1
2
3
CONTENTS 7
23
CHAPTER-I
About the Ministry
• Background
• Allocation of Business
• Role of the Ministry
• Functions of the Ministry
• Organizational Structure of the Ministry
• Organisations under the Ministry
• Information & Communication Technology in the Ministry
• Administrative Vigilance
• Sevottam
• Crisis Management
• Gender Budgeting
• Welfare of PWD
• Swachhta Activities under Swachh Bharat Abhiyan
• Audit Paras
CHAPTER-2
General Status Of Food Processing Sector
• Overview of the Food Processing Sector
• Stages of Processing of Food
• Raw Material Base of the Food Processing Industry
• Export of Processing Related Commodities
• Foreign Direct Investment (FDI) in Food Processing Sector
• Losses in Supply Chain
• Food Processing Sector – Major Challenges
4
• Food Processing Sector – Growth Potential 43
• MAKE IN INDIA programme 51
61
CHAPTER-3
Recent Initiatives
• Promoting investment in food processing sector
• Long Term Strategies
• Fiscal Incentives for Growth of Food Processing Sector
• Availability of Affordable Credit
CHAPTER-4
Plan Schemes For Food Processing Sector
• General
• 12th Plan Proposals
• The Salient Features of the Plan Schemes
• Re-structuring of the Schemes
CHAPTER-5
Mega Food Parks Scheme
CHAPTER-6 69
Scheme For Cold Chain And Value Addition Infrastructure
CHAPTER-7 75
Setting Up/ Modernization Of Abattoirs
CHAPTER-8
Scheme For Technology Up-Gradation/ Establishment/ Modernization Of Food Processing Industries 81
CHAPTER-9 85
89
Scheme For Human Resource Development
CHAPTER-10
Setting Up/ Upgradation Of Food Testing Laboratories
CHAPTER-11
5
Quality Management Systems (Haccp) 93
CHAPTER-12
Scheme For R&D 97
CHAPTER-13 103
Scheme For Promotional Activities
CHAPTER-14
Niftem 109
CHAPTER-15
Iicpt 119
CHAPTER-16
Skill Development 127
CHAPTER-17 131
National Mission On Food Processing
CHAPTER-18 135
139
Development Of North Eastern Region 143
CHAPTER-19
Funds Released Under The Scheme Of Technology Upgradation/ Establishment/
Modernization Of Food Processing Industries
CHAPTER-20
Use of Official Language in the Ministry
6
Annexures
LIST OF ANNEXURES
No. TOPIC PAGES
I Organizational structure of the Ministry of Food Processing Industries 147
II Total sanctioned strength, number of employees in position and number of employees belonging 149
to Scheduled Castes and Scheduled Tribes in the Ministry of Food Processing Industries 150
III Status of implementation of the Mega Food Park projects 153
IV Status of implementation of the Cold Chain projects 107
V A Status of implementation of the Abattoir projects (11th Plan) 162
V B Status of implementation of the Abattoir projects (12th Plan) 167
VI Food Testing Laboratories supported by the Ministry 177
VII HACCP/ ISO 22000 proposals supported by the Ministry 178
VIII Details of R&D projects supported by the Ministry 175
IX List of Exhibitions/ Fairs, Seminars/ Workshops assisted during 2016-17 187
X Funds released to States/ Union Territories for implementation of NMFP 189
XI List of events assisted by the Ministry in the North Eastern Region 190
XII Funds released during the year 2016-17 under the Scheme of Technology Upgradation/ Estab-
lishment/ Modernization of Food Processing Industries
7
8
9
Chapter-1
MINISTRY OF FOOD PROCESSING INDUSTRIES
1.1 BACKGROUND to, industries relating to bread, oil seeds, meals
(edible), breakfast foods, biscuits, confectionery
The Ministry of Food Processing Industries was (including cocoa processing and chocolate making),
set up in July, 1988 to give an impetus to development of malt extract, protein isolate, high protein food,
food processing sector in the country. Subsequently, vide weaning food and extruded food products (including
notification No.DOC.CD-442/1999 dated 15.10.1999 this other ready to eat foods)
Ministry was made a Department and brought under the
Ministry of Agriculture. It was again notified as the Ministry 3. Specialized packaging for food processing industry
of Food Processing Industries vide Cabinet Secretariat’s
Note No.1/22/1/2001-Cab (1) dated 06.09.2001. 4. Beer including non-alcoholic beer
1.2 Allocation of Business Rules: 5. Alcoholic drinks from non-molasses base
The subjects allocated to the Ministry under 6. Aerated water and soft drinks
Government of India (Allocation of Business) Rules, 1961
are as under:- 1.3 ROLE OF THE MINISTRY
1. Industries relating to : The Ministry of Food Processing Industries is
concerned with formulation and implementation of the
(a) Processing and Refrigeration of certain policies for the food processing industries within the overall
agricultural products (milk powder, infant milk national priorities and objectives. A major issue facing the
food, malted milk food, condensed milk, ghee country is to ensure remunerative prices to the farmers for
and other dairy products), poultry and eggs, their produce. If the surplus production of cereals, fruits,
meat and meat products. vegetables, milk, fish, meat and poultry, etc., are processed
and marketed both inside and outside the country, there
(b) Processing of fish (including canning and will be greater opportunities for adding to the income of
freezing); farmers and employment. A strong and dynamic food
processing sector plays a vital role in diversification and
(c) Establishment and servicing of development commercialisation of agriculture, enhancing shelf life,
council for fish processing industry; ensuring value addition to agricultural produce, generation
of employment, enhancing income of farmers and creating
(d) Technical assistance and advice to fish markets for export of agro foods. The Ministry acts as a
processing industry; catalyst for bringing in greater investment into this sector,
guiding and helping the industry and creating a conducive
(e) Fruit and vegetable processing industry environment for healthy growth of the food processing
(including freezing and dehydration); and industry. The Ministry aims at:
(f) Food grains milling industry. • Creating the critical infrastructure to fill the gaps in
the supply chain from farm to consumer.
2. Planning, development and control of, and assistance
10
• Value addition of agricultural produce; most of the processed food items excepting alcohol
and beer subject to certain conditions.
• Minimizing wastage at all stages in the food
processing chain by the development of infrastructure c. 100% Foreign Direct Investment under government
for storage, transportation and processing of agro approval route for trading, including through
produce; e-commerce, in respect of food products manufactured
or produced in India
• Induction of modern technology in the food processing
industries; d. Developing a strong supply chain for perishable farm
produce to reach processing sector promptly.
• Encouraging R&D in food processing for product and
process development; e. Incentivizing creative of infrastructure and
developing technology to convert such produce into
• Providing policy support, promotional initiative value added products.
and facilities to promote value added produce for
domestic consumption and also exports. f. Reducing Excise Duty on food processing and
packaging machinery from 10% to 6%.
