Lok Sabha Question No. 1067 (UNSTARRED), answered on 2022-02-08
Subject: Setting up of Foof Processing Units for Turmeric
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: Arvind Dharmapuri

## GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA UNSTARRED QUESTION NO. 1067

ANSWERED ON 08 TH  FEBRUARY, 2022

## SETTING UP OF FOOD PROCESSING UNITS FOR TURMERIC

## 1067.  SHRI ARVIND DHARMAPURI

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

- (a) whether the Government has proposal to encourage the setting up of small food processing units for turmeric at farm level keeping in view of the abundance of agricultural produce in certain parts of the country, including in Telengana;
- (b) if so, the details thereof;
- (c) whether the Food Processing Industries (FPI) have received Foreign Direct Investment (FDI) during the last ten years including the current year;
- (d) if so, the details thereof, State/UT-wise; and
- (d) the details of challenges faced/being faced by the FPIs, particularly during the pandemic and the efforts made by the Government to sort out such challenges?

## ANSWER

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

(a)  &  (b):  Ministry  of  Food  Processing  Industries  (MoFPI)  has  been  implementing  a  Scheme  for Creation/Expansion  of  Food  Processing  &  Preservation  Capacities  (CEFPPC)  under  the  Pradhan Mantri  Kisan  Sampada  Yojana  (PMKSY)  for  setting  up/expansion  of  food  processing  industries including  spices  (Turmeric)  units  in  the  country.  Under  the  scheme,  grants-in-aid  @  35%  of  the eligible project cost is provided in General Areas and 50% of the eligible project cost in North Eastern States including Sikkim and Difficult areas including Himalayan States (Himachal Pradesh, J&K & Uttarakhand), notified ITDP areas and Islands subject to a maximum of Rs.5.00 crore. Till date, 4 food processing  units  for  processing  of  turmeric  have  been  approved  /  sanctioned  under  the  CEFPPC Scheme. The details of these 4 units are at Annexure.

Ministry  of  Food  Processing  Industries  is  also  implementing  a  Centrally  Sponsored  "PM Formalisation  of  Micro  food  processing  Enterprises  (PMFME)  Scheme"  for  providing  financial, technical and business support for upgradation of micro food processing enterprises including turmeric processing  in  the  country.  Support  to  upgrade  existing  units  or  setting  up  of  new  micro  units  for individuals is provided through a credit linked grants-in-aid @35% up to a maximum grant of Rs. 10.00 lakh. The Scheme also provides support to food processing units of SHGs/ FPOs/Cooperatives for  credit  linked  grants-in-aid  @35%,  Seed  Capital  to  SHGs,  Incubation  Centre,  Common Infrastructure, Marketing & Branding and Capacity Building.  The Scheme has adopted One District One Product (ODOP) approach to reap the benefit of scale in terms of procurement of inputs, availing common services and marketing of products. ODOP for the scheme provides the framework for value chain development and alignment of support infrastructure. Turmeric is ODOP for Nizamabad district of Telangana.

- (c): 100% Foreign Direct  Investment (FDI) is  permitted  under the  automatic  routefor  the  food processing  sector.  Foreign  direct  investment  policy  and  data  is  looked  after  by  Department  for Promotion of Industry and Internal Trade (DPIIT). The details of the FDI received during last Data including the current year are as under:

|   S. No | Year (April to March)     |   FDI in FPI sector (In US $ Million) |
|---------|---------------------------|---------------------------------------|
|       1 | 2012-13                   |                                401.46 |
|       2 | 2013-14                   |                               3982.89 |
|       3 | 2014-15                   |                                516.72 |
|       4 | 2015-16                   |                                505.02 |
|       5 | 2016-17                   |                                727.22 |
|       6 | 2017-18                   |                                904.9  |
|       7 | 2018-19                   |                                628.24 |
|       8 | 2019-20                   |                                904.7  |
|       9 | 2020-21                   |                                393.41 |
|      10 | 2021-22 (April-September) |                                410.62 |

Source: Department for Promotion of Industry and Internal Trade

## (d): Full year state-wise data for FDI is available for 2020-21 as given below:

(in US$ million)

| S. No.   | State            |   2020-21 (April to March) |
|----------|------------------|----------------------------|
| 1        | Andhra Pradesh   |                       0.03 |
| 2        | Delhi            |                      31.1  |
| 3        | Goa              |                       0.02 |
| 4        | Gujarat          |                      12.75 |
| 5        | Haryana          |                      19.16 |
| 6        | Himachal Pradesh |                       0.16 |
| 7        | Jharkhand        |                       0.34 |
| 8        | Karnataka        |                      24.16 |
| 9        | Kerala           |                       0.1  |
| 10       | Maharashtra      |                     188.09 |
| 11       | Punjab           |                       0.02 |
| 12       | Rajasthan        |                      80.37 |
| 13       | Tamil Nadu       |                       9.51 |
| 14       | Telangana        |                      24.75 |
| 15       | Uttar Pradesh    |                       2.51 |
| 16       | West Bengal      |                       0.34 |
| Total    | Total            |                     393.41 |

Source: Department for Promotion of Industry and Internal Trade (DPIIT)

- (e): Ministry of Food Processing Industries mainly received complaints related to logistics arising out of restrictions imposed by different States/UTs to curb spread of Corona virus. A total of 649 complaints were received by the Covid Grievance Cell, through designated email covidgrievancemofpi@gov.in, since its inception in April 2020. These were resolved in a timely manner.

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## ANNEXURE  REFERRED  TO  IN  REPLY  TO  PART  (a)  AND  (b)  OF  LOK  SABHA UNSTARRED QUESTION NO.1067 FOR ANSWER ON 08 TH FEBRUARY, 2022 REGARDING SETTING UP OF FOOD PROCESSING UNITS FOR TURMERIC

|   Sr. No. | Name of the applicant                       | District   | State     | Products                                                                                                                                      | Date of Approv al   |   Proje ct Cost (Rs. in Cr.) |   Approv ed Grant (Rs. in Cr.) |   Released Amount (Rs. in Cr.) | Status               |
|-----------|---------------------------------------------|------------|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------|---------------------|------------------------------|--------------------------------|--------------------------------|----------------------|
|         1 | M/s Ella Foods                              | Kolar      | Karnataka | Cryogenic and sterile spice Powders chilli, turmeric, cumin etc.                                                                              | 13.04.20 18         |                        16.72 |                           3.62 |                           3.5  | Completed            |
|         2 | M/s Bioingredia Natural Private Limited     | Palakkad   | Kerala    | Oleoresins &essential oils from turmeric, pepper, ginger, nutmeg, cardamom, clove, paprika, red chillies etc.                                 | 02.12.20 19         |                         7.11 |                           2.19 |                           1.09 | Under Implementation |
|         3 | M/s Flavco Natural Products Private Limited | Palakkad   | Kerala    | Oleoresins / essential oils/colors from turmeric, ginger, nutmeg, cardamom , onion, garlic, tulsi, garlic, beetroot, aloe vera, capsicum etc. | 02.12.20 19         |                         5.57 |                           1.64 |                           0.82 | Under Implementation |
|         4 | M/s IXI Serve LLP                           | Ajmer      | Rajasthan | Cryogenic ally Processed Chilli, turmeric, blended spices                                                                                     | 16.03.20 20         |                         4.78 |                           1.09 |                           0    | Under Implementation |