Lok Sabha Question No. 851 (UNSTARRED), answered on 2023-07-25
Subject: Investment in Agricultural Processing
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: S.R. Parthiban

## GOVERNMENTOF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA

## UNSTARRED QUESTION NO. 851

ANSWER ON 25.07.2023

## INVESTMENT IN AGRICULTURAL PROCESSING

## 851.   SHRI PARTHIBAN S.R.:

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

- (a) the percentage of the agricultural production being processed in the country at present especially in Tamil Nadu;
- (b) the remedial steps taken by the Government to boost the level of processing and attract investment in this sector;
- (c) whether there is a substantial lack of necessary research and development in the field of food processing in the country and if so, the details thereof; and
- (d) the  details  of  the  schemes  and  awareness  programmes  launched  by  the  Government  so  far  in  this regard?

## ANSWER

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

- (a)  The Ministry of Food Processing Industries (MoFPI), Government of India (GOI) had commissioned a study by M/s Deloitte titled 'Study to Determine the Level of Food Processing in India', 2021. As per the report of the study, the estimated level of processing (in percent) for major agricultural commodities are as under:

| Commodity      | Estimated Level of Processing ( In percent )   | Estimated Level of Processing ( In percent )   |
|----------------|------------------------------------------------|------------------------------------------------|
|                | 2015-16                                        | 2018-19                                        |
| Coarse Cereals | 28.3                                           | 29.4                                           |
| Fruits         | 2.9                                            | 4.5                                            |
| Vegetables     | 2.2                                            | 2.70                                           |
| Milk           | 20.1                                           | 21.1                                           |
| Fish           | 8.3                                            | 15.4                                           |
| Meat           | 22.7                                           | 34.2                                           |

No state-specific estimates of level of processing for agricultural produce have been captured in the study.

- (b)        MoFPI,GOI  implements  various  schemes  like  Pradhan  Mantri  Kisan  Sampada  Yojna  (PMKSY), Pradhan  Mantri  Formalization  of  Micro  Food  Processing  Enterprises  (PMFME)  and  Production  Linked Incentive (PLI) Schemes to create additional post-harvest facilities/ processing infrastructure to boost value addition, generate employment, reduce post-harvest loses and leverage investment. The Government has also allowed 100% foreign direct investment in food processing sector under the automatic route.

(c)     MoFPI implements the scheme of Research & Development (R&D), as a component of PMKSY, which provides financial assistance as grant-in-aid to Private organizations/universities/institutions/R&D laboratories and CSIR recognized R&D units, Central/ State Government Institutions etc. to promote and undertake  demand  driven  R&D  work  for  the  benefit  of  food  processing  sector  for  product  &  process development,  design  and  development  of  equipment,  improved  storage,  shelf-life,  packaging  etc.Two National  Institutes  of  Food  Technology  Entrepreneurship  and  Management  (NIFTEM)-  Thanjavur  and Kundli, under the MoFPI, also undertakes several research programmes in the food processing sector.

(d)    Promotional initiatives of the Ministry are undertaken in order to create awareness about the potential and prospect of food processing industry in the country and about schemes/policies of the Government by providing  assistance  for  organizing  Workshops,  Seminars,  Exhibitions  and  Fairs.  Promotional  activities through the various social media platforms of the Ministry are also undertaken.

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