Lok Sabha Question No. 2190 (UNSTARRED), answered on 2022-03-15
Subject: Priority Sector Lending in FPIs
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: Gaddam Ranjith Reddy

## GOVERNMENTOF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA

## UNSTARRED QUESTION NO.  2190 ANSWERED ON 15 TH  MARCH, 2022

## PRIORITY SECTOR LENDING IN FPIs

## 2190.  DR. G. RANJITH REDDY:

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

- (a) whether all sectors of food processing have been included under Priority Sector Lending (PSL), if so, the details thereof;
- (b) if not, details of sectors that have been included and details of sectors that have not been included under PSL along with the reasons for not including the left out sectors under PSL;
- (c) whether it is true that there is special food processing fund;
- (d) if so, the manner in which the fund is helping the food processing sector to provide credit to units; and
- (e) the manner in which PLI is helping the sector to boost manufacture and export of processed items?

## ANSWER

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

(a) to (b): As per RBI's Master Directions dated 04.09.2020, all food & agro- processing activities have been included as eligible under Priority Sector Lending (PSL). The list of eligible activities under PSL is attached as ANNEX .

(c) to (d): A special fund of Rs.2000 crore has been set up in National Bank for Agriculture and Rural Development (NABARD) to provide credit at affordable rates to boost food processing sector. Under this fund,  loan  is  extended  to  individual  entrepreneurs,  cooperatives,  farmers  producer  organizations, corporates, joint ventures, Special Purpose Vehicle and entities promoted by the Government for setting up, modernization, expansion of food processing units and development of infrastructure in designated food parks. Apart from Mega Food Parks of the Ministry of Food Processing Industries, other designated Food Parks (DFPs) notified by the Ministry in different States have also been included. Till 31.1.2022, term loan of Rs. 466.26 crore has been disbursed from the Fund.

(e): The  Production  Linked  Incentive  Scheme  of  Food  Processing  Industry  (PLISFPI)  has  been formulated  by  the  Ministry  as  part  of  'Aatma  Nirbhar  Bharat  Abhiyaan'  for  enhancing  India's manufacturing  capabilities  and  enhancing  exports.  The  scheme  has  three  broad  components.  The  first component relates to incentivizing manufacturing of four major food product segments viz. Ready to Cook/ Ready to Eat (RTC/ RTE) including millet-based foods, Processed Fruits & Vegetables, Marine Products and Mozzarella Cheese. The second component is intended for incentivizing innovative/ organic products of SMEs across all the above four food product segments including Free Range - Eggs, Poultry Meat and Egg Products. The third component relates to support for branding and marketing abroad to incentivize the emergence of strong Indian brands.

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## ANNEXURE REFERRED TO IN REPLY TO PART (a) AND (b) OF LOK SABHA UNSTARRED QUESTION  NO.  2190  FOR  ANSWER  ON  15 TH   MARCH,  2022  REGARDING  'PRIORITY SECTOR LENDING IN FPIS'.

## Indicative list of Permissible Activities under Food Processing Sector

1. Cleaning,  Air  Cooling  (Field  Heat  Removal),  Sorting,  Grading/Sizing,  Packaging,  Warehousing, Distribution of Fruits & Vegetables etc.
2. Transportation  including  in  refrigerated  van/Cold  Chain  infrastructure  system  Packaging  and  storage including techniques like Silo, Hermetic storage; pest management.
3. Storage at low temperature/Cold Storage/Modified/Controlled Atmosphere packaging, Refrigeration/Chilling etc.
4. Primary  and/or  Minimal  Processing  of  F&V:  -  Blanching  (Vegetables),  Peeling,  Cutting,  Storage, Distribution at Low temperature, vacuum packaging etc.
5. Sun Drying and Mechanical Drying: - Solar Drying, Hot air drying, Dehydration, hybrid drying, fluidized bed  drying,  refractive  window  drying,  drum  drying,  radio  frequency  drying,  Lyophilisation  (Freeze Drying), Vacuum Drying, Spray Drying, De-hydro-freezing etc.
6. Preservation through various methods; both traditional and modern.
7. Frozen Products: Individually Quick Frozen (10F) of Fruit, Vegetables, Meat, Fish, Sea Foods etc.
8. Milk and Milk products processing, including their transportation, packaging and storage.
9. Canning of Fruit, Vegetables including Mushrooms, Meat, Fish, crustaceans, molluscs, other Sea Foods etc.
10. Milling Grains, Legumes & Pulses, Preparation of their by-products such as Bran Oil, Cattle Feed/Poultry feed etc.
11. Processing of F&V into different products such as juices, concentrates, sauces, jam, jellies, marmalades, Chips, Flakes, Powders etc.
12. Processing of Grains & Pulses, Fish, Meat, Poultry, Sea Foods, Egg etc. into their different products including  extruded,  popped,  puffed  and  flaked  products  and  their  packaging  and  storage  including fumigation, Smoking etc.
13. Oil seed Extraction- Rendering, Pressing, Hydrogenation, Refining with Extraction, Filling/packaging etc.
14. Spices, Seasoning and Condiments - Grinding, Crushing, Milling, Sieving, Mixing, Blending, Roasting, Packaging, Storage, Distribution.
15. Production of fermented Products and Alcoholic- Wines, Vinegar, Milk products, Prebiotics, Probiotics etc.
16. Production of beverages  - Juices, RTS, Nectar, Squash, Cordial, Syrups/Sherbets, Soups, Carbonated Beverages etc.
17. Production  of  Cocoa,  Coffee,  Chicory  and  Tea  Products;  including  Cocoa  Butter,  Cocoa  Powder, Chocolates, wafers etc.
18. Production of Bakery and Confectionary Products - Biscuits, Bread, Cakes, Cookies, Toffee etc.
19. Production of Jaggery, Sugar, Khandasari etc from Sugarcane, Beet, Palm etc.
20. Production of apiary products (honey processing; both natural and artificial honey).
21. Production of Starch and Starch Products - Sago, Tapioca, Corn, Noodles, Macroni, Vermicelli etc,
22. Slaughtering of animals/ruminants/birds etc. and their processing.
23. Nuts Processing; coconut-based product processing such as water, nuts etc.
24. Processing of other products such as Instant Mixes, Ready to Eat (RTE) retort-based products, ready to cook and Beverages etc.
25. Nutraceutical products/functional foods/fortified food/enriched food preparation.
26. Production of Organic food products.
27. Processing  of  algal  and  fungal  products  (eg  Spirulina,  Mushrooms  etc),  including  packaging  and enhancement of shelf life.
28. Processing plantation crops, packaging, storage and enhancement of shelf life.
29. Production of food grade packaging material such as laminates, tetra packs, bottles, tin containers etc.