Lok Sabha Question No. 5415 (UNSTARRED), answered on 2025-04-03
Subject: Food Processing  Sector in Global Market
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: Dr. K Sudhakar, Shri Khagen Murmu, Smt. Roopkumari Choudhary

## GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA UNSTARRED QUESTION NO. 5415

TO BE ANSWERED ON 03 RD  APRIL, 2025

## FOOD PROCESSING SECTOR IN GLOBAL MARKET

## 5415.  SMT. ROOPKUMARI CHOUDHARY: DR. K SUDHAKAR: SHRI KHAGEN MURMU:

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

- (a) the steps taken/being taken by the Government to develop the food processing sector in the  country  including  Chhattisgarh  and  make  it  competitive  in  the  global  market keeping in view the predominantly agro-based economy of the State;
- (b) the initiatives being taken by the Government to promote branding, marketing and value addition to provide a strong presence in international markets of food products in the country including Chhattisgarh;
- (c) whether any new trade agreements are being made or export promotion strategies being developed to provide better market access to Indian food products and promote the States' agro-processing industry in the country including Chhattisgarh; and
- (d) if so, the details of infrastructure development schemes, financial incentives and other support mechanisms that support to enhance country's competitiveness in global trade including Chhattisgarh?

## ANSWER

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

(a) to (d): In order to promote and ensure overall development of Food Processing Industries, Ministry of Food Processing Industries (MoFPI) has been incentivizing setting up/ expansion of related infrastructure through its 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  Chhattisgarh  State.  These schemes are not region specific but demand driven.

Under  PMKSY,  credit  linked  financial  assistance  (capital  subsidy)  is  provided  to entrepreneurs for setting up of food processing industries with total outlay of Rs 5520 Cr for 15 th Finance  Commission  Cycle.  So  far,  MoFPI  has  sanctioned  8  food  processing  projects under corresponding component schemes of PMKSY in Chhattisgarh State.

Under PMFME scheme, financial, technical and business support is provided for setting up / upgradation of micro food processing enterprises. The scheme is operational for a period of  upto  2025-26  with  an  outlay  of  Rs.10,000  Crore. The  scheme  aimed  at  enhancing competitiveness & promoting formalization of micro-enterprises in the unorganized segment of  the  food  processing  through  financial,  technical  and  business  support.  It  provides  the framework for value chain development and alignment of support infrastructure. The scheme also envisages strengthening backward and forward linkages, provision of common facilities, incubation  centres,  training,  marketing  &  branding.  A  total  of  896  micro  food  processing enterprises have been approved for assistance under PMFME scheme in Chhattisgarh State.

PLISFPI scheme for food processing sector was approved by the Union Cabinet on 31 st March 2021 with a budget of ₹10,900 crore, to be implemented from 2021-22 to 2026-27. Under  the  scheme,  Ministry  provides  financial  incentives  to  promote  Indian  food  brands abroad,  supporting  branding  and  marketing  activities  for  Indian-branded  consumer  food products in global markets. So far, 1 food processing company has been approved for assistance under the PLISFPI scheme in Chhattisgarh State, till 28 th February, 2025.

In view of its rich agri- based economy, MoFPI, through its schemes, extends financial support to prospective entrepreneurs in Chhattisgarh State, for setting up of different kinds of food processing units, as per respective scheme guidelines. The details of incentives available under these schemes are at Annexure

These schemes aim towards creation of modern infrastructure with efficient supply chain management from farm gate to retail outlet which includes storage, transportation, etc., thereby help in providing better returns to farmers and creating  huge  employment opportunities, increasing the processing level and enhancing the export of the processed foods.

Apart from this, with the objective to boost investments and sourcing of Indian food products in global market, MoFPI organized 3 rd edition of a Mega Event, called 'World Food India'  during  19 th to  22 nd September  2024  at  Bharat  Mandapam,  New  Delhi  to  showcase domestic Industry and provide it with collaborative opportunities with international stakeholders. The event brought global food processing companies, innovators, supply chain stakeholders, equipment manufacturers etc on a collaborative platform and provided foreign companies with tie-up/ business opportunities with its Indian counterparts.

MoFPI is also  organizing  the  WFI,  2025  to  highlight  investment  opportunities  and advancements in food processing. The event will focus on bringing together key stakeholders, including global investors, retailers, distributors, policymakers, and research institutions. The event will provide B2B matchmaking opportunities, international delegations, and industry roundtables  to  enhance  market  access,  promote  investments,  and  facilitate  exports  of  food products. The events are expected to boost business and strengthen  India's presence in the international market by driving the adoption of advanced technologies, promoting sustainable practices, and enhancing product quality to meet global standards.

Government  has  permitted  100%  Foreign  Direct  Investment  (FDI)  in  the food processing sector through automatic route. Further, 100% FDI is allowed through Government approval  route  for  trading,  including  through  e-commerce  in  respect  of  food  products manufactured and/or produced in India.

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## ANNEXURE REFERRED TO IN REPLY TO PART (a) TO (d) OF THE LOK SABHA UNSTARRED  QUESTION  NO.  5415  FOR  ANSWER  ON  03 RD   APRIL,  2025 REGARDING 'FOOD PROCESSING SECTOR IN GLOBAL MARKET'

## Incentives available under Pradhan Mantri Kisan Sampada 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.   |
|------|--------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

## Incentives available under Production Linked Incentive Scheme for Food Processing Industry (PLIS-FPI)

- 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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