Lok Sabha Question No. 1500 (UNSTARRED), answered on 2016-07-26
Subject: Status of FPI
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: RAMCHARAN BOHARA, NISHIKANT  DUBEY, AJAY NISHAD, BAIJAYANT "JAY" PANDA, BHAIRON PRASAD MISHRA, FEROZE VARUN GANDHI, SHARAD TRIPATHI, HEMANT TUKARAM GODSE, SAKUNTALA LAGURI, HARISHCHANDRA DEORAM CHAVAN, RAMESH BIDHURI, KRISHNAN NARAYANASAMY RAMACHANDRAN, RAJU ALIAS DEVAPPA ANNA SHETTI, RAMSINH PATALYABHAI RATHWA, PARBHUBHAI NAGARBHAI VASAVA

## GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES LOK SABHA

## UNSTARRED QUESTION NO.1500

ANSWERED ON 26 TH  JULY, 2016

## STATUS OF FPI

1500.    SHRI RAM CHARAN BOHRA: SHRI NISHIKANT DUBEY: SHRI AJAY NISHAD: SHRI BAIJAYANT JAY PANDA: SHRI BHAIRON PRASAD MISHRA: SHRI FEROZE VARUN GANDHI: SHRI SHARAD TRIPATHI: SHRI GODSE HEMANT TUKARAM: SHRIMATI SAKUNTALA LAGURI SHRI HARISHCHANDRA CHAVAN: SHRI RAMESH BIDHURI: SHRI K.N. RAMACHANDRAN: SHRI RAJU SHETTY: SHRI RAM SINH RATHWA:

SHRI PARBHUBHAI NAGARBHAI VASAVA:

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

(a) the present status of  food processing  industry  in  the country and the steps taken by the Government to improve its status;

(b) the  details  of  the  food  processing  units  that  have  been  set  up/  proposed  to  be  set  up particularly  for  processing  of  grapes,  pomegranate,  banana,  onion  and  palm  oil  in  the  country during the last one year, State-wise;

(c) the details of the initiatives taken by the Government to create employment opportunities and  impart  training  to  improve  the  skill  of  persons/farmers  engaged  in  the  food  processing industry during each of the last three years and the current and the achievement thereof;

(d) the  details  of  the  foreign  assistance  sought  and  provided  for  the  development  of  food processing sector in the country during the said period, country-wise alongwith the steps taken by the Government to increase the ceiling of loan amount in the food processing sector and to make this sector globally competitive; and

(e) the  quantum and the  value of processed  food products exported by the  country's  food processing industries during the said period, commodity-wise?

## ANSWER

## THE MINISTER OF STATE FOR FOOD PROCESSING INDUSTRIES (SADHVI NIRANJAN JYOTI)

(a)        As  per  the  Annual  Survey  of  Industries  2013-14  the  total  number  of  food  processing industries  registered  under  the  Factories  Act,  1948  has  been  estimated  at  37,445.  To  promote food processing units in the country, the Ministry of Food Processing Industries is implementing schemes  of  Mega  Food  Parks,  Cold  Chain,  Value  Addition  and  Preservation  Infrastructure, Setting up/Modernization of Abattoirs and Strengthening of Institutions.  Under these schemes, grant-in-aid  is  given  for  setting  up  projects.  In  addition  to  permitting  100%  foreign  direct investment  in  food  processing  sector  through  automatic  route  Government  has  also  allowed 100% FDI  in  retail  marketing  of  food  products  produced  and  manufactured  in  India  through approval  route.  To  encourage  the  development  of  food  processing  industries  Government  has reduced excise duty on food processing and packaging machinery from 10% to 6%, allowed food processing units 100% income tax exemption on profits for the first five years of operation and after that at the rate of 25% income tax exemption on the profits for the next five years, etc.

