Lok Sabha Question No. 2408 (UNSTARRED), answered on 2021-03-09
Subject: Incentives for Value Added Crops
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Maneka Sanjay Gandhi, Shardaben Anilbhai Patel

## GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE & FARMERS WELFARE DEPARTMENT OF AGRICULTURE, COOPERATION & FARMERS WELFARE

## LOK SABHA UNSTARRED QUESTION NO. 2408

TO BE ANSWERED ON 9 TH  MARCH 2021

## INCENTIVES TO VALUE ADDED CROPS

2408.  SHRIMATI MANEKA SANJAY GANDHI SHRIMATI SHARDABEN ANILBHAI PATEL:

Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ ष एवं कसान कयाण मंी be pleased to state: (a)  whether  the  Government  has  given  incentives  to  value  added  crops  for  increasing farmer income in all the States in the past three years; (b) if so, the details thereof; and (c) the steps being taken by the Government to ensure more value addition of produce in the agricultural sector?

## ANSWER

MINISTER OF AGRICULTURE AND FARMERS WELFARE कृ ष एवं कसान कयाण मंी (SHRI NARENDRA SINGH TOMAR) (a) to (c): Ministry of Agriculture & Farmers Welfare is implementing a Scheme namely Mission for Integrated Development of Horticulture (MIDH), a centrally sponsored scheme, for  the  holistic  development  of  horticulture  in  the  country  including  value  addition  to horticulture crops. All States/UTs are covered under MIDH. Under  MIDH  Guidelines, there is a component  of  Integrated Post Harvest Management  (PHM).  Under  Integrated  PHM  assistance  is  provided  for  value  addition through  various  interventions  viz.,  setting  up  of  infrastructure  and  logistic  support  like primary processing unit, integrated pack house, pre-cooling units, on farm pack houses, mobile  pre-cooling  units,  staging  cold  rooms,  refrigerated  vans  etc.  Assistance  is  also provided  for  establishment  of  food  processing  units  in  North  Eastern  and  Himalayan States. The  components  of  Post  Harvest  Management  are  demand/entrepreneur-driven. Entrepreneurs, private companies, cooperatives, farmers groups etc through commercial ventures  can  avail  assistance  for  individual  component  or  combination  of  different components, for which assistance @ 35% of admissible project cost in general areas and

@ 50% of admissible project cost in hilly and scheduled area as credit linked back ended subsidy through respective State Horticulture Missions. In case of Food Processing units in North  Eastern  and  Himalayan  States  assistance  is  provided  @  50%  of  the  admissible project cost. Under the Scheme assistance is also provided for Primary/ Mobile/ Minimal Processing Units @ 40% of the capital cost of Rs. 25.00 lakh/project in general areas and @55% in case of hilly and scheduled areas.

The  State-wise  &  year-wise  details  of  Primary  Processing/  Mobile  Processing Projects and Food Processing Projects sanctioned under MIDH Scheme are at AnnexureI & II respectively .

In  addition,  Ministry  of  Food  Processing  Industries  (MoFPI)  is  implementing  the Scheme for Integrated Cold Chain, Value Addition and Preservation Infrastructure as one of the component of Pradhan Mantri Kisan Sampada Yojana (PMKSY) with the objective of  reducing  post-harvest  losses  of  horticulture  &  non-horticulture  produce  and  providing remunerative  price  to  farmers  for  their  produce.  Under  the  scheme,  MoFPI  provides financial  assistance  in  the  form of  grant-in-aid  at the  rate  of 35%  for  general  areas and 50%  for  North  East  States,  Himalayan  States,  Integrated  Tribal  Development  Project areas and Islands for storage and transport infrastructure and at the rate of 50% and 75% respectively for value addition and processing infrastructure subject to a maximum grantin-aid of Rs. 10 crore per project for setting up integrated cold chain projects. In addition to Integrated Cold Chain and Value Addition Projects, Projects of Agro Processing Cluster, Mega food Park etc.  are also supported  under PMKSY. The scheme is available for  all States/UTs. Details  of  the  projects  sanctioned  under  PMKSY,  from  2018-19  to  2020-21 are at Annexure-III .

Apart from above, Ministry of Agriculture & Farmers Welfare is also implementing National  Food  Security  Mission  (NFSM)  since  2007-08  to  increase  production  of  Rice, Wheat and Pulses. Under NFSM, assistance is provided for the Primary Processing Units like  Small  Dal  Mill,  De-husking  Machines  etc.  for  value  addition  of  crops  from  the  year 2020-21.

## Annexure-I

State-wise & year-wise details  of Primary Processing/ Mobile/ Minimal Processing Units sanctioned during last three years under MIDH Scheme

| S. No.   | State          | 2017-18   | 2018-19   | 2019-20   |
|----------|----------------|-----------|-----------|-----------|
| 1.       | Andhra Pradesh | 1         | 11        | 9         |
| 2.       | Chhattisgarh   | 1         | -         | -         |
| 3.       | Goa            | -         | 1         | -         |
| 4.       | Gujarat        | 6         | 2         | 5         |
| 5.       | Haryana        | 2         | 3         | 1         |
| 6.       | Karnataka      | 373       | 639       | 385       |
| 7.       | Kerala         | 2         | 2         | -         |
| 8.       | Maharashtra    | 51        | 6         | 61        |
| 9.       | Odisha         | 3         | 9         | 2         |
| 10.      | Punjab         | 1         | 0         | -         |
| 11.      | Tamilnadu      | -         | 50        | -         |
| 12.      | Uttar Pradesh  | -         | -         | 1         |
| 13.      | Assam          | -         | 5         | -         |
| 14.      | Manipur        | -         | -         | 10        |
| 15.      | Sikkim         | 5         | -         | -         |
|          | Grand Total    | 445       | 728       | 474       |

State-wise & year-wise details of Food Processing Projects sanctioned during last three years under MIDH Scheme

| S. No.   | State            | 2017-18   | 2018-19   | 2019-20   |
|----------|------------------|-----------|-----------|-----------|
| 1.       | Assam            | -         | 1         | -         |
| 2.       | Himachal Pradesh | -         | 4         | 5         |
| 3.       | Jammu & Kashmir  | 1         | -         | -         |
| 4.       | Uttarakhand      | 1         | 1         | 2         |
|          | Grand Total      | 2         | 6         | 7         |

Details  of  projects  sanctioned  during  2018-19  and  subsequent  years  under  Pradhan Mantri Kisan Sampada Yojna (of MoFPI)

| Scheme                                                                                 | 2018-19   |   2019-20 | 2020-21   |
|----------------------------------------------------------------------------------------|-----------|-----------|-----------|
| Agro Processing Cluster (APC)                                                          | 17        |        14 | 22        |
| Backward and Forward Linkages (BFL)                                                    | 54        |         1 | 8         |
| Creation/Expansion of Food Processing & Preservation Capacities (CEFPPC) (Unit Scheme) | 84        |       123 | 50        |
| Integrated Cold Chain, Value Addition and Preservation Infrastructure                  | 44        |        15 | 46        |
| Mega Food Park (MFP)                                                                   | -         |         2 | -         |
| Operation Greens (OG)                                                                  | 2         |         3 | 1         |

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