Lok Sabha Question No. 5322 (UNSTARRED), answered on 2025-04-03
Subject: Promotion of Food Processing Industries in Malerkotla and Sangrur
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: Shri Gurmeet Singh Meet Hayer

## GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA UNSTARRED QUESTION NO. 5322

TO BE ANSWERED ON 03 RD  APRIL, 2025

## PROMOTION OF FOOD PROCESSING INDUSTRIES IN MALERKOTLA AND SANGRUR

## 5322.   SHRI GURMEET SINGH MEET HAYER:

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

- (a) whether the Government has taken any steps to promote food processing industries in Malerkotla and Sangrur districts, particularly for vegetables and grains, in view of the lack  of  adequate  food  storage  and  processing  infrastructure  leading  to  post-harvest losses and reduced profitability, if so, the details thereof;
- (b) the steps taken/being taken by the Government to promote Food Processing Industries in the said districts particularly for vegetable and grains;
- (c) whether there are any schemes or incentives for farmers and entrepreneurs to set up food processing units and if so, the details thereof;
- (d) whether the Government has identified specific locations for cold storage, grain silos and processing hubs in these districts and if so, the details thereof;
- (e) the  details  of  the  measures  being  implemented  for  financial  assistance,  technical training and market linkages in the food processing sector in Malerkotla and Sangrur;
- (f) whether the Government has any plans to collaborate with private investors to boost food processing infrastructure and if so, the details thereof;
- (g) the  initiatives  taken  to  reduce  post-harvest  losses  and  improve  price  realization  for farmers in these districts; and
- (h) whether  any  studies  or  consultations  have  been  conducted  with  local  stakeholders regarding these challenges and if so, the details thereof?

## ANSWER

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

(a)  to  (g): In  order  to  promote  and  ensure  overall  development  of  Food  Processing  Sector including processing of vegetables & grains and to help it face various challenges, Ministry of Food Processing Industries (MoFPI) is implementing 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 across the country including Malerkotla & Sangrur districts of Punjab. These schemes are not region specific but demand driven and implemented across the country.

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 15 th Finance Commission Cycle. So far, MoFPI has sanctioned 51 projects under corresponding component schemes of PMKSY in Punjab, out of which 2 projects are located in Sangrur district, 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 2,606 micro food processing enterprises have been approved for assistance under PMFME scheme in Punjab, out of which 80  &  252  micro  food  processing  enterprises  located  in  Malerkotla  and  Sangrur  district respectively, till 28 th 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, 9 food processing companies have been approved for assistance under various categories of the PLISFPI scheme in Punjab, till 28 th 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, value addition etc., thereby help in providing better returns to farmers and creating huge employment opportunities,  reducing  wastage  of  agricultural  produce,  reduction  in  post  harvest  losses, enhancing productivity and increasing the processing level.

Schemes of MoFPI are, inter alia, intended to develop value-added products, benefitting & increasing the price of their products and income of the farmers in the country including Malerkotla & Sangrur districts of Punjab.

One District One Product (ODOP) approach under PMFME Scheme has been adopted to reap the benefit of scale in terms of procurement of inputs, availing common services and marketing of products. It provides the framework for value chain development and alignment of support infrastructure. The ODOP are identified by States / UTs based on the agriculture production, raw material availability, perishability of the product etc.

The schemes of MoFPI also provide support for training, marketing & branding. The details of incentives available under these schemes are at Annexure-I.

Apart from this, with the objective to boost investments and sourcing of Indian food products, MoFPI organized 3rd edition of a Mega Event, called 'World Food India (WFI)' during 19th to 22nd September 2024 at Bharat Mandapam, New Delhi to showcase domestic Industry and provide it with collaborative opportunities with international stakeholders. The event  brought  global  food  processing  companies,  innovators,  supply  chain  stakeholders, equipment manufacturers, etc. on a collaborative platform and provide foreign companies with tie-up/  business  opportunities  with  its  Indian  counterparts.  In  addition,  MoFPI  is  also organizing  the  WFI,  2025  to  highlight  investment  opportunities  and  advancements  in  food processing.