(b) Under the pending liabilities of the Scheme for Technology Upgradation/ Establishment/ Modernization of Food Processing Industries, 562 units were assisted by the Ministry of Food Processing  Industries  during  the  last  one  year  (2015-16)  which  include  units  under  fruits  and vegetable sector as well. State wise details of the units are given in Annexure I . The said scheme was  subsumed  in  the  centrally  sponsored  scheme  National  Mission  on  Food  Processing  with effect from 01.04.2012. Thereafter, on 01.04.2015 the said scheme  got delinked from Government  of  India's  assistance  and  it  was  left  to  the  State  Governments  to  decide  on  its continuance from their increased resources following the award of 14 th Finance Commission.

(c) Ministry of Food Processing Industries  is  implementing schemes of  Mega  Food Parks, Cold  Chain,  Value  Addition  and  Preservation  Infrastructure  which  would  create  employment opportunities. The Ministry is working in close collaboration with Food Industry Capacity and Skill  Initiative  (FICSI), the  Sector  Skill  Council  in  food  processing  and  regularly  guiding  and assisting it in achieving its mandate. National Institute of Food Technology Entrepreneurship and Management  at  Kundli,  Sonepat,  Haryana  and  the  Indian Institute of Crop  Processing Technology  at  Thanjavur,  Tamil  Nadu  under  the  administrative  control  of  Ministry  of  Food Processing  Industries  also  impart  training  by  offering  academic  programmes  i.e.  Bachelor's, Master's  and  Ph.D.  degrees  in  food  processing.  These  Institutes  are  also  conducting  regular programmes/courses on skill development and entrepreneurship for the youth, farmers, self-help groups and industry.  On the initiative of Ministry of Food Processing Industries to give fillip and  to  strengthen  entrepreneurship,  a  module  on  entrepreneurship  has  been  included  in  the course content of all the job roles of FICSI.

The  number  of  persons  trained  /skilled  by  the  National  Institute  of  Food  Technology Entrepreneurship,  Indian  Institute  of  Crop  Processing  Technology  and  under  Pradhan  Mantri Kaushal  Vikas  Yojana  and  the  National  Mission  on  Food  Processing  (Human  Resource Development) is given below:

|   S. No. | Financial Year(s)                      | Number of persons trained/ Skilled   |
|----------|----------------------------------------|--------------------------------------|
|        1 | 2013-14                                | 7970*                                |
|        2 | 2014-15                                | 9506*                                |
|        3 | 2015-16                                | 3203                                 |
|        4 | Current Financial Year up to June-2016 | 4231                                 |

- *Includes persons trained/skilled under National Mission on Food Processing. National Mission on Food Processing (Human  Resource Development) has been delinked from Central Government support with effect from 01.04.2015.
- (d)      The details of foreign direct investment in food processing sector during last three years 2013-14; 2014-15 and 2015-16 are given in the Annexure II .  As per the circular of RBI dated 23 rd April, 2015, the food processing sector including cold storage has been included under the priority sector lending of the commercial/scheduled banks of India with the ceiling on loan per borrower  increased  to  Rs.  100  crore  from  the  banking  sector.  To  make  the  sector  globally competitive,  the  Ministry  of  Food  Processing  Industries  has  been  participating  in  food  fairs abroad  with  Agricultural  and  Processed  Food  Products  Export  Development  Authority to promote exports of food and food products. This Ministry has also signed MOUs with several countries to facilitate transfer of knowledge and expertize into the food processing sector so as to make its products globally competitive.
- (e) The details of India's export of food products during the last three years (2013-14; 201415 and 2015-16) and the current year (for April 2016) are given in the Annexure III.

*****

## ANNEXURE REFERRED TO IN REPLY TO PART (b) OF LOK SABHA UNSTARRED QUESTION NO. 1500 FOR ANSWER ON 26 TH  JULY, 2016 REGARDING STATUS OF FPI

