Lok Sabha Question No. 1791 (UNSTARRED), answered on 2024-12-05
Subject: Investment in Food Processing Sector
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: Dr. D. Purandeswari

## GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA

## UNSTARRED QUESTION NO. 1791

ANSWERED ON 05 TH  December,2024

## INVESTMENT IN FOOD PROCESSING SECTOR

## 1791. DR. D. PURANDESWARI :

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

- (a) the  total  investment  made  in  the  food  processing  sector  during  the  last  five  years  and  the current year along with the percentage growth in investments annually, year-wise;
- (b) the impact of Government policies and initiatives on the growth of the food processing sector, supported by data on the number of new food processing units established and jobs created during the last five years and the current year particularly in Andhra Pradesh;
- (c) the total amount of Foreign Direct Investment (FDI) received by the food processing sector during  the  last  five  years  and  the  current  year,  year-wise  along  with  the  key  countries contributing to this investment; and
- (d) the details of the future plans and targets set by the Government to further boost the food processing  sector,  including  expected  outcomes  in  terms  of  investment,  job  creation,  and export growth along with any planned international collaborations or agreements?

## ANSWER

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

(a).  In order to ensure overall development of Food Processing Sector in the country, Ministry of Food Processing Industries (MoFPI) implements Central Sector Umbrella Scheme, Pradhan Mantri Kisan Sampada Yojana (PMKSY), since 2016-17, Production Linked Incentive Scheme for Food Processing Industry (PLISFPI), since 2021-22 and centrally sponsored Pradhan Mantri Formalization of Micro food processing Enterprises (PMFME) Scheme, since 2020-21. The details of the total investment made in the sector under the schemes of MoFPI and the percentage growth is as below:

## I. PMKSY

| Project Cost (Rs. in Crore)   | Project Cost (Rs. in Crore)   | Project Cost (Rs. in Crore)   | Project Cost (Rs. in Crore)   | Project Cost (Rs. in Crore)   | Project Cost (Rs. in Crore)   | Project Cost (Rs. in Crore)   |
|-------------------------------|-------------------------------|-------------------------------|-------------------------------|-------------------------------|-------------------------------|-------------------------------|
| Schemes                       | 2019-20                       | 2020-21                       | 2021-22                       | 2022-23                       | 2023-24                       | 2024-25*                      |
| PMKSY                         | 1875.20                       | 1890.53                       | 2378.12                       | 1729.97                       | 1665.65                       | 732.17                        |
| Growth (%)                    | -                             | 0.82                          | 25.79                         | -27.25                        | -3.72                         | -                             |

*as on 31 st October, 2024

## II. PMFME

| Project Cost (Rs. in Crore)   | Project Cost (Rs. in Crore)   | Project Cost (Rs. in Crore)   | Project Cost (Rs. in Crore)   | Project Cost (Rs. in Crore)   |
|-------------------------------|-------------------------------|-------------------------------|-------------------------------|-------------------------------|
| Schemes                       | 2021-22                       | 2022-23                       | 2023-24                       | 2024-25*                      |
| PMFME                         | 390.99                        | 2483.14                       | 5198.3                        | 2335.18                       |
| Growth (%)                    | -                             | 535.09                        | 109.34                        | -                             |

## III. PLISFPI

| Project Cost (Rs. in Crore)   | Project Cost (Rs. in Crore)   | Project Cost (Rs. in Crore)   | Project Cost (Rs. in Crore)   | Project Cost (Rs. in Crore)   |
|-------------------------------|-------------------------------|-------------------------------|-------------------------------|-------------------------------|
| Schemes                       | 2020-21                       | 2021-22                       | 2022-23                       | 2023-24                       |
| PLISFPI*                      | 663                           | 3106                          | 7067                          | 8910                          |
| Growth (%)                    | -                             | 368.48                        | 127.53                        | 26.08                         |

