Lok Sabha Question No. 3345 (UNSTARRED), answered on 2023-03-21
Subject: FPI Scheme in Rural Areas
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: Subhash Ramrao Bhamre, Ranjeetsingh Naik Nimbalkar, Devji Mansingram Patel

## GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA UNSTARRED QUESTION NO.3345

ANSWERED ON 21.03.2023

## FPI SCHEME IN RURAL AREAS

## 3345.  DR. SUBHASH RAMRAO BHAMRE: SHRI RANJEETSINGH NAIK NIMBALKAR: SHRI DEVJI M. PATEL:

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

- (a) whether  the  Government  is  implementing  Food  Processing  Industry  (FPI)  scheme  for  the benefit of farmers in rural areas to process and increase the price of their production and also thereby increasing their income especially in Maharashtra;
- (b) if so, the details of such scheme and the number of farmers who have benefitted from the said scheme till date;
- (c) whether  the  Government  has  prepared  any  long  term  plan  for  processing  of  agricultural products particularly in rural areas of Maharashtra and Rajasthan;
- (d) whether the Government is facing any hardship to implement this scheme and if so, the details thereof; and
- (e) the other steps taken by the Government to promote food processing industries in the country?

## ANSWER

## THE MINISTER OF STATE FOR FOOD PROCESSING INDUSTRIES (SHRI PRAHLAD SINGH PATEL)

(a)  to  (c): Yes,  Sir.  The  Ministry  of  Food  Processing  industries  (MoFPI)  has  been  implementing Central Sector Umbrella Scheme- Pradhan Mantri Kisan SAMPADA Yojana (PMKSY) since 201617  for  overall  growth  and  development  of  food  processing  sector,  including  processing  of  agroproducts and thus increasing the income of the farmers across the country including in the state of Maharashtra and Rajasthan. Under component schemes of PMKSY, MoFPI provides mostly credit linked financial assistance (capital subsidy) in the form of grants-in-aid to entrepreneurs for setting up of  food  processing  industries.  The  projects  completed  under  component  schemes  of  PMKSY  are estimated to benefit about 30.67 lakh famers.

Also,  as  part  of  the  Aatmanirbhar  Bharat  Initiative,  MoFPI  is  implementing  a  Centrally Sponsored Scheme-PM Formalisation of Micro Food Processing Enterprises Scheme (PMFME) for providing financial, technical and business support for setting up/upgradation of 2 lakh micro food processing enterprises through credit linked subsidy during five years from 2020-21 to 2024-25 with an outlay of Rs. 10,000 crore. Out of this, a total of 22234 units and 7331 units have been allocated to Maharashtra and Rajasthan respectively.

- (d): MoFPI is not facing any major hardship in implementing these schemes.

(e): MoFPI  is  also  implementing  Central  Sector  Production  Linked  Incentive  Scheme  for  Food Processing Industry (PLISFPI) Scheme, intended to support creation of global food manufacturing champions. The Scheme is being implemented over a six-year period from 2021-22 to 2026-27 with an outlay of Rs. 10,900 crores. For easy and affordable credit to the sector, all food & agro processing activities have been made eligible under Priority Sector Lending and a special fund of Rs.2000 crore has been set up in National Bank for Agriculture and Rural Development (NABARD).