Lok Sabha Question No. 2748 (UNSTARRED), answered on 2022-08-02
Subject: New Scheme for Food Processing Industries
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: N.K. Premachandran

## GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA UNSTARRED QUESTION NO. 2748

ANSWERED ON 02 ND  AUGUST, 2022

## NEW SCHEME FOR FOOD PROCESSING INDUSTRIES

## 2748.  SHRI N.K. PREMACHANDRAN:

Will the Minister of Food Processing Industries be pleased to state:

- (a) whether the Government proposes to introduce new scheme for food processing industries (FPIs) to overcome the crisis due to Covid-19 and if so, the details thereof;
- (b) whether the Government has formulate any task force to address the pressing concerns faced by the food industry and if so, the details thereof;
- (c) whether the task force has submitted report and recommendations for support to the food industry and if so, the details of action taken to implement the recommendations;
- (d) whether the Government proposes to address the issues of food industries in Kerala and if so, the details of action taken thereon;
- (e) whether the Government proposes to protect the working force in food industry and if so, the details of action taken thereon; and
- (f) whether the Government proposes to  give special  financial  assistance  to  the  food  processing industry and if so, the details thereof?

## ANSWER

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

(a): In order to ensure overall development of Food Processing Industries in the country including to deal  with  challenges  arising  out  of  COVID-19,  Ministry  Food  Processing  Industries  (MoFPI)  has undertaken a number of measures as part of the Aatmanirbhar Bharat Initiative, which includes (a) New Centrally Sponsored -PM Formalisation of Micro Food Processing Enterprises Scheme; (b) New Central Sector - Production Linked Incentive scheme for Food Processing Sector; (c)  Expansion in scope of transportation & storage subsidy under Operation Greens scheme from Tomato, Onion & Potato to 41 notified fruits & vegetables;

(b) & (c): In order to support Food Processing Industry during lockdown phases, MoFPI had constituted a dedicated team of officers and a COVID grievance cell. The team continuously monitored the food production  and  supply  chain  logistics  etc.  and  facilitated  resolution  of  585  COVID  related  Industry grievances and supported more than 100 companies with restarting their operations.

(d)  &  (e): MoFPI,  through  its  schemes,  helps  create  off-farm  employment  opportunities  in  Food Processing Sector. The details of Food Processing Industry projects approved for assistance in Kerala State under schemes of MoFPI along with direct /indirect employment opportunities from these projects are placed at Annexure-I.

- (f): Assistance available under schemes administered by MoFPI is placed at Annexure-II.

## ANNEXURE REFERRED TO IN REPLY TO PART (d) AND (e) OF LOK SABHA UNSTARRED QUESTION NO. 2748 FOR ANSWER ON 02 ND  AUGUST, 2022 REGARDING 'NEW SCHEME FOR FOOD PROCESSING INDUSTRIES'.

## Food Processing Industry Projects assisted in Kerala State under component Schemes of PMKSY

|   Sl. No. | Scheme Name                                                             |   No. of projects Approved |   No. of projects Completed |   Total Project Cost (Rs. in Crore) |   Grants - in- aid Approved (Rs. in Crore) |   Direct/ Indirect Employment opportunities from approved projects(In Nos.) |
|-----------|-------------------------------------------------------------------------|----------------------------|-----------------------------|-------------------------------------|--------------------------------------------|-----------------------------------------------------------------------------|
|         1 | Mega Food Park Scheme                                                   |                          2 |                           1 |                             234.54  |                                    100     |                                                                       10000 |
|         2 | Integrated Cold Chain and Value Addition Infrastructure Scheme          |                          6 |                           3 |                             168.14  |                                     42.35  |                                                                        3600 |
|         3 | Infrastructure for Agro-Processing Clusters Scheme                      |                          2 |                           0 |                              71.722 |                                     19.021 |                                                                        2441 |
|         4 | Creation / Expansion of Food Processing &Preservation Capacities Scheme |                         12 |                           7 |                             162.74  |                                     43.51  |                                                                        4824 |
|         5 | Scheme for Creation of Backward and Forward Linkages                    |                          1 |                           0 |                              19.71  |                                      4.13  |                                                                         630 |
|         6 | Food Safety& Quality Assurance Infrastructure (Food Testing Labs)       |                          7 |                           3 |                              38.88  |                                     24.17  |                                                                         231 |

## Assistance provided under PMFME scheme in Kerala state so far:

- (i). One District One Product (ODOP) for all the 14 Districts have been approved.
- (ii). Rs 13.19 Crore released to the state as central share.
- (iii). SRLM recommended Seed capital amount of Rs. 14.9 Cr. for 4820 SHG member, out of which Rs.7.24 Cr released by SNA for 2145 SHG members.
- (iv). Incubation Center at Kerala Agricultural University, Thrissur has been approved.
- (v). Loan sanctioned to 93 individual micro food processing enterprises under the scheme.

