Lok Sabha Question No. 1432 (UNSTARRED), answered on 2022-07-26
Subject: Vocal for Local in Food Processing Sector
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: Manoj Rajoria, Ranjeeta Koli, Sumedhanand Saraswati

## GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA UNSTARRED QUESTION No. 1432

ANSWERED ON 26 TH  JULY, 2022

## VOCAL FOR LOCAL IN FOOD PROCESSING SECTOR

## †1432. DR. MANOJ RAJORIA: SHRIMATI RANJEETA KOLI: SHRI SUMEDHANAND SARASWATI:

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

- (a) whether the Government is materializing Vocal for Local initiative in food processing sector;
- (b) if so, the details of micro food enterprises in the country, State-wise;
- (c) whether there are thousands of micro food enterprises which need technical, marketing, financial and other supports to realize 'Vocal for Local' slogan and if so, the details thereof;
- (d) whether the Government will help them in each area of their work and if so, the details thereof;
- (e) whether the Government has any proposal to ensure that all the micro food industries fulfill the standards of 'Food Safety and Standards Authority of India' so that they can secure a place for themselves at the world level and if so, the details thereof?

## ANSWER

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

(a): As part of Atmanirbhar Bharat Abhiyan - Vocal for Local Initiative in food processing sector, Ministry of Food Processing Industries (MoFPI) is implementing a centrally sponsored "PM Formalisation of Micro food processing Enterprises (PMFME) Scheme" for providing financial, technical and business support for setting up / upgradation of micro food processing enterprises in the country. The scheme is operational for a period of five years from 2020-21 to 2024-25 with an outlay of Rs. 10,000 Crore. Scheme primarily adopts One District One Product (ODOP) approach  to  reap  the  benefit  of  scale  in  terms  of  procurement  of  inputs,  availing common  services  and  marketing  of  products.  It  provides  the  framework  for  value  chain development and alignment of support infrastructure.

(b): As per the Annual Survey of Industries, 2015-16 and 73 rd Round Survey of National Sample Survey Organisation (NSSO), there are about 25 lakh unregistered/ unincorporated food processing enterprises in the country. The details of State-wise number of unregistered/unincorporated enterprises in the country are at Annexure-I.

(c)  &  (d): The  PMFME scheme is  designed  to  address  the  challenges  faced  by  the  micro enterprises and to tap the potential of groups and cooperatives in supporting the upgradation and formalization of these enterprises. The scheme aims to enhance the competitiveness of new and existing individual micro-enterprises in the unorganized segment of the food processing industry and promote formalization of the sector. 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.

(e): Capacity  building  and  training  is  a  critical  component  of  the  scheme  in  technical upgradation  and  formalization  of  micro  food  processing  enterprises.  The  focus  areas  for capacity building are entrepreneurship development, compliance of Food Safety and Standards Authority of India (FSSAI) standards and general hygiene and other statutory compliances. District Resource Persons (DRPs) have been entrusted to provide handholding support to micro food processing enterprises for the compliance of FSSAI and other statutory requirements.

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## ANNEXURE REFERRED TO IN REPLY TO PART (b) OF LOK SABHA UNSTARRED QUESTION NO. 1432 FOR ANSWER ON 26 TH  JULY, 2022 REGARDING 'VOCAL FOR LOCAL IN FOOD PROCESSING SECTOR '

State wise details of State-wise number of unregistered/unincorporated enterprises in the country

| Sl. No.                                                                                | State/UT                                                                               | Number of Unincorporated Enterprise's manufacturing Food and Beverages                 |
|----------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------|
| 1                                                                                      | Andaman &Nicobar Islands                                                               | 774                                                                                    |
| 2                                                                                      | Andhra Pradesh                                                                         | 1,54,330                                                                               |
| 3                                                                                      | Arunachal Pradesh                                                                      | 145                                                                                    |
| 4                                                                                      | Assam                                                                                  | 65,997                                                                                 |
| 5                                                                                      | Bihar                                                                                  | 1,45,300                                                                               |
| 6                                                                                      | Chandigarh                                                                             | 656                                                                                    |
| 7                                                                                      | Chhattisgarh                                                                           | 26,957                                                                                 |
| 8                                                                                      | D &NHaveli and Daman &Diu                                                              | 758                                                                                    |
| 9                                                                                      | Delhi                                                                                  | 14,350                                                                                 |
| 10                                                                                     | Goa                                                                                    | 2,929                                                                                  |
| 11                                                                                     | Gujarat                                                                                | 94,066                                                                                 |
| 12                                                                                     | Haryana                                                                                | 24,577                                                                                 |
| 13                                                                                     | Himachal Pradesh                                                                       | 21,885                                                                                 |
| 14                                                                                     | Jammu &Kashmir                                                                         | 28,089                                                                                 |
| 15                                                                                     | Jharkhand                                                                              | 116536                                                                                 |
| 16                                                                                     | Karnataka                                                                              | 127458                                                                                 |
| 17                                                                                     | Kerala                                                                                 | 77,167                                                                                 |
| 18                                                                                     | Ladakh                                                                                 | -                                                                                      |
| 19                                                                                     | Lakshadweep                                                                            | 127                                                                                    |
| 20                                                                                     | Madhya Pradesh                                                                         | 1,02,808                                                                               |
| 21                                                                                     | Maharashtra                                                                            | 2,29,372                                                                               |
| 22                                                                                     | Manipur                                                                                | 6,038                                                                                  |
| 23                                                                                     | Meghalaya                                                                              | 3,268                                                                                  |
| 24                                                                                     | Mizoram                                                                                | 1,538                                                                                  |
| 25                                                                                     | Nagaland                                                                               | 3,642                                                                                  |
| 26                                                                                     | Odisha                                                                                 | 77,781                                                                                 |
| 27                                                                                     | Puducherry                                                                             | 3,482                                                                                  |
| 28                                                                                     | Punjab                                                                                 | 63,626                                                                                 |
| 29                                                                                     | Rajasthan                                                                              | 1,01,666                                                                               |
| 30                                                                                     | Sikkim                                                                                 | 101                                                                                    |
| 31                                                                                     | Tamil Nadu                                                                             | 1,78,527                                                                               |
| 32                                                                                     | Telangana                                                                              | 80,392                                                                                 |
| 33                                                                                     | Tripura                                                                                | 13,998                                                                                 |
| 34                                                                                     | Uttar Pradesh                                                                          | 3,50,883                                                                               |
| 35                                                                                     | Uttarakhand                                                                            | 18,116                                                                                 |
| 36                                                                                     | West Bengal                                                                            | 3,22,590                                                                               |
|                                                                                        | Total                                                                                  | 24,59,929                                                                              |
| Source: Annual Survey of Industries, 2016-17 and NSSO 73rd Round (July 2015-June 2016) | Source: Annual Survey of Industries, 2016-17 and NSSO 73rd Round (July 2015-June 2016) | Source: Annual Survey of Industries, 2016-17 and NSSO 73rd Round (July 2015-June 2016) |