Lok Sabha Question No. 890 (UNSTARRED), answered on 2016-03-01
Subject: Wastage of Agro-Products
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: CHARANJEET SINGH RORI, RAMESH CHANDER KAUSHIK, NISHIKANT  DUBEY, RAJU ALIAS DEVAPPA ANNA SHETTI, BHARTRUHARI MAHTAB, SHIVKUMAR CHANABASAPPA UDASI, ADHIR RANJAN CHOWDHURY, DEVAJIBHAI GOVINDBHAI FATEPARA, SANJAY SHAMRAO DHOTRE, SUMEDHANAND SARASWATI, ANURAG SINGH THAKUR, SANTOSH AHLAWAT, DUSHYANT CHAUTALA, DUSHYANT SINGH

## GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA UNSTARRED QUESTION NO.890

ANSWERED ON 1 ST  MARCH, 2016.

## WASTAGE OF AGRO-PRODUCTS

890. SHRI CHARANJEET SINGH RORI: SHRI RAMESH CHANDER KAUSHIK: SHRI NISHIKANT DUBEY: SHRI RAJU SHETTY: SHRI BHARTRUHARI MAHTAB: SHRI SHIVKUMAR UDASI: SHIR ADHIR RANJAN CHOWDHURY: SHRI DEVAJIBHAI G. FATEPARA: SHRI SANJAY DHOTRE: SHRI SUMEDHANAND SARSWATI: SHRI ANURAG SINGH THAKUR: SHRIMATI SANTOSH AHLAWAT: SHRI DUSHYANT CHAUTALA: SHRI DUSHYANT SINGH:

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

(a) the quantum and value of food grains, fruits, vegetables and other agricultural products which go waste in the country due to lack of agro-processing infrastructure and cold storages/cold chain facilities and the corrective action taken thereon;

(b) the details of the funds sanctioned, allocated and released for setting up of cold storage/cold chains  under  the  existing  schemes  of  food  processing  industries  and  the  infrastructure  created thereunder;

(c)  the  number  of  cold  storages  and  their  storage  capacity  as  on  date  along  with  the  capacity required and enhanced during each of the  last three  years and the current year  in the country, State/UT-wise;

(d)  Whether  the  National  Centre  for  Cold-chain  Development  has  conducted  any  study  to ascertain the gap in cold-chain infrastructure, if  so, the details and outcome thereof along with the reaction of the Government thereto;

(e)  whether  the  Government  has  developed  cold  chain  infrastructure  under  the  Public  Private Partnership mode in the country during the last three years, if so, the details thereof; and

(f) whether the Government has set up a Task Force to review the development of cold storage and cold chain related schemes in the country and if so, the details thereof along with the target set for increasing the capacity of cold storage system on the recommendation of the said Task Force and the follow up action taken by the Government in this regard?

## ANSWER

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

(a) The  study  conducted  by  Central  Institute  of  Post-Harvest  Engineering  and  Technology (CIPHET), Ludhiana has estimated that annual value of harvest and post-harvest losses of major agricultural produces at national level was of the order of Rs. 92,651 crore based on production data of 2012-13 at 2014 wholesale prices. The crop-wise post-harvest losses as assessed by the study are given at Annexure-I.

The  Ministry  of  Food  Processing  Industries  is  implementing  a  Central  Sector  Scheme, namely the Scheme for Infrastructure Development for Food Processing having components of Mega Food Parks, Integrated  Cold  Chain,  Value  Addition  and  Preservation  Infrastructure  and Modernization of Abattoirs.

Under  the  Scheme,  135  Integrated  Cold  Chain  Projects  have  been  sanctioned  by  the Ministry with the cold chain capacity of 4.75 Lakh MT  of Cold Storage/Controlled Atmosphere/Modified Atmosphere storage, Deep Freezer, 114.75 MT/Hour of Individual Quick Freezer(IQF), 120.05 Lakh Litres Per Day of Milk Storage/Processing and 787 number of Reefer vehicles.

The Government is also providing various incentives to promote creation of cold chain infrastructure to reduce loss of agricultural produce. The details of such incentives are given at Annexure-II.

