Question : FOOD PROCESSING INDUSTRIES

(a) whether the Government proposes to give special emphasis for development of Food Processing Industries in the North Eastern region of the country;

(b) if so, the details thereof along with the funds earmarked for this region;

(c) whether the Government has sought external assistance for development of this sector in the country;

(d) if so, the assistance sought and provided by various countries, country-wise;and

(e) the steps taken/proposed to be taken by the Government for providing better research and development facilities in rural areas for promotion of this sector?

MINISTER OF STATE FOR FOOD PROCESSING INDUSTRIES (DR. CHARAN DAS MAHANT)

(a) & (b) For promotion of setting up of Food Processing Industries (FPIs) in the country including North-Eastern Region, Ministry of Food Processing Industries (MFPI) implemented the Scheme for Technology Upgradation/ Establishment/ Modernization of Food Processing Industries during 11th Plan. During 12th Plan (2012-13), this scheme has been subsumed under Centrally Sponsored Scheme-National Mission on Food Processing (NMFP).

Under the above Scheme, Ministry extended financial assistance to food processing units including fruits & vegetables units in the form of grants-in-aid to the implementing agencies/entrepreneurs @25% of the cost of plant and machinery and technical civil works subject to a maximum of Rs. 50.00 lakhs in general areas, or @33.33% subject to maximum of Rs. 75.00 lakhs in difficult areas such as Jammu & Kashmir, Himachal Pradesh, Uttarakhand, Sikkim and North-Eastern States, A&N Islands, Lakshadweep and ITDP areas in the country. The same pattern of assistance is available under NMFP through States/UT Governments.

This Ministry in coordination with Small Farmers’ Agri-Business Consortium (SFAC) under Ministry of Agriculture is also implementing Mini Mission-IV under Horticulture Mission for North-East & Himalayan States. Under the Mini Mission-IV component of this scheme, assistance at higher rates i.e. @ 50% upto Rs. 4 crore for setting up of new food processing units and upto Rs. 1 crore for Upgradation/modernization of existing units is available to industries involved in processing of horticultural produce in the above States. Further, this scheme is operational during 2012-13 also. Funds under the scheme are disbursed through SFAC to the beneficiaries.

During 12th Plan (2012-13) Government has launched National Mission on Food Processing (NMFP) through States/UTs with an objective of decentralization of implementation of Ministry’s schemes, which will lead to substantial participation by State Governments /UTs. Funds provided to North-Eastern States under the Mission is Rs. 24 crores. The above Scheme of Technology Upgradation/ Establishment/Modernisation of Food Processing Industries has been subsumed in the NMFP w.e.f. 01.04.2012 (2012-13).

(c) No, Madam.

(d) Does not arise.

(e) Government has implemented in 11th Plan as well as in 12th Plan (2012-13) a Plan Scheme namely: Quality Assurance, Codex, R&D and Other Promotional Activities. The main objective of the scheme is the development of new products and new cost effective technologies for preservation and packaging of food products, standardization of various factors such as additives, coloring agents, preservatives, pesticide residue etc. This scheme provides financial assistance for Research & Development to Central/State Government Organisations /IITs/Universities @ 100% of the equipment cost/consumables/ JRD/SRF. The Schemes research benefits are available for all the areas in the country including rural areas.