Lok Sabha Question No. 398 (STARRED), answered on 2025-03-27
Subject: Processing and Supply Chain Infrastructure in Food Sector
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: Shri Vijayakumar Alias Vijay Vasanth

## GOVERNMENT OF INDIA

## MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA

## STARRED QUESTION NO. *398

TO BE ANSWERED ON 27 TH  MARCH, 2025

## PROCESSING AND SUPPLY CHAIN INFRASTRUCTURE IN FOOD SECTOR

## *398.   SHRI VIJAYAKUMAR ALIAS VIJAY VASANTH:

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

- (a) the details of the measures implemented to address the low processing levels in India's food sector, considering that processing levels average only about 10 percent overall, with fruits at 4.5 percent, vegetables at 2.7 percent, milk at 21.1 percent, meat at 34.2 percent and fishery at 15.4 percent;
- (b) whether the Government has any plan to increase the value addition of food products from 10 percent to 35 percent and processing of fruits and vegetables from 2 percent to 35 percent by the year 2025, if so, the details thereof along with specific strategies to achieve these targets;
- (c) whether the Government has any target to support this growth and ensure equitable distribution of benefits across all regions by achieving $ 535 billion by 2025-26 from $ 263 billion in 2019-20 and if so, the details thereof;
- (d) whether  the  Government  is  aware  of  the  fact  that  over  forty  percent  of  perishable produce goes to waste due to inadequate processing and supply chain infrastructure; and
- (e) if  so,  the  steps  taken/being  taken  by  the  Government  to  reduce  food  wastage  and improve supply chain efficiencies?

## ANSWER

## THE MINISTER FOR FOOD PROCESSING INDUSTRIES (SHRI CHIRAG PASWAN)

(a) to (e): A statement is laid on the Table of the House.

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STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (e) OF LOK SABHA STARRED QUESTION NO. *398 FOR ANSWER  ON 27 th MARCH, 2025 REGARDING 'PROCESSING AND SUPPLY CHAIN INFRASTRUCTURE IN FOOD SECTOR'

(a) to (e): The Ministry of Food Processing Industries (MoFPI) had conducted a study through Deloitte titled 'Study to Determine the Level of Food Processing in India', 2021. As per the study, the level of processing of agriculture products in India is as follows:

Level of Processing in India (%)

| Category/ Commodity   |   Year |
|-----------------------|--------|
| Fruits                |    4.5 |
| Vegetables            |    2.7 |
| Milk                  |   21.1 |
| Meat                  |   34.2 |
| Fish                  |   15.4 |

For overall development of Food Processing Sector, MoFPI through implementation of various schemes supports the creation and expansion of the processing/preservation capacity, including creation of modern infrastructure with efficient supply chain management from farm gate to retail outlet, to reduce post-harvest losses and create higher value-addition, providing better returns  to  farmers,  creation  of  employment  opportunities,  reducing  wastage,  increasing  the processing level and enhancing the export of the processed foods. The schemes under MoFPI are as follows:

- i. Central Sector umbrella scheme- Pradhan Mantri Kisan Sampada Yojana (PMKSY)
- ii. Centrally  sponsored  "PM  Formalization  of  Micro  Food  Processing  Enterprises (PMFME) Scheme"
- iii. Central  Sector  Production  Linked  Incentive  Scheme  for  Food  Processing  Industries (PLISFPI)

Under various component schemes of PMKSY, MoFPI mostly provides financial assistance in the form of grants-in-aid to entrepreneurs for creation of modern infrastructure and setting up of food processing/preservation industries including Cold Chains with associated infrastructure like primary processing facilities, collection centers, pre-conditioning, pre-cooling, ripening, packing etc. The details of number of projects approved/completed in component schemes of PMKSY are given as below:

