Question : Global FPI Value Chain

(a) whether despite being one of the largest producers of agricultural and food products in the world, India ranks fairly low in the global food processing value chains and if so, the response of the Government in this regard;

(b) whether some States have immense potential in food processing and agriculture sector and if so, the names of such States;

(c) whether the Government has offered programmes to give a fillip to the food processing industry to double the farmer’s income and generate employment, if so, the details and the present status thereof;

(d) whether the Government urged Food Processing Industry members to avail the benefits of schemes offered by the Centre and if so, the details thereof; and

(e) whether CII had organised summit of food processing industry recently and if so, the schemes discussed therein along with the outcome thereof?

Answer given by the minister

THE MINISTER OF STATE FOR FOOD PROCESSING INDUSTRIES
(SHRI RAMESWAR TELI)

(a): As per the estimates released by Food and Agriculture Organization of United Nations, India is among top three countries in production of many agricultural produce/products in the world, the prominent of which are: first in buffalo milk (71.67%), ghee of buffalo milk (79.41%), ghee & butter oil of cow milk (57.18%), and second in rice/paddy (21.89%), wheat (12.77%), potato (12.52%), onion dry (22.92%), tomato (11.36%) and tea (21.72%). The food processing industries in India is, however, a sunrise sector with the level of processing at 6.76% and accounts for only 2.31% of the global food export.


(b): The states like Uttar Pradesh, Madhya Pradesh, Punjab, Rajasthan, and Bihar have immense potential in food grain processing; the states of Uttar Pradesh, West Bengal, Madhya Pradesh, Maharashtra, and Andhra Pradesh have immense potential for processing in fruits and vegetables; the states of Uttar Pradesh, Rajasthan, Madhya Pradesh, Andhra Pradesh and Gujarat have large potential for dairy processing and in the fishery sector, the states of Andhra Pradesh, West Bengal, Gujarat, Odisha and Tamil Nadu have immense potential in the fish processing.

(c) & (d): The Ministry of Food Processing Industries (MoFPI) is implementing a Central Sector Umbrella Scheme – PRADHAN MANTRI KISAN SAMPADA YOJANA -(PMKSY) for promotion and development of Food Processing Industries in the Country. PMKSY is a comprehensive package with the objectives of creation of modern infrastructure along with efficient supply chain management along the entire food processing value chain i.e. from farm gate to retail outlet. PMKSY provides a big boost to the growth of food processing sector in the country helping thereby the farmers in getting better prices for their produces due to higher demand for agricultural produce by the food processing industries as raw material. It is thus a big step towards doubling of farmers’ income, creating huge employment opportunities especially in the rural areas, reducing wastage of agricultural produce and enhancing the export of the processed foods. Individuals, farmers, Farmer Producer Organisations (FPOs), Entrepreneurs, Cooperatives, Societies, Self Help Groups (SHGs), Private Companies and Central/ State PSUs etc. are eligible for financial assistance under the schemes of PMKSY for setting up of food processing industries/ units/ projects in the country.

The Ministry is also implementing the scheme "Operation Greens" as a vertical of PMKSY since November, 2018 for integrated development of value chain of tomato, onion and potato (TOP) crops.

Number of Projects sanctioned under various component schemes of PMKSY is as under:



(e): For the period from June, 2018 to June, 2019, CII organized 14 events to create awareness and for propagation of the PMKSY scheme to the various stakeholders.

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