Lok Sabha Question No. 3446 (UNSTARRED), answered on 2025-03-20
Subject: Promotion of Domestic Food Processing Machinery
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: Thiru Arun Nehru

## GOVERNMENT OF INDIA

## MINISTRY OF FOOD PROCESSING INDUSTRIES LOK SABHA UNSTARRED QUESTION NO. 3446 TO BE ANSWERED ON 20 TH  MARCH, 2025

## PROMOTION OF DOMESTIC FOOD PROCESSING MACHINERY

## 3446. THIRU ARUN NEHRU:

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

- (a) the details of the measures taken/being taken by the Government to modernize India's food processing sector and promote domestic food processing machinery;
- (b) whether the Government has proposed to establish a dedicated mechanism to attract investments and standardize locally produced machinery and if so, the details thereof;
- (c) whether the Government has any plan to address challenges in raw material access, regulations and technology transfer for the industry and if so, the details thereof;
- (d) the  role  of  Research  and  Development  (R&D)  in  enhancing  the  efficiency  and competitiveness of domestic machinery; and
- (e) the  initiatives  taken/being  undertaken  by  the  Government  to  develop  and  enforce standards for locally manufactured food processing equipments?

## ANSWER

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

(a)  : 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  schemes  namely  Pradhan  Mantri  Kisan SAMPADA  Yojana  (PMKSY)  Scheme,  Production  Linked  Incentive  Scheme  for  Food Processing Industry (PLISFPI) and Centrally Sponsored - Pradhan Mantri Formalization of Micro Food Processing Enterprises (PMFME) Scheme across the country. These schemes are not region or state specific but demand driven.

Under  Research  and  Development  (R&D)  component  of  the  PMKSY  Scheme, MoFPI extends financial assistance as grant-in-aid to Private organizations/ universities/institutions, Public funded organizations and recognized R&D laboratories both in public and private sector to promote and undertake demand driven R&D work in food processing sector for product & process development, design and development of equipment, improved storage, shelf-life, packaging etc.

Under  the  PMFME  Scheme,  financial  assistance  is  being  provided  to  micro  food processing enterprises for acquiring new technologies and upgrading equipment. In addition, handholding support is provided to the beneficiary for project formulation, execution, access to  credit,  linkages  to  machine/equipment manufacturers, maintenance of hygiene & quality control etc.

(b): MoFPI is incentivizing establishment of such facilities through its schemes of PMKSY, PMFME and PLIS, which are demand driven in nature and implemented across the country Apart from this, with the objective to boost investments and sourcing of Indian food products, MoFPI organized 3rd edition of a Mega Event, called 'World Food India' during 19th to 22nd 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  provide  foreign  companies  with  tie-up/  business opportunities with its Indian counterparts.

(c): In order to promote local industries, One District One Product (ODOP) approach under PMFME Scheme has been adopted to reap the benefit of scale in terms of procurement of inputs, availing common services and marketing of products. It provides the framework for value chain development and alignment of support infrastructure. The ODOP are identified by States / UTs based on the agriculture production, raw material availability, perishability of the product etc.

In  order  to  promote  use  of  technology  in  Food  Processing  Sector, MoFPI  extends Grant-in-Aid  to  educational  and  research  institutions  including  Council  of  Scientific  & Industrial  Research  (CSIR)  recognized  Research  and  Development  (R&D)  units  in  private sector for related demand driven R&D projects through its R&D scheme under PMKSY.

In addition, National Institute of Food Technology, Entrepreneurship & Management (NIFTEM) Kundli and NIFTEM, Thanjavur, under administrative control of MoFPI, are also engaged in transfer of technology to industries, farmer producer organizations, startups, and others.  Also,  NIFTEM-T  undertakes  several  consultancy  services  and  industry  sponsored research projects. The need for these projects originate from the industry and the technology developed by NIFTEM-T will be used by the industry after completion of the project.

(d): Research  and  development  (R&D)  plays  a  crucial  role  in  boosting  the  efficiency  and competitiveness of domestic machinery. By fostering innovation, R&D helps improve product quality, reduce manufacturing costs, and enhance performance. It enables companies to stay ahead of market trends, adopt advanced technologies, and meet evolving consumer demands effectively. Thus, Research and Development (R&D) component of the PMKSY Scheme has been considered by Ministry.

(e): Schemes of MoFPI are, inter alia, intended  to develop value-added  products, bringing innovative  technologies,  enhancing  productivity,  enhancing  product  quality  and  safety standards etc.

Based on the demand from the food industry, FPOs, MSMEs, etc, NIFTEMs design and  develop  identified  machinery  for  food  processing  and  transfer  the  designs  to  the manufacturers for large scale production and commercial sale of such machinery for end users.

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