Question : Processing of Foods

(a) the details of food processing industries expanded and upgraded during the last three years and the current year, State-wise;
(b) whether processing levels of food items has increased in the country during the said period and if so, the details thereof;
(c) whether the Government proposes to enhance the extant ceiling of loans for food processing industries in the country and if so, the details thereof along with the subsidy given to processing units of palm oil, wheat and barley in the country during the above period;
(d) the details of workers, skilled/semiskilled workers engaged, employment created and persons trained in the food processing industries and mega food parks in the country during the same period; and
(e) the details of new food processing scheme/policy formulated in the country?

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

(a): Ministry of Food Processing Industries does not set up, expand and upgrade food processing industries on its own in the country and thus, no centralized data is maintained in this regard. However, Under the Scheme for Technology Upgradation/ Establishment/ Modernization of Food Processing Industries implemented during 11th Plan which was subsumed in the Centrally sponsored Scheme(CSS)-National Mission on Food Processing (NMFP) with effect from 01.04.2012 till 31.03.2015 and subsequently got delinked from Government of India’s assistance w.e.f.01.04.2015 except UTs, the financial assistance has been provided for setting up, expansion and upgradation of food processing industries in the country. Under this scheme, Ministry extends financial assistance in the form of grant-in-aid to entrepreneurs @ 25% of the cost of Plant & Machinery and Technical Civil Works subject to a maximum of Rs. 50 lakhs in general areas or 33.33% subject to a maximum of Rs. 75 lakhs in difficult areas. The committed/spillover liabilities of 11th Plan is being considered during 12th Plan under the scheme.

The state-wise details of financial assistance provided for setting up, expansion and upgradation of food processing industries in the country during last three years and the current year state-wise, is given in Annexure-I.

(b) As per a 2014 study commissioned by Ministry of Agriculture and undertaken by Institute of Economic Growth, the level of food processing in the country was 6.76% in 2010-11 which was higher than 6.42% estimated in 2005-06 under the same study. The initiatives undertaken by the Government from time to time are aimed at further expansion and upgradation of food processing industries and increasing the existing processing levels of food items in the country.

(c) As per circular of RBI dated 23.04.2015, the food processing sector including cold storage has been included under the priority sector lending of the commercial/scheduled banks of India with the ceiling on loan borrower increased to Rs. 100 Crore from the banking sector. The details given in Annexure-I also includes the details of financial assistance provided to Food Processing Units of palm oil, wheat and barley in the country.

(d) According to the latest Annual Survey of Industries (ASI) for 2012-13, the total number of persons engaged in registered food processing sector is 16.89 lakh. During the last 5 years ending 2012-13, employment in registered food processing sector has been increasing at an Average Annual Growth Rate of 2.41 per cent. Unregistered food processing sector supports employment to 47.9 lakh workers as per the NSSO 67th Round, 2010-11.

The details of overall scenario of employment in food processing sector and employment generated in the operational Mega Food Parks assisted by Ministry of Food Processing Industries are given in Annexure-II.

(e) As on date, no new food processing schemes/policy has been formulated.

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