Lok Sabha Question No. 631 (UNSTARRED), answered on 2025-02-06
Subject: Promotion of Agriculture-based Industries
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Shri Virendra Singh

## GOVERNMENT OF INDIA MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION No. 631 TO BE ANSWERED ON 06.02.2025

## PROMOTION OF AGRICULTURE-BASED INDUSTRIES

## 631.          SHRI VIRENDRA SINGH :

Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state:

- (a) whether there is any scheme to promote agriculture-based industries in the country;
- (b) if so, the details thereof and its percentage of success targeted along with the percentage of success achieved as compared to it;
- (c) whether there is any plan to establish industries on the basis of the climate and soil quality in the States so that their by-products could be consumed;
- (d) whether the Government proposes to set up any industries based  on paddy and  its  by-products  in extremely backward Chandauli district of Uttar Pradesh as paddy is the preferred crop of the said area; and
- (e) if so, the time by which it is likely to be done and if not, the reasons therefor?

## ANSWER

## MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES (SUSHRI SHOBHA KARANDLAJE)

(a) to (e): Government is promoting agriculture based industries under following schemes/Programmes:

Prime Minister's Employment Generation Programme (PMEGP), a credit linked scheme, helps in  establishing  micro  enterprises  specially  in  rural  areas  including  agriculture  based  enterprises/industries through subsidy on Bank loan upto 35% in rural areas and 25% in urban area. Performance of Agro Based Food Processing Industries (ABFPI) under PMEGP during last four years is placed at Annexure-I.

Agro Based and Food Processing Industry (ABFPI) is one of the verticle under Gramodyog Vikas Yojana (GVY). It includes Village Oil Industry, Aromatic Oil, Honey and Bee-keeping, Palm Gur and other Palm products, fruit and vegetable processing Industry, Pulses and Cereals Processing Industry, Spices and Condiments Processing Industry, Gur and Khandsari Industry, Collection of Minor forest produce, Bamboo, Cane and Reed Industry, Organic Dying Industry, Medicinal Plants Collection and Processing Industry.

Honey Mission is one of the components under ABFPI Industry of Gramodyog Vikas Yojana. The year-wise performance of Honey Mission is placed at Annexure-I .

Coir Vikas Yojana (CVY) , a traditional industry based on the cultivation of coconut since the raw material for the coir industry is the coconut husk which is a by-product of coconut cultivation, to promote the coir industry in the country, the Coir Board is implementing the umbrella Scheme Coir Vikas Yojana (CVY), with six different components, aimed at sustainable development of the coir sector through enhanced production, employment and export as well as domestic marketing of coir and coir products. Scheme-wise details of targets, achievements and percentage of success achieved through Coir Board for the FY 2023-24 is placed at Annexure-II .

Scheme  of  Fund  for  Regeneration  of  Traditional  Industries  (SFURTI) ,  having  agro-based clusters that promote agriculture-based industries in the country. Out of the 513 SFURTI clusters, 138 are agro-based. Among the 138 agro-based clusters, 86 are functional and 52 are under implementation.

Pradhan  Mantri  Kisan  SAMPADA  Yojana  (PMKSY) is  implemented  by  Ministry  of  Food Processing Industries (MoFPI) as a Central Sector Umbrella Scheme. Ministry has approved 1646 projects having project cost of Rs. 31,858.53 crore with approved grants-in-aid/subsidy of RS. 9,110.08 crore and private investment of Rs. 22,748.45 crore under corresponding component schemes of PMKSY.

Production Linked Incentive Scheme for Food Processing Industry (PLISFPI) is  implemented by  MoFPI  as  a  Central  Sector  Umbrella  Scheme.  A  total  of  171  proposals  under  different  categories  of Product  Linked  Incentive  scheme  for  Food  Processing  sector  (PLISFPI)  have  been  approved  and  a  total subsidy of Rs. 1084.01 crore has been disbursed so far.

PM Formalization of Micro Food Processing Enterprises (PMFME ) is implemented by MoFPI as a Centrally sponsored scheme. A total of 1,16,148 micro food processing enterprises has been approved so  far  for  credit  linked  subsidy  and  3,13,218  members  of  Self  Help  Groups  supported  for  seed  capital amounting of Rs. 1042.06 crore in rural and urban areas of the country under PMFME Scheme.

Agricultural  Infrastructure  Fund  (AIF) ,  implemented  by  Ministry  of  Agriculture  &  Farmers Welfare, as a key scheme that promotes agriculture- based industries by providing financial assistance for setting  up  post-harvest  management  and  processing  infrastructure.  It  supports  agro-processing  units,  food storage facilities, supply chain improvements, and value addition in agriculture, enabling farmers and agrientrepreneurs to establish agriculture-based industries.  AIF was introduced with a vision to transform the agriculture infrastructure landscape of the country. The Agriculture Infrastructure Fund is a medium - long term debt financing facility for investment in viable projects for post-harvest management infrastructure and viable farming assets through interest subvention and credit guarantee support. The Fund of Rs. 1 lakh crore under the scheme will be disbursed from FY 2020-21 to FY 2025-26 and the support under the scheme will be provided for the duration of FY2020- 21 to FY2032-33. AIF provides financial assistance in the form of interest subvention of 3% per annum and credit guarantee coverage under CGTMSE and NAB Sanrakshan for  loans  up  to  Rs.  2  Crore.  Further,  each  entity  is  eligible  to  get  the  benefit  of  the  scheme  for  up  to  25 projects located in different LGD codes.