1.4 FUNCTIONS OF THE MINISTRY
g. Reducing basic Customs Duty/Excise Duty on
The functions of the Ministry can be broadly classified Refrigerated Containers.
under policy support, policy initiatives, developmental
initiatives and promotional initiatives. h. Setting up of a Special Fund of Rs. 2000 Crore
in National Bank for Agriculture and Rural
1.4.1 Policy Support Development (NABARD) to provide affordable
credit in designated Food Parks and agro-processing
a. Formulation and implementation of policies for units in the designated Food Parks.
food processing sector within overall national
priorities and objectives; i. Simplifying Application Forms of all the schemes
and minimizing requirement of documents.
b. Facilitating creation of a conducive environment
for healthy growth of the food-processing sector. j. Uploading Food Maps identifying surplus raw
material on website.
c. Promoting rationalization of tariff and duties
relating to food processing sector. k. Assisting Skill Development Initiatives through the
Sectoral Skill Council [i.e. Food Industry Capacity and
1.4.2 Policy Initiatives Skill Initiatives (FICSI)] on Food Processing working
in Federation of Indian Chamber of Commerce and
Several policy initiatives have been taken from time Industry (FICCI).
to time to promote growth of the food processing sector in
the country. Some of these are: l. Classifying loan to food & agro-based processing
units and Cold Chain under agriculture activities for
a. Exempting all the processed food items from Priority Sector Lending.
the purview of licensing under the Industries
(Development and Regulation) Act, 1951. m. Exempting pre-cold storage services of pre-
conditioning, pre-cooling, ripening, waxing, retail
b. Automatic approval for foreign equity upto100% for
11
packing, labeling of fruits & vegetables from Service i. Regular interaction with industries and State/
Tax. UT Governments for activating Single Window
System.
1.4.3 Developmental initiatives
j. Seeking fiscal incentives for the food processing
a. Creating modern infrastructure for growth of industries.
food processing sector through Schemes of
Mega Food Parks, Integrated Cold Chain and k. Foreign Direct Investment as one of the
Value Addition Infrastructure, and Setting up / priority areas for attention under ‘Make in
Modernization of Abattoirs. India’ campaign. In this context an email ID -
[email protected] has been created.
b. Providing assistance to food processing
industries under various Central Sector and l. An Investors’ Portal has been developed by
Centrally Sponsored Plan Schemes. the Ministry with the intention to disseminate
information on the state-specific resource
c. Widening the R&D base in food processing potential, policy support and fiscal incentives
by involvement of various R&D institutes and offered to investors in food processing sector.
support to R&D activities. The investors, both domestic & foreign, may
make queries relating to any issue on the
d. Uploading list of R&D research projects / investment in food processing sector through
findings on the Ministry’s website for better Investors’ Portal (http://foodprocessingindia.
dissemination, commercial adoption and use by co.in) or through Ministry’s website (http://
the farmers and entrepreneurs. mofpi.nic.in).
e. Developing Human Resource to meet the 1.4.4 Promotional Initiatives
growing requirement of managers, entrepreneurs
and skilled workers in the food processing In order to create awareness about the potential and
sector. prospect of food processing industries in the country this
Ministry provides assistance for:
f. A Centrally Sponsored Scheme (CSS) - National
Mission on Food Processing (NMFP) was a. Organizing Workshops, Seminars, Exhibitions
launched during 12th Plan for implementation and Fairs;
through State/UT Governments. However,
the NMFP has been de-linked from Central b. Studies/Surveys, etc.
Government Support with effect from 1.4.2015,
except for UTs (up to 31.03.2016). c. Participation in national/international fairs/
exhibitions, etc.
g. Assistance for setting up of food testing
laboratories, active participation in laying down 1.5 ORGANIZATIONAL STRUCTURE OF THE
food standards and their harmonization with MINISTRY
international standards.
The organizational structure of the Ministry of
h. Introducing Sevottam, charter mark in service Food Processing Industries is at ANNEXURE-I. The total
delivery for excellence in the Ministry. sanctioned strength, number of employees in position
12
and number of employees belonging to scheduled castes information, domestic and international promotion
and scheduled tribes in the Ministry of Food Processing of Indian wine.
Industries (as on 31.01.2017) are at ANNEXURE-II.
• To foster sustainable development of Indian wine
1.6 ORGANIZATIONS UNDER THE MINISTRY: Industry.
1.6.1 National Institute of Food Technology • To formulate a vision and action plan for the
Entrepreneurship & Management (NIFTEM): growth of Indian wine sector including research
and development for quality up-gradation in new
The National Institute of Food Technology, technologies/ processes.
Entrepreneurship & Management (NIFTEM) at Kundli,
Haryana has been set up as an international centre of • To set up facilities for wine analysis, testing for
excellence, which will work synergistically with the “quality” defining and label standards, certification of
industry and similar institutions within India and outside. wine and promoting Good Manufacturing Practices
The Institute has been granted Deemed University status (GMP). Hazard Analysis and Critical Control Points
under de-novo category by the Government on 08-05-2012. (HACCP) ISO 22000:2005 etc.
The first academic session has commenced from 16-08-
2012. The Institute is offering B.Tech. (Food Technology The further continuation of Board is under
and Management), M.Tech. and Ph.D. courses. consideration of the Government of India.
1.6.2 Indian Institute of Crop Processing Technology 1.6.4 National Meat & Poultry Processing Board
(IICPT): (NMPPB):
Indian Institute of Crop Processing Technology The National Meat & Poultry Processing Board
[formerly known as Paddy Processing Research Centre (NMPPB) was established in 2009. The mandate of
(PPRC)], Thanjavur is an autonomous organization under NMPPB was to oversee the growth and further promotion
the administrative control of Ministry of Food Processing of meat and poultry sector in the country. NMPPB was to
Industries. However, for its academic activities it is address issues related to production of hygienic, safe and
affiliated to Tamil Nadu Agriculture University. It has been wholesome meat and meat products. The Board, which was
in existence since 1967.In the Budget Speech of 2006- to be an industry driven body, with provision of funding
07, the Hon’ble Union Finance Minister announced the by the Government for first three years i.e. up to 2012-
intention of the Government to upgrade erstwhile PPRC to a 13, had to generate its own revenue. However, the Board
National Institute. Accordingly, the institute was upgraded was unable to generate for its sustainability and was not
and renamed as IICPT in February 2008. in a position to continue its activities without Government
funding. It had been decided by the Government to wind
1.6.3 Indian Grape Processing Board (IGPB): up the NMPPB. However, the Ministry is having a relook
and re-examining the possibility and prospects of reviving
The Indian Grape Processing Board was set up in the the Board.
year 2009 at Pune, Maharashtra. IGPB was registered under
Indian Societies Registration Act, 1860. The important 1.7 INFORMATION & COMMUNICATION
functions and objectives of the Board are as under: TECHNOLOGY IN THE MINISTRY
• To focus on research & development, extension, 1.7.1 Ministry’s Website
and quality up-gradation, market research and
The existing website of the Ministry (http://mofpi.
