Question : POLICY TO PROMOTE FOOD PROCESSING INDUSTRIES



(a) whether the Government have formulated any policy to promote setting up of food processing industries in the country;

(b) if so, the details thereof; and

(c) the details of food processing industries which have received assistance from the Union Government during the last three years?

Answer given by the minister




THE MINISTER OF STATE FOR FOOD PROCESSING INDUSTRIES

( SHRI SYED SHAHNAWAZ HUSSAIN )

(a) & (b): The task of formulating an exclusive national policy on food processing industries is under way at the preliminary stage. However, the policy initiatives already taken by the Government to promote the growth of processed food sector in the country include the following :-

(i) Automatic approval for foreign equity up to 100% is available for most of the processed food items.

(ii) Food processing industries have been included in the list of priority sector for bank lending.

(iii) Most of the processed food items have been exempted from the purview of licensing under Industries ( Development & Regulation) Act, 1951.

(iv) Excise and Custom Duties for food processing items have been rationalized.

(v) Close interaction with Nodal Agencies of the State Government is maintained.

Under the Plan Schemes of the Department of Food Processing Industries, financial assistance in the form of soft loan and grant is provided to private industries, Public Sector Undertakings, Non-Governmental Organisations, Cooperatives, Human Resource Development Organisations and Research & Development Institutions etc., for the development of processed food sector. These schemes are project-oriented and not State specific. The Department does not set up any unit directly in any State.

(c) : During the period 1997-98, 1998-99 and 1999-2000 (till February), financial assistance has been extended to 316 units, which is in addition to the assistance provided for Research & Development, Quality Control Facilities and Seminars/Workshops etc