The Fund of Rs. 1 lakh crore under the scheme will be disbursed from FY 2020- 21 to FY 2025-26 and  the  support  under  the  scheme  will  be  provided  for  the  duration  of  FY2020-21  to  FY2032-33.  As  on 26.1.2025,  Rs.  56334  (56%)  crores  have  been  sanctioned  for  92393  projects  under  AIF,  out  of  this  total sanctioned  amount,  Rs.  41996  crore  is  covered  under  scheme  benefits.  These  sanctioned  projects  have mobilized an investment of Rs.91856 crore in agriculture sector.

AIF does not directly set up industries but provides financial support  for private entities, farmers, FPOs,  and  cooperatives  to  establish  paddy-based  industries.  Interested  stakeholders  can  avail  subsidized loans  and  credit  guarantees  under  AIF  converged  with  other  subsidy  schemes  to  set  up  rice  mills,  PHM plants, and integrated primary and secondary processing industries for paddy by-products.

*****

## Annexure-I

## Annexure-I referred to in reply to part (a) to (e) of the Lok Sabha Unstarred Question No. 631 for answer on 06.02.2025

Performance of Agro Based Food Processing Industries (ABFPI) under PMEGP during last four years

| Year    |   Number of Project |   Margin Money Subsidy (Rs. In lakh) |   Estimated Employment |
|---------|---------------------|--------------------------------------|------------------------|
| 2020-21 |               18503 |                              58731.9 |                 148024 |
| 2021-22 |               22620 |                              71840.4 |                 180960 |
| 2022-23 |               19835 |                              69763.3 |                 158680 |
| 2023-24 |               22863 |                              82106.4 |                 182904 |

Year-wise performance of Honey Mission under ABFPI Industry of Gramodyog Vikas Yojana

| Sr. No.   | Year                       | No. of Bee- Boxes with hives distributed   |   No. of beneficiaries benefited |
|-----------|----------------------------|--------------------------------------------|----------------------------------|
| 1.        | 2017-18                    | 13505                                      |                             1384 |
| 2.        | 2018-19                    | 95726                                      |                             9636 |
| 3.        | 2019-20                    | 28978                                      |                             2920 |
| 4.        | 2020-21                    | 15050                                      |                             1505 |
| 5.        | 2021-22                    | 15420                                      |                             1542 |
| 6.        | 2022-23                    | 17360                                      |                             1736 |
| 7.        | 2023-24 (P)                | 17950                                      |                             1795 |
| 8.        | 2024-25 (as on 31.12.2024) | Tool kits not distributed                  |                              400 |
|           | Total                      | 203989                                     |                            20918 |

## Annexure-II referred to in reply to part (a) to (e) of the Lok Sabha Unstarred Question No. 631 for answer on 06.02.2025

Scheme-wise details of targets, achievements and percentage of success achieved through Coir Board for the FY 2023-24

| Sl. No.   | Name of the Activity                                                                      | Target     | Achievement   | Percentage of success achieved (in %)   |
|-----------|-------------------------------------------------------------------------------------------|------------|---------------|-----------------------------------------|
| I         | Science &Technology (S&T)                                                                 |            |               |                                         |
| (a)       | New Machines Developed                                                                    | 3          | 2             | 66.66                                   |
| (b)       | Development of New Product                                                                | 10         | 9             | 90                                      |
| (c)       | Technology transfer                                                                       | 20         | 20            | 100                                     |
| (d)       | Development of New Technology                                                             | 7          | 3             | 42.85                                   |
| (e)       | Field demonstrations of technology & Testing of Coir and Coir Products Service facilities | 200        | 1077          | 538.5                                   |
| II        | Skill Upgradation &Mahila Coir Yojana                                                     |            |               |                                         |
| (a)       | Training on Value Added Products Manufacturing (No. of trainees)                          | 1800       | 2044          | 113.5                                   |
| (b)       | Training on Mahila Coir Yojana (No. of trainees)                                          | 1800       | 1963          | 109.05                                  |
| (c)       | Certificate Course of Coir Artisans in Coir Technology - Six months (No. of persons)      | 160        | 81            | 50.62                                   |
| (d)       | Diploma Course in Coir Technology - 1 year(No. of persons)                                | 100        | 51            | 51                                      |
| (e)       | EDP (3 days)                                                                              | 40         | 40            | 100                                     |
| (f)       | Awareness Programme                                                                       | 40         | 47            | 117.5                                   |
| (g)       | National Seminar                                                                          | 10         | 12            | 120                                     |
| (h)       | Workshop                                                                                  | 10         | 13            | 130                                     |
| (i)       | Exposure Tour                                                                             | 10         | 10            | 100                                     |
| (j)       | Trainers Training Programme (Need Base)                                                   | -          | 54            | -                                       |
| III (a)   | Export Market Promotion No. Events                                                        | 10         | 7             | 70                                      |
| (b)       | No. of MSMEs (I C Scheme- No. of beneficiaries)                                           | 90         | 64            | 71.11                                   |
| (c)       | Management Development Programme                                                          | 6          | 6             | 100                                     |
| (d)       | Coir Industry Award                                                                       | 1          | 0             | 0                                       |
| IV        | Domestic Market Promotion                                                                 |            | 94            |                                         |
| (a)       | Exhibitions &Market Promotion                                                             | 71         |               | 132.39                                  |
| (b)       | Field demonstration / Renovation & interior decoration of outlets                         | 4          | 1             | 25                                      |
| (c)       | Market Development Assistance (MDA)(Rs in Lakhs)                                          | Need Based | 3.86 Cr.      | -                                       |
| V         | Trade and Industry Related Functional Support Services                                    |            |               |                                         |
| (a)       | HRD Training to the Board's Officials                                                     | 50         | 237           | 474                                     |
| (b)       | HRD training to Coir workers                                                              | 500        | 500           | 100                                     |
| (c)       | Survey/Evaluation Study                                                                   | 1          | 0             | 0                                       |