Lok Sabha Question No. 2605 (UNSTARRED), answered on 2021-12-14
Subject: Food Processing Sector
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: Sanjay Sadashivrao Mandlik, Manoj Kumar Tiwari, Prataprao  Jadhav, Ravindra Kushawaha, Ravi Kishan Shukla, Sudheer Gupta, Shrirang Appa Barne, Bidyut Baran Mahato

## GOVERNMENTOF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES LOK SABHA

## UNSTARRED QUESTION NO. 2605 ANSWERED ON 14 TH  DECEMBER, 2021

## FOOD PROCESSING SECTOR

## 2605.   SHRI SANJAY SADASHIVRAO MANDLIK:

SHRI MANOJ TIWARI:

SHRI PRATAPRAO JADHAV:

SHRI RAVINDRA KUSHWAHA:

SHRI RAVI KISHAN:

SHRI SUDHEER GUPTA:

SHRI SHRIRANG APPA BARNE:

SHRI BIDYUT BARAN MAHATO:

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

- (a) whether India's food processing sector is one of the largest in the world with output expected to reach 535 billion dollar by year 2025-26 and if so, the details thereof;
- (b) whether it is also true that food processing sector is a major contributor to the country's GDP and provides huge employment directly and indirectly and if so, the details thereof;
- (c) whether the Government is considering to capture the market opportunities and improve/increase the income of farmers by improving the processing levels and if so, the details thereof and the measures taken during the last three years;
- (d) the details of total foreign direct investment received by FPIs during each of the last three years and the current year;
- (e) the details of challenges faced/being faced by the FPI, particularly during the pandemic and the efforts made by the Government to sort out such challenges; and
- (f) the other steps taken to fully utilize the potential of FPI in the country?

## ANSWER

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

- (a): The output data for registered manufacturing sector including food processing sector is brought out  by  the  Ministry  of  Statistics  and  Programme  Implementation  through  the  Annual  Survey  of Industries. As per latest Annual Survey of Industries (ASI) 2018-19, the total output in food processing sector was  Rs.12,76,995  crore, which  contributed 12.83%  of  total output in the registered manufacturing sector in India. No projection of output growth is made in the ASI data.

(b): The Gross Value added (GVA) in the food processing sector was Rs.2.24 lakh crore in 201920 contributing 1.69% of the total GVA in the country. The GVA in food processing sector was 9.87% of  GVA  in  Manufacturing  and  11.38%  of  GVA  in  Agriculture,  Forestry  and  Fishing  sectors respectively.

As per the ASI data (2018-19), 20.05 lakh persons were engaged in food processing sector. The sector contributed the largest share of 11.22% of total persons engaged in the registered manufacturing sector in the country.

(c): The  Government  has  undertaken  various  policy  measures  and  is  implementing  schemes  to support and boost the food processing sector including for increasing the processing level. Major policy measures undertaken include:

- (i) Inclusion of food & agro-based processing units and cold chain as agricultural activity under Priority Sector Lending (PSL) norms.
- (ii) A Special  Food  Processing  Fund  of  Rs.  2000  crore  was  set  up  with  NABARD  to  provide affordable credit for investment in setting up Mega Food Parks (MFP) as well as processing units in the MFPs.
- (iii) As a measure towards improving ease of doing food business, the Food Safety and Standards Authority of India (FSSAI) has shifted from product-by-product approval to an ingredient and additive based approval process.
- (iv) 100 per cent FDI under automatic route was already permitted for the food processing sector. 100% FDI under the government approval route has been allowed for retail trading, including e-commerce, in respect of food products manufactured/ produced in India.

(d): The details of Foreign Direct Investment (FDI) in food processing sector for the last four years are as under:

|   S. No. | Year    |   FDI (in Rs. Crore) |
|----------|---------|----------------------|
|        1 | 2017-18 |              5835.62 |
|        2 | 2018-19 |              4430.44 |
|        3 | 2019-20 |              6414.67 |
|        4 | 2020-21 |              2934.12 |

Source: Department for Promotion of Industry and Internal Trade

(e) & (f): In order to ensure overall development of food processing industries (FPI) in the country including  for  dealing  with  challenges  arising  out  of  COVID-19,  the  Ministry  Food  Processing Industries (MoFPI) has undertaken a number of initiatives, which include -

- (i) Launching  of  a  Centrally  Sponsored  Scheme,  namely,  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 across the country during five years from 2020-21 to 2024-25 based on One District One Product (ODOP) approach with an outlay of Rs.10,000 crore.
- (ii) The  expansion  in  the  scope  of  'Operation  Greens'  scheme  under  Pradhan  Mantri  Kisan SAMPADA Yojana from Tomato, Onion and Potato (TOP) to all notified fruits & vegetables (TOTAL).  Subsequently,  in  the  Union  Budget  2021,  Operation  Greens  scheme  has  been extended from TOP to 22 perishables for value addition and export.
- (iii) Production Linked Incentive scheme (PLIS) for Food Processing Sector with an outlay of Rs 10,900 crore to support creation of global food manufacturing champions and support Indian brands of food products in international market.
- (iv) In  order  to  facilitate  food  processing  units,  resume  their  operations,  the  Ministry  of  Food Processing Industries had established a dedicated Grievance Cell and a Task Force during initial phase  of  outbreak  of  COVID-19  pandemic  to  liaison  with  state  authorities.  A  total  of  585 industry related issues were resolved during the COVID lockdown period in 2020 by the Cell.
- (v) The  Ministry  is  implementing  a  Central  Sector  Scheme-Pradhan  Mantri  Kisan  SAMPADA Yojana  (PMKSY)  for  overall  development  of  the  food  processing  sector  for  increasing processing capacity, reducing wastage of agricultural produce, creating off-farm employment and ensuring better returns to farmers and enhancing export of the processed foods.

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