(b) Details of funds allocated and released under the scheme of Cold Chain, Value Addition and Preservation Infrastructure since 2009 are at Annexure-III . So far, 3.12 Lakh Metric Tonne of  Cold  Storage/Controlled  Atmosphere/Deep  Freezer,  77  Metric  Tonne/Hour  of  Individual Quick  Freezer(IQF),  95  Lakh  Litres  Per  Day  of  Milk  Storage/Processing  and  456  Number  of Reefer  Vehicles  have  been  created  under  the  Scheme  of  Cold  Chain,  Value  Addition  and Preservation Infrastructure.

(c) Under the Scheme of Cold Chain, Value Addition and Preservation Infrastructure of the Ministry of Food Processing Industries stand alone cold storages are not assisted. The financial assistance is provided for creating an integrated cold chain having components of cold storage, minimal processing and reefer vehicles etc. Details of State-wise/UT-wise number of Cold chain projects  and  cold  storage  capacity  created  during  last  three  years  and  current  year  are  at Annexure -IV.

- (d) National Center for Cold Chain Development (NCCD) under Department of Agriculture, Co-operation  &  Farmers  Welfare  has  conducted  a  study  'All  India  Cold  Chain  Infrastructure Capacity (Assessment of Status & Gap)'. As per the study  the Cold Chain requirement in the country stands as follows:

| Type of Infrastructure   | Infrastructure Requirement (A)   | Infrastructure Created (B)   | All India Gap (A-B)   |
|--------------------------|----------------------------------|------------------------------|-----------------------|
| Cold Storage*            | 35.10 million tons               | 31.82 million tons           | 3.28 million tons     |
| Pack-house               | 70,080 nos.                      | 249 nos.                     | 69,831 nos.           |
| Reefer Vehicles          | 61,826 nos.                      | 9,000 nos.                   | 52,826 nos.           |
| Ripening Chambers        | 9,131 nos.                       | 812 nos.                     | 8,319 nos.            |

The  study  has  not  covered  perishable  produce  like  milk  and  other  milk  products  like cheese, yogurt, paneer, marine products, fish and meat etc. However, ice cream is included under the frozen category. Only fruits and vegetables currently consumed and capable of being handled in cold chain have been considered.

Ministry  of  Agriculture  and  Farmers  Welfare  has  accepted  the  Report  and  it  has  been circulated to State Governments for reference and future development of Cold-chain.

- (e) No  proposal  for  development  of  cold  chain  infrastructure  under  the  Public  Private Partnership mode has been received till date for assistance by the Ministry under Viability Gap Funding Scheme of the Government of India.
- (f) To accelerate the availability of cold storage and to improve the efficiency of Cold Chain Management a Task Force under the Chairmanship of Secretary, Ministry of  Food Processing Industries  was  set  up  by  the  Prime  Minister's  Office  in  2014  with  a  view  to  re-visiting  the strategies,  financial  incentives  to  all  cold  storage/  cold  chain  related  schemes  and  recommend institutional mechanism for enhancing capacity of cold chain in the country. The Task Force has, inter alia, recommended that the Government should aim at creating an additional capacity of 7.5 million  tonnes  over  the  next  five  years  with  fund  allocation  of  Rs.  6,100  crore.  Out of  this,  5 million tonnes may  be  created  together by National  Horticulture  Mission  and  National Horticulture  Board  (2.5  million  tonnes  each)  under  Mission  for  Integrated  Development  of Horticulture  Scheme of Department of  Agriculture, Cooperation and  Farmers  Welfare and 2.5 million tonnes under the scheme of the Ministry of Food Processing Industries. The Government has accepted the report.

****

## ANNEXURE REFERRED TO IN REPLY TO PART (a) OF LOK SABHA UNSTARRED QUESTION  NO.  890  FOR  1 ST   MARCH,  2016  REGARDING  WASTAGE  OF  AGROPRODUCTS.

## Details of crop-wise post-harvest losses as assessed by CIPHET

| Crops              | Cumulative wastage (%)   |
|--------------------|--------------------------|
| Cereals            | 4.65 - 5.99              |
| Pulses             | 6.36 - 8.41              |
| Oil Seeds          | 3.08 - 9.96              |
| Fruits &Vegetables | 4.58 - 15.88             |
| Milk               | 0.92                     |
| Fisheries (Inland) | 5.23                     |
| Fisheries (Marine) | 10.52                    |
| Meat               | 2.71                     |
| Poultry            | 6.74                     |

## ANNEXURE REFERRED TO IN REPLY TO PART (a) OF LOK SABHA UNSTARRED QUESTION  NO.  890  FOR  1 ST   MARCH,  2016  REGARDING  WASTAGE  OF  AGROPRODUCTS.

