Lok Sabha Question No. 225 (STARRED), answered on 2023-12-19
Subject: Processing of Kalanamak Rice
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: Jagdambika Pal

## GOVERNMENT OF INDIA

## MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA STARRED QUESTION NO. *225

ANSWERED ON 19 TH  DECEMBER, 2023

## PROCESSING OF KALANAMAK RICE

## *225.  SHRI JAGDAMBIKA PAL:

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

- (a) the measures taken by the Government to promote and support the processing of Kalanamak Rice in the country;
- (b) the details of specific schemes or subsidies in place to encourage entrepreneurs and farmers to invest in Kalanamak Rice Processing units; and
- (c) the manner in which the Government is going to ensure the maintenance of quality standards in Kalanamak processing to meet both domestic and international market requirements?

## ANSWER

## THE MINISTER OF FOOD PROCESSING INDUSTRIES (SHRI PASHUPATI KUMAR PARAS)

- (a) to (c): A Statement is laid on the Table of the House.

## STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  TO  (c)  OF  LOK  SABHA STARRED  QUESTION  NO.  *225  TO  BE  ANSWERED  ON  19.12.2023  REGARDING 'PROCESSING OF KALANAMAK RICE'

(a) &  (b):  The  Ministry  of  Food  Processing  Industries  (MoFPI)  has  been  implementing  a  centrally sponsored "PM Formalisation of Micro food processing Enterprises (PMFME) Scheme" for providing financial, technical and business support for upgradation of micro food processing enterprises including processing of Kalanamak Rice in the country. The scheme is operational for a period of five years from 2020-21 to 2024-25 with an outlay of Rs 10,000 Crore.  Support to upgrade existing units or setting up of new micro units for individuals is provided through a credit-linked grant @ 35% with maximum grant of Rs.10 lakh.

The Scheme adopts One District One Product (ODOP) approach to reap the benefit of scale in terms of procurement of  inputs,  availing  common  services  and  marketing  of  products.  ODOP  for the  scheme provides the framework for value chain development and alignment of support infrastructure.  States/UTs identify  the  ODOP based on the agriculture production, raw material availability, perishability of the product,  presence  of  microenterprises,  Number  of  Self-Help  Groups  (SHG)  and  Farmer  Producer Organizations (FPO) engaged in the processing of that product.

Ministry of Food Processing Industries (MoFPI) has approved ODOP as Kalanamak Rice for 5 districts of Uttar Pradesh viz. Basti, Gorakhpur, Maharajganj, Sant Kabir Nagar & Siddarth Nagar.

Following are the salient features of the scheme:

- Individual / FPOs/ SHGs/ Cooperatives / Private / Partnership Firms etc. - Credit linked Grant @ 35% with max. ceiling of Rs. 10 lakh. Beneficiary contribution should be minimum of 10% of the project cost with balance required fund being loan from Bank.
- Common Infrastructure (FPOs/ SHGs/ Cooperatives / Govt. Entities) - Credit linked Grant @ 35% upto max. of Rs. 3 crore for creation of Common Infrastructure. Beneficiary contribution should be minimum of 10% of the project cost with balance required fund being loan from Bank.
- Seed capital @Rs. 40,000 per member of SHG for working capital and purchase of small tools subject to max. Rs. 4 lakhs per SHG Federation
- Marketing & Branding- Grant up to 50% of the expenditure to Groups or an SPV for ODOP
- Capacity Building- Training on 'entrepreneurship development' and 'food processing' is given to the beneficiary of credit linked subsidy and seed capital.

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.  through different  components  of  the  PMFME  scheme  such  as  promotional  activities,  capacity  building,  and marketing & branding.

Till 30 th November 2023, 110 Kalanamak Rice processing units have been approved to be supported under Credit Linked Subsidy.

Further, the Ministry of Food Processing Industries (MoFPI) has been implementing   Scheme for Creation/ Expansion of Food Processing and Preservation Capacities (CEFPPC scheme) under Central Sector Scheme -Pradhan Mantri Kisan Sampada Yojana (PMKSY) since 2017-18 across the country. Under the CEFPPC scheme, financial assistance in the form of grants-in-aid is provided for setting up/ expansion of food processing units including modern rice milling. Under the scheme, grants-inaid @ 35% of the eligible project cost is provided in General Areas and 50% of the eligible project cost in Difficult areas as well as for project of SC/ST, FPOs, SHGs subject to a maximum of Rs.5.00 crore.

(c):  As on date, Food Safety & Standards Authority of India (FSSAI) does not have specific standards for Kalanamak Rice. However, standards for rice in general are available in Food Safety & Standards (Food Product Standards & Food Additives) Regulations 2011 and the maximum  limits/maximum residue limits/tolerance limits for various chemical contaminants in rice are specified in Food Safety and Standards (Contaminants, Toxins and Residues) Regulation, 2011. All food business operators are required to comply with these provisions of Regulations.

*****