Lok Sabha Question No. 367 (UNSTARRED), answered on 2021-07-20
Subject: Setting up New Food Processing Industries
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: Nishikant  Dubey

## GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA UNSTARRED QUESTION NO. 367

ANSWERED ON 20 TH  JULY, 2021

## SETTING UP NEW FOOD PROCESSING INDUSTRIES

## 367. DR. NISHIKANT DUBEY:

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

- (a) the  steps  taken/being  taken  by  the  Government  for  setting-up/expansion  of  food  processing industries in the country, State/UT-wise, including Jharkhand;
- (b) whether  the  Government  has  conducted  any  study  regarding  setting-up  and  expansion  of  such industries in the country;
- (c) if so, the details thereof; and
- (d) the  other  measures  taken/being  taken  by  the  Government  for  expansion  of  food  processing industries in the country?

## ANSWER

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

(a) to (d). The Ministry of Food Processing Industries (MoFPI) has been implementing a Central Sector Umbrella  Scheme  -  PRADHAN  MANTRI  KISAN  SAMPADA  YOJANA  -  (PMKSY)  for  overall development of food processing sector across the country. Under component schemes of PMKSY, MoFPI provides  mostly  credit  linked  financial  assistance  (capital  subsidy)  in  the  form  of  grants-in-aid  to entrepreneurs for setting up of food processing / preservation industries. PMKSY is not any region or state specific but demand driven and is implemented across the country including in the state of Jharkhand.

MoFPI  is  also  implementing  centrally  sponsored  "PM  Formalisation  of  Micro  food  processing Enterprises Scheme"  with an aim to provide financial, technical and business support for upgradation/ setting up of two lakh micro food processing units based on One District One Product (ODOP) approach in a period of five years from 2020-21 to 2024-25 with an outlay of Rs. 10,000 crores, out of which a total of 5468 units have been allocated to Jharkhand with an outlay of Rs 250.33 Crores. Under the scheme, a total of 137 unique food products/ perishable produce etc have been approved as ODOP for 707 districts across the country, including 24 districts located in Jharkhand.

Government has taken various policy initiatives for promotion of food processing industries in the country.  It has allowed 100% Foreign Direct Investment (FDI) through automatic route in manufacturing of food products and 100% FDI under Government approval route for retail trading, including through ecommerce, in respect of food products produced and/or manufactured in India. A special fund of Rs.2000 crore in National Bank for Agriculture and Rural Development (NABARD) has been created to provide affordable credit to food processing projects/units. In addition, food & agro-based processing units, cold storage units/cold storage chains have been brought under the ambit of Priority Sector Lending (PSL).  The government has allowed 100% income tax deduction for profits for new food processing units for the first five  years  and  followed  by  25%  deduction  for  next  five  years,  from  the  year  of  start  of  commercial production.

Though Ministry has not conducted any study specifically regarding setting up and expansion of food processing industries, impact evaluation of  component schemes of PMKSY including Mega Food Park and Integrated   Cold Chain and Value Addition Infrastructure scheme has been conducted.

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