13
nic.in) is the focal point for disseminating information provides facilities for queries and reports for monitoring and
in the quickest manner across the geographical regions decision making. The application is hosted on Government
regarding schemes of the Ministry, the data base on food of India Cloud Servers to provide fast access of information
processing sector and related matters. to stakeholders on 24X7 basis.
Content Management framework (CMF) based Software development works for other schemes
website of the Ministry has been recently launched on such as the Modernization of Abattoir & TUS scheme is in
3rd Nov, 2016. Important features of the new website are progress.
that it is interactive, user friendly, responsive and Content
Management System (CMS) driven. It has been designed 1.7.3 Investors’ Portal
particularly keeping in mind the requirement of investors
in food processing industry with emphasis on “how to An ‘Investors Portal’ developed by the Ministry is
avail benefit under different schemes” implemented by intended to disseminate information on the state specific
the Ministry. It seeks to disseminate detailed information resource potential, policy support and fiscal incentives
on funding, physical and financial progress in terms of offered for investing in food processing sector. The
schemes/programs etc. All forms under different schemes investors, both domestic & foreign, can also seek guidance
are downloadable. Details of units assisted under various on specific issues by posting their queries in the ‘Investor’
Schemes have also been made available. The website also Query’ of the portal which is promptly responded by the
seeks to assist entrepreneurs by way of disseminating Ministry. Investors can access and avail these services
information on sourcing of material, marketing support through investors’ Portal (http://foodprocessingindia.
as well as complementary schemes being implemented by co.in/) or through Ministry’s website (http://mofpi.nic.in).
other agencies of the Government.
1.7.4 E-Procurement
1.7.2 Scheme Management System
Complete process of e-tendering from publishing
To actively participate in Government of India’s of tenders online, inviting online bids, evaluation and
Digital India Programme, Ministry this year took an initiative award of contract is now being done through Central
to make all the processes related to release of grants simple, Public Procurement Portal of Government of India (http://
easy and transparent through Scheme Monitoring System. eprocure.gov.in).The Ministry has already procured Digital
Accordingly, Scheme Monitoring System was designed Certificates and the same have been issued to the designated
and developed for implementation which was successfully officers for its implementation.
launched for Mega Food Park Scheme and Integrated Cold
Chain Schemes by Hon’ble Minister for Food Processing 1.7.5 Information and Facilitation Centre:
Industries Smt. Harsimrat Kaur Badal on 02nd June & 03rd
November 2016 respectively The Ministry is in the process of providing online
information related to food processing sector from its
The system facilitates online submission of Information and Facilitation Centre.
application, document uploading and its status tracking on
real time basis. At any stage when the status of proposal 1.7.6 Implementation of the Dashboard Monitoring
gets changed the system generates automated email alerts System for Infrastructure Projects:
and forwards it to respective concerned stakeholder’s
email accounts as registered in the system. The system also Online monitoring of Project Implementation of
Infrastructure Projects under Mega Food Park, Cold Chain,
and Abattoir schemes has been implemented through a
14
Dash Board Monitoring System. The software has been disbursement of grant-in-aid to the entrepreneurs /
developed by M/s. Logicsoft International Pvt. Ltd. institutions. This ensures that there is no middle man
between the banks and the applicants. The Ministry has also
1.7.7 Digitization of Files: appointed Independent Monitors to examine the grievances
relating to selection of projects under Infrastructure
The Ministry has engaged M/s. Pyramid IT Development Schemes.
Consulting (P) Ltd. in September, 2014 for this work. New
version of document archival software is now operational To monitor acquisition of movable and immovable
and is being used for accessing and retrieving the digital property by Government servant and source of their
files from the e-archive. Under the new system, the finance, the Competent Authority scrutinizes their annual
digitized files have been provided with search and retrieval property returns. Information useful to public has been
facility for easier access and handling of digitized data. made accessible on the website.
The physical files have been weeded out as per the record
retention schedule. The process of digitization of important For effective monitoring of the Chief Vigilance
files of the Ministry is continuing along-with the weeding Officer (CVO) reviews all ongoing vigilance cases from
out of old files. Around 6600 files have been digitized so time to time.
far.
1.9 SEVOTTAM:
1.7.8 Implementation of e-Office:
The Ministry of Personnel, Public Grievances &
E-Office is being implemented since 23.03.2015 in Pensions has identified the Ministry of Food Processing
this Ministry. Movement of all physical files is through file Industries as one of the organizations to take up Sevottam
tracking system on e-office. All receipts & files are being certification in 2006 as a means to achieve excellence in
processed electronically. Work through e-file has started, delivery of public services. Following steps have been
and is being scaled up. taken by this Ministry towards achieving the Sevottam
certification:-
1.8 ADMINISTRATIVE VIGILANCE
(i) The revised Citizens’ Charter has been formulated
Ministry of Food Processing Industries has been and uploaded earlier and has been prominently
taking due care for maintenance of efficiency and integrity displayed in Hindi & English at the reception also.
of its personnel and ensuring impartiality, objectivity
and transparency in decision-making. Complaints and (ii) The Ministry has appointed Shri Parag Gupta,
representations received from the public are given due Joint Secretary as the Public Grievance Officer for
consideration and are attended promptly ensuring fairness monitoring redressal of grievances. The Ministry
and objectivity. receives online grievances through CPGRAM Portal,
which are redressed online. The grievance redressal
The instructions on vigilance issued by the CVC is monitored periodically by the Joint Secretary. In
from time to time and extant rules and procedures relating addition to the online grievance, the Ministry has
to vigilance matters are strictly adhered to. Smt. Anuradha also received off-line grievances, which are also
Prasad (IDAS:1986), Joint Secretary has been appointed as addressed and the monitored in the same manner. As
Chief Vigilance Officer (CVO) for the Ministry. Vigilance on date the rate of disposal of grievances pertaining
Awareness Week was organized during 2016-17. to this Ministry as indicated in the CPGRAM Portal
is 98%.
The RTGS system has been introduced for
15
(iii) Modernization of office is being undertaken from (v) The name of this Ministry figures in the list of
time to time for creating better working environment organizations mentioned in the DARPG’s booklet
and increasing efficiency. ‘Sevottam’ who have successfully implemented
Sevottam.
(iv) An Information Facilitation Centre is in place in this
Ministry.