Additionally, the details of the Foreign Direct Investment received in the food processing sector are as below:

| Year                          |   FDI (in US$ million) |
|-------------------------------|------------------------|
| 2019-20                       |                 904.7  |
| 2020-21                       |                 393.41 |
| 2021-22                       |                 709.72 |
| 2022-23                       |                 895.34 |
| 2023-24                       |                 608.31 |
| 2024-25 (Upto September 2024) |                 368.37 |

- (b).  By implementing PMKSY and PMFME, the total number of units set up are 643 and 1,08,580 respectively. Moreover, the employment generated through PMKSY and PMFME is 2,52,025 and 3,78,005 respectively. Year wise break-up is given as below:

| Number of Food Processing units   | Number of Food Processing units   | Number of Food Processing units   | Number of Food Processing units   | Number of Food Processing units   | Number of Food Processing units   | Number of Food Processing units   |
|-----------------------------------|-----------------------------------|-----------------------------------|-----------------------------------|-----------------------------------|-----------------------------------|-----------------------------------|
| Schemes                           | 2019-20                           | 2020-21                           | 2021-22                           | 2022-23                           | 2023-24                           | 2024-25                           |
| PMKSY                             | 79                                | 106                               | 158                               | 133                               | 117                               | 50                                |
| PMFME                             | -                                 | -                                 | 2,885                             | 28,686                            | 54,730                            | 22,279                            |

| Employment Generated   | Employment Generated   | Employment Generated   | Employment Generated   | Employment Generated   | Employment Generated   | Employment Generated   |
|------------------------|------------------------|------------------------|------------------------|------------------------|------------------------|------------------------|
| Schemes                | 2019-20                | 2020-21                | 2021-22                | 2022-23                | 2023-24                | 2024-25                |
| PMKSY                  | 36600                  | 50204                  | 66760                  | 50618                  | 33581                  | 14262                  |
| PMFME                  | -                      | -                      | 14201                  | 90188                  | 188802                 | 84814                  |

Under PLISFPI, 213 projects have been completed till date resulting in employment generation to the tune of 289832 persons. Furthermore, the number of units and employment generated in the state of Andhra Pradesh is as below:

| Schemes   |   Number of Food Processing units |   Employment Generated |
|-----------|-----------------------------------|------------------------|
| PMKSY     |                                23 |                  14096 |
| PMFME     |                              5770 |                  11185 |
| PLISFPI   |                                36 |                  48758 |

- (c).  The details of the Foreign Direct Investment received in the food processing sector is as below:
- (d).    The  Ministry  of  Food  Processing  Industries  (MoFPI)  is  mandated  to  create  post-harvest infrastructure  and  processing  facilities,  inter-alia,  to  boost  the  overall  development  of  the  foodprocessing  sector  including  reduction  in  post-harvest  losses;  enhancing  value  addition  etc.  The Ministry through implementation of various initiatives and schemes aims 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.

The details of the key countries contributing to this investment are at ANNEXURE .

| Year                         |   FDI (in US$ million) |
|------------------------------|------------------------|
| 2019-20                      |                 904.7  |
| 2020-21                      |                 393.41 |
| 2021-22                      |                 709.72 |
| 2022-23                      |                 895.34 |
| 2023-24                      |                 608.31 |
| 2024-25(Upto September 2024) |                 368.37 |

MoFPI has undertaken a number of measures as part of the Aatmanirbhar Bharat Initiative, which includes PM Formalization of Micro Food Processing Enterprises (PMFME) scheme and Production Linked Incentive Scheme for Food Processing Industry (PLISFPI).

The  Ministry  has  launched  'PM  Formalisation  of  Micro  food  processing  Enterprises  (PMFME) Scheme' for providing financial, technical and business support for upgradation of existing micro food processing enterprises as well as setting up of new units. The scheme is operational from 202021 to 2025-26 with total outlay of Rs. 10,000 crores.

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.

