Lok Sabha Question No. 5340 (UNSTARRED), answered on 2025-04-03
Subject: Food Processing Industries in Maharashtra
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: Smt. Smita Uday Wagh

## GOVERNMENT OF INDIA

## MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA UNSTARRED QUESTION NO. 5340

TO BE ANSWERED ON 03 RD  APRIL, 2025

## FOOD PROCESSING INDUSTRIES IN MAHARASHTRA

## 5340.   SMT. SMITA UDAY WAGH:

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

- (a) the  key  schemes  currently  being  implemented  by  the  food  processing  industries department  in  Maharashtra  particularly  in  Jalgaon  to  support  farmers  and  agroprocessing businesses;
- (b) the manner in which the Pradhan Mantri Kisan Sampada Yojana (PMKSY) and other Central schemes have benefitted the food processing units in Jalgaon along with the measures are being taken to ensure maximum utilization of these schemes;
- (c) the steps being taken to establish food parks, cold storage facilities and agro-processing clusters in Jalgaon to enhance value addition and reduce post-harvest losses;
- (d) whether  there  are  any  upcoming  initiatives  or  special  incentives  planned  by  the Government  to  promote  food  processing  startups,  MSMEs  and  Farmer-Producer Organizations (FPOs) in Jalgaon, if so, the details thereof; and
- (e) the financial and technical support available for entrepreneurs and cooperative societies in Jalgaon to set up modern food processing units and the manner in which they can get easy access to these benefits?

## ANSWER

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

(a): Ministry  of  Food  Processing  Industries  (MoFPI)  is  implementing  a  Central  Sector 'Pradhan Mantri Kisan SAMPADA Yojana (PMKSY) Scheme', Central Sector 'Production Linked Incentive Scheme for Food Processing Industry (PLISFPI)' and Centrally sponsored 'PM  Formalization  of  Micro  Food  Processing  Enterprises  (PMFME)'  Scheme  across  the country including Jalgaon of Maharashtra. Ministry provides financial assistance in the form of grants-in-aid/ subsidy to entrepreneurs including farmers & agro processing businesses for setting up such industries across the country. These schemes are not region specific but demand driven.

(b): MoFPI extends financial support to prospective entrepreneurs for setting up of different kinds of food processing industries, as per respective scheme guidelines through its Central Sector PMKSY Scheme, PLISFPI Scheme and Centrally sponsored PMFME scheme across the country including Jalgaon district of Maharashtra.

These schemes aim towards creation of modern infrastructure with efficient supply chain  management  from  farm  gate  to  retail  outlet,  which  includes  storage,  transportation, enhancing product quality and safety standards etc., thereby help in providing better returns to farmers and creating huge employment opportunities, reducing wastage of agricultural produce and increasing the processing level.

So far, till 28 th February, 2025, MoFPI has sanctioned 189 food processing projects under corresponding component schemes of PMKSY in Maharashtra, out of these 4 projects are located in Jalgaon district.

A total of 22,167 micro food processing enterprises have been approved for assistance under PMFME scheme in Maharashtra,  till 28 th February, 2025, out of which 935 micro food processing enterprises located in Jalgaon district.

So far, 40 food processing companies have been approved for assistance under various categories of the PLISFPI scheme in Maharashtra, till 28 th February, 2025, out of 1 project located in Jalgaon district.

MoFPI has been organizing, co-sponsoring, participating in seminars, workshops, fairs and exhibitions for food processing sector to encourage investment and to create awareness of the schemes being implemented by the Ministry.

(c): MoFPI  incentivizes  setting  up  of  Mega  Food  Parks,  Agro  Processing  Clusters  and Integrated  Cold  Chain  and  Value  Addition  Infrastructure  through  credit  linked  financial assistance (capital subsidy) in the form of grants-in-aid under relevant component schemes of Central Sector Umbrella scheme 'Pradhan Mantri Kisan SAMPADA Yojana', wherein Food Processing units are eligible for subsidy @ 35% of eligible project cost in general areas and @50%  of  eligible  project  cost  for  Scheduled  Caste/  Schedule  Tribe  promotors,  Farmer Producer Organizations (FPOs) and SHGs subject to maximum of Rs. 10.00 crore per project. These component schemes help in reduction of post-harvest losses and promote value addition of food products in the country including Jalgaon district of Maharashtra.