## Details  of  various  incentives  provided  by  the  Government  to  promote  creation  of  Cold Chain sector

-  Services  of  pre-conditioning,  pre-cooling,  ripening,  waxing,  retail  packing,  labeling  of fruits and vegetables have been exempted from Service Tax in Budget 2015-16.
-  Loans to food & agro-based processing units and Cold Chain have been classified under Agriculture activities for Priority Sector Lending (PSL) as per the revised RBI Guidelines issued on 23/04/2015.
-  Under Section 35-AD of the Income tax Act 1961, deduction to the extent of 150% is allowed  for  expenditure  incurred  on  investment  for  (i)  setting  up  and  operating  a  cold chain  facility;  and  (ii) setting  up  and  operating  warehousing  facility  for  storage  of agricultural produce.
-  Government has extended Project Imports benefits to cold storage, cold room (including for farm level pre-cooling) or industrial projects for preservation, storage or processing of agricultural,  apiary,  horticultural,  dairy,  poultry,  aquatic  and  marine  produce  and  meat. Consequently,  all  goods  related  to  Food  Processing,  imported  as  part  of  the  project, irrespective  of  their  tariff  classification,  would  be  entitled  to  uniform  assessment  at concessional basic customs duty of 5%.
-  Refrigeration  machineries and parts used  for installation  of  cold  storage,  cold  room  or refrigerated vehicle, for the preservation, storage, transport or processing of agricultural, apiary,  horticultural,  dairy,  poultry,  aquatic  and  marine  produce  and  meat  under  Tariff Head: Chapter 84 are exempted from Excise Duty.
-  Construction, erection, commissioning or installation of original works pertaining to postharvest  storage  infrastructure  for  agricultural  produce  including  cold  storages  for  such purposes are exempted from Service tax.
-  Capital investment in the creation of modern storage capacity has been made eligible for Viability  Gap  Funding  scheme  of  the  Finance  Ministry.  Cold  chain  and  post-harvest storage has been recognized as an infrastructure sub-sector.

ANNEXURE REFERRED TO IN REPLY TO PART (b) OF LOK SABHA UNSTARRED QUESTION  NO.  890  FOR  1 ST   MARCH,  2016  REGARDING  WASTAGE  OF  AGROPRODUCTS.

## Details of  funds allocated and released under  the scheme of Cold Chain, Value Addition and Preservation Infrastructure

(Rs. in Crore)

| Year    | BE     | RE     | Expenditure               |
|---------|--------|--------|---------------------------|
| 2009-10 | 70.00* | --     | 43.50                     |
| 2010-11 | 27.53  | 22.02  | 21.65                     |
| 2011-12 | 110.00 | 89.99  | 83.70                     |
| 2012-13 | 86.00  | 81.37  | 81.13                     |
| 2013-14 | 100.00 | 103.73 | 103.72                    |
| 2014-15 | 160.00 | 153.36 | 153.36                    |
| 2015-16 | 181.00 | 181.00 | 158.20 (As on 25.02.2016) |

## ANNEXURE REFERRED TO IN REPLY TO PART (c) OF LOK SABHA UNSTARRED QUESTION  NO.  890  FOR  1 ST   MARCH,  2016  REGARDING  WASTAGE  OF  AGROPRODUCTS.

## Details of State-wise/UT-wise number of completed Cold chain projects and cold storage capacity created during last three years and current year.