1.10 For dealing with Sexual Harassment among women employee of MoFPI, Ministry has constituted a committee
as under:-
S. Name and Designation of the Officer Chairperson
No. Member
Member
1. Smt. Anuradha Prasad, Joint Secretary Member
2. Shri S.K. Verma, Deputy Secretary
3. Ms.Suman Kanwar AD
4. Ms. Shivani Bhardwaj, Programme Director SAFP
1.11 For dealing with grievances of SC/ST, Ministry has constituted a committee as under:-
S. Name and Designation Designation (as member of grievance cell
No. of SC/ST)
1. Shri J.P. Meena, Special Secretary Chairperson
2. Dr. Atya Nand, Deputy Secretary Liaison Officer
3. Shri Sanjay Bajpai, Under Secretary Member
4. Shri P.K. Mondal, Under Secretary Member
5. Shri V. Thirukumaran, TO (IA) Member
1.12 Crisis Management constituted a disaster management committee to assist
Ministry of Food Processing Industries has in possible crises/situation such as floods, earthquake,
cyclone, etc. The committee members are as under:-
(i) Sh. J.P. Meena, Special Secretary - Chairman
(ii) Sh. Parag Gupta, Joint Secretary - Vice-Chairman
(iii) Smt. Anuradha Prasad, Joint Secretary - Member
(iv) Sh. Rajiv Mishra, Economic Adviser - Member
(v) Sh. K.B. Subramanian, Director - Member
(vi) Sh. S.K. Verma, Deputy Secretary - Convener
(vii) Dr. Atya Nand, Deputy Secretary - Member/Nodal Officer
(viii) Dr. G. Srinivasan, Senior Marketing Officer - Member
(ix) Dr. J.P. Dongare, Marketing Officer - Member
(x) Dr. S.N. Ahmed, Assistant Director - Member
(xi) Sh. Virender Kumar Bhalla, Under Secretary - Member
16
1.13 Welfare of Persons With Disabilities: all the officers and staff of the Ministry on first Tuesday of
every month. The Ministry is also ensuring cleanliness in
1.13.1 This Ministry is the Cadre Controlling Authority and around Panchsheel Bhawan housing the Ministry. All
only in respect of Industrial Advice Cadre having 14 the assisted projects of the Ministry have been requested
Nos. of posts and for 25 Posts of Group ‘C’ Non- to maintain Swachhta, take Swachhta Pledge and observe
technical Cadre ( 20 Post of Multi-Tasking Staff + 04 Swachhta Pakhwada and to ensure good hygiene practices.
Post of Staff Car Driver + 1 Post of Dispatch Rider). All leading Industry organisations were also sensitized and
Regarding other posts, Department of Personnel requested to request all their member Industries to observe
& Training and Department of Industrial Policy & Swachhta in their premises and surroundings and participate
Promotion are the Cadre Controlling Authorities. in this national mission.
1.13.2 Since, the total sanctioned Posts in Industrial Advice The Ministry observed Swachhta Pakhwada during
Cadre is only 14, it may not be possible to reserve 16th to 31st Oct, 2016.
any post of Industrial Advice Cadre under 3 %
reservation quota as per PWD Act, 1995. However, • A special Swachhta Pledge was organized on
total no. of Group ‘C’ posts (non-technical) is 25 and 17.10.2016 in the Ministry.
3% thereof comes to 0.75 (rounded to 01), 01 post of
MTS may be considered for ear-marking as reserved • Essay and Debate Competition for employees of
for PWD Category. Presently, there is no vacancy MoFPI on Swachhta was held in Panchsheel Bhawan.
in the MTS Posts. The post ear-marked as reserved
for Persons with Disabilities will be filled up as per • All officers and staff members took part in cleaning
roster points allocated to the vacancy. of their own rooms.
1.13.3 Ramps have already been built within the Head • Special drive for weeding out of old files/papers was
Quarters of the Ministry at Panchsheel Bhawan for undertaken as per the Government norms.
the convenience of persons with disabilities. The
work for construction of a toilet at the ground floor • A cleaning drive was undertaken by officers and
of the building for the use of persons with disabilities staff members of Ministry to clean the road from
has been started. CPWD has been requested to install Panchsheel Bhawan to Sirifort Sports Complex.
Braille symbols and auditory signals in lifts of
Panchsheel Bhawan. • A team of Officers from MoFPI visited South
Delhi Municipal Corporation Primary Adarsh Bal
1.13.4 Instructions have been issued to National Institute of Vidyalaya, ShahpurJat Village and administered
Food Technology Entrepreneurship and Management Swachhta Pledge & sensitized the students.
(NIFTEM), Kundli, Sonepat (Haryana) and Indian
Institute of Crop Processing Technology (IICPT), • Many assisted projects have also observed Swachhta
Thanjavur (Tamilnadu) for taking necessary steps Pakhwada at their premises.
for implementation of The Persons with Disabilities
(Equal Opportunities, Protection of Rights and Full • NIFTEM organized events like street vendors
Participation) Act, 1995. sensitization camps, cleanliness and hygiene drive in
campus, hostel and a Swachhta awareness rally.
1.14 Swachhta Activities under Swachh Bharat
Abhiyan: • IICPT at Thanjavur observed SwachhtaPakhwada
through Cleaning, beautification and tree planting
The Hon’ble Prime Minister has given a call for activities within the campus and organized activities
“Swachh Bharat” as a mass movement to realize Gandhiji’s like Essay Competition, Workshops, Food Safety
dream of a clean India by the 150th birth anniversary of awareness camp for street vendors, skits etc., for
Mahatma Gandhi in 2019. highlighting benefits of Swachhta.
As a part of the above initiative, the Ministry of • A sensitization camp was organised on food hygiene
Food Processing Industries has been undertaking Swachhta and safety for street food vendors in New Delhi in
Activities. Secretary, FPI administers Swachhta Pledge to collaboration with CII and NIFTEM.
17
• Skit performances by Food Technology Institutes women from these schemes has not been quantified,
was organized at Ministry in collaboration with CII efforts are being made by the Ministry to ensure that
to generate awareness on good hygiene practices. the maximum benefit of the schemes of the Ministry
could reach to the women stakeholders of the sector.