(h): MoFPI  has  conducted  a  study  related  to  'Assessment  Studies  for  identifying  gaps  in infrastructure & processing facilities' for development of potential value chains for perishable products for 11 crops in identified clusters. A brief of its findings are placed at Annexure-II.

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## ANNEXURE REFERRED TO IN REPLY TO PART (a) TO  (g)  OF  LOK  SABHA UNSTARRED  QUESTION  NO.  5322  FOR  ANSWER  ON  03 RD APRIL, 2025 REGARDING 'PROMOTION OF FOOD PROCESSING INDUSTRIES IN MALERKOTLA AND SANGRUR'

## 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%ofequipment cost.                                                                                                            |

## Assistance available under PLISFPI scheme

- i. The  beneficiary  should  achieve  minimum  year  on  year  sales  growth  of  10%  for claiming incentive under Category-I, Category-II and Millet-Based Products components of the Scheme. Under Category -I component, the companies have to make committed investments to increase their production capacities.  If a company does not make  the  committed  investment  upto  end  of  2023-24,  it  is  not  eligible  to  receive incentives under the Scheme.
- ii. Under Category-III, i.e., Branding and Marketing component, a company is eligible for financial incentives @ 50% of expenditure incurred on Branding & Marketing abroad subject  to  a  maximum  of  3%  of  Sales  of  food  products  or  Rs  50  crore  per  year, whichever is less.  The minimum expenditure should be Rs. 5 crore over a period of five years.

## 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.

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ANNEXURE  REFERRED  TO  IN  REPLY  TO  PART  (h)  OF  LOK  SABHA UNSTARRED  QUESTION  NO.  5322  FOR  ANSWER  ON  03 RD APRIL, 2025 REGARDING 'PROMOTION OF FOOD PROCESSING INDUSTRIES IN MALERKOTLA AND SANGRUR'

Brief of finding of Assessment Studies for identifying gaps in infrastructure & processing facilities

| Crop             | Clusters                                                                                        | Deficient Infrastructure                                                                                                                                                                                                                   |
|------------------|-------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ANDHRA PRADESH   | ANDHRA PRADESH                                                                                  | ANDHRA PRADESH                                                                                                                                                                                                                             |
| Banana           | Cluster-1- Ananthapuramu& Kadapa (YSR) Cluster-2- East Godavari, West Godavari, Visakhapatnam & | Integrated pack house with ripening chamber, reefer van and secondary processing facilities of chips/ flour unit/ puree/ value addition unit                                                                                               |
| Mango            | Cluster-1- Ananthapuramu, Chittoor &Kadapa (YSR) Cluster-2- Krishna                             | Integrated pack house with pre cooling, cold storage, sorting/ grading/ packing line, reefer van and secondary processing facilities of aseptic pulp line with concentrate facility/ RTSB packing line/ IQF unit/ blast freezing unit      |
| Shrimp           | Cluster-1- East Godavari, Krishna &West Godavari                                                | Automatic grading, weighing &packing with X -ray vision graders and packer, value addition facility (Breaded Prawn Processing & Marinated Prawn Processing)                                                                                |
| ASSAM            | ASSAM                                                                                           | ASSAM                                                                                                                                                                                                                                      |
| Pineapple        | Cluster-1-Dima Hasao, East Karbi Anglong, Kamrup & West Karbi Anglong                           | Integrated pack house with pre cooling, sorting/ grading/ packing line, reefer van and canning line                                                                                                                                        |
| BIHAR            | BIHAR                                                                                           | BIHAR                                                                                                                                                                                                                                      |
| Guava            | Cluster-1- Muzaffarpur, Nalanda &Patna                                                          | Integrated pack house with cold storage and secondary processing facility of ascetic pulp line with concentrate facility/ RTSB packing line                                                                                                |
| Litchi           | Cluster-1- Muzaffarpur, Pashchim Champaran Purbi Champaran, Sitamarhi & Vaishali,               | integrated pack house with sulphitation chamber/acid dip chamber and secondary processing facility of pulping canning & bottling unit facility/ RTSB packing line/ blast freezing unit with deshelling & deseeding machine for frozen pulp |
| GUJARAT          | GUJARAT                                                                                         | GUJARAT                                                                                                                                                                                                                                    |
| Banana           | Cluster-1- Anand, Bharuch, Chhotaudepur, Narmada, Surat &Vadodara                               | Integrated pack house with ripening chamber, reefer van and secondary processing facilities of chips/ flour unit/ puree/ value addition unit                                                                                               |
| Mango            | Cluster-1- Navsari &Valsad                                                                      | Integrated pack house with pre cooling, cold storage, sorting/ grading/ packing line, reefer van and secondary processing facilities of aseptic pulp line with concentrate facility/ RTSB packing line/                                    |
| Mango            | Cluster-2- Junagadh &Rajkot                                                                     | IQF unit/ blast freezing unit                                                                                                                                                                                                              |
| Pomegranate      | Cluster-1- Banaskantha & Kachchh                                                                | Integrated pack house with reefer van and secondary processing facility of juice line/ frozen aril unit / fresh aril unit                                                                                                                  |
| HIMACHAL PRADESH | HIMACHAL PRADESH                                                                                | HIMACHAL PRADESH                                                                                                                                                                                                                           |

