(a) whether the rice mill industry is facing problems of fragmentation and lack of adequate credit and capital;
(b) if so, the details thereof and the reaction of the Government thereto;
(c) whether any funds have been earmarked for the purpose during the current fiscal year; and
(d) if so, the details thereof?
MINISTER OF STATE (INDEPENDENT CHARGE), MICRO, SMALL AND MEDIUM ENTERPRISES
(DINSHA PATEL)
(a) to (d): The Rice milling industry has reported the need for adequate credit at cheaper
rate of interest to upgrade the existing rice mills. The Government is implementing a scheme
for technology upgradation of micro and small enterprises, namely, the Credit Linked Capital
Subsidy Scheme for 48 approved sub-sectors including Rice Milling. Under this scheme, 15%
capital subsidy is provided for loans up to Rs.1 crore. A budgetary provision of Rs.119.80
crore has been made under the scheme for 2009-10. The Government is also operating a scheme,
namely, Credit Guarantee Fund Scheme for Micro and Small Enterprises. Under the scheme,
guarantee cover is provided to collateral free credit facility extended by member lending
institutions to the new as well as existing micro and small enterprises (including rice
milling) on loans up to Rs.100 lakh. The budgetary provision made under the scheme for
2009-10 is Rs.122 crore. In addition, the Government is operating a scheme for Technology
Upgradation/Setting up and Modernization of food processing industries. Under this scheme
grant in aid is provided to grain milling sector including rice milling and other food
products. A budgetary provision of Rs.2.47 crore has been earmarked for Rice Milling under
the scheme for 2009-10. Further, twenty five rice milling clusters have been taken up under
the Micro and Small Enterprises Cluster Development Programme for conducting diagnostic
studies, soft interventions and hard interventions. The budgetary provision made under the
scheme (including for rice milling clusters) for 2009-10 is Rs.26 crore.