Lok Sabha Question No. 631 (UNSTARRED), answered on 2021-02-04
Subject: Inclusion of Agriculture and Tourism Based Industries in MSME Sector
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: E. T. Mohammed Basheer

## GOVERNMENT OF INDIA

## MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION NO.  631 TO BE ANSWERED ON 04.02.2021

## INCLUSION OF AGRICULTURE/TOURISM BASED INDUSTRIES UNDER MSME SECTOR

631. SHRI E.T.MOHAMMED BASHEER:

Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state:

- (a) whether  the  Government  has  any  proposal  to  include  agriculture  and  tourism  based industries under the Micro, Small and Medium Enterprises (MSME) sector and if so, the details thereof; and
- (b) the steps taken by the Government to boost the export of agriculture products?

## ANSWER

## MINISTER OF MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI NITIN GADKARI)

- (a): As per existing guidelines, some of the activities under agriculture are covered in the ambit of MSME sector.

The  National  Industrial  Classification  (NIC)  2-digit  activity  code  01-  crop,  animal production, hunting and related activities are not included in MSME except for the following subclasses of activities at 5-digit level which are given below:-

|   NIC Code | Activity                                                                             |
|------------|--------------------------------------------------------------------------------------|
|      01462 | Production of eggs                                                                   |
|      01463 | Operation of poultry hatcheries                                                      |
|      01492 | Bee-keeping and production of honey and beeswax                                      |
|      01493 | Raising of silk worms, production of silk worm cocoons                               |
|      01612 | Operation of agricultural irrigation equipment                                       |
|      01620 | Support activities for animal production                                             |
|      01631 | Preparation of crops of primary market i.e. cleaning, trimming, grading disinfecting |
|      01632 | Cotton ginning, cleaning and bailing                                                 |
|      01633 | Preparation of tobacco leaves                                                        |
|      01639 | Other post-harvest crop activities, n.e.c                                            |
|      01640 | Seed processing for propagation                                                      |

Similarly, following activities are not included under MSME:-

|   NIC Code | Activity                |
|------------|-------------------------|
|         02 | Forestry and logging    |
|         03 | Fishing and aquaculture |

After  the  revised  definition  of  MSME,  the  differentiation  between  manufacturing  and services sector MSME have been removed. Large number of tourism units fall under MSME.

(b): Promotion of agricultural export is a continuous process. The Government has introduced a  comprehensive  Agriculture  Export  Policy  2018  to  promote  the  agricultural  export  with  the following vision:

'Harness export potential of Indian agriculture, through suitable policy instruments, to make India a global power in agriculture, and raise farmers' income.'

Agriculture  Export  Policy  (AEP)  has  been  rolled  out  with  the  vision  to  harness  export potential  through  suitable  policy  instruments  and  to  make  India  a  global  power  in  agricultural trade. AEP focuses on cluster development, diversification of Agri export basket, boosting high value and value added Agri exports including organic products and enabling farmers to get benefit of export opportunities in overseas markets.

The  Government  has  also  brought  out  a  new  Central  Sector  Scheme  -'Transport  and Marketing  Assistance  for  Specified  Agriculture  Products'-  for  providing  assistance  for  the international  component  of  freight,  to  mitigate  the  freight  disadvantage  for  the  export  of agriculture products, and marketing of agriculture products.

The  Department  of  Commerce  also  has  several  schemes  to  promote  exports,  including export  of  agricultural  products,  viz.  Trade  Infrastructure  for  Export  Scheme  (TIES),  Market Access  Initiatives  (MAI)  Scheme,  Merchandise  Exports  from  India  Scheme  (MEIS)  etc.  In addition,  assistance  to  the  exports  of  agriculture  products  is  also  available  under  the  Export Promotion Schemes of Agriculture & Processed Food Products Export Development Authority (APEDA),  Marine  Products  Export  Development  Authority  (MPEDA),  Tobacco  Board,  Tea Board, Coffee Board, Rubber Board and Spices Board.

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