Lok Sabha Question No. 1029 (UNSTARRED), answered on 2022-12-13
Subject: Infrastructure under PMKSY
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: Janardan Singh Sigriwal

## GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA UNSTARRED QUESTION NO. 1029

ANSWERED ON 13 TH  DECEMBER, 2022

## INFRASTRUCTURE UNDER PMKSY

## 1029. SHRI JANARDAN SINGH SIGRIWAL1067.

SHRI P. WILSON

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

- (a) whether the Government proposes Pradhan Mantri Kisan Sampada Yojana (PMKSY) for creation of modern infrastructure with efficient supply chain management from farm gate to retail outlet;
- (b) if so, the details and salient features thereof; and
- (c) the  manner  in  which  it  would  be  beneficial  for  farmers,  retailers  and  consumers  of  the country?

## ANSWER

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

(a) & (b). The Ministry of Food Processing Industries (MoFPI) has been implementing an umbrella scheme,  namely,  Pradhan  Mantri  Kisan  Sampada  Yojana  (PMKSY)  since  2017-18  across  the country.  PMKSY is  a  comprehensive  package  of  sub-schemes  viz.  (i)    Mega  Food  Parks,  (ii) Integrated Cold Chain and Value Addition Infrastructure, (iii) Food Safety & Quality Assurance Infrastructure,  (iv)  Creation/  Expansion  of  Food  Processing  and  Preservation  Capacities,  (v) Creation of Infrastructure Development for Agro Processing Cluster, (vi) Creation of Backward and Forward Linkage and (vii) Human Resource and Institutions,  which results in creation of modern infrastructure with efficient supply chain management from farm gate to retail outlet. It provides a big boost to the growth of food processing sector in the country, help in providing better prices to farmers, creating huge employment opportunities especially in the rural areas, reducing wastage of agricultural produce, increasing the processing level and enhancing the export of the processed foods. MoFPI invites online proposals/ applications from the prospective entrepreneurs by issuing Expression of Interest (EoI) time to time under various sub-schemes of PMKSY based on the availability of vacant slots and funds. Under the sub-schemes of PMKSY, financial support is being provided in the form of grants-in-aid against the eligible components as per their extant scheme  guidelines.  The  salient  features  of  the  sub-schemes  of  PMKSY  are  provided  below (detailed guidelines are available on website of the Ministry):

## (i) Mega Food Parks Scheme:

This sub-scheme has been discontinued w.e.f. 01.04.2021 with provision for meeting committed liabilities.

## (ii) Integrated Cold Chain and Value Addition infrastructure Scheme:

The  objective  is  to  provide  integrated  cold  chain  and  preservation  infrastructure facilities, without any break, from the farm gate to the consumer. It covers creation of infrastructure facility along the entire supply chain viz. pre-cooling, weighing, sorting, grading, waxing facilities at farm level, multi product/multi temperature cold storage, CA storage, packing facility, IQF, blast freezing in the distribution hub and reefer vans, mobile cooling units for facilitating distribution of non-horticulture, horticulture, fish/ marine  (except  shrimp),  dairy,  meat  and  poultry.  The  scheme  allows  flexibility  in project planning with special emphasis on creation of cold chain infrastructure at farm level.

## (iii) Creation/  Expansion  of  Food  Processing  And  Preservation  Capacities Scheme:

The main objective of the Scheme is creation of processing and preservation capacities and  modernisation/  expansion  of  existing  food  processing  units  with  a  view  to increasing the level of processing, value addition leading to reduction of wastage. The processing activities undertaken by the individual unit covers a wide range of postharvest  processes  resulting  in  value  addition  and/or  enhancing  shelf  life  with specialized  facilities  required  for  preservation  of  perishables.  While  expansion  of processing capacity is necessary to increase the level of processing and reduce wastage, the induction of modern technology is intended to make a clear difference in terms of process efficiencies as well as improving the quality of the end product. The setting up of  new units  and  modernization/  expansion of existing units  are  covered  under the scheme.