## Details of Number of units and amount assisted in last one year (2015-16) under Scheme for Technology Upgradation/ Establishment/ Modernization of Food Processing Industries

| S.No.   |                   | 2015-16   | 2015-16         |
|---------|-------------------|-----------|-----------------|
| S.No.   |                   | Amount    | ( Rs. In crore) |
| 1       | Andhra Pradesh    | 38        | 7.05            |
| 2       | Assam             | 4         | 0.53            |
| 3       | Bihar             | 3         | 0.59            |
| 4       | Chandigarh        | 0         | 0.00            |
| 5       | Chhattisgarh      | 22        | 2.48            |
| 6       | Daman& Diu        | 1         | 0.25            |
| 7       | Delhi             | 2         | 0.50            |
| 8       | Goa               | 1         | 0.07            |
| 9       | Gujarat           | 54        | 9.86            |
| 10      | Haryana           | 26        | 5.45            |
| 11      | Himachal Pradesh  | 9         | 2.19            |
| 12      | Jammu and Kashmir | 9         | 2.22            |
| 13      | Jharkhand         | 3         | 0.67            |
| 14      | Karnataka         | 49        | 7.44            |
| 15      | Kerala            | 20        | 2.93            |
| 16      | Madhya Pradesh    | 17        | 3.25            |
| 17      | Maharashtra       | 100       | 15.07           |
| 18      | Manipur           | 0         | 0.00            |
| 19      | Meghalaya         | 0         | 0.00            |
| 20      | Nagaland          | 1         | 0.13            |
| 21      | Odisha            | 7         | 1.19            |
| 22      | Pondicherry       | 0         | 0.00            |
| 23      | Punjab            | 27        | 3.64            |
| 24      | Rajasthan         | 84        | 15.64           |
| 25      | Tamil Nadu        | 31        | 6.74            |
| 26      | Uttar Pradesh     | 33        | 6.31            |
| 27      | Uttarakhand       | 4         | 0.96            |
| 28      | West Bengal       | 17        | 4.09            |
| Total   | Total             | 562       | 99.25           |

## ANNEXURE REFERRED TO IN REPLY TO PART (d) OF LOK SABHA UNSTARRED QUESTION NO. 1500 FOR ANSWER ON 26 TH  JULY, 2016 REGARDING STATUS OF FPI

## Statement on financial year wise Foreign Direct Investment equity inflows sector food processing industries

(In USD Million)

|   Sl No | Country        |   2013-14 |   2014-15 |   2015-16 |   Total |
|---------|----------------|-----------|-----------|-----------|---------|
|       1 | Australia      |     12.35 |      7.29 |      8.6  |   28.24 |
|       2 | Austria        |      0    |      0.18 |      0.14 |    0.32 |
|       3 | Belgium        |    204.82 |      0    |      9.49 |  214.31 |
|       4 | Canada         |      0.27 |     10.98 |     10.91 |   22.16 |
|       5 | Caymen Islands |      0    |      0    |      4.02 |    4.02 |
|       6 | China          |      0    |      0    |      1.49 |    1.49 |
|       7 | Cyprus         |      2.34 |     16.77 |     47.78 |   66.89 |
|       8 | Denmark        |      0    |      0.79 |      0.21 |    1    |
|       9 | France         |     27.34 |     98.11 |      4.24 |  129.69 |
|      10 | Germany        |      0.28 |      0.03 |     27.13 |   27.44 |
|      11 | HongKong       |      0.17 |      0.66 |      1.06 |    1.89 |
|      12 | Indonesia      |      0    |      1.75 |      0.2  |    1.95 |
|      13 | Ireland        |      9.87 |      0    |      0.1  |    9.97 |
|      14 | Israel         |      0    |      0    |      0.01 |    0.01 |
|      15 | Italy          |      0.52 |      0.99 |     48.1  |   49.61 |
|      16 | Liechtenstein  |      0.53 |      0.05 |      0    |    0.58 |
|      17 | Japan          |      1.37 |     31.9  |     19.19 |   52.46 |
|      18 | Korea(North)   |      0    |      0.16 |      0    |    0.16 |
|      19 | Lebanon        |      0    |      0    |      0    |    0    |
|      20 | South Korea    |      0.06 |      0.81 |      0    |    0.87 |
|      21 | Kuwait         |      0    |      3.01 |      1.49 |    4.5  |
|      22 | Luxembourg     |      0.06 |      0    |     32.38 |   32.44 |
|      23 | Malaysia       |      0.42 |      0.38 |      9.61 |   10.41 |
|      24 | Mauritius      |     93.58 |     85.83 |     85.99 |  265.4  |
|      25 | Maldives       |      0.34 |      0    |      0    |    0.34 |
|      26 | Netherlands    |    262.61 |      1.41 |     24.33 |  288.35 |
|      27 | New Zealand    |      0    |      0.27 |      0.05 |    0.32 |
|      28 | Oman           |      0    |      1.47 |      1.43 |    2.9  |
|      29 | Philippines    |      1.34 |     10.36 |      0.89 |   12.59 |
|      30 | Poland         |      0    |      0    |      0    |    0    |
|      31 | Qatar          |      0    |      0.16 |      0    |    0.16 |
|      32 | Russia         |      0    |      0    |      0    |    0    |