(d) & (e): In order to promote food processing industries, MoFPI extends financial support to prospective  entrepreneurs  including  related  startups,  Cooperatives  &  Farmer  Producer Organizations (FPOs) for setting up of different kinds of food processing industries, as per respective  scheme  guidelines  across  the  country  including  Jalgaon  district  of  Maharashtra. Entrepreneurs  in  the  Micro,  Small  &  Medium  Enterprises  (MSME)  sector  will  also  be incentivized  under  the  schemes  of  MoFPI. The  details  of  incentives  available  under  these schemes are at Annexure.

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## ANNEXURE  REFERRED  TO  IN  REPLY  TO  PART  (d)  &  (e)  OF  LOK  SABHA UNSTARRED  QUESTION  NO.  5340  FOR  ANSWER  ON  03 RD APRIL, 2025 REGARDING 'FOOD PROCESSING INDUSTRIES IN MAHARASHTRA'

## Incentives available under Pradhan Mantri Kisan Samapada Yojana (PMKSY)

|   S. No. | Component Scheme                                                | Scheme Benefits (Grant-in- aid) for projects in General Area                                                                                                                                                                                                      | Scheme Benefits (Grant-in-aid) for projects in Difficult Areas as well as SC/ST, FPOs, SHGs                                                                                                                                                                                |
|----------|-----------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|        1 | Integrated Cold Chain and Value Addition Infrastructure         | Grant-in-aid @ 35% of eligible project cost [subject to maximum of Rs.10 crores per project]                                                                                                                                                                      | Grant-in-aid @ 50% of eligible project cost [subject to maximum of Rs. 10 crores per project]                                                                                                                                                                              |
|        2 | Creation/ Expansion of Food Processing &Preservation Capacities | Grants-in-Aid @35% of eligible project cost [subject to maximum of Rs. 5 crores per project]                                                                                                                                                                      | Grants-in-Aid @50% of eligible project cost [subject to maximum of Rs.5 crores per project]                                                                                                                                                                                |
|        3 | Infrastructure for Agro-Processing Clusters                     | Grants-in-aid @35% of eligible project cost in General Area [subject to maximum of Rs. 10 crores per project]                                                                                                                                                     | Grants-in-aid @50% of eligible project [subject to max. of Rs. 10 crore per project]                                                                                                                                                                                       |
|        4 | Operation Greens                                                | Grants-in-Aid @35% of eligible project cost for Integrated Value Chain Development Projects, maximum grants-in-aid would be ₹15 crore per project; and for Standalone Post-Harvest Infrastructure Projects, maximum grants-in-aid would be ₹10 crore per project. | Grants-in-Aid maximum @50% of eligible project cost for Integrated Value Chain Development Projects, maximum grants- in-aid would be ₹15 crore per project; and for Standalone Post-Harvest Infrastructure Projects, maximum grants-in-aid would be ₹10 crore per project. |
|        5 | Food Safety and Quality Assurance - Food Testing Laboratories   | 100% grants-in-aid for Govt. organizations For Private organizations/ entities: grant-in-aid of @ 50% of the eligible cost                                                                                                                                        | For Private organizations/ entities: grant-in-aid of @ 70% of the eligible cost                                                                                                                                                                                            |

| 6.   | Human Resource & Institutions- Research &Development   | For Government Organizations - Grants @ 100% of equipment cost, consumables, For private organizations /universities/institutions, grant @50 %of equipment cost.   | For Government Organizations - Grants @ 100% of equipment cost, consumables For Private Organizations /Universities/ Institutions, Grants @70%ofequipment cost.   |
|------|--------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

## Assistance available under PLISFPI scheme

- i. The  beneficiary  should  achieve  minimum  year  on  year  sales  growth  of  10%  for claiming incentive under Category-I, Category-II and Millet-Based Products components of the Scheme. Under Category -I component, the companies have to make committed investments to increase their production capacities.  If a company does not make  the  committed  investment  upto  end  of  2023-24,  it  is  not  eligible  to  receive incentives under the Scheme.
- ii. Under Category-III, i.e., Branding and Marketing component, a company is eligible for financial incentives @ 50% of expenditure incurred on Branding & Marketing abroad subject  to  a  maximum  of  3%  of  Sales  of  food  products  or  Rs  50  crore  per  year, whichever is less.  The minimum expenditure should be Rs. 5 crore over a period of five years.

## 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.

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