Question : FOOD PROCESSING INDUSTRIES



(a) the total share of India`s Food Processing Industries (FPIs) in the world;

(b) whether the Government proposes to increase India`s share in FPIs in the world, especially amongst neighbouring countries;

(c) if so, the details thereof;

(d) whether India has sought assistance from developed countries for development of the food processing sector; and

(e) if so, the details thereof?

Answer given by the minister


MINISTER OF FOOD PROCESSING INDUSTRIES (SHRI SHARAD PAWAR)

(a) to (e) A Statement is laid on the Table of the House.

STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (e) OF LOK SABHA STARRED QUESTION NO. 403 REGARDING FOOD PROCESSING INDUSTRIES FOR ANSWER ON 23rd APRIL, 2013

(a) India’s share in the world output and export of some of the important food products are given in the Appendix.

(b) & (c) Government has been supporting Food Processing Industries with a view to minimize post-harvest losses and to meet the growing needs of domestic and export markets. Keeping this in view, Government has been implementing a number of schemes supporting the food processing sector. Financial assistance, by way of grant in aid is extended for creation of food processing infrastructure and setting up food processing units. Apart from these measures for promoting food processing sector, India has been a signatory to the agreement on South Asian Free Trade Area (SAFTA) for promoting trade with the neighbouring countries.

(d) & (e) No assistance has been sought from the Government of any developed country. Food Processing units are set up by entrepreneurs, both overseas and domestic, in the private sector including investors from developed countries. There are no restrictions for the overseas entrepreneurs to set up food processing units as Foreign Direct Investment is permitted up to 100 per cent through automatic route in food processing sector except for items reserved for micro and small scale industries. For micro and small scale industries automatic approval is available up to 24 per cent. The total inflow of FDI to food processing sector during April 2000 -January 2013 was of the order of US $ 1800.9 million.