| State             | 2012-13         | 2012-13                | 2013-14         | 2013-14                | 2014-15         | 2014-15                | 2015-16         | 2015-16                | Total           | Total                  |
|-------------------|-----------------|------------------------|-----------------|------------------------|-----------------|------------------------|-----------------|------------------------|-----------------|------------------------|
| State             | No. of projects | Capacity Created in MT | No. of projects | Capacity Created in MT | No. of projects | Capacity Created in MT | No. of projects | Capacity Created in MT | No. of projects | Capacity Created in MT |
| Andhra Pradesh    | 0               | 0                      | 1               | 10000                  | 0               | 0                      | 0               | 0                      | 1               | 10000                  |
| Arunachal Pradesh | 0               | 0                      | 0               | 0                      | 0               | 0                      | 0               | 0                      | 0               | 0                      |
| Assam             | 0               | 0                      | 0               | 0                      | 0               | 0                      | 1               | 5000                   | 1               | 5000                   |
| Bihar             | 0               | 0                      | 0               | 0                      | 0               | 0                      | 0               | 0                      | 0               | 0                      |
| Chandigarh        | 0               | 0                      | 0               | 0                      | 0               | 0                      | 0               | 0                      | 0               | 0                      |
| Chhattisgarh      | 0               | 0                      | 0               | 0                      | 0               | 0                      | 1               | 5030                   | 1               | 5030                   |
| Delhi             | 0               | 0                      | 0               | 0                      | 0               | 0                      | 0               | 0                      | 0               | 0                      |
| Goa               | 0               | 0                      | 0               | 0                      | 0               | 0                      | 0               | 0                      | 0               | 0                      |
| Gujarat           | 2               | 12500                  | 0               | 0                      | 2               | 6520                   | 1               | 900                    | 5               | 19920                  |
| Haryana           | 0               | 0                      | 0               | 0                      | 0               | 0                      | 1               | 5000                   | 1               | 5000                   |
| Himachal Pradesh  | 2               | 3400                   | 2               | 10000                  | 0               | 0                      | 0               | 0                      | 4               | 13400                  |
| Jammu & Kashmir   | 0               | 0                      | 0               | 0                      | 0               | 0                      | 2               | 2000                   | 2               | 2000                   |
| Jharkhand         | 0               | 0                      | 0               | 0                      | 0               | 0                      | 0               | 0                      | 0               | 0                      |
| Karnataka         | 1               | 15000                  | 0               | 0                      | 0               | 0                      | 1               | 2500                   | 2               | 17500                  |
| Kerala            | 0               | 0                      | 1               | 4000                   | 1               | 15000                  | 0               | 0                      | 2               | 19000                  |
| Madhya Pradesh    | 0               | 0                      | 0               | 0                      | 1               | 4000                   | 0               | 0                      | 1               | 4000                   |
| Maharashtra       | 2               | 6030                   | 2               | 15000                  | 3               | 5500                   | 7               | 28120                  | 14              | 54650                  |
| Manipur           | 0               | 0                      | 0               | 0                      | 1               | 2900                   | 0               | 0                      | 1               | 2900                   |
| Meghalaya         | 0               | 0                      | 0               | 0                      | 0               | 0                      | 0               | 0                      | 0               | 0                      |
| Mizoram           | 0               | 0                      | 1               | 250                    | 1               | 280                    | 0               | 0                      | 2               | 530                    |
| Nagaland          | 0               | 0                      | 0               | 0                      | 0               | 0                      | 0               | 0                      | 0               | 0                      |
| Odisha            | 0               | 0                      | 0               | 0                      | 0               | 0                      | 0               | 0                      | 0               | 0                      |
| Punjab            | 1               | 7400                   | 0               | 0                      | 2               | 12420                  | 0               | 0                      | 3               | 19820                  |
| Rajasthan         | 0               | 0                      | 0               | 0                      | 0               | 0                      | 0               | 0                      | 0               | 0                      |
| Sikkim            | 0               | 0                      | 0               | 0                      | 0               | 0                      | 0               | 0                      | 0               | 0                      |
| Tamil Nadu        | 0               | 0                      | 0               | 0                      | 0               | 0                      | 0               | 0                      | 0               | 0                      |
| Telangana         | 0               | 0                      | 0               | 0                      | 0               | 0                      | 0               | 0                      | 0               | 0                      |
| Tripura           | 0               | 0                      | 0               | 0                      | 0               | 0                      | 0               | 0                      | 0               | 0                      |
| Uttar Pradesh     | 2               | 12200                  | 1               | 1200                   | 0               | 0                      | 1               | 3100                   | 4               | 16500                  |
| Uttarakhand       | 1               | 2890                   | 0               | 0                      | 1               | 6900                   | 5               | 18000                  | 7               | 27790                  |
| West Bengal       | 1               | 1500                   | 2               | 12450                  | 1               | 2853                   | 1               | 5000                   | 5               | 21803                  |
| Total             | 12              | 60920                  | 10              | 52900                  | 13              | 56373                  | 21              | 74650                  | 56              | 244843                 |