Lok Sabha Question No. 2846 (UNSTARRED), answered on 2024-12-12
Subject: Food Processing  and Preservation Industries
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: Shri Haribhai Patel, Dr. Kirsan Namdeo

## GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA UNSTARRED QUESTION NO. 2846

ANSWERED ON 12 TH  DECEMBER, 2024

## FOOD PROCESSING AND PRESERVATION INDUSTRIES

## 2846. DR. KIRSAN NAMDEO: SHRI HARIBHAI PATEL:

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

- (a) the details of the steps taken/being taken by the Government to encourage investments in both onfarm  and  off-farm  preservation  and  processing  infrastructure  during  the  last  five  years  and  the current year;
- (b) the details of the specific initiatives or assistance programmes aimed at enhancing the capabilities of farmers to mitigate post-harvest losses;
- (c) the details of the funds allocated and utilised for advancement of the food processing sector during the financial years from 2018-19 to 2024-25, State/UT-wise and scheme-wise; and
- (d) the details of the credit-linked financial aid offered to entrepreneurs for establishing food processing or preservation industries during the said period, encompassing the number of recipients and the overall disbursed amount?

## ANSWER

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

(a)  &  (b).  Ministry  of  Food  Processing  Industries  (MoFPI)  incentivizes  investment  in  processing  and preservation  infrastructure  of  the  country  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 and thus  helping  in  reduction  of  post-harvest  losses  in  the  country.  Under  component  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.  Ministry  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 2025-26 with total outlay of Rs. 10,000 Crore. Under the Capacity Building component of the Scheme, MoFPI provides assistance for training of Trainers, District Resource Persons, Entrepreneurs and various other groups. 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 Crore.

(c) & (d). Being central sector schemes, no state-wise budget allocation is done under PMKSY & PLISFPI. The details of incentives available and year-wise total allocation and funds utilized under these schemes since 2018-19 is placed at ANNEXURE-I. The state wise funds released under PMFME schemes since 2020-21

is placed at ANNEXURE-II. MoFPI has sanctioned 41 Mega food Parks, 399 Cold Chain projects, 76 AgroProcessing Clusters, 559 Food Processing Units, 61 Creation of Backward & Forward Linkages Projects & 51 Operation Green projects under corresponding component schemes of PMKSY till 31 st October, 2024. Till  31 st October,  2024,  1,08,580  loans  have  been  sanctioned  to  micro  food  processing  enterprises  for assistance under PMFME Scheme. Under PLISFPI, 171 food processing companies have been approved for assistance under various categories of the scheme so far.

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## ANNEXURE REFERRED TO IN REPLY TO PART (c) & (d) OF LOK SABHA UNSTARRED QUESTION  NO.  2846  FOR  ANSWER  ON  12 TH   DECEMBER,  2024  REGARDING  'FOOD PROCESSING AND PRESERVATION INDUSTRIES'

## 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-aid of @ 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.

## Details of funds allocated and funds utilized in the schemes of MoFPI

(Rs in Crores)

| Year   | 2018-19                   | 2018-19                   | 2019-20                   | 2019-20                   | 2020 21                   | 2020 21                   | 2021-22   | 2021-22   | 2022-23   | 2022-23     | 2023-24   | 2023-24   | 2024-25   | 2024-25          |
|--------|---------------------------|---------------------------|---------------------------|---------------------------|---------------------------|---------------------------|-----------|-----------|-----------|-------------|-----------|-----------|-----------|------------------|
| Scheme | R.E.                      | A.E.                      | R.E.                      | A.E.                      | R.E.                      | A.E.                      | R.E .     | A.E.      | R.E .     | A.E.        | R.E.      | A.E.      | B.E.      | A.E. 06.12.202 4 |
| PMKSY  | 870.3 3                   | 591.3 8                   | 889.4 3                   | 694.9 4                   | 750.0 0                   | 667.0 5                   | 791       | 713.4 9   | 673       | 561.9 2     | 745       | 666.2 1   | 729       | 280.28           |
| PMFM E | Scheme started in 2020-21 | Scheme started in 2020-21 | Scheme started in 2020-21 | Scheme started in 2020-21 | 400                       | 394.5 9                   | 399       | 326.4 6   | 290       | 274.7 6 800 |           | 778.8 4   | 879.5     | 654.25           |
| PLIS   | Scheme started in 2021-22 | Scheme started in 2021-22 | Scheme started in 2021-22 | Scheme started in 2021-22 | Scheme started in 2021-22 | Scheme started in 2021-22 | 10        | 9.27      | 801       | 489.8 3     | 115 0     | 590.5     | 1444.0 2  | 11.72            |

R.E.-Revised Estimates, A.E.- Actual Expenditure, B.E. - Budget Estimate

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ANNEXURE REFERRED TO IN REPLY TO PART (c) & (d) OF LOK SABHA UNSTARRED QUESTION  NO.  2846  FOR  ANSWER  ON  12 TH   DECEMBER,  2024  REGARDING  'FOOD PROCESSING AND PRESERVATION INDUSTRIES'

States / UTs-wise details of funds (Centre Share) released under PMFME Scheme since inception (till 31 st  October, 2024)

|   Sl. No. | States / UTs                       |   Total Amount released (Rs. in Cr.) |
|-----------|------------------------------------|--------------------------------------|
|         1 | Andaman &Nicobar Island            |                                 4.12 |
|         2 | Andhra Pradesh                     |                               115.78 |
|         3 | Arunachal Pradesh                  |                                18.59 |
|         4 | Assam                              |                               118.02 |
|         5 | Bihar                              |                               211.28 |
|         6 | Chandigarh                         |                                 2    |
|         7 | Chhattisgarh                       |                                28.58 |
|         8 | Dadar &Nagar Haveli &Daman and Diu |                                 1.29 |
|         9 | Delhi                              |                                 3.98 |
|        10 | Goa                                |                                 9.34 |
|        11 | Gujarat                            |                                47.04 |
|        12 | Haryana                            |                                42.63 |
|        13 | Himachal Pradesh                   |                                70.51 |
|        14 | Jammu &Kashmir                     |                                18.39 |
|        15 | Jharkhand                          |                                24.22 |
|        16 | Karnataka                          |                               148.06 |
|        17 | Kerala                             |                                75.3  |
|        18 | Ladakh                             |                                 6.29 |
|        19 | Lakshadweep                        |                                 1.01 |
|        20 | Madhya Pradesh                     |                               111.08 |
|        21 | Maharashtra                        |                               318.62 |
|        22 | Manipur                            |                                 6.41 |
|        23 | Meghalaya                          |                                 9.23 |
|        24 | Mizoram                            |                                10.67 |
|        25 | Nagaland                           |                                16.52 |
|        26 | Odisha                             |                                75.28 |
|        27 | Puducherry                         |                                 6    |
|        28 | Punjab                             |                                93.15 |
|        29 | Rajasthan                          |                                43.95 |
|        30 | Sikkim                             |                                12.87 |
|        31 | Tamil Nadu                         |                               164.3  |
|        32 | Telangana                          |                                90.36 |
|        33 | Tripura                            |                                18.21 |
|        34 | Uttar Pradesh                      |                               240.39 |
|        35 | Uttarakhand                        |                                27.45 |
|        36 | West Bengal                        |                                 6.28 |

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