MoFPI  implements  Central  Sector  Umbrella  Scheme  Pradhan  Mantri  Kisan  Sampada  Yojana (PMKSY) since 2016-17 to create post-harvest infrastructure and processing facilities to boost the overall  development  of  the  food  processing  sector  including  reduction  in  post-harvest  losses, enhancing value addition etc. MoFPI provides credit linked financial assistance (capital subsidy) in the form of grants-in-aid to entrepreneurs for setting up of food processing/preservation infrastructure which, interalia, includes cold storages to minimize post-harvest losses. As on date 1654 projects have been approved under PMKSY.

## ANNEXURE REFERRED TO IN REPLY TO PART (c) OF LOK SABHA UNSTARRED QUESTION NO. 1791 FOR ANSWER ON 5 th  DECEMBER, 2024 ON 'INVESTMENT IN FOOD PROCESSING SECTOR'

## COUNTRY WISE FOREIGN DIRECT INVESTMENT IN FOOD PROCESSING SECTOR IN INDIA

In US $ million

|   Sr No | Name of the Country   | 2019-20   | 2020-21   | 2021-22   | 2022-23   | 2023-24   | 2024-25 (Till SEP. 2024)   |
|---------|-----------------------|-----------|-----------|-----------|-----------|-----------|----------------------------|
|       1 | Singapore             | 202.15    | 38.80     | 302.48    | 267.96    | 262.44    | 48.45                      |
|       2 | Mauritius             | 77.18     | 64.26     | 82.56     | 193.90    | 20.65     | 41.65                      |
|       3 | U.S.A                 | 68.79     | 130.91    | 60.06     | 66.06     | 29.51     | 38.60                      |
|       4 | Belgium               | 262.39    | 5.43      | 24.09     | 17.70     | 1.82      | 2.51                       |
|       5 | France                | 8.71      | 5.08      | 66.03     | 76.75     | 2.05      | 4.51                       |
|       6 | Switzerland           | 65.07     | 11.99     | 6.50      | 12.14     | 50.93     | 0.19                       |
|       7 | Ireland               | -         | 0.0007    | -         | -         | 42.05     | 83.84                      |
|       8 | Mexico                | -         | 52.28     | 55.59     | 5.88      | -         | 9.59                       |
|       9 | British Virginia      | 1.48      | 1.39      | 16.12     | 29.33     | 71.89     | -                          |
|      10 | Cyprus                | 106.94    | 0.28      | 1.60      | -         | -         | -                          |
|      11 | IFSC, India           | -         | -         | -         | -         | -         | 104.11                     |
|      12 | Japan                 | 38.26     | 17.55     | 3.85      | 4.22      | 15.90     | 7.33                       |
|      13 | Netherland            | 9.01      | 30.83     | 11.42     | 25.23     | 7.07      | -                          |
|      14 | Australia             | 0.0006    | 6.42      | 18.40     | 0.0003    | 30.01     | 20.18                      |
|      15 | Guernsey              | -         | -         | -         | 59.12     | 5.06      | 0.86                       |
|      16 | Cayman Islands        | 3.49      | 5.97      | 15.02     | 28.42     | 6.05      | -                          |
|      17 | Saudi Arabia          | 0.00      | 0.06      | -         | 47.37     | 7.98      | -                          |
|      18 | UAE                   | 7.39      | 8.27      | 11.69     | 6.14      | 16.11     | 1.12                       |
|      19 | United Kingdom        | 9.37      | 1.35      | 10.00     | 11.70     | 9.55      | 0.08                       |
|      20 | Italy                 | 14.58     | -         | 0.01      | 0.01      | 18.17     | 0.06                       |
|      21 | South Korea           | 1.07      | 0.31      | 4.50      | 22.07     | 2.87      | 0.49                       |
|      22 | Brunei Darussalam     | -         | -         | 14.69     | 11.52     | -         | -                          |
|      23 | Luxembourg            | 12.64     | -         | 0.18      | 0.15      | -         | 0.02                       |
|      24 | Thailand              | 0.00      | 0.04      | 3.02      | 4.78      | 0.00001   | 1.31                       |
|      25 | Germany               | 4.69      | 3.32      | -         | 0.51      | 0.11      | 0.0007                     |
|      26 | China                 | 0.27      | 6.63      | 0.22      | -         | -         | -                          |
|      27 | Spain                 | 6.05      | 0.16      | 0.009     | 0.08      | 0.07      | 0.68                       |
|      28 | Indonesia             | 0.11      | 0.14      | 0.14      | 1.87      | 2.63      | 0.27                       |
|      29 | Canada                | 0.48      | 0.69      | 0.81      | 0.90      | 0.88      | 0.19                       |
|      30 | Denmark               | 0.51      | -         | -         | -         | 2.44      | -                          |
|      31 | Malaysia              | 0.21      | 0.06      | 0.29      | 0.12      | 0.21      | 1.89                       |
|      32 | Hong Kong             | 1.91      | 0.22      | -         | 0.09      | -         | 0.02                       |
|      33 | New Zealand           | 0.30      | -         | -         | 1.25      | -         | 0.006                      |
|      34 | Taiwan                | 1.01      | -         | -         | -         | -         | -                          |
|      35 | Kenya                 | 0.00      | 0.68      | -         | -         | -         | -                          |
|      36 | Swaziland             | -         | -         | -         | -         | 0.67      | -                          |