• A sensitizing workshop for all stakeholders
was organized at the office of PHD Chamber of 1.15.3 A Gender Budget Cell under the chairmanship of a
Commerce. Joint Secretary has been set up in the Ministry for
inducting and effecting a change in the Ministry’s
• Astake holders sensitization workshop was organized policies and programmes in a way that could tackle
alongwith MoFPI on Swachhta in the premises of gender imbalances, promote gender equality and
ASSOCHAM. development and could ensure that public resources
through the Ministry’s budget are allocated and
1.15 GENDER BUDGETING managed accordingly.
1.15.1 Keeping in mind the fact that origin of food 1.15.4 There is substantial women participation in
processing lies in the culinary tradition of various manufacturing of food products and beverages though
communities, carried forward by their women folk, the schemes of the Ministry are project-oriented
this Ministry recognizes contribution of women in and not specific to State/Area/Community/Caste
food processing. Since ages, women are traditionally and Gender. As per the Annual Survey of Industries
engaged in food processing activities like, making 2013-14, a total of 2.66 lakh women workers were
pickles, papad, nuggets etc. Schemes operated by directly employed in registered# food processing
this Ministry are aimed at providing facilities and units in the country. As regards women employment
incentives for promotion of food processing industry in unincorporated non agriculture enterprises of
in the country. These schemes are project oriented food processing sector, it was estimated that a total
instead of being State, area, community, caste or of 11.86 lakh women workers were engaged in the
gender specific. year 2010-11 as per the information released in the
National Sample Survey Office (NSSO) 67th Round
1.15.2 The beneficiaries of projects assisted by the Ministry (July, 2010-June, 2011).
are those supplying raw materials to food processing
industries, people working in food processing 1.15.5 The overall scenario of women employment in food
plants and those engaged in marketing activities processing sector is as under:
downstream. Although the benefit accruing to
Women employment in Food Processing Sector*
Sector Directly Employed Total Employment-Food (%) Share of
Women Workers Processing Sector Women
Registered (2013-14)# 2.66 lakh 17.41 lakh 15.3
Un-incorporated Non Agriculture 11.86 lakh 47.9 lakh 24.8
Enterprises of food processing
sector @(2010-11)
*: Includes food products and beverages segments ;#: Factory Registered under sections 2m(i) and 2m(ii)
of the Factories Act 1948; @:Source: NSSO Report No. 549(67/2.34/2) on Economic Characteristics of
Unincorporated Non-agricultural Enterprises (Excluding Construction) in India; NSS 67th Round (July
2010-June 2011)
18
1.15.6 It may be noted that women beneficiaries are eligible 1.15.7 As regards the plan schemes of the Ministry i.e.
under all schemes of the Ministry and there is no Mega Food Parks Scheme and Cold Chain Scheme,
specified quota for any section either on linguistic, the Ministry has approved 40 Mega Food Park
religion or gender basis given the small number of projects (Final Approval-21 projects and In-principle
units available for sanction under the schemes of the Approval-19 projects), out of which there are 10
Ministry. female promoters in 6 projects. The details of the
female promoters in the 6 projects are as under:-
S. No Name of Food Park No. of Female Name of Female Promoters
Promoters
Accorded Final Approval
1. M/s Satara Mega Food Park 1 1) Smt. Vaishali Hanmant Rao Gaikwad
Pvt. Ltd.
2. M/s Godavari Mega Aqua 2 1) Smt. Ch. Vyjayanthi
Park Pvt. Ltd. 2) Smt. T. Subrahmanyamma
3. M/s Sikaria Mega Food Park 3 1) Surabhi Agriculture SHG
Pvt. Ltd 2) Swapna Agriculture SHG
3) Rashmi SHG
Accorded In-principle Approval
4. M/s. Zoram Mega Food Park 2 1) Smt. Zonunsiami
Pvt. Ltd. 2) Smt. Doris Zothansan ji Chhangte
5. M/s. Jain Agro Trading Pvt. 1 1) Ms. Sara H Shafiq
Ltd.
6. M/s. RaagaMayuri Agrovet 1 1) Mrs. V. Mani Reddy
Pvt. Ltd.
Total 10
1.15.8 In the cold chain scheme, 135 cold chain projects 1.15.9 The number of the female Project Investigators in the
are under implementation, out of which there are 60 R&D programmes sanctioned by the Ministry are as
women promoters in 39 Cold Chain projects. under:-
Female Project Total Project Investigators Percentage (%)
Investigators
No. of PI GIA sanctioned No. of PI GIA sanctioned No. of PI GIA sanctioned
(Rs. in lakh) (Rs. in lakh) (%)
Ongoing Projects 18 972.03 120 4010.31 15.% 24.24%
Completed 16 538.41 70 2441.57 22.86% 22.05%
Projects
34 * 1510.44 190 * 6451.88 17.89% 23.41%
19
*Some of the Project Investigators have more than one and studying in various courses; number of female
project and they have been counted separately for each trainees participated in the training programmes;
project. number of female beneficiaries covered under the
Village Adoption Programme being conducted by
1.15.10 As regards the two academic-cum-research institutes NIFTEM and number of female project investigations
namely, National Institute of Food Technology and in R&D programmes of IICPT by the Ministry are as
Entrepreneurship Management (NFTEM) and Indian under:-
Institute of Crop Processing Technology (IICPT)
under the administrative control of Ministry, the (A) Status of female beneficiaries under various
details regarding the number of students passed out programmes being conducted by NIFTEM:
Number of female students passed out and studying Upto 31st August, 2016
in various courses being conducted by the NIFTEM Passed out:
B.Tech (2012-16) Batch-25
M.Tech (2012-14) Batch-33
M.Tech (2013-15) Batch-29
M.Tech (2014-16) Batch-33
Studying:
B.Tech (2013-17) Batch-55
B.Tech (2014-18) Batch-50
B.Tech (2015-19) Batch-52
B.Tech (2016-20) Batch-43
M.Tech (2015-17) Batch-39
M.Tech (2016-18) Batch-33
Ph.D 2013 Batch-01
Ph.D 2014 Batch-06
Ph.D 2015 Batch-08
Ph.D 2016 Batch-06
Number of the female trainees who have 2213
participated in the training programme conducted
by NIFTEM
Number of female beneficiaries covered under the 615
Village, Adoption Programme being conducted by
NIFTEM
Number of Female Project Investigators Aug, 2016
Project Investigator:12
Co Project Investigator: 10
(B) Status of female beneficiaries under various programmes being conducted by IICPT
1. Education
20
Female strength in the academic programme of IICPT
S. No. B.Tech (FPE) M.Tech(FPE) M.Tech(FST) Ph.D(FPE)
2014-15 Batch 22 3 6 2
2015-16 Batch 23 7 6 1
2016-17 Batch (up to 30 4 11 2
31.08.2016)
2. Successful women entrepreneur Nos.
13
Year 14
2014-15 03
2015-16
2016-17 (upto 31.08.2016) Nos.
13
3. Technology transferred to women 14
02
Year
2014-15
2015-16
2016-17 (upto 31.08.2016)
4. Women Self help group Nos.
Year 26
2014-15 17
2015-16 -
2016-17 (upto 31.08.2016)
Nos.