| Sl. No      | Country                 | 2013-14   |   2014-15 |   2015-16 |   Total |
|-------------|-------------------------|-----------|-----------|-----------|---------|
| 33          | Saudi Arabia            | 0.02      |      0    |      0.35 |    0.37 |
| 34          | Singapore               | 249.15    |     83.06 |     56.75 |  388.96 |
| 35          | Spain                   | 18.19     |      7.51 |      2.81 |   28.51 |
| 36          | Sri Lanka               | 0         |      0.07 |      0    |    0.07 |
| 37          | Sweden                  | 0.89      |      0.58 |      0.16 |    1.63 |
| 38          | Switzerland             | 1.31      |     21.11 |      2.07 |   24.49 |
| 39          | Taiwan                  | 0         |      0    |      4.25 |    4.25 |
| 40          | Thailand                | 12.36     |      0    |      0    |   12.36 |
| 41          | Turkey                  | 0         |      0    |      0    |    0    |
| 42          | UAE                     | 7.37      |      7.78 |      4.08 |   19.23 |
| 43          | United Kingdom          | 3,022.67  |      2.73 |      7.79 | 3033.19 |
| 44          | U.S.A                   | 46.08     |    116.11 |     76.03 |  238.22 |
| 45          | Ukraine                 | 0         |      0    |      0    |    0    |
| 46          | British Virginia        | 1.03      |      0.1  |     10.78 |   11.91 |
| 47          | West Indies             | 0         |      0    |      0    |    0    |
| 48          | Country Details Awaited | 0         |      0    |      0    |    0    |
| 49          | Malta                   | 1.2       |      0.38 |      0    |    1.58 |
| 50          | Kenya                   | 0         |      0.43 |      0    |    0.43 |
| 51          | British Isles           | 2.02      |      0    |      0    |    2.02 |
| 52          | Virgin Islands(US)      | 0.02      |      2.65 |      0    |    2.67 |
| 53          | Uganda                  | 0         |      0    |      1.9  |    1.9  |
| 54          | West Africa             | 0         |      0    |      0    |    0    |
| 55          | Congo (DR)              | 0         |      0    |      0    |    0    |
| 56          | Bermuda                 | 0         |      0    |      0    |    0    |
| 57          | Trinidad & Tobago       | 2.34      |      0    |      0.11 |    2.45 |
| 58          | Brunei Darussalam       | 0         |      0    |      0    |    0    |
| Grand Total | Grand Total             | 3,982.89  |    515.86 |    505.92 | 5004.67 |

Source: DIPP

## Annexure III

## ANNEXURE REFERRED TO IN REPLY TO PART (e) OF LOK SABHA UNSTARRED QUESTION NO. 1500 FOR ANSWER ON 26 TH  JULY, 2016 REGARDING STATUS OF FPI