## (iv) Creation  of  Infrastructure  Development  for  Agro  Processing  Cluster Scheme:

The scheme aims at development of modern infrastructure and common facilities to encourage  group  of  entrepreneurs  to  set  up  food  processing  units  based  on  cluster approach  by  linking  groups  of  producers/  farmers  to  the  processors  and  markets through well-equipped supply chain with modern infrastructure. Each agro processing clusters under the scheme have two basic components i.e. Basic Enabling Infrastructure (roads, water supply, power  supply, drainage, ETP  etc.), Core Infrastructure/ Common facilities (ware houses, cold storages, IQF, tetra pack, sorting, grading etc) and at least 5 food processing units with a minimum investment of Rs. 25 crore. The  units are set up simultaneously along with creation  of  common infrastructure. At least 10 acres of land in rural area or 5 acres of land in urban area is required to be arranged either by purchase or on lease for at least 50 years for setting up of Agro Processing Cluster.

## (v) Creation of Backward and Forward Linkages Scheme

This sub-scheme has been discontinued w.e.f. 01.04.2021 with provision for meeting committed liabilities.

## (vi) Food Safety and Quality Assurance Scheme

The quality and food safety have become competitive edge in the global market for food  products.  For  the  all-round  development  of  the  food  processing  sector  in  the country. Apart from this, in the interest of consumer safety and public health, there is a need to ensure that the quality food products manufactured and sold in the market meet the stringent parameters prescribed by the food safety regulator. Keeping in view the  aforesaid  objectives,  government  has  been  extending  financial  assistance  for setting up/ upgradation of Quality Control/ Food Testing Laboratories.

## (vii) Human Resource and Institutions:

- a) Research  &  Development: Under  the  scheme, the Ministry of  Food Processing  Industries  has  been  extending  financial  assistance  to  undertake demand driven R&D work for the benefit of food processing industry in terms of product and process development, efficient technologies, improved packaging, value addition etc. with commercial value along with standardization of various factors viz. additives, colouring agents, preservatives,  pesticide  residues,  chemical  contaminants,  microbiological contaminants  and  naturally  occurring  toxic  substances  within  permissible limits.
- b) Skill  Development: The main objective of the scheme is to provide sector specific skilled workforce from floor level workers, operators, packaging and assembly line workers to quality control supervisor etc in the various segments of food processing industries.
- c) Promotional Activities: To organize, co-sponsor, participate in all India level seminars,  workshops,  fairs  and  exhibitions  for  food  processing  sector  to encourage  investment  in  food  processing  and  to  create  awareness  of  the schemes being implemented by the ministry. To commission studies/ surveys to  assess,  evaluate  various  aspects  of  food  processing  sectors  and  allied activities. To create awareness about schemes of the ministry through print/ audio-visual media  through advertisements and publicity materials.  To organize  road  shows,  development  of  software  and  investor  facilitation activities to promote food processing sector.
- d) Strengthening of Institutions: To develop manpower resources in the field of food processing/ technology by offering B.Tech., M.Tech. & Ph.D courses and undertake R&D projects in the area of food technology through the National Institute of Food Technology  Entrepreneurship and Management.

## (viii) Operation Greens Scheme:

- (i) Long Term Interventions
-  Enhancing  value  realisation  of  farmers  by  targeted  interventions  to  strengthen production clusters and FPOs, and linking/ connecting the farmers with the market.
-  Reduction in post-harvest losses by creation of farm gate infrastructure, development  of  suitable  agri-logistics,  creation  of  appropriate  storage  capacity linking consumption centres.
-  Increase in food processing capacities and value addition in value chain by creating firm linkages with identified production clusters.

## (ii) Short Term Interventions

The objective of the Scheme is to protect the growers of Eligible Crops from making distress sale and to reduce post-harvest losses. Subsidy is provided for transportation and hiring of storage facilities for fruits and vegetables.

(c). PMKSY provides scope for (i) reducing spoilage of perishables and to offer better price for farmers at farm gate by preventing forced sale of agro-horti produce, (ii) the retailers and food processors  may  derive  benefit  of  purchasing  minimal  processed/  preserved  food  products  at affordable cost and (iii) the consumers may obtain safe, nutritive and healthy processed foods for consumption.