Lok Sabha Question No. 2779 (UNSTARRED), answered on 2024-08-08
Subject: Challenges before  FPIs
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: Prof. Sougata Ray

## GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA UNSTARRED QUESTION NO. 2779

## ANSWERED ON 08 TH  AUGUST, 2024

## CHALLENGES BEFORE FPIS

## 2779. PROF. SOUGATA RAY:

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

(a)     whether the Government has taken note of various issued faced by the country's food processing industry which include the need for more suitable infrastructure like inadequate cold  storage  facilities,  transportation  systems  and  processing  facilities  which  hamper  the efficient operation of the sector and resulting in post-harvest losses, shorter product shelf lives and higher transportation costs;

(b)     if so, the details thereof along with the measures taken/proposed to be taken by the Government to resolve the above said issues, sector-wise; and

(c)      the steps taken/proposed to be taken by the Government to ensure large investments in equipments, technology and Research & Development in the said sector?

## ANSWER

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

(a) & (b ) Yes, Sir. Ministry of Food Processing Industries (MoFPI) is implementing Central Sector  Schemes  of  Pradhan  Mantri  Kisan  SAMPADA  Yojana  (PMKSY),  and  Production Linked Incentive Scheme for Food Processing Industry (PLISFPI) and Centrally sponsored Prime Minister Formalization of Micro Food Processing Enterprises (PMFME) scheme for the overall  development of  food processing sector, including  creation of modern infrastructure with efficient supply chain management from farm gate to retail outlet, and to help in providing better returns to farmers, creation of employment opportunities, reducing wastage, increasing the processing level and enhancing the export of the processed foods.  All these three schemes are demand driven and implemented across the country.

Under  sub-schemes  of  PMKSY,  MoFPI  provides  mostly  credit  linked  financial assistance (capital subsidy) to entrepreneurs with total outlay of Rs.5520 crore for 15 th Finance Commission Cycle. MoFPI has sanctioned 41 Mega Food Parks, 399 Cold Chain projects, 76 Agro-Processing  Clusters,  588  Food  Processing  Units,  61  Backward  &  Forward  Linkages Projects & 52 Operation Greens projects till 30 th June 2024.

MoFPI  also  provides  financial,  technical  and  business  support  for  setting  up/ upgradation  of  micro  food  processing  enterprises  under  PMFME  scheme.  The  scheme  is operational for a period of five years from 2020-21 to 2024-25 with total outlay of Rs.10,000

crore.  A total of 92,549 sanctions have been given to micro food processing enterprises till 30 th June 2024.

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.  172 food processing companies have been given sanctions for assistance under various categories of the scheme so far.

(c)        Keeping in view the requirement of innovative product and process development in food  processing  sector, MoFPI  extends  financial  supports  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.  72 research projects have been approved since 201718 till 30 th June 2024 with an approved subsidy of Rs.26.12 crore.

In addition, National Institute of Food Technology, Entrepreneurship & Management (NIFTEM) Kundli and NIFTEM, Thanjavur, under the administrative control of MoFPI, are also engaged in R&D activities in the sector.

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