| Apple                      | Cluster-1- Kinnaur, Kullu& Shimla                                                               | Integrated pack house with sorting/ grading/ packing line, CA store with optical grader, reefer van and secondary processing juice concentrate line                                                                                   |
|----------------------------|-------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| JAMMU &KASHMIR             | JAMMU &KASHMIR                                                                                  | JAMMU &KASHMIR                                                                                                                                                                                                                        |
| Apple                      | Cluster-1- Anantnag, Baramulla, Budgam, Kulgam, Kupwara, Pulwama & Shopian                      | Integrated pack house with sorting/ grading/ packing line, CA store with optical grader, reefer van and secondary processing juice concentrate line                                                                                   |
| MADHYA PRADESH             | MADHYA PRADESH                                                                                  | MADHYA PRADESH                                                                                                                                                                                                                        |
| Amla (Aonla)               | Cluster-1- Chhindwara, Katni, Rewa, Shahdol &Sidhi                                              | Integrated pack house and secondary processing facilities of juice, murabba, powder, candy                                                                                                                                            |
| Guava                      | Cluster-1- Dhar, Indore& Khargone Cluster-2- Bhopal, Sehore& Vidisha Cluster-3- Gwalior, Morena | Integrated pack house with cold storage and secondary processing facility of ascetic pulp line with concentrate facility/ RTSB packing line                                                                                           |
| Orange / Mandarin / Kinnow | Cluster-1- Agar Malwa, Rajgarh &Shajapur                                                        | Integrated pack house and secondary processing facility of juice concentrate/ pulp processing/ tertiary unit (pectin &citrus peel oil)                                                                                                |
| MAHARASHTRA                | MAHARASHTRA                                                                                     | MAHARASHTRA                                                                                                                                                                                                                           |
| Banana                     | Cluster-1- Jalgaon                                                                              | Integrated pack house with ripening chamber, reefer van and secondary processing facilities of chips/ flour unit/ puree/ value addition unit                                                                                          |
| Grapes                     | Cluster-1- Nashik &Pune Cluster-2- Sangli &Solapur                                              | Integrated pack house with cold storage and secondary processing facility of drying                                                                                                                                                   |
| Mango                      | Cluster-1- Raigad, Ratnagiri & Sindhudurg                                                       | Integrated pack house with pre cooling, cold storage, sorting/ grading/ packing line, reefer van and secondary processing facilities of aseptic pulp line with concentrate facility/ RTSB packing line/ IQF unit/ blast freezing unit |
| Orange / Mandarin / Kinnow | Cluster-1- Akola, Amravati& Nagpur                                                              | Integrated pack house and secondary processing facility of juice concentrate/ pulp processing/ tertiary unit (pectin &citrus peel oil)                                                                                                |
| Pomegranate                | Cluster-1- Ahmednagar, Nashik &Pune Cluster-2- Sangli &Solapur                                  | Integrated pack house with reefer van and secondary processing facility of juice line/ frozen aril unit / fresh aril unit                                                                                                             |
| MEGHALAYA                  | MEGHALAYA                                                                                       | MEGHALAYA                                                                                                                                                                                                                             |
| Pineapple                  | Cluster-1- Ri Bhoj Cluster-2 - East Garo Hills& West Garo Hills                                 | Integrated pack house with pre cooling, sorting/ grading/ packing line, reefer van and canning line                                                                                                                                   |
| PUNJAB                     | PUNJAB                                                                                          | PUNJAB                                                                                                                                                                                                                                |
| Orange / Mandarin / Kinnow | Cluster-1- Bathinda, Fazilka &Sri Muktsar Sahib                                                 | Integrated pack house and secondary processing facility of juice concentrate/ pulp processing/ tertiary unit (pectin &citrus peel oil)                                                                                                |
| RAJASTHAN                  | RAJASTHAN                                                                                       | RAJASTHAN                                                                                                                                                                                                                             |
| Orange / Mandarin / Kinnow | Cluster-1-Jhalawar                                                                              | Integrated pack house and secondary processing facility of juice concentrate/ pulp processing/ tertiary unit (pectin &citrus peel oil)                                                                                                |
| TAMIL NADU                 | TAMIL NADU                                                                                      | TAMIL NADU                                                                                                                                                                                                                            |
| Amla (Aonla)               | Cluster-1- Dindigul, Theni& Tirunelveli                                                         | Integrated pack house and secondary processing facilities of juice, murabba, powder, candy                                                                                                                                            |