5. Women attended in conferences/seminar/workshops 153
Year 246
2014-15
2015-16 -
2016-17 (upto 31.08.2016)
21
6. Total women beneficiaries Nos.
Year 710
2014-15
2015-16 304
2016-17 (upto 31.08.2016) 93
7. Number of women project investigators Project Investigator Co-project
Investigator
Year 4
6 3
2014-15 3
2015-16 2
2016-17 (upto 31.08.2016) 2
1.16 Audit Paras: was tabled on 02.08.2016 in Parliament, does not contain
any para in respect of this Ministry.
Report No.11 of 2016 of Union Government (Civil)
Compliance Audit Observation of Comptroller & Auditor No PAC Para is pending against the Ministry of Food
General of India for the year ended March, 2015, which Processing Industries.
22
23
24
25
Chapter-2
GENERAL STATUS OF FOOD PROCESSING SECTOR
2.1 OVERVIEW OF THE FOOD PROCESSING world in the production of Milk, Ghee, Ginger, Bananas,
SECTOR: Guavas, Papayas and Mangoes. Further, India ranks no 2
in the world in the production of Rice, Wheat and several
A well-developed food processing sector with higher other vegetables & fruits. Abundant supply of raw materials,
level of processing helps in the reduction of wastage, increase in demand for food products and incentives offered
improves value addition, promotes crop diversification, by the Government has impacted food processing sector
ensures better return to the farmers, promotes employment positively. As Table 1 shows, Annual Growth Rate of Food
as well as increases export earnings. This sector is also Processing Industries sector during 2015-16 was 7.00 per
capable of addressing critical issues of food security, food cent as compared to around 4.90 per cent in Agriculture and
inflation and providing wholesome, nutritious food to the 8.06 per cent in Manufacturing. Food Processing Sector
masses. has also emerged as an important segment of the Indian
economy in terms of its contribution to GVA, employment
2.1.1 Contribution of Food Processing Sector to GDP and investment. The sector constitutes as much as 8.80 per
cent of GVA in Manufacturing and adds 8.39 per cent to the
Over the years agricultural production in India has GVA of Agriculture sector.
consistently recorded higher output. India ranks no 1 in the
Table-1
Gross Value Added (GVA) By Food Processing Industries (FPI) at Constant 2011-12 Prices
Sl. No. Economic Activity 2011-12 2012-13 2013-14 (Rs. in Lakh Crore)
2014-15 2015-16
1 GVA -All India 81.07 85.47 90.84 97.27 104.27
2 GVA Manufacturing 14.10 14.95 15.80 16.67 18.22
15.84 16.04
3 GVA- Agriculture, Forestry And 15.02 15.24 15.88
Fishing
4 GVA-FPI* 1.47 1.33 1.35 1.43 1.53
(%) Growth
Economic Activity AAGR 2012-13 2013-14 2014-15 2015-16
7.08 7.19
5 GVA -All India 6.50 5.43 6.29 5.53 9.29
-0.25 1.25
6 GVA Manufacturing 6.63 6.05 5.65 5.78 6.71
7 GVA- Agriculture, Forestry And Fishing 1.67 1.50 4.19
8 GVA-FPI 1.18 -9.69 1.91
(%) Share in Total GVA
Economic Activity 2011-12 2012-13 2013-14 2014-15 2015-16
1.47 1.46
9 GVA -FPI 1.81 1.55 1.49 17.14 17.47
16.29 15.38
10 GVA Manufacturing 17.39 17.50 17.39
11 GVA- Agriculture, Forestry And Fishing 18.53 17.84 17.48
(%) Share of FPI
12 GVA Manufacturing 10.42 8.87 8.56 8.58 8.37
9.03 9.51
13 GVA- Agriculture, Forestry And Fishing 9.78 8.70 8.51
26
Source: National Account Statistics, 2016/ Central 2015-16 is same as the Percentage share of GVA from FPI
in total GVA of Food Products, Beverages and Tobacco for
Statistical Office 2014-15.
Note: All GVAs have been adjusted for Financial Information for 2012-13, 2013-14, 2014-15 & 2015-16
Intermediation Services Indirectly Measured (FISIM). may also be seen in terms of Index of Industrial Production
(IIP) which provides performance in production activity of
* Calculation of GVA-FPI for 2015-16 is based on the overall industry, manufacturing sector and food processing
assumption that the Percentage share of GVA from FPI in sector.
total GVA from Food Products, Beverages and Tobacco for
Table-2
Index of Industrial Production ( Base 2004-05=100)
2012-13 2013-14 2014-15 2015-16
FP Sector 2.9 -1.1 4.8 -6.1
All Industry 1.1 -0.1 2.8 2.4
Manufacturing 1.3 -0.8 2.3 2.0
Source: Index of Industrial Production (IIP), CSO
2.1.2 Key features of Registered Food Processing units. ASI data are released annually and the latest available
Industries: data is for 2013-14. For a few important characteristics,
top five industries (2-digit level of NIC) at all-India level
Annual survey of Industries (ASI) is the main source having major percentage shares in the estimated value of
of data on the number of units, employment, output and overall aggregate are mentioned in Table-3.
investment in fixed capital for Registered Food Processing
27
Table-3
Rank Index of Industrial Production ( Base 2004-05=100)
1
2 Total no. of No. of factories in Fixed Capital Employment Output Gross Value
3 factories operation Added(GVA)
Basic Metals
Food Products Food Products Basic Metals Food Products Coke & Refined
(15.74%) (16.23%) (13.24 %)
(22.76%) (11.69%) Petroleum Products
Other Non- Other Non-Metallic Coke & Refined
Metallic Mineral Mineral Products (17.00%) Petroleum
Products
Products (11.90%) Other Industries Textiles Basic Metals (10.75%)
(11.40%) (12.66%) (11.05%) (13.09 %) Chemicals
Textiles (08.30%) Fabricated & Chemical
metal products Textiles Wearing Food Products Products
(8.40%) Apparel (11.80%) (8.75%)
(7.37%) (7.23%) Basic
4 Fabricated metal Textiles Coke & Refined Basic Metals Chemicals & Pharmaceutical
products (7.41%) (7.21%) Petroleum (7.21%) Chemical Products Products &
Products (7.84%) Preparations
(8.14%) (6.79%)
5 Rubber & Plastic Rubber & Chemicals Other Non- Motor Vehicles, Food Products
Products (5.85%) Plastic Products & Chemical Metallic Trailers & (6.72%)
(5.63%) Mineral Semi Trailers
Products Products (6.05%) 106511164
Aggregate 224576 185690 (6.72%) (7.17%) 655525116
Total (all- 237371903 13538114
industries)*
(* Estimates of Fixed Capital, Output and GVA are in Rs. Lakh)
It is seen that food products industry, compared to and constitutes 13.72% of employment in the unregistered
other industries has the largest number of factories and manufacturing sector.
