Lok Sabha Question No. 3649 (UNSTARRED), answered on 2015-08-11
Subject: Investment in Agriculture
Ministry: AGRICULTURE
Asked by: DHARMENDRA YADAV, VIJAY KUMAR HANSDAK, Shrirang Appa Barne, SHIVAJI ADHALRAO PATIL, ANANDRAO  ADSUL, RANJIT SINGH  BRAHMPURA

O.I.H.

GOVERNMENT OF INDIA

MINISTRY OF AGRICULTURE

DEPARTMENT OF AGRICULTURE & COOPERATION

**LOK  SABHA**

**UNSTARRED QUESTION NO.3649**

TO BE ANSWERED ON THE  11 TH AUGUST, 2015

**INVESTMENT IN AGRICULTURE**

3649. 	SHRI DHARMENDRA YADAV:

SHRI VIJAY KUMAR HANSDAK:

SHRI SHRIRANG APPA BARNE:

SHRI ADHALRAO PATIL SHIVAJIRAO:

SHRI ANANDRAO ADSUL:

SHRI RANJIT SINGH BRAHMPURA:

Will the Minister of AGRICULTURE 	      ‡ãðŠãäÓã ½ãâ¨ããè

be pleased to state:

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(a) 	whether public, private investment and Foreign Direct Investment (FDI) is permitted in the agriculture and allied sectors;

(b) 	if so, the details thereof along with the terms and reference of FDI in the agriculture sector; and

(c) 	the details of FDI in the agriculture sector during the last three years and the current year and the farmers benefited/ likely to be benefited therefrom?

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### ANSWER

MINISTER OF STATE IN THE MINISTRY OF AGRICULTURE

‡ãðŠãäÓã  ½ãâ¨ããÊã¾ã ½ãñâ Àã•¾ã ½ãâ¨ããè           ( SHRI MOHANBHAI KUNDARIA )

(a) & (b):	Yes, Madam. Public and private investments as well as Foreign Direct Investment (FDI) are allowed in the agriculture and allied sectors.

FDI up to 100% is permitted under automatic route in specified activities of the agriculture and allied sectors. The details as per para 6.2.1 of “Consolidated FDI Policy Circular of 2015” are at Annexure I.

(c):	The details of FDI in the agriculture sector during the last three years are at Annexure-II. A number of farmers are benefited directly and indirectly from FDI. However, details are not available.

**ANNEXURE-I**

| **Para 6.2.1 of “ Consolidated FDI Policy Circular of 2015” on Agriculture**   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                          |                 |
|--------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------|-----------------|
| **Sl. No.**                                                                    | **Sector/Activity**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | **% of Equity/ FDI Cap** | **Entry Route** |
| **Agriculture**                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                          |                 |
| **6.2.1**                                                                      | **Agriculture & Animal Husbandry**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                          |                 |
|                                                                                | a)      Floriculture, Horticulture, Apiculture and Cultivation of Vegetables & Mushrooms under controlled conditions;  b)     Development and Production   of seeds and planting  material;  c)      Animal Husbandry (including  breeding of dogs), Pisciculture, Aquaculture, under controlled conditions; and  d)     Services related to agro and allied sectors  **Note: Besides the above, FDI is not allowed in any other agricultural sector/activity**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 100%                     | Automatic       |
| 6.2.1.1                                                                        | **Other Conditions**  :                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                          |                 |
|                                                                                | I.  For companies dealing with development of transgenic seeds/vegetables, the following conditions apply:  (i) When dealing with genetically modified seeds or planting material the company shall comply with safety requirements in accordance with laws enacted under the Environment (Protection) Act on the genetically modified organisms.  (ii)  Any import of genetically modified materials if required shall be subject to the conditions laid down vide Notifications issued under Foreign Trade (Development and Regulation) Act, 1992.  (iii) The company shall comply with any other Law, Regulation or Policy governing genetically modified material in force from time to time.  (iv)Undertaking of business activities involving the use of genetically engineered cells and material shall be subject to the receipt of approvals from Genetic Engineering Approval Committee (GEAC) and Review Committee on Genetic Manipulation (RCGM).  (v) Import of materials shall be in accordance with National Seeds Policy.  II.     The term “under controlled conditions” covers the following:  1. ‘Cultivation under controlled conditions’ for the categories of floriculture, horticulture, cultivation of vegetables and mushrooms is the practice of cultivation wherein rainfall, temperature, solar radiation, air humidity and culture medium are controlled artificially. Control in these parameters may be effected through protected cultivation under green houses, net houses, poly houses or any other improved infrastructure facilities where micro-climatic conditions are regulated anthropogenically.  1. In case of Animal Husbandry, scope of the term ‘under controlled conditions’  covers –  - 1.1. Rearing of animals under intensive farming systems with stall-feeding. Intensive farming system will require climate systems (ventilation, temperature/humidity management), health care and nutrition, herd registering/pedigree recording, use of machinery, waste management systems as prescribed by the National Livestock Policy, 2013 and in conformity with the existing ‘Standard Operating Practices and Minimum Standard Protocol.’ - 1.2. Poultry breeding farms and hatcheries where micro-climate is controlled through advanced technologies like incubators, ventilation systems etc.  1. In the case of pisciculture and aquaculture, scope of the term ‘under controlled conditions’ covers –  1. Aquariums 2. Hatcheries where eggs are artificially fertilized and fry are hatched and incubated in an enclosed environment with artificial climate control.  1. In the case of apiculture, scope of the term ‘under controlled conditions’ covers –  1. Production of honey by bee-keeping, except in forest/wild, in designated spaces with control of temperatures and climatic factors like humidity and artificial feeding during lean seasons. |                          |                 |

**ANNEXURE-II**

FINANCIAL YEAR WISE FDI EQUITY INFLOWS 
FROM APRIL 2012 TO MAY 2015

Sector AGRICULTURE SERVICES

| **Sl No**   | **Year (Apr-Mar)**   | **FDI (in Rs. crore)**   |   **FDI (in US$ million)** |
|-------------|----------------------|--------------------------|----------------------------|
| 1           | **2012-13**          | 875.90                   |                     161.47 |
| 2           | **2013-14**          | 559.66                   |                      91.01 |
| 3           | **2014-15**          | 352.37                   |                      57.87 |
| 4           | **2015-16 Apr-May**  | 37.64                    |                       5.99 |
|             | **Grand Total**      | 1,825.58                 |                     316.34 |

Source: Department of Industrial Policy & Promotion (DIPP)

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