Question : FOOD PROCESSING INDUSTRIES

(a) the details of food processing industries in the country including Jharkhand, State-wise;

(b) whether there is acute shortage of food processing industries in several States including Jharkhand, if so, the details thereof and the reasons therefor;

(c) the details of financial assistance, subsidy and loan provided and utilised for the development of food processing industries in the country including Jharkhand and Maharashtra during each of the last three years and the current year, State-wise;

(d) whether inadequate access to credit is a concern for the food processing industries in the country, if so, the details thereof; and

(e) the steps taken by the Government to ensure timely availability of credit to the food processing industries and to encourage the States to bring reform in food processing sector on the lines of Agriculture Produce Market Committee (APMC)?

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

(a) & (b): As per Annual Survey of Industries data (2011-12) the total number of registered Food Processing Units in various States was 36,871. State-wise distribution of these Units, including in Jharkhand is given at Annexure-I.

(c): A statement indicating the state-wise allocation and funds released during 2012-13, 2013-14 and 2014-15 under the Centrally Sponsored Scheme of National Mission on Food Processing (NMFP), which has been launched by the Government during the 12th Plan for implementation through State / UT Governments, is given at Annexure-II. The details of units assisted towards committed liabilities of 11th Plan under Central Sector Scheme of Technology Up-gradation/Modernisation/Establishment of Food Processing Units during the last three years (2011-12, 2012-13 & 2013-14) and current year (2014-15) are given at Annexure-III. Loans are provided by the Bank/Financial Institutions to Food Processing Units independently and ministry has no role in sanctioning the loans.

(d)& (e): Recognising the importance of easy access of credit, in the budget of 2014-15, a special fund of Rs. 2,000 crore has been created in National Bank for Agriculture and Rural Development (NABARD) for providing affordable credit to entrepreneurs for setting up of food processing units in designated Food Parks. Loan is extended by NABARD from the Fund to various categories of promoters in food processing sector, such as Individual entrepreneurs, State Governments, State Government Agencies, cooperatives, Farmers Producer Organizations (FPOs), corporate, companies etc. As per Scheme guidelines the loan can be availed for setting up of individual food processing units and also modernization of existing units in the designated food parks etc. The loan is repayable within a maximum period of 7 years, including the initial gestation of a maximum of 2 years. The operational guidelines of NABARD Scheme are available on website of the NABARD – www.nabard.org.