engages largest number of employees as well. Since with
respect to fixed capital the food products industry does not Table-4 is compiled from ASI 2013-14 for 18 sub-
figure in top five, it shows that this sector is highly labour sectors of food processing industry. In this industry, on an
intensive per unit of capital. Despite low capital intensity, average, the fixed capital per registered factory is Rs. 4.50
the output and gross value added of food products are not crore indicating that most of the factories in this sector are
compromised as these are third and fifth largest among micro and small enterprises under the definition of Micro,
all industries. Thus every unit of capital invested in food Small and Medium Enterprises Development (MSMED)
products industry employs largest number of persons as Act, 2006. However variation in fixed capital per registered
compared to other industries while generating almost factory is as high Rs. 60.37 crore in case of sugar mills
as high the output and value addition levels as in other and Rs. 39.92 crore for in malt liquors and malt industry
industries. In 2013-14, it constituted 11.69 per cent of and as low as Rs. 0.98 crore in grain mill products industry
employment generated in all Registered Factory sector. and about Rs. 3 crore in bakery products and other food
Unregistered food processing sector supports employment products inclusive of tea, coffee, edible nuts, infant food,
to 47.9 lakh worker as per the NSSO 67th Round, 2010-11 papad, spices etc.
28
Table-4
Items No. of No. of persons Total Fixed GVA FC per GVA% EMP
Output Capital 2906.77
Factories engaged (FC) Factory per
Crore
(4 digit NIC, 2008) (Rs. in Crore)
11.81% 11.14
1010 Processing and Preserving of 148 25607 27519.72 2298.15 15.53
meat 466 44178 27061.27 2460.08
1020 Processing and preserving of 1101 58331 1931.82 5.28 7.69% 17.96
fish, crustaceans and molluscs 3300 107623
and products thereof 1753 145601
18272 296548
1030 Processing and preserving of 744 23111 13893.02 6571.28 3014.61 5.97 27.71% 8.88
fruit and vegetables 1498 96561
791 247953
1040 Manufacture of vegetable and 505 37469 157001.21 14056.09 7014.74 4.26 4.68% 7.66
animal oils and fats
105 9948
1050 Manufacture of dairy 110656.2 12038.69 10068.43 6.87 10.01% 12.09
products 298 18153
5546 426659
1061 Manufacture of grain mill 820 44786 175746.19 17951.34 13940.95 0.98 8.62% 16.52
products 369 54226
1062 Manufacture of starches and 71 7859 10336.28 3643.66 1329.19 4.90 14.76% 6.34
starch products 143 28302
1520 68120
1071 Manufacture of bakery 20483.66 4963.47 4518.26 3.31 28.30% 19.45
products 37175 1689176
1072 Manufacture of sugar 85883.92 47754.93 8880.14 60.37 11.53% 5.19
14750.22 5841.66 2772.46 11.57 23.15% 6.41
1073 Manufacture of cocoa,
chocolate and sugar
confectionery
1074 Manufacture of macaroni, 3973.34 1496.97 824.80 14.26 26.20% 6.65
noodles, couscous and similar
farinaceous products
1075 Manufacture of prepared 2764.67 932.96 666.18 3.13 31.75% 19.46
meals and dishes 86271.45 17546.18
37166.19 4092.78
1079 Manufacture of other food 24853.94 10077.54 10135.16 3.16 13.31% 24.32
products n.e.c.
1080 Manufacture of prepared 3534.33 4.99 10.51% 10.94
animal feeds
1101 Distilling, rectifying and 5474.26 27.31 28.25% 5.38
blending of spirits; ethyl
alcohol production from
fermented materials
1102 Manufacture of wines 2947.07 738.02 591.29 10.39 25.10% 10.65
11740.35 5708.84 3117.34 39.92 36.15% 4.96
1103 Manufacture of malt liquors
and malt
1104 Manufacture of soft drinks; 21548.16 10228.07 5231.12 6.73 32.06% 6.66
production of mineral waters
and other bottled waters
Total 834596.9 168400.7 85951.85 4.50 11.48% 10.03
29
Gross Value Added (GVA) in percentage terms on thus needs to be increased so that the bulk of the persons
average stands at 11.48% but with significant variation employed in the food processing industries earn higher
across sub-sectors. Some of the sub-sectors with high remuneration as well. Manufacture of prepared meals and
GVA% are Malt Liquors and Malt at 36.15%; Manufacture dishes sub-sector can set the benchmark where employment
of soft drinks; production of mineral waters and other generation is as high as 19.46 persons per Rs. 1 crore of
bottled waters at 32.06%, Manufacture of prepared meals investment but GVA% is also high enough at 31.75%.
and dishes at 31.75%; Manufacture of bakery products Sub-sectors with higher employee per unit of investment
at 28.30% and Macaroni, Noodles, couscous and similar but low GVA% require their staff to be trained to increase
farinaceous products are at 26.20%. Cocoa, Chocolate and productivity which together with technological infusion
Sugar Confectionary at 23.15% and Fruits and Vegetables would increase value addition.
at 27.71% also display high GVA% level. What brings
the average down to its present level, is the low GVA% Employment in Food Processing Sector
of 4.68% in case of Vegetable and Animal Oils and Fats
products, 10.01% in case of Dairy Products and about Food Processing Industry is one of the major employment
8.62% in respect of Grain Mill, and 7.69% in respect of Fish intensive segments constituting 11.69 per cent of
crustaceans and molluscs and products thereof. Process employment generated in all Registered Factory sector in
and product innovation driven by technological infusion is 2013-14 followed by Textile and Wearing Apparel sector.
required to increase value addition in low value added sub- According to the latest Annual Survey of Industries (ASI)
sectors. for 2013-14, the total number of persons engaged in
registered food processing sector was 17.41 lakhs. During
The number of persons employed per Rs.1 crore of the last 5 years ending 2013-14, employment in registered
investment is 10.03 for the entire food processing industry. food processing sector has been increasing at an Average
Employment generation is higher than the average in the Annual Growth Rate of 2.25 per cent. Unregistered food
Meat sub-sector at 11.14, Fish at 17.96, Dairy 12.09 and processing sector supports employment to 47.9 lakh
Grain Mill products at 16.52. These very sub-sectors show workers as per the NSSO 67th Round, 2010-11. The overall
low levels of GVA% as well. GVA% in these sub-sectors scenario of employment in food processing sector is given
below:
Table-5
Employment in Food Processing Industry
Sector Food Processing* Overall (%) Share of
sector Industry FP sector
Registered# (2013-14) 17.41 lakh 135.38 lakh 12.8
Un-incorporated@(2010-11) 47.92 lakh 348.88 lakh 13.72
*: Includes food products and beverages segments ;#: Factory Registered under sections 2m(i) and 2m(ii) Factory Act 1948;
@:Source: NSSO Report No. 549(67/2.34/2) on Economic Characteristics of Unincorporated Non-agricultural Enterprises
(Excluding Construction) in India; NSS 67th Round (July 2010-June 2011)
Table-6
Number of persons engaged in registered food processing units during 2009-10 to 2013-14
Year 2009-10 2010-11 2011-12 2012-13 2013-14 AAGR*
Persons (in lakh) 16.06 16.62 17.77 16.89 17.41 -
Growth (%) 2.71 3.46 6.92 -4.94 3.08 2.25
Source: Annual Survey of Industries, MOSPI; AAGR; *: Average Annual Growth Rate for 5 years.
