Lok Sabha Question No. 396 (UNSTARRED), answered on 2015-12-01
Subject: Food Processing Industries
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: ARPITA GHOSH, B. SREERAMULU, S.P. MUDDAHANUMEGOWDA, SHARAD TRIPATHI, B.V. NAYAK, BANSHILAL MAHTO, ARKA KESHARI DEO, SUSHIL KUMAR SINGH, JASVANTSINH SUMANBHAI BHABHOR

## GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA UNSTARRED QUESTION NO.396

ANSWERED ON 1 ST  DECEMBER, 2015

## FOOD PROCESSING INDUSTRIES

## 396. SHRIMATI ARPITA GHOSH:

SHRI B. SRIRAMULU:

SHRI S.P.MUDDAHANUME GOWDA:

SHRI SHARAD TRIPATHI:

SHRI B.V. NAIK:

DR. BANSHILAL MAHATO:

SHRI ARKA KESHARI DEO:

SHRI SUSHIL KUMAR SINGH:

SHRI JASVANTSINH SUMANBHAI BHABHOR:

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

- (a) the guidelines for setting up of food processing industries and training centres to impart training to young entrepreneurs for the purpose in the country;
- (b)  whether  the  existing  infrastructure  of  food  processing  industries  is  inadequate  for  the sustainable growth of food processing sector in the country;
- (c) if so, the details thereof along with the quantum of loss in monetary terms and wastage of perishable  agricultural  produce  due  to  inadequate  cold  storages  for  the  food  processing industries;
- (d)  whether  the  Government  proposes  to  increase  foreign  direct  investments  to  meet  the requirement of investment for the growth of food processing industries and if so, the details thereof; and
- (e)  the  action  plan  and  strategy  of  the  Government  to  improve  infrastructure  of  food processing industry at par with global standards along with the total investment required for achieving the targets, State-wise?

## ANSWER

## THE MINISTER OF STATE FOR FOOD PROCESSING INDUSTRIES

(SADHVI NIRANJAN JYOTI)

- (a):  The Ministry was implementing the Centrally Sponsored Scheme of National Mission on Food Processing (NMFP) in 12th Plan (2012-17) through State/ UT Governments. Under the Scheme of Human Resources Development in the NMFP, financial assistance was provided to  set  up  Food  Processing  and  Training  Centres  (FPTC)  and  to  conduct  Entrepreneurship Development  Programmes  (EDP)  in  the  States/UTs  to  impart  training  to  the  farmers  and prospective entrepreneurs /unemployed youth.

Central  /  State  Government  Organizations,  Educational  and  Training  Institutions, ITIs,  NGOs and  Co-operatives  were  eligible  for  grant-in-aid  to  set  up  FPTC.  For  a  single product  line  centre,  maximum  grant-in-aid  of  Rs.  6.00  lakh  for  purchase  of  plant  and machinery and Rs. 3.00 lakh as revolving seed capital was admissible.  For a multi-product line centre, grant-in-aid of Rs. 15.00 lakh for purchase of plant and machinery and Rs. 5.00 lakh as revolving seed capital was admissible.

Central/State Government  Orgnisations,  Institutions, Universities,  National  level Institutes  like  NIFTEM,  IICPT,  CFTRI,  Professional  Institutes,  State  level  consultancy organisations  of  State  Governments,  reputed  NGOs  etc.  were  eligible  for  grant-in-aid  to conduct EDPs. Grant-in-aid for an EDP was provided upto Rs. 3.00 lakh per programme. The trainings were provided free of cost to the trainees.

The  applications,  for  setting  up  Food  Processing  Training  Centres  and  conducting EDPs  under  NMFP  were  received,  sanctioned  and  funds  were  released  by  the  respective State/UT Governments.

However, Government has de-linked NMFP in the States from Central Government support with effect from 01.04.2015. The State Governments may decide to continue NMFP scheme or otherwise out of their increased resources resulting from the recommendation of the 14th Finance  Commission.  However,  NMFP  is  being  supported  by the Central Government in UTs.

(b) & (c):  Yes, Madam. A Nation-wide study on quantitative assessment of harvest and postharvest loss for 45 agricultural produces in 107 randomly selected districts was carried out by CIPHET, Ludhiana. The  study revealed that the wastage of agricultural produce are in the range of 4.58% to 15.88% in various crops. The highest loss has been occurring in Fruits & Vegetables.  The  harvest  and  post-harvest  losses  of  major  agricultural  produces  at  national level was of the order of Rs. 92,651 crore per annum at 2014 wholesale prices.

(d):  Foreign Direct Investment is permissible in food processing sector up to 100 per cent on automatic route.

(e):  To  improve infrastructure of  food processing  industries in  the country,  the  Ministry  is implementing a Central Sector Scheme of Infrastructure Development for Food Processing with the components of (i) Mega Food Park (ii) Cold Chain, Value Addition and Preservation Infrastructure and (iii) Setting-up/Modernization of Abattoirs.

Under the scheme, financial assistance in the form of grant-in-aid is provided @ 50% of the project cost (excluding land cost) in general areas and @ 75% of the project cost (excluding land cost) in difficult areas and ITDP notified areas of the States, subject to a maximum of Rs. 50 crore per project for setting up a Mega Food Park.

The scheme also envisages financial assistance in the form of grant-in-aid @ 50% of the total cost of plant and machinery and technical civil works in General areas and @ 75% for NE region  and  difficult  areas,  subject  to  a  maximum  of  Rs.10  crore  per  project  for  setting  up Cold Chain infrastructure.

Financial assistance in the form of grant-in-aid is also provided for setting-up/ modernization of abattoirs to Local Bodies and State Government organisations @ 50% of the cost of plant and machinery and technical civil work and other eligible items in general areas and @ 75%

of  the  cost  of  plant  and  machinery  and  technical  civil  work  and  other  eligible  items  in difficult areas, subject to a maximum of Rs. 15.00 Crore per project. th

An allocation of Rs. 2800.00 crore has been made for the Scheme of Infrastructure Development for Food Processing during 12 five year plan.

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