Role of Food Processing Sector in Doubling Farmers’ income MINISTRY OF FOOD PROCESSING INDUSTRIES GOVERNMENT OF INDIA

Food Processing Industry Outlook Food processing industry is an important contributor to GDP, employment and investments. Sector constituted 8.71% and 10.04% of GVA in Manufacturing and Agriculture sectors during 2015-16. Value of processed food exports was USD 30.87 billion during 2016-17 equivalent to 11.19% of India’s total export and 2.22% of total global export.

Food Processing Industry Outlook Foreign Direct Investment in food processing sector has increased from USD 170.21 million in 2011-12 to USD 727.22 million in 2016-17. No. of food processing industries in the registered sector – 38,603 in 2014-15. Sector employs more than 1.7 million people - 12.34 per cent of employment generated in all registered factory sector.

PRADHAN MANTRI KISAN SAMPADA YOJANA New Central Sector Scheme – PRADHAN MANTRI KISAN SAMPADA YOJANA (PMKSY) launched on 3.5.2017 Total outlay of Rs. 6,000 crore for the scheme

OBJECTIVES OF PMKSY Creation of modern infrastructure for food processing mega food parks/ clusters and individual units To create effective backward and forward linkages - linking farmers, processors and markets To create robust supply chain infrastructure for perishables

SCHEMES UNDER PMKSY Mega Food Parks Integrated Cold Chain & Value Addition Infrastructure Infrastructure for Agro-processing Clusters Creation of Backward and Forward Linkages Creation/ Expansion of Food Processing & Preservation Capacities Food Safety and Quality Assurance Infrastructure Human Resources and Institutions

MEGA FOOD PARKS To provide modern infrastructure for food processing units based on hub and spoke model; Capital grant @ 50% of eligible project cost in general areas and @ 75% in NE / difficult / ITDP areas; max. Rs.50 crore per project for creating core processing facilities, basic enabling & non core infrastructure, SDF sheds, Primary Processing / Collection Centres etc.; Implemented through Special Purpose Vehicle (SPV) and State PSUs; Farmers can also form SPV. Each Mega Food Park to have 25-30 food processing units; Direct/ indirect employment to about 5000 persons; Each MFP on being fully operational may benefit about 25,000 farmers.

MEGA FOOD PARK-HUB AND SPOKE MODEL CPC Domestic sales and exports Value added Products Fresh Products PPC 1 2 3 Retail sales Domestic Farmer Groups Self Help Groups Farmers Collection Centres (CCs): Aggregation Points CC CC CC CC CC CC CC CC CC Primary Processing Centres (PPCs): Pre-cooling, Grading & Sorting, waxing, packing , Temporary storage. Supply to CPC or direct market Central Processing Centres (CPCs): Core, Basic Enabling, Non-core infrastructure, SDF sheds, Processing units

STATUS OF MEGA FOOD PARKS Total projects approved : 42 Projects operational : 12 Projects under implementation : 30 To be made operational this year : 16

INTEGRATED COLD CHAIN AND VALUE ADDITION INFRASTRUCTURE To provide integrated cold chain and preservation infrastructure from farm gate to consumers; To enhance value addition of agricultural produce; Financial assistance: Storage infra (cold storage etc.) - @35% / 50% in general/ difficult areas Value addition / processing infra (pack house, frozen processing units, dairy etc.) - @ 50% / 75% Irradiation facilities - @ 50%/ 75% Max. grant Rs. 10 crore per project Eligible organizations: FPOs / FPCs / SHGs / Govt. & private sector Fresh EOI issued with closing date 30.04.2018 Status: Projects approved : 238 Projects completed : 120 Under implementation : 118

INFRASTRUCTURE FOR AGRO PROCESSING CLUSTERS Assistance for creating common facilities and enabling infrastructure closer to production areas Envisages a cluster of minimum 5 processing units with an investment of Rs 25 Cr Grant @ 35% / 50% in general/difficult areas; max. Rs. 10 Cr. for creation of core processing and basic enabling infrastructure for food processing Minimum 10 acres land is required either by purchase or on lease of 50 yrs Eligible organizations: FPOs / FPCs / SHGs / Govt. & private sector 100 clusters proposed in the country Fresh EOI Issued on 22.12.2017. Last date - 30.06.2018

