Lok Sabha Question No. 240 (UNSTARRED), answered on 2021-07-20
Subject: Private Sector in FPI
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: Dean Kuriakose

## GOVERNMENT OF INDIA

## MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA UNSTARRED QUESTION NO. 240

ANSWERED ON 20 TH  JULY, 2021

## PRIVATE SECTOR IN FPI

## 240. ADV. DEAN KURIAKOSE:

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

- (a) whether the Government has any proposal to increase private sector participation in the Food Processing  Industries  (FPI)  to  bring  food  processing  revolution  which  is  overdue  for  several decades;
- (b) if so, the details thereof;
- (c) whether the Government is aware that there is a need of post-harvest food processing revolution with specific focus on value addition on each and every product produced in the country and for this purpose Public Private Partnerships (PPP) mode is required;
- (d) if so, the details thereof and any existing plan in this regard; and
- (e) whether the Government is considering to encourage setting up of food processing units near the fields and if so, the details thereof?

## ANSWER

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

- (a)  to  (e): Government  has  been  consistently  encouraging  and incentivizing  increased  private  sector investment for overall development of Food Processing sector of the country to promote value addition in agricultural and allied sector and reduce wastage.

Ministry  of  Food  Processing  Industries  (MoFPI)  is  implementing  a  Central  Sector  umbrella scheme-  Pradhan  Mantri  Kisan  Sampada  Yojana  (PMKSY)  since  2016-17  for  overall  growth  and development of food processing sector, mostly through private sector participation. Under the component schemes, MoFPI provides credit linked financial assistance (capital subsidy) in the form of grants-in-aid to entrepreneurs for setting up of food processing / preservation industries with farm level infrastructure like  primary  processing  facilities,  collection  centers  etc.   So  far,  792  projects  out  of  a  total  of   818 projects  have been approved for setting up food processing Industries by the private sector with approved Grants in Aid of Rs 5791.71 Crores.

In order to further increase  private sector participation in the sector, Government has taken three major initiatives this  year. Firstly, Government has approved the introduction of 'Production Linked

Incentive scheme' 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.

Secondly, with a view to extend incentives to the private micro food enterprises, Self Help Groups (SHGs), Farmer Producer Organizations (FPOs) and Cooperatives, spread all over the country, MoFPI is implementing centrally sponsored "PM Formalisation of Micro food processing Enterprises Scheme". The scheme aims to provide financial, technical and business support for upgradation/ setting up of two lakh micro food processing units based on One District One Product (ODOP) approach in a period of five years from 2020-21 to 2024-25 with an outlay of Rs. 10,000 crores.

Thirdly, in the budget speech for 2021-2022, Government has announced expansion of scope of 'Operation Greens  scheme' from Tomato, Onion & Potato (TOP) to 22 perishable products, so as to boost value addition in agriculture and allied products and their exports.

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