## Food Processing Industry projects in Kerala out of proposals approved under PLISFPI Scheme

|   Sr No | Organization Name            | Plant Location                                                                                       | State   |
|---------|------------------------------|------------------------------------------------------------------------------------------------------|---------|
|       1 | ITC LIMITED                  | Veliyath Agro Industries Pvt. Ltd.,Door No: 1/352, Thangaloor P O, Mundur, Thrissur Circle, Thrissur | Kerala  |
|       2 | KANCOR INGREDIENTS LIMITED   | ANGAMALY SOUTH, ERNAKULAM DISTRICT                                                                   | Kerala  |
|       3 | MTR FOODS PRIVATE LIMITED    | Eastern Valley, P.B. No.15, Adimali, Adimali PO                                                      | Kerala  |
|       4 | MTR FOODS PRIVATE LIMITED    | Opp. Mini Industrial Estate, Mannamkandam, Adimali P.O, Idukki                                       | Kerala  |
|       5 | MTR FOODS PRIVATE LIMITED    | IV/1DAM Road, Panipra Po, Erumalappadi, Kothamangalam                                                | Kerala  |
|       6 | PLANT LIPIDS PRIVATE LIMITED | CO 2 Extraction Plant, Speciality Naturals Division EOU, Kadayiruppu P.O.,                           | Kerala  |
|       7 | PLANT LIPIDS PRIVATE LIMITED | Continuous Extraction Plant, Kadayiruppu P.O. , Kolencherry                                          | Kerala  |
|       8 | SYNTHITE INDUSTRIES P LTD    | Synthite Valley, Kadayiruppu, Kolenchery, Ernakulam District, Kochi                                  | Kerala  |
|       9 | SYNTHITE INDUSTRIES P LTD    | Block No. 44, Synthite taste park, Pancode, Ernakulam                                                | Kerala  |

## ANNEXURE-II

## ANNEXURE  REFERRED  TO  IN  REPLY  TO  PART  (f)  OF  LOK  SABHA  UNSTARRED QUESTION NO. 2748 FOR ANSWER ON 02 ND  AUGUST, 2022 REGARDING 'NEW SCHEME FOR FOOD PROCESSING INDUSTRIES'.

## The Assistance available under component schemes of PMKSY

Grants-in-aid @ 35 % of eligible project cost, subject to maximum prescribed limit, is provided for general areas for setting up of Food Processing Industries under component schemes of PMKSY, as per  current  scheme  guidelines.  Special  incentive  is  admissible  for  projects  approved  for  SC/ST entrepreneurs / North eastern Region and other difficult and hilly areas.

## The details of assistance available to Micro Food Processing Enterprises under PMFME Scheme

- (i). Support to Individual / Group Category Micro Enterprises: Credit-linked capital subsidy @35% of the eligible project cost, maximum ceiling Rs.10 lakh per unit;
- (ii). Support to SHGs for seed capital: Seed capital @ Rs. 40,000/- per member of SHG engaged in food processing for working capital and purchase of small tools subject to maximum of Rs. 4 lakh per SHG Federation.
- (iii). Support for Common Infrastructure: Credit linked capital subsidy @35% subject to maximum of Rs. 3 crore to support FPOs, SHGs, Cooperatives and any Government agency for setting up of common infrastructure. The common infrastructure will also be available for other units and public to utilize on hiring basis for substantial part of the capacity.
- (iv). Branding and Marketing Support: Grant upto 50% for Branding and Marketing to groups of FPOs/ SHGs/ Cooperatives or an SPV of micro food processing enterprises.
- (v). Capacity  Building: The  scheme  envisages  training  for  Entrepreneurship  Development  Skilling (EDP+): program modified to meet the requirement of food processing industry and product specific skilling.