As on 28.02.2025

| Name of Scheme   |   Total Projects Approved (In Nos.) |   Total Projects Completed (In Nos.) |   Total Project Cost of Completed Projects (Rs in Crore) |   Processing (MT/Annum) |   Preservation (MT/Annum) |
|------------------|-------------------------------------|--------------------------------------|----------------------------------------------------------|-------------------------|---------------------------|
| APC              |                                  75 |                                   23 |                                                  2421.87 |                   16.39 |                      9.98 |
| BFL              |                                  61 |                                   53 |                                                   693.3  |                    5.02 |                      3.81 |
| CC               |                                 394 |                                  286 |                                                 11466.4  |                  150.05 |                     57.42 |
| CEFPPC           |                                 526 |                                  293 |                                                  8443.43 |                  118.04 |                      0    |
| FTL              |                                 205 |                                  167 |                                                  1176.63 |                    0    |                      0    |
| MFP              |                                  41 |                                   24 |                                                  4660.33 |                   15.4  |                     28.56 |
| OG               |                                  44 |                                    7 |                                                  2102.54 |                   11.03 |                      1.77 |
| R&D              |                                 236 |                                  225 |                                                    97.16 |                    0    |                      0    |
| Skill            |                                  26 |                                   25 |                                                    18.84 |                    0    |                      0    |
| Total            |                                1608 |                                 1103 |                                                 31080.5  |                  315.92 |                    101.54 |

Under PMFME, Ministry provides financial, technical and business support for upgradation of existing  micro  food  processing  enterprises  as  well  as  setting  up  of  new  units.  The  scheme  is operational from 2020-21 to 2025-26 with total outlay of Rs. 10,000 crores. Progress of PMFME across the country is as below:

As on 28.02.2025

|   S. No. | Components                                                        | Overall Achievement                                                              |
|----------|-------------------------------------------------------------------|----------------------------------------------------------------------------------|
|        1 | Credit Linked Subsidy- Individual Enterprises                     | 1,27,758                                                                         |
|        2 | Credit Linked Subsidy- Common Infrastructure                      | 83                                                                               |
|        3 | Seed Capital (No. of SHG Members approved with Amount sanctioned) | 3,27,150 members for Rs. 1088.42 Cr.                                             |
|        4 | Incubation Centre Approved                                        | 75 Incubation Centers with an outlay of Rs. 205.36 Cr in 23 States/UTs approved. |
|        5 | Branding &Marketing                                               | 17                                                                               |

PLISFPI is, inter alia, intended to support creation of global food manufacturing champions and support Indian brands of food products in international market. The scheme is being implemented over a six-year period from 2021-22 to 2026-27 with an outlay of Rs.10,900 crores. As on date, the applications approved under various components of the PLI Scheme are as under:

| S. No.   | Scheme                   | Segment            | No of approvals   | Total   |
|----------|--------------------------|--------------------|-------------------|---------|
| 1.       | Category -I of PLISFPI   | RTE/RTC F&V        | 12 27             | 53      |
| 2        | Category -II of PLISFPI  | Innovative Organic | 2 14              | 16      |
| 3        | Category -III of PLISFPI | B&M                | 73                | 73      |
| 4        | PLISMBP                  | MSME               | 21                |         |
|          |                          | Total              | 171               | 171     |

As per studies conducted by Indian Council for Agricultural Research - Central Institute of Post-Harvest Engineering & Technology (ICAR-CIPHET), 2015 and NABARD Consultancy Service Pvt. Ltd (NABCONS), 2022, the estimated percentage of Harvest and Post-Harvest loss of various agriculture produce in India is as follows:

| Crops/ Commodities       | Estimated Percentage Loss       | Estimated Percentage Loss   |
|--------------------------|---------------------------------|-----------------------------|
| Crops/ Commodities       | As per ICAR-CIPHET Study (2015) | As per NABCONS study (2022) |
| Cereals                  | 4.65 - 5.99                     | 3.89-5.92                   |
| Pulses                   | 6.36 - 8.41                     | 5.65-6.74                   |
| Oil Seeds                | 3.08 - 9.96                     | 2.87-7.51                   |
| Fruits                   | 6.70-15.88                      | 6.02-15.05                  |
| Vegetables               | 4.58-12.44                      | 4.87-11.61                  |
| Plantation Crops &Spices | 1.18-7.89                       | 1.29-7.33                   |
| Milk                     | 0.92                            | 0.87                        |
| Fisheries (Inland)       | 5.23                            | 4.86                        |
| Fisheries (Marine)       | 10.52                           | 8.76                        |
| Meat                     | 2.71                            | 2.34                        |
| Poultry                  | 6.74                            | 5.63                        |
| Egg                      | 7.19                            | 6.03                        |

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