Lok Sabha Question No. 3289 (UNSTARRED), answered on 2025-03-20
Subject: Problems faced by Food Processing Industries
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: Prof. Sougata Ray

## GOVERNMENT OF INDIA

## MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA

## UNSTARRED QUESTION NO. 3289

TO BE ANSWERED ON 20th March, 2025

## PROBLEMS FACED BY FOOD PROCESSING INDUSTRIES

## 3289.    PROF. SOUGATA RAY:

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

- (a) whether the Government has taken any steps to address various issues faced by the food processing industries of the country and if so, the details thereof;
- (b) whether the Government has taken steps to address the issues of fragmented supply chain, inadequate cold storage and  warehousing  facilities, poor  transportation infrastructure,  inconsistent  quality  and  safety  standards  and  complex  regulatory environment, if so, the details thereof;
- (c) whether the Government  is aware of the problems of lack of post-modern mechanization in the sector, if so, the details thereof;
- (d) whether the Government provides assistance to set up post-modern machinery in the food processing units of the country, if so, the details thereof; and
- (e) the details of the Government assistance provided to procure seasonal products and the steps taken to ensure adequate storage facilities to the industry?

## ANSWER

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

(a) to (e): In order to promote and ensure overall development of Food Processing Industries, Ministry of Food Processing Industries (MoFPI) has been incentivizing setting up/expansion of  related  infrastructure  through  its  Central  Sector  schemes  namely  Pradhan  Mantri  Kisan SAMPADA  Yojana  (PMKSY)  Scheme,  Production  Linked  Incentive  Scheme  for  Food Processing Industry (PLISFPI) and Centrally Sponsored - Pradhan Mantri Formalization of Micro Food Processing Enterprises (PMFME) Scheme across the country. These schemes are not region or state specific but demand driven.

Under  PMKSY,  credit  linked  financial  assistance  (capital  subsidy)  is  provided  to entrepreneurs for setting up of food processing industries with total outlay of Rs 5520 Cr for 15th Finance Commission Cycle. So far, MoFPI has sanctioned 1608 projects including 41 Mega food Parks, 394 Cold Chain projects, 75 Agro-processing Clusters projects, 536 Food Processing Units, 61 Creation of Backward & Forward Linkages and 44 Operation Greens projects  under  corresponding  component  schemes  of  PMKSY  across  the  country  till  28 th February, 2025.

Under PMFME scheme, financial, technical and business support is provided for setting up / upgradation of micro food processing enterprises. The scheme is operational for a period of upto 2025-26 with an outlay of Rs.10,000 Crore. A total of 1,27,758 micro food processing enterprises have been approved for assistance under PMFME in the country till 28th February, 2025.

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 operational for a period from 2021-22 to 2026-27 with an outlay of Rs. 10,900 crores. So far, 171 food processing companies have been approved for assistance under various categories of the PLISFPI scheme in the country till 28th February, 2025.

These schemes aim towards creation of modern infrastructure with efficient supply chain  management  from  farm  gate  to  retail  outlet,  which  includes  storage,  transportation, enhancing product quality and safety standards etc., thereby help in providing better returns to farmers and creating huge employment opportunities, reducing wastage of agricultural produce and increasing the processing level.

MoFPI, under its schemes, does not provide financial assistance for establishment of standalone cold storages facilities. However,  it incentivizes creation of cold storage infrastructure  as  part  of  food  processing  projects  under  relevant  component  schemes  of PMKSY.

Department of Agriculture & Farmers Welfare is implementing Mission for Integrated Development of Horticulture (MIDH) under which capital assistance is provided for various horticulture  activities  including  Construction/Expansion/Modernization  of  cold  storages  of capacity up to 5000 MT in the country on the basis of Annual Action Plan (AAP) received from States/UTs.

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