Question : Expansion of Food Processing Industries

(a) the progress made in setting up/ expansion of food processing industries in the country;
(b) whether the Government has conducted any survey regarding the possibility of setting up food processing industries and their expansion in the country;
(c) if so, the details and the outcome thereof including the response of the Government thereto; and
(d) the measures taken by the Government for expansion of food processing industries in the country and the progress made as a result thereof ?

Answer given by the minister

(a) to (d) : A statement is laid on the Table of the House.

STATEMENT REFERRED TO IN REPLY TO PARTS (a) to (d) OF LOK SABHA STARRED QUESTION NO. *228 FOR ANSWER ON 01.08.2017 REGARDING EXPANSION OF FOOD PROCESSING INDUSTRIES.

(a) The Ministry of Food Processing Industries has been implementing various central sector schemes for promotion and development of food processing sector in the country. The status of progress of the projects under various schemes since 11th plan is at Annexure.

(b) & (c) No, Madam, Ministry of Food Processing Industries has not conducted any such survey.

(d) With a view to promote food processing industries in the country, the Government has recently approved a Central Sector Scheme “KISAN SAMPADA YOJANA” with an allocation of Rs 6,000 crore for the period coterminous with the 14th Finance Commission cycle with the following schemes –

i) Scheme for Mega Food Parks
ii) Scheme for Integrated Cold Chain and Value Addition Infrastructure
iii) Scheme for Creation / Expansion of Food Processing & Preservation Capacities
iv) Scheme for Infrastructure for Agro processing clusters
v) Scheme for Creation of Backward and Forward Linkages
vi) Scheme for Food Safety and Quality Assurance Infrastructure
vii) Scheme for Human Resource and Institutions
Further, Government has allowed 100% FDI in manufacturing of food products through automatic route. 100% FDI has also been permitted through approval route in trade, including e-commerce, of food products manufactured and / or produced in India. A special fund of Rs. 2000 crore has been set up in NABARD to make available affordable credit to the designated food parks and food processing units set up therein. Food & Agro based processing units and cold chain infrastructure have been classified under agricultural activities under Priority Sector Lending by the RBI and majority of food items have been placed in lower tax slab of 0 or 5% in the GST regime rolled out in the country on 1st July,2017.

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