Lok Sabha Question No. 723 (UNSTARRED), answered on 2023-07-25
Subject: Food Processing Industry schemes in Rural Areas
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: Prathap Simha, Umesh G. Jadhav

## GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA UNSTARRED QUESTION NO. 723

ANSWERED ON 25.07.2023

## FOOD PROCESSING INDUSTRY SCHEMES IN RURAL AREAS

## 723.    SHRI PRATHAP SIMHA: DR. UMESH G. JADHAV:

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

- (a) whether the Government is implementing Food Processing Industry (FPI) schemes for the benefit of farmers in rural areas to process and increase the price of their production and also thereby increasing their income especially in Karnataka;
- (b) if so, the details of such schemes and the number of farmers who have been benefitted from the said schemes till date, district-wise;
- (c) whether the Government has prepared any long term plan for processing of agricultural products particularly in rural areas of Karnataka and if so, the details thereof;
- (d) whether the Government is facing any hardship to implement these schemes and if so, the details thereof; and
- (e) the other steps taken by the Government to promote food processing industries in the country?

## ANSWER

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

(a) to (e): In order to ensure overall development of Food Processing Industries including processing of agro-  products,  Ministry  of  Food  Processing  Industries  (MoFPI)  has  been  incentivizing  setting up/expansion  of  related  infrastructure  through  its  Central  Sector  Umbrella  Scheme  Pradhan  Mantri Kisan  SAMPADA  Yojana  (PMKSY),  Production  Linked  Incentive  Scheme  for  Food  Processing Industry (PLISFPI) and Centrally sponsored PM Formalization of Micro Food Processing Enterprises (PMFME)  scheme  across  the  country  including  rural  areas  of  Karnataka  and  thus  benefitting  and increasing the income of the farmers in the country.

Under component schemes of PMKSY, MoFPI provides mostly credit linked financial assistance (capital subsidy) in the form of grants-in-aid to entrepreneurs. PMKSY is not any region or state specific but demand driven and is implemented across the country including the rural areas of Karnataka. So far, Ministry has approved 41 Mega food Parks, 382 Cold Chain projects, 72 Agro Processing Clusters, 469 Food Processing Units, 61 Creation of Backward & Forward Linkages Projects & 46 Operation Green projects across the country under corresponding component schemes of PMKSY. Out of this, 2 Mega Food  Parks,  17  Cold  Chain  projects,  4  Agro  Processing  Clusters,  19  Food  Processing  Units  and  3 Creation of Backward & Forward Linkages Projects are located in Karnataka. The completed projects of PMKSY are estimated to benefit more than 32 lakh farmers across the country and more than 1.8 Lakhs farmers in Karnataka.

Ministry also provides financial, technical and business support for setting up/ upgradation of 2 lakh micro food processing enterprises under PMFME scheme. The scheme is operational for a period of five years from 2020-21 to 2024-25 with an outlay of Rs. 10,000 Crore.So far, a total of 38466 micro food processing enterprises have been approved for assistance in the country, out of which 2444 micro food processing units located in Karnataka.

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. So far, a total investment of Rs 318.97 Cr has been committed in projects located in Karnataka under the scheme.

At times, the projects approved under PMKSY face delays in obtaining statutory clearances/ certificates  from  the  State  Govt.  regarding  Consent  to  Establish,  Consent  to  Operate,  building  plan approval, electricity connection etc.  Also, release of matching state funds gets delayed sometimes in centrally  sponsored  PMFME  scheme.  Ministry  coordinates  with  stakeholders  for  removal  of  these bottlenecks.

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