food  Processing  Industries  (MoFPI)  is  implementing  a  Central Sector Umbrella Scheme - PRADHAN MANTRI KISAN SAMPADA YOJANA -(PMKSY) for promotion and development of Food Processing Industries in the Country. PMKSY is a comprehensive package with the objectives of creation of  modern  infrastructure along with efficient supply chain management along the entire food processing value chain i.e. from farm gate to retail outlet. PMKSY provides a big boost to the growth of food processing sector in the country helping thereby the farmers in getting better prices for their produces due to higher demand for agricultural produce by the food processing industries as raw material. It is thus a big  step  towards  doubling  of  farmers'  income,  creating  huge  employment  opportunities especially in the rural areas, reducing wastage of agricultural produce and enhancing the export of the processed foods. Individuals, farmers, Farmer  Producer  Organisations (FPOs), Entrepreneurs,  Cooperatives,  Societies,  Self  Help  Groups  (SHGs),  Private  Companies  and Central/ State PSUs etc. are eligible for financial assistance under the schemes of PMKSY for setting up of food processing industries/ units/ projects in the country.

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.

Number of Projects sanctioned under various component schemes of PMKSY is as under:

| Scheme Name                                                       |   No. of Projects |
|-------------------------------------------------------------------|-------------------|
| Mega Food Parks                                                   |                42 |
| Integrated Cold Chain and Value Addition Infrastructure           |               292 |
| Creation / Expansion of Food Processing & Preservation Capacities |               180 |
| Infrastructure for Agro-processing Clusters                       |                39 |
| Creation of Backward and Forward Linkages                         |                64 |
| Food Testing Laboratory                                           |               140 |
| Operation Green                                                   |                 2 |

(e): For  the  period  from  June,  2018  to  June,  2019,  CII  organized  14  events  to  create awareness and for propagation of the PMKSY scheme to the various stakeholders.

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