CREATION OF BACKWARD AND FORWARD LINKAGES To plug gaps in supply chain of perishables agri-horti produce To connect farmers directly with processing and market Support for facilities like: Primary processing centres/ collection centres at farm gate, Distribution hub and retail outlets at the front end, Reefer transport etc. Project cost: No minimum cost, max. grant- Rs. 5.00 Cr Grant @ 35%/ 50% in general/ difficult areas; Equity-20%,Loan-20% Eligible organizations: Farmer Producer Organisations/ Cooperatives / FPCs / SHGs / Govt. & private sector companies, processors, retilers 50 projects in country. EoI issued with closing date 30.04.2018

CREATION/ EXPANSION OF FOOD PROCESSING & PRESERVATION CAPACITIES To promote food processing/ preservation units in Mega Food Parks, Agro Processing Clusters and designated Food Parks Grant @ 35% / 50% in general / difficult areas; max. Rs. 5 crore of eligible project cost (technical civil works and plant & machinery Eligible organizations: FPOs / FPCs / SHGs / Govt. & private sector 400 new units proposed in the country Fresh EOI Issued on 29.12.2017. Last date – 15.06.2018

QUALITY ASSURANCE INFRASTRUCTURE Food Testing Labs: Facilitate industry to comply with domestic/ international standards Make available modern commercial testing facilities for industry. Grant @50% / 70% of equipment in general / difficult areas for private projects and 100% for public sector 60 new labs proposed in the country Present status: Projects Approved - 110 Projects completed - 73 Projects on-going - 37

SKILL DEVELOPMENT SCHEME Augment skilled workforce for food processing sector; Assist Training Centres (TCs) to augment training infrastructure; 50% of cost of plant & machinery subject to a maximum of Rs 15 lakhs per training module for a maximum of 2 training Module per TC; Develop training/ course modules in English, Hindi and regional languages; Grants-in-aid of Rs.5 lakh per QP; Eligibility: All recognized Central/ State/ Deemed Universities or its Department of Food Processing Technology

INSTITUTIONS MoFPI has two institutions for capacity building in food preservation and processing. National Institute of Food Technology Entrepreneurship & Management (NIFTEM) – deemed university. Indian Institute of Food Processing Technology (IIFPT) – affiliated to Tamil Nadu Agriculture University. Running B.Tech, M.Tech. and Ph.D. programmes Several short duration trainings for capacity development of industry professionals and entrepreneurs.

EXPECTED OUTCOME OF PMKSY Leverage investment of Rs. 31,400 crore Handling of 334 lakh MT agro-produce valuing Rs. 1,04,125 crore Benefit 20 lakh farmers Generate 5,30,500 direct/ indirect employment

Major Announcements in Union Budget 2018-19 Allocation under Pradhan Mantri Kisan Sampada Yojna (PMKSY) increased from Rs. 715 crore in 2017-18 (RE) to Rs. 1400 crore; Promoting establishment of specialized agro-processing financial institutions; State-of-the-art testing facilities in all the forty two Mega Food Parks to promote exports of food products; Operation Greens for tomato, onion & potato to be launched with an allocation of Rs. 500 crore to promote FPOs, agri logistics, processing facilities and professional management; 100 percent income tax exemption from profit of FPOs, having annual turnover up to Rs. 100 crores for post-harvest and value addition activities.

Investor Portal-Nivesh Bandhu information States Opportunities & Incentives Geo mapping of Information B2B Marketplace Investor Enquiries Handling

Expectations from M/o Agriculture and Farmers Welfare Focus on Post harvest infra and end use of agri produce. Promotion of production of processable and dual purpose varieties on Clusters basis. States to identify and develop a comprehensive Value Chain Development Strategy for each commodity Cluster. Organize farmers in FPOs and align with processors. Create awareness about benefits available under PMKSY for FPOs/FPCs

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