Lok Sabha Question No. 1236 (UNSTARRED), answered on 2021-02-09
Subject: Unregistered Food Processing Enterprises
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: Raja Amareshwara Naik, Sukanta Majumdar, Vinod Kumar Sonkar, Sangeeta Kumari Singh Deo, Nisith Pramanik, Bhola Singh, Jayanta Kumar Roy

## GOVERNMENTOF INDIA

## MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA UNSTARRED QUESTION NO. 1236

ANSWERED ON 09 TH  FEBRUARY, 2021

## UNREGISTERED FOOD PROCESSING ENTERPRISES

## 1236. SHRI RAJA AMARESHWARA NAIK:

DR. SUKANTA MAJUMDAR:

SHRI VINOD KUMAR SONKAR:

SHRIMATI SANGEETA KUMARI SINGH DEO:

SHRI NISITH PRAMANIK:

SHRI BHOLA SINGH:

DR. JAYANTA KUMAR ROY:

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

- (a) whether a large number of unregistered food processing enterprises are unorganized and informal, located in rural areas;
- (b) if so, whether they face challenges including the inability to access credit, high cost of institutional credit, lack of access to modern technology, inability to integrate with the food supply chain and compliance with the health & safety standards;
- (c) if so, whether the Government has approved a new Centrally Sponsored Scheme for Formalisation  of  Micro  food  processing  Enterprises  (FME)  and  if  so,  the  details thereof;
- (e) whether  there  is  any  urgency  for  strengthening  this  segment  which  will  lead  to reduction in wastage, creation of off-farm job opportunities and aid in achieving the overarching Government objective of doubling farmers' income; and
- (f) if so, necessary steps being taken by the Government in this regard?

## ANSWER

## THE MINISTER OF STATE FOR FOOD PROCESSING INDUSTRIES (SHRI RAMESWAR TELI)

(a) & (b): Yes, Sir . There are about 25 lakh unregistered food processing enterprises in the country. Nearly 66% of these units are located in rural areas.

The  unorganized  food  processing  industry  in  India  faces  various  challenges including: (a) capital deficiency and low bank credit; (b) lack of productivity and innovation due to limited skills and access to modern technology and machinery for production and packaging; (c) lack of branding & marketing skills and inability to integrate with the supply chains;  (d)  deficient  quality  and  food  safety  control  systems,  including  lack  of  basic awareness on good hygienic and manufacturing practices;

(c) to (f): As part of AatmaNirbhar Bharat Abhiyan, Ministry of Food Processing Industries has  launched  the  centrally  sponsored  PM  Formalisation  of  Micro  Food  Processing Enterprises (PMFME) Scheme for providing financial, technical and business support for upgradation of two lakh micro food processing enterprises. With an outlay of Rs. 10,000 Crore over a period of five years from 2020-21 to 2024-25, the scheme aims to enhance the competitiveness  of  existing  micro-enterprises  in  the  unorganized  segment  of  the  food processing industry and promote formalization of the sector.

The  PMFME  scheme  envisages  to  reduce  wastage,  creation  of  off-farm  job opportunities  and  aids  in  achieving  the  overarching  objective  of  doubling  the  farmers' income. The objectives of the scheme, inter-alia, include building the capability of micro enterprises  by  enabling  the  increased  access  to  credit  by  existing  micro  food  processing entrepreneurs, FPOs, Self Help Groups and Co-operatives; integration with organized supply chain  by  strengthening  branding  &  marketing;  supporting  the  transition  process  of  the existing two lakh micro food processing enterprises into formal framework; providing access to  common  services  like  common  processing  facility,  laboratories,  storage,  packaging, marketing and incubation services; strengthening of institutions, research and training in the food processing sector, and enhancing the access to professional and technical support.

The Scheme adopts One District One Product (ODOP) approach to reap benefits of scale in terms of procurement of inputs, availing common services and marketing of products. So far, ODOPs for 135 unique products in 707 districts in 35 States/UTs has been approved by the Ministry.

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