Lok Sabha Question No. 2413 (UNSTARRED), answered on 2025-03-13
Subject: Financial Impact of Export Restrictions on Processed Agricultural Products
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: Shri K Sudhakaran

## GOVERNMENTOF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA

## UNSTARRED QUESTION NO. 2413

TO BE ANSWERED ON 13 TH  MARCH, 2025

## FINANCIAL IMPACT OF EXPORT RESTRICTIONS ON PROCESSED AGRICULTURAL PRODUCTS

## 2413. SHRI K SUDHAKARAN:

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

- (a) whether the Government has assessed the financial impact of export restrictions on processed agricultural products including the recent export ban on broken rice and the expected losses to the food processing sector, if so, the details thereof;
- (b) the status of cold storage infrastructure expansion projects, including the number of sanctioned/completed units under PMKSY;
- (c) whether the Government has identified bottlenecks in the Mega Food Parks Scheme including delays in private investment, land acquisition disputes and the steps taken to resolve them, if so, the details thereof;
- (d) whether  any  new  incentives  have  been  introduced  to increase  value-added processing of perishable crops like tomatoes and onions and if so, the details thereof; and
- (e) the steps being taken by the Government to integrate food processing clusters with major export hubs, including the number of operational food parks that have direct port connectivity?

## ANSWER

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

(a): The Ministry of Food Processing Industries (MoFPI) has not conducted any such study to  assess  the  financial  impact  of  export  restrictions  on  processed  agricultural  products including the recent ban on broken rice.

(b): As  of  28 th February,  2025,  the  MoFPI  has  approved  a  total  of  554  cold  storage infrastructure  projects  under  the  various  scheme  components  of  Pradhan  Mantri  Kisan Sampada Yojana (PMKSY) across various states in India. The details are given as below:

Details of Cold Storage against completed projects Under PMKSY

| Sub-schemes of PMKSY                                  |   Number of projects approved |   Ongoing Projects |   Completed Projects |   No. of cold storage against completed projects |   Capacity of Cold Storage against completed projects (MT) |
|-------------------------------------------------------|-------------------------------|--------------------|----------------------|--------------------------------------------------|------------------------------------------------------------|
| Operations Greens                                     |                            44 |                 37 |                    7 |                                               14 |                                                      24500 |
| Infrastructure for Agro-processing Clusters           |                            75 |                 52 |                   23 |                                               21 |                                                      71200 |
| Mega Food Parks                                       |                            41 |                 17 |                   24 |                                               66 |                                                     286100 |
| Integrated Cold Chain & Value Addition Infrastructure |                           394 |                108 |                  286 |                                              477 |                                                    1377500 |

Further,  the  details  of  number  of  units  sanctioned/approved  and  completed/operational under PMKSY are as below:

Details of Projects under different sub-schemes of PMKSY

| S.No.   | Sub-schemes of PMKSY                                                             |   Approved Projects |   Completed/ Operational |
|---------|----------------------------------------------------------------------------------|---------------------|--------------------------|
| 1       | Infrastructure for Agro-processing Clusters                                      |                  75 |                       23 |
| 2       | Creation of Backward and Forward Linkages                                        |                  61 |                       53 |
| 3      | Integrated Cold Chain and Value Addition Infrastructure                          |                 394 |                      286 |
| 4      | Creation/ Expansion of Food Processing and Preservation Capacities (Unit Scheme) |                 526 |                      293 |
| 5      | Food Safety and Quality Assurance Infrastructure                                 |                 205 |                      167 |
| 6       | Mega Food Parks                                                                  |                  41 |                       24 |
| 7       | Operation Greens                                                                 |                  44 |                        7 |
| 8      | Human Resources and Institutions - Research &Development                         |                 236 |                      225 |
| 9       | Scheme for Human Resources and Institution - Skill Development                   |                  26 |                       25 |
|         | Total                                                                            |                1608 |                     1103 |

(c): Mega Food Park scheme was launched in 2008 to boost food processing in the country with an aim of establishing world-class infrastructure and common user facilities adopting cluster approach based on hub and spoke model. The scheme had requirement of at least 50 acres of land, which often is a deterrent in hilly and difficult areas. After taking into account recommendations of many states Government & Working Group constituted under 12th FC, a new scheme of Agro Processing Cluster was launched under PMKSY to develop common infrastructure in relatively smaller geographical area of 10 acres. Accordingly, Mega Food Park  scheme  has  been  discontinued  w.e.f.  01.04.2021  with  committed  liabilities  for  the approved projects.

(d): MoFPI  is  implementing  'Operation  Greens'  under  PMKSY  to  promote  Farmer Producers  Organizations  (FPOs),  agri-logistics, processing  facilities and  professional management  for  development  of  Tomato,  Onion  and  Potato  (TOP)  value  chain  since November 2018. Further, since 2021-22 the scope of Operation Greens Scheme originally applicable to tomato, onion and potatoes (TOP) crops was enlarged to 22 perishable crops.

In addition to this, the Union Cabinet in its meeting held on 31.03.2021 approved the Central Sector Scheme- 'Production Linked Incentive Scheme for Food Processing Industry (PLISFPI)' to support creation of global food manufacturing champions commensurate with India's  natural  resource  endowment  and  support  Indian  brands  of  food  products  in  the international markets with an outlay of Rs. 10,900 crores. The Scheme is being implemented over a six-year period from 2021-22 to 2026-27.

(e): In  order  to  promote  and  ensure  overall  development  in  the  food  processing  sector, Ministry of Food Processing Industries (MoFPI) has been incentivizing setting up/expansion of related infrastructure through its Central Sector Pradhan Mantri Kisan SAMPADA Yojana (PMKSY)  Scheme,  Production  Linked  Incentive  Scheme  for  Food  Processing  Industry (PLISFPI) and Centrally Sponsored PM Formalization of Micro Food Processing Enterprises (PMFME) Scheme across the country. These schemes aim to create modern infrastructure with efficient supply chain management from farm gate to retail outlet to give big boost to the growth of food processing sector in the country thereby helping in providing better returns to  farmers,  creating  huge  employment  opportunities,  reducing  wastage  of  agricultural produce, increasing the processing level and enhancing the export of the processed foods. Assistance is provided in the form of cold chain infrastructure including mobile pre-cooling vans and reefer trucks under various components of PMKSY including mega food parks which assist in integration of food processing clusters with export hubs.

*****