| Banana        | Cluster-1- Coimbatore& Erode Cluster-2- Madurai, Theni&                         | Integrated pack house with ripening chamber, reefer van and secondary processing facilities of chips/ flour unit/ puree/ value addition unit   | Integrated pack house with ripening chamber, reefer van and secondary processing facilities of chips/ flour unit/ puree/ value addition unit   |
|---------------|---------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------|
| TRIPURA       | TRIPURA                                                                         | TRIPURA                                                                                                                                        | TRIPURA                                                                                                                                        |
| Pineapple     | Cluster-1- Dhalai &North Tripura                                                | Integrated pack house with pre cooling, sorting/ grading/ packing line, reefer van and canning line                                            | Integrated pack house with pre cooling, sorting/ grading/ packing line, reefer van and canning line                                            |
| UTTAR PRADESH | UTTAR PRADESH                                                                   | UTTAR PRADESH                                                                                                                                  | UTTAR PRADESH                                                                                                                                  |
| Amla (Aonla)  | Cluster-1- Pratapgarh, Prayagraj, Banda, Chitrakoot                             | i.                                                                                                                                             | Integrated Pack House with Cold Storage& Secondary Processing Facility of Juice, Murabbas &others                                              |
| Banana        | Cluster-1-Gorakhpur, Kushi Nagar, Maharajganj Cluster-2- Fatehpur, Kaushambi    | i. ii.                                                                                                                                         | Pack house/Collection Centre with Ripening Chamber, Chips/Flour Unit &Refrigerated Vehicle; and Puree Unit                                     |
| Guava         | Cluster-1 -Budaun, Kasganj, Aligarh, Farrukhabad, Etah                          | i.                                                                                                                                             | Pack house with Multi Commodity Cold Storage, Secondary Processing Facilities [Integrated Pulping Unit, Jelly &others]                         |
| Mango         | Cluster-1-Lucknow, Unnao, Sitapur Cluster-2-Saharanpur, Bijnor, Meerut, Amroha, | i.                                                                                                                                             | Integrated Pack house with pre Cooling Unit, Cold Storage, Refrigerated Van &Secondary Processing Facility (Aseptic/ Canning Line)             |
| WEST BENGAL   | WEST BENGAL                                                                     | WEST BENGAL                                                                                                                                    | WEST BENGAL                                                                                                                                    |
| Pineapple     | Cluster-1-Darjeeling, Uttar Dinajpur, Jalpaiguri                                | Juice pet bottle packing line                                                                                                                  | Juice pet bottle packing line                                                                                                                  |