Question : Food Processing Units

(a) the total number of Food Processing Units in the country, State-wise;
(b) the details of Centrally Sponsored Schemes being implemented for setting up of Food Processing Units in the country;
(c) whether there has been a shortage of Food Processing Units in the country resulting in farmers not getting the right price for their produce, if so, the details thereof and the reaction of the Government in this regard;
(d) whether the Government proposes to prepare a blueprint to identify suitable locations for the setting up of Food Processing Units in the country, if so, the details thereof;
(e) the details of the Food Processing Units proposed to be set up in the country, State-wise; and
(f) whether the Government proposes to formulate any scheme for development and promotion of various fruit and vegetable growing areas in the country to provide better raw material to Food Processing Units, if so, the details thereof, State-wise?

Answer given by the minister

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

(a): As per Annual Survey of Industries (ASI), 2013-2014, the total number of food processing units registered in the country is 37445. The state-wise number of food processing units in the country is given in Annexure.

(b) For the purpose of setting up of food processing units in 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.

(c) As per an assessment of the extent of food processing in various food sub-sectors done in 2014 by the Institute of Economic Growth on behalf of Ministry of Agriculture, the average extent of processing of agro-products in 2010-11 was 6.76%. It implies that huge scope available for setting up food processing industries by the interested and eligible entrepreneurs of food processing sector in the country. The Schemes implemented by the Ministry Food Processing Industries have also contributed to the setting up of food processing units in the country.

(d) & (e) The Ministry has prepared a food map showing availability of fruits and vegetables in different States in the country. The same has been made available in the website of the Ministry of Food Processing Industries (www.mofpi.nic.in) so that the entrepreneurs wishing to setup Food Processing Industries may have an idea about the availability of raw materials in a particular location and thus help them in taking an informed decision in setting up of their Food Processing Industries.
(f) No. Already the Mission for Integrated Development of Horticulture (MIDH) is being implemented in the States and Union Territories. Under this, the fruits and vegetables are being promoted as an area expansion and under protected cultivation also as a cluster approach to fulfil the requirement of raw material for processing units and also to fulfil the market demand. The cultivation of fruits and vegetables are promoted on the basis of agro-climatic conditions and market demand also.

Apart from that, the government is also promoting fruits and vegetables cultivation in the States through Rashtriya Krishi Vikas Yojana (RKVY) on the basis of projects submitted to States and Department of Agriculture, Cooperation & Farmers Welfare, Ministry of Agriculture & Farmers Welfare.

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