30
Fixed Capital in Food Processing Industries 15.92 per cent during five years ending 2013-14. As per the
latest, ASI 2013-14, the Fixed Capital in FP Industry stood
In terms of investment in fixed capital, registered food at Rs. 1,68,380 crore.
processing sector is growing annually at an average of
Table-7
Fixed Capital * in Food Processing Industries (Rs. Crore)
Year 2009-10 2010-11 2011-12 2012-13 2013-14 AAGR#
Fixed Capital 99,482 1,20,705 1,45,038 1,58,865 1,68,380
Growth Rate 22.58 21.33 20.16 9.53 5.99 15.92
Source: Annual Survey of Industries, MOSPI * Fixed capital: Depreciated value of Fixed Assets owned by factory.
#: Average Annual Growth Rate of 5 years.
31
2.1.3 Food Processing in Unincorporated Sector: NSS 67th round ( July 2010- June 2011) gives an extensive
information on Employment, Number of Enterprises,
The unincorporated non agriculture enterprise Market value of Fixed Assets, GVA and other important
surveys conducted by NSSO are the primary source of economic parameters on unincorporated non agriculture
data on various indicators of economic and operational enterprises.
characteristics of unincorporated non agriculture
enterprises in manufacturing, trade and other service sectors The following table gives an overview of unincorporated
(excluding construction) at national and state levels. The non agriculture enterprises in Food Processing Industries
Sector:
Table-8
Principal Characteristics
Working Enterprises* Number 22,41,192
Market value of Fixed Assets Rs. crore 60,752.09
GVA Rs. crore 22,054.36
Employment Number 47,92,562
*The survey mainly focused on proprietary and partnership enterprises.
Source: NSSO Report No. 549(67/2.34/2) on Economic Characteristics of Unincorporated Non-agricultural Enterprises
(Excluding Construction) in India; NSS 67th Round (July 2010-June 2011)
2.1.4 State wise distribution of registered factories in industry, highest number of registered factories are located
food processing sector: in ‘Andhra Pradesh’, which accounts for about 15.33%
of the total registered factories in FPI sector industries
As per latest Annual Survey of Industries 2013- followed by ‘Tamil Nadu’ (13.90%), Telangana (10.28%),
14, the total number of factories in the registered food Maharashtra (8.12%) and Punjab (7.44%). State-wise
processing sector in the country was 37,445. Among the distribution of registered FPI is given below:
Table-9
State-wise estimated Number of Factories in Food Processing Sector for 2013-14
S. No. Name of the State/UTs Number of registered units
1 Andhra Pradesh 5,739
2 Andaman & Nicobar Islands 5
3
4 Assam 1,294
5 Bihar 794
6 Chandigarh (U.T.) 19
7 Chhattisgarh 1,049
8 Dadra & Nagar Haveli 3
9 Daman & Diu 31
Delhi 166
32
10 Goa 86
11 Gujarat 1,904
12 Haryana 631
13 Himachal Pradesh 172
14 Jammu & Kashmir 144
15 Jharkhand 198
16 Karnataka 2,033
17 Kerala 1,460
18 Madhya Pradesh 672
19 Maharashtra 3,040
20 Manipur
21 Meghalaya 21
22 Nagaland 18
23 Odisha 15
24 Pudducherry 932
25 Punjab 69
26 Rajasthan 2,786
27 Sikkim 862
28 Tamil Nadu 21
29 Telangana 5,204
30 Tripura 3,850
31 Uttar Pradesh 71
32 Uttarakhand 2,037
33 West Bengal 380
1,739
Total 37,445
Source: Annual Survey of Industries, 2013-14
2.2 STAGES OF PROCESSING OF FOOD: this Ministry includes the entire sector. Food processing
includes (a) Manufactured Processes: If any raw product
The Ministry of Food Processing Industries does not of agriculture, animal husbandry or fishing is transformed
deal with a few food items such as coffee, tea, oilseeds, sugar, through a process [involving employees, power, machines
spices and alcohol made from molasses, as these items fall or money] in such a way that its original physical properties
within the purview of other Ministries under the Allocation undergo a change and if the transformed product is edible
of Business Rules for Central Ministries. Nevertheless, since and has commercial value, then it comes within the domain
food processing industries include all edible processed food of Food Processing Industries. (b) Other Value-Added
from the economic activity point of view, data analyzed by Processes: If there is significant value addition (increased
33
shelf life, shelled and ready for consumption etc.) such fish into a commodity that is fit for human consumption.
produce also comes under food processing, even if it does It involves steps such as cleaning, grading, sorting,
not undergo manufacturing processes. packing etc. Food Processing Industries usually deal with
higher levels of processing where new or higher value
From an analytical perspective, food processing food products are manufactured. The different stages of
can be viewed as different levels of processing – primary, processing of food, are as depicted in the following flow
secondary and tertiary. Primary Processing relates to chart:
conversion of raw agricultural produce, milk, meat and
2.3 RAW MATERIAL BASE OF THE FOOD as compared to 3.09 per cent in production of food grain
PROCESSING INDUSTRY: in the country. India is now leading in the production
of agricultural and live-stock produce as shown in the
In the 5 years ending 2014-15, the horticulture following table:
sector has shown an average growth rate of 4.94 per cent
Table-10
India’s Rank* in World production of Agricultural & food products 2014
S. No. Item Name Rank India World (in Tonnes)
1 Anise, badian, fennel, coriander 1 584000 970404 (%) Share
2 Areca nuts 1 622000 1103972
3 Bananas 1 29724550 114130151 60.18
4 Chick peas 1 9880000 13730998 56.34
5 Chillies and peppers, dry 1 1492000 3818768 26.04
6 Ginger 1 655000 2156453 71.95
7 Lemons and limes 1 2835020 16254214 39.07
8 Mangoes, mangosteens, guavas 1 18431330