Lok Sabha Question No. 662 (UNSTARRED), answered on 2025-02-06
Subject: Packaging of Agro-based Products
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: Shri Dushyant Singh

## GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA UNSTARRED QUESTION No. 662

ANSWERED ON 06 TH  FEBRUARY, 2025

## PACKAGING OF AGRO-BASED PRODUCTS

## 662. SHRI DUSHYANT SINGH:

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

- (a) the details of the steps taken/being taken by the Government to support the establishment of Food Processing Units, particularly for grading, grinding and packaging of agro-based products such as garlic, coriander, fenugreek, nigella seeds and chillies as well as to form Farmers Producer Organizations (FPOs) in the Jhalawar-Baran region in Rajasthan;
- (b) whether the Government has proposed to provide any grants for the development of Food Processing Units and FPOs in the said districts if so, the details thereof and if not, the reasons therefor; and
- (c) the details of the steps taken/being taken by the Government to increase the market value of these products and improve farmer welfare?

## ANSWER

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

(a) to (c) In  order  to  promote  food  processing  sector  in  the  country,  Ministry  of  Food Processing Industries (MoFPI) has been incentivizing setting up/expansion of food processing units  and  related  infrastructure  through  its  Central  Sector  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. These  schemes  are  not  region  or  state  specific  but  demand driven. Ministry extends financial support to prospective entrepreneurs for setting up of different kinds of food processing units including garlic, coriander, fenugreek, nigella seeds and chillies and other agro-based products as per respective scheme guidelines. The details of incentives available under these schemes is at Annexure-I .  The  organizations  such  as  Central  &  State PSUs/ Joint Ventures/ Farmer Producers Organization (FPOs)/ NGOs/ Cooperatives/ SHG's/ Pvt.  Ltd.  Companies/  Individuals  proprietorship  firms  etc.  are  eligible  for  availing  financial support  /  incentive  under  these  schemes.  The  details  of  financial  support  provided  in  the Jhalawar-Baran region in Rajasthan under PMFME Scheme is at Annexure-II . These schemes aim to create modern infrastructure with efficient supply chain management from farm gate to retail  outlet  and thereby  helping in providing better returns to farmers, creating employment opportunities,  reducing  wastage  of  agricultural  produce,  increasing  the  processing  level  and enhancing the export of the processed foods.

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## ANNEXURE  REFERRED  TO  IN  REPLY  TO  PART  (a)  TO  (c)  OF  LOK  SABHA UNSTARRED  QUESTION  NO.  662  FOR  ANSWER  ON  06.02.2025  REGARDING 'PACKAGING OF AGRO-BASED PRODUCTS'

## Incentives available under Pradhan Mantri Kisan Samapada Yojana (PMKSY)

|   S. No. | Component Scheme                                                | Scheme Benefits (Grant-in- aid) for projects in General Area                                                                                                                                                                                                      | Scheme Benefits (Grant-in-aid) for projects in Difficult Areas as well as SC/ST, FPOs, SHGs                                                                                                                                                                                |
|----------|-----------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|        1 | Integrated Cold Chain and Value Addition Infrastructure         | Grant-in-aid @35%of eligible project cost [subject to maximum of Rs.10 crores per project]                                                                                                                                                                        | Grant-in-aid @ 50% of eligible project cost [subject to maximum of Rs. 10 crores per project]                                                                                                                                                                              |
|        2 | Creation/ Expansion of Food Processing &Preservation Capacities | Grants-in-Aid @35% of eligible project cost [subject to maximum of Rs. 5 crores per project]                                                                                                                                                                      | Grants-in-Aid @50% of eligible project cost [subject to maximum of Rs.5 crores per project]                                                                                                                                                                                |
|        3 | Infrastructure for Agro- Processing Clusters                    | Grants-in-aid @35% of eligible project cost in General Area [subject to maximum of Rs. 10 crores per project]                                                                                                                                                     | Grants-in-aid @50% of eligible project [subject to max. of Rs. 10 crore per project]                                                                                                                                                                                       |
|        4 | Operation Greens                                                | Grants-in-Aid @35% of eligible project cost for Integrated Value Chain Development Projects, maximum grants-in-aid would be ₹15 crore per project; and for Standalone Post-Harvest Infrastructure Projects, maximum grants-in-aid would be ₹10 crore per project. | Grants-in-Aid maximum @50% of eligible project cost for Integrated Value Chain Development Projects, maximum grants- in-aid would be ₹15 crore per project; and for Standalone Post-Harvest Infrastructure Projects, maximum grants-in-aid would be ₹10 crore per project. |
|        5 | Food Safety and Quality Assurance - Food Testing Laboratories   | 100% grants-in-aid for Govt. organizations For Private organizations/ entities: grant-in-aidof@50% of the eligible cost                                                                                                                                           | For Private organizations/ entities: grant-in-aid of @ 70% of the eligible cost                                                                                                                                                                                            |

| 6.   | Human Resource & Institutions- Research &Development   | For Government Organizations - Grants @ 100% of equipment cost, consumables, For private organizations /universities/institutions, grant @50 %of equipment cost.   | For Government Organizations - Grants @ 100% of equipment cost, consumables For Private Organizations /Universities/ Institutions, Grants @ 70% of equipment cost.   |
|------|--------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

## The details of assistance available to Micro Food Processing Enterprises under PMFME Scheme

- (i). Support to Individual / Group Category Micro Enterprises: Credit-linked  capital  subsidy @35% of the eligible project cost, maximum ceiling Rs.10 lakh per unit;
- (ii). Support to SHGs for seed capital: Seed capital @ Rs. 40,000/- per member of SHG engaged in food processing for working capital and purchase of small tools subject to maximum of Rs. 4 lakh per SHG Federation.
- (iii). Support  for  Common  Infrastructure: Credit  linked  capital  subsidy  @35%  subject  to maximum of Rs. 3 crore to support FPOs, SHGs, Cooperatives and any Government agency for setting up of common infrastructure. The common infrastructure will also be available for other units and public to utilize on hiring basis for substantial part of the capacity.
- (iv). Branding and Marketing Support: Grant upto 50% for Branding and Marketing to groups of FPOs/ SHGs/ Cooperatives or an SPV of micro food processing enterprises.
- (v). Capacity  Building: The  scheme  envisages  training  for  Entrepreneurship  Development Skilling (EDP+): program modified to meet the requirement of food processing industry and product specific skilling.

## ANNEXURE  REFERRED  TO  IN  REPLY  TO  PART  (a)  TO  (c)  OF  LOK  SABHA UNSTARRED  QUESTION  NO.  662  FOR  ANSWER  ON  06.02.2025  REGARDING 'PACKAGING OF AGRO-BASED PRODUCTS'

## Details of financial support provided in the Jhalawar-Baran region in Rajasthan under PMFME Scheme

| Sl. No.   | Particulars                              | Status as on 31.01.2025                               |
|-----------|------------------------------------------|-------------------------------------------------------|
| 1.        | Jhalawar District of Rajasthan           | Jhalawar District of Rajasthan                        |
| (i).      | Number of loans sanctioned to applicants | Number: 10 Amount: Rs. 50 lakhs                       |
| (ii).     | Seed capital sanctioned to SHG members   | 1510 SHG members approved for amount of Rs. 575 lakhs |
| 2.        | Baran District of Rajasthan              | Baran District of Rajasthan                           |
| (i).      | Number of loans sanctioned to applicants | Number: 14 Amount: Rs. 74 lakhs                       |
| (ii).     | Seed capital sanctioned to SHG members   | 52 SHG members approved for amount of Rs. 20.30 lakhs |

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