Lok Sabha Question No. 583 (UNSTARRED), answered on 2024-02-06
Subject: Share of Food Processing Sector in GDP
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: Jagdambika Pal

## GOVERNMENTOF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA

## UNSTARRED QUESTION NO. 583

ANSWER ON 06 TH  FEBRUARY, 2024

## SHARE OF FOOD PROCESSING SECTOR IN GDP

## 583. SHRI JAGDAMBIKA PAL:

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

- (a) the  current  share  of  the  food  processing  sector  in  the  nation's  Gross  Domestic  Product (GDP) and how it has evolved over the last three years;
- (b) the details of investments made in the food processing sector during the last three years;
- (c) the  Seed  Capital  Assistance  for  Self-Help  Groups  (SHGs)  scheme,  including  the  progress made, the  amount  provided  as  seed  capital  and  its  impact  on  supporting  small-scale  food processing activities;
- (d) whether the Government proposes to prioritize the allocation of seed capital, especially concerning SHGs which are engaged in the One District One Product (ODOP) product; and
- (e) if so, the criteria considered in selecting SHGs for such assistance?

## ANSWER

## THE MINISTER OF STATE FOOD PROCESSING INDUSTRIES (KM SHOBHA KARANDLAJE)

- (a): The Gross Value Added (GVA) for food processing sector of the country over the last four years has evolved as under:
- (b): MoFPI has approved projects worth Rs.12817.68 crores under different sub-schemes of the Pradhan Mantri Kisan Sampada Yojna (PMKSY) and Rs.6778.57 crores under the Prime Minister Formalisation of Micro Food Processing Enterprises Scheme (PMFME) during the last three years till date.  Investment of Rs.7696.58 crores under the Production Linked Incentive Scheme (PLIS) has also been made during the same period.
- (c): Under the component of Seed Capital of the PMFME Scheme, assistance up to Rs.40000/per Self Help Groups (SHGs) members is provided for SHG units engaged in food processing activity for working capital and purchase of small tools. This support helps SHG units to gain better price realization in the market  with  improved  packaging,  quality  manufacturing  and  formalization  of  units.  Seed  Capital  is provided as grant to SHG Federation which is further given as a loan to the members of SHGs to be repaid to the SHG.

|                                         |   2018-19 |   2019-20 |   2020-21 |   2021-22 |
|-----------------------------------------|-----------|-----------|-----------|-----------|
| Gross Value Added(GVA) (Rs. Lakh crore) |      2.36 |      1.96 |      1.95 |      2.08 |

Moreover, Rs. 771.12 crore has so far been released for 2,36,704 SHGs members. For Rural SHGs, an amount of Rs. 620.30 crore has been released to SRLM for 1,94,053 SHGs members. For Urban SHGs, an amount of Rs. 150.81 crore released to SULM for 42,651 SHGs members.

- (d) &(e):  SHG units already engaged in food processing activities are selected and eligible seed capital benefit is extended based on the sales/ turnover of the respective unit, as per the defined guidelines of Seed Capital component under PMFME Scheme. MoFPI has also converged with the Ministry of Rural Development  and  the  Ministry  of  Housing  &  Urban  Affairs  for  mobilizing  and  identifying  of beneficiaries for Seed Capital benefit and further facilitating the utilization of fund by SHG units. No specific prioritization is, however, available for SHGs engaged in processing of One District One Product (ODOP).

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