Lok Sabha Question No. 293 (UNSTARRED), answered on 2016-07-19
Subject: Rice Mills
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: MANOJ RAJORIA

## GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA

## UNSTARRED QUESTION NO. 293

ANSWERED ON 19 TH  JULY, 2016

## RICE MILLS

## 293.    DR. MANOJ RAJORIA :

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

- (a) whether  the  rice  mills  in  various  parts  of  the  country  including  Rajasthan  are  facing problems due to inadequate credit and capital;
- (b) if so, the details thereof along with the reaction of the Government thereto;
- (c) whether  any  amount  has  been  released  to  solve  the  problems  of  the  rice  mills  of  the country during the current year; and
- (d) if so, the details thereof, State-wise?

## ANSWER

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

(a) & (b):   The Government has been taking steps to increase flow of credit to Food Processing Industries including Rice Mills. A special fund of Rupees Two Thousand Crore has been created by  NABARD  for  making  available  credit  to  designated  Food  Parks  and  the  Food  Processing units  setup  therein  including  Rice  Mills.  Food  Processing  has  been  notified  as  Agriculture activity for the purpose of priority sector lending for the Food and Agro based processing units / projects subject to aggregate sanctioning limit of Rs. 100 Crore per borrower.  Moreover, with the objective of ensuring hassle -free credit to farmers, the Govt. of India has been fixing targets for flow of Credit to agriculture by banking sector every year. The target for Agriculture Credit fixed for 2016-17 is at Rs. 9, 00,000 crores.

(c)&(d): For promotion of overall growth and development of all Food Processing Industries including rice Mills of the country,  Ministry of Food Processing Industries had been implementing a Scheme namely Scheme for Technology Upgradation/ Establishment/ Modernization  of  Food  Processing  Industries  up  to  31.03.2012.    Under  this  scheme,  financial assistance in the form of grant-in-aid was being provided for Setting up/Technology Upgradation/Modernization  of  food  processing  units  in  the  country.  The  quantum  of  financial assistance admissible for eligible entrepreneurs under the above scheme was at the rate of 25%

of the cost of Plant & Machinery and Technical Civil Works subject to a maximum of Rs. 50 lakhs in case of General areas and for difficult areas, the same was at rate of 33.33% of the cost of Plant & Machinery and Technical Civil Works subject to a maximum of Rs. 75 lakhs.  The aforesaid  scheme  was  subsequently  subsumed  in  the  Centrally  Sponsored  (CSS)-National Mission on Food Processing (NMFP) with effect from 01.04.2012 till 31.03.2015.  Thereafter, 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 resource as per recommendation of 14th Finance Commission.

As a part of the Committed / Spillover liabilities of 11th Plan period during the 12th Plan period  also,  Ministry  of  Food  Processing  Industries  has  been  releasing  grant-in-aid  to  eligible entrepreneurs under the Scheme for Technology Upgradation/ Establishment/ Modernization of Food Processing Industries.

The State wise details of grant-in-aid released to Rice Milling units during the current year are as under:

|        |                | Total Sanctioned Cases   | Total Sanctioned Cases   |
|--------|----------------|--------------------------|--------------------------|
| S. No. | State          | Nos.                     | Amount [In Cr.]          |
| 1      | ANDHRA PRADESH | 1                        | 0.16                     |
| 2      | CHHATTISGARH   | 3                        | 0.19                     |
| 3      | GUJARAT        | 4                        | 0.38                     |
| 4      | HARYANA        | 3                        | 0.57                     |
| 5      | KARNATAKA      | 3                        | 0.24                     |
| 6      | KERALA         | 1                        | 0.25                     |
| 7      | ODISHA         | 1                        | 0.22                     |
| 8      | PUNJAB         | 3                        | 0.28                     |
| 9      | TAMIL NADU     | 1                        | 0.05                     |
| 10     | UTTAR PRADESH  | 2                        | 0.14                     |
| 11     | WEST BENGAL    | 1                        | 0.1                      |
| Total  | Total          | 23                       | 2.58                     |

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