| 37   | Trinidad& Tobago   | -      | -      | -      | 0.10   | 0.45   | 0.04   |
|------|--------------------|--------|--------|--------|--------|--------|--------|
| 38   | Qatar              | 0.07   | 0.07   | 0.17   | -      | 0.19   | -      |
| 39   | Sweden             | -      | -      | -      | 0.26   | 0.12   | -      |
| 40   | Sri Lanka          | 0.17   | -      | -      | -      | 0.15   | 0.05   |
| 41   | Iceland            | -      | -      | 0.10   | 0.07   | -      | 0.14   |
| 42   | Russia             | 0.07   | 0.03   | 0.001  | -      | -      | 0.05   |
| 43   | Bulgaria           | 0.08   | 0.04   | 0.01   | 0.01   | 0.005  | -      |
| 44   | Oman               | 0.00   | 0.001  | -      | 0.02   | -      | 0.12   |
| 45   | Greece             | -      | 0.03   | 0.10   | -      | -      | -      |
| 46   | Serbia             | 0.13   | -      | -      | 0.001  | -      | -      |
| 47   | Afghanistan        | -      | 0.12   | -      | -      | -      | -      |
| 48   | Liechtenstein      | -      | -      | -      | -      | 0.11   | -      |
| 49   | Cook Island        | 0.04   | -      | -      | 0.005  | 0.04   | -      |
| 50   | Israel             | 0.02   | -      | -      | 0.02   | 0.02   | 0.02   |
| 51   | Nigeria            | -      | -      | -      | -      | 0.06   | -      |
| 52   | South Africa       | 0.05   | -      | -      | -      | -      | -      |
| 53   | Zambia             | 0.04   | -      | -      | -      | -      | -      |
| 54   | Bermuda            | -      | -      | 0.04   | -      | -      | -      |
| 55   | Romania            | -      | -      | -      | 0.03   | -      | -      |
| 56   | Lebanon            | -      | 0.01   | 0.010  | 0.009  | -      | -      |
| 57   | Egypt              | -      | -      | -      | -      | 0.03   | -      |
| 58   | Morocco            | -      | -      | -      | -      | 0.008  | 0.008  |
| 59   | Poland             | -      | -      | -      | -      | 0.001  | -      |
| 60   | Kuwait             | 0.0007 | -      | -      | -      | -      | -      |
| 61   | Virgin Islands(US) | 0.0001 | -      | -      | -      | -      | -      |
|      | Total:             | 904.70 | 393.41 | 709.71 | 895.84 | 608.31 | 368.37 |

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