Lok Sabha Question No. 3899 (UNSTARRED), answered on 2015-12-22
Subject: Package for FPI
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: ARVIND GANPAT SAWANT, RAVNEET SINGH, VINOD KUMAR SONKAR, MAMTAZ SANGHAMITA, PARASURAMAN K., RAHUL KASWAN, R. PARTHIPAN, KRUPAL BALAJI TUMANE, B. S. YEDDYURAPPA, RAVINDRA VISHWANATH GAIKWAD, BHAVANA GAWALI (PATIL), SUMEDHANAND SARASWATI, ANIRUDHAN SAMPATH, SANTOSH AHLAWAT, DUSHYANT CHAUTALA

## GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA UNSTARRED QUESTION NO. 3899

ANSWERED ON 22 ND  DECEMBER, 2015

## PACKAGE FOR FPI

## 3899.  SHRI ARVIND SAWANT:

SHRI RAVNEET SINGH:

SHRI VINOD KUMAR SONKAR:

DR. MAMTAZ SANGHAMITA:

SHRI K. PARASURAMAN:

SHRI RAHUL KASWAN:

SHRI R. PARTHIPAN:

SHRI KRUPAL BALAJI TUMANE:

SHRI B.S. YEDIYURAPPA:

PROF. RAVINDRA VISHWANATH GAIKWAD:

SHRIMATI BHAVANA PUNDALIKRAO GAWALI PATIL:

SHRI SUMEDHANAND SARSWATI:

DR. A. SAMPATH:

SHRIMATI SANTOSH AHLAWAT:

SHRI DUSHYANT CHAUTALA:

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

- (a)  whether  the  Government  has  recently  reviewed  the  centrally  sponsored  schemes implemented for the development of Food Processing Industry (FPI) in the country;
- (b)   if so, the outcome thereof;
- (c)    the  deficiencies  identified  during  the  review  and  corrective  measures  taken  by  the Government in this regard;
- (d) whether the  Government has also recently announced any special packages to entrepreneurs of FPI in the country; and
- (e)   if so, the details thereof and the steps taken by the Government to promote/setting up of more Food Processing Industries in rural areas of the country?

## ANSWER

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

- (a) & (b):  Government of India (GOI) has de-linked Centrally Sponsored Scheme (CSS) National  Mission  on  Food  Processing  (NMFP)  from  Central  Government  support  w.e.f. 1.4.2015  in  view  of  the  increased  resource  allocation  to  the  States  resulting  from  the recommendations  of  the  14th  Finance  Commission.  However,  a  Sub-Group  of  Chief

Ministers, on the rationalization of Centrally Sponsored Schemes (CSS), was constituted on March 9, 2015 by the Prime Minister in pursuance of the decision taken in the first meeting of the Governing Council of the NITI Aayog held on February 8, 2015. As per the report of Sub-Group  of  Chief  Ministers  circulated  by  NITI  Aayog,  National  Mission  on  Food Processing (NMFP) has been kept as one of the optional schemes with fund sharing pattern of 50:50  between  the  Centre  and  the  States;  80:20  between  Centre  and    8  North  East  and  3 Himalayan States and 100% to Union Territories from Centre.

(c): In the course of deliberations, the Sub-Group had sought the suggestions from the States / UTs. The suggestions received from the State Governments include framing of guidelines of CSS, flexibility including an increase in flexi fund, monitoring & larger role of the States in CSS. The suggestions of the State Governments were submitted for consideration of the SubGroup. The Sub-Group has submitted its report in October, 2015. Ministry of Finance  has considered the report of Sub-Group and decided 19 schemes including NMFP optional for the State  Governments with  fund  sharing  pattern  of  50:50  between  the  Centre  and  the  States; 80:20  between  Centre  and    8  North  East  and  3  Himalayan  States  and  100%  to  Union Territories from Centre. Option of implementation of NMFP on the proposed funding pattern rests with State Governments.

(d) & (e):   A Special Fund of Rs. 2000 crore has been setup by the Government in NABARD to make available affordable credit to designated food parks and the food processing units in such Parks. Loan  for food and Agro-processing  up to an aggregate sanctioned limit of Rs. 100 crore per borrower and construction of storage facilities (warehouses, market yards, go downs and silos) including cold storage units/cold storage chains designed to store agriculture produce/products has been covered under Priority Sector Lending.

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