## India's Export of Food Products

| Sl. No.   | HS Code   | Commodity                                                                                                    |   2013- 2014 |   2014- 2015 |   2015-2016 |   2016-17 (For April) |
|-----------|-----------|--------------------------------------------------------------------------------------------------------------|--------------|--------------|-------------|-----------------------|
| 1         | 02        | MEAT AND EDIBLE MEAT OFFAL.                                                                                  |      4475.53 |      4929.27 |     4209.57 |                288.56 |
| 2         | 03        | FISH AND CRUSTACEANS, MOLLUSCS AND OTHER AQUATIC INVERTABRATES.                                              |      4823.02 |      5249.51 |     4481.12 |                294.03 |
| 3         | 04        | DAIRY PRODUCE; BIRDS' EGGS; NATURAL HONEY; EDIBLE PROD. OF ANIMAL ORIGIN, NOT ELSEWHERE SPEC. OR INCLUDED.   |       705.07 |       379.03 |      328.29 |                 23.11 |
| 4         | 07        | EDIBLE VEGETABLES AND CERTAIN ROOTS AND TUBERS.                                                              |      1356.07 |      1180.8  |     1193.09 |                 93.08 |
| 5         | 08        | EDIBLE FRUIT AND NUTS; PEEL OR CITRUS FRUIT OR MELONS.                                                       |      1623.29 |      1610.71 |     1543.93 |                147.98 |
| 6         | 09        | COFFEE, TEA, MATE AND SPICES.                                                                                |      2746.62 |      2871.86 |     2907.99 |                266.07 |
| 7         | 10        | CEREALS.                                                                                                     |     10562.9  |      9550.98 |     6190.79 |                483.19 |
| 8         | 11        | PRODUCTS OF THE MILLING INDUSTRY; MALT; STARCHES; INULIN; WHEAT GLUTEN.                                      |       299.05 |       305.55 |      295.41 |                 21.02 |
| 9         | 12        | OIL SEEDS AND OLEA. FRUITS; MISC. GRAINS, SEEDS AND FRUIT; INDUSTRIAL OR MEDICINAL PLANTS; STRAW AND FODDER. |      1709.41 |      2213.94 |     1657.97 |                144.97 |
| 10        | 13        | LAC; GUMS, RESINS AND OTHER VEGETABLE SAPS AND EXTRACTS.                                                     |      2414.86 |      1947.54 |      867.73 |                 73.99 |
| 11        | 15        | ANIMAL OR VEGETABLE FATS AND OILS AND THEIR CLEAVAGE PRODUCTS; PRE. EDIBLE FATS; ANIMAL OR VEGETABLE WAXEX.  |       857.33 |       973.29 |      876.7  |                 64.1  |
| 12        | 16        | PREPARATIONS OF MEAT, OF FISH OR OF CRUSTACEANS, MOLLUSCS OR OTHER AQUATIC INVERTEBRATES                     |       119.68 |       155.39 |      212.13 |                 19.1  |
| 13        | 17        | SUGARS AND SUGAR CONFECTIONERY.                                                                              |      1354.89 |      1075.16 |     1735.05 |                130.71 |
| 14        | 18        | COCOA AND COCOAPREPARATIONS.                                                                                 |        93.96 |       138.87 |      193.22 |                 18.09 |
| 15        | 19        | PREPARATIONS OF CEREALS, FLOUR, STARCH OR MILK; PASTRYCOOKS PRODUCTS.                                        |       463.31 |       489.85 |      503.74 |                 40.32 |
| 16        | 20        | PREPARATIONS OF VEGETABLES, FRUIT, NUTS OR OTHER PARTS OF PLANTS.                                            |       449.66 |       504.71 |      488.05 |                 38.32 |
| 17        | 21        | MISCELLANEOUS EDIBLE PREPARATIONS.                                                                           |       540.13 |       587.5  |      568.29 |                 46.89 |
| 18        | 22        | BEVERAGES, SPIRITS AND VINEGAR.                                                                              |       408.96 |       377.84 |      320.31 |                 24.75 |
| 19        | 23        | RESIDUES AND WASTE FROM THE FOOD INDUSTRIES; PREPARED ANIMAL FODER.                                          |      3047.7  |      1630.12 |      792.73 |                 49.7  |
|           |           | India's Total Food Export                                                                                    |     38051.4  |     36171.9  |    29366.1  |               2267.98 |

(Values in US $ Million)

Source: DGCI&S, 2016