Lok Sabha Question No. 3614 (UNSTARRED), answered on 2021-08-10
Subject: FPI Schemes for Rural Areas
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: S.R. Parthiban

## GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA UNSTARRED QUESTION NO. 3614

ANSWERED ON 10 TH  AUGUST, 2021

## FPI SCHEMES FOR RURAL AREAS

## 3614.     SHRI PARTHIBAN S.R.:

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

- (a) whether the Government has designed any FPI scheme for the farmers in rural areas to process their produce, increasing the price of their products and also thereby increasing their income especially in Tamil Nadu;
- (b) if so, the details of such scheme and the number of farmers who benefited from it till date; and
- (c) whether the Government would propose to prepare any such action plan in this regard?

## ANSWER

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

(a) to (c): The Ministry of Food Processing industries (MoFPI) has been implementing Central Sector Umbrella Scheme - Pradhan Mantri Kisan SAMPADA Yojana (PMKSY) since 2016-17 for overall growth and development of food processing sector, including processing of agro- products and thus increasing the income of the farmers. The component schemes of PMKSY are - (i) Mega Food Park, (ii) Integrated Cold Chain and Value Addition Infrastructure, (iii) Creation /Expansion of Food Processing & Preservation Capacities, (iv) Infrastructure for Agro-Processing Clusters, (v) Creation of Backward & Forward linkages, (vi) Food Safety and Quality Assurance Infrastructure, (vii) Human Resource and Institutions, (viii) Operation Greens. 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 / preservation industries. PMKSY is not region or state specific but demand driven and is implemented across the country including the rural areas of Tamil Nadu. So far, Ministry has approved  41  Mega  food  Parks,  353  Cold  Chain  projects,  63  Agro  Processing  Clusters,  292  Food Processing Units, 63 Creation of Backward & Forward Linkages Projects & 6 Operation Green projects across the country under corresponding component schemes of PMKSY. Out of these, Ministry has approved 1 Mega Food Park project, 17 Cold Chain projects, 10 Agro Processing Clusters, 22 Food Processing Units, 9 Creation of Backward & Forward Linkages Projects & 20 Food Test Laboratory projects in Tamil Nadu under corresponding component schemes of PMKSY.

The sanctioned projects across the country under component schemes of PMKSY are estimated to benefit about 34 lakh famers on completion. In the evaluation study of Integrated Cold Chain and Value Addition Infrastructure Scheme conducted by M/s NABARD Consultancy Limited (NABCONS) in Year 2020, it has been estimated that captive projects under the scheme have resulted in increase in farm-gate prices by 12.38 % and each project is estimated to benefit more than 9500 farmers.

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 12128 units have been allocated to Tamil Nadu with tentative outlay of Rs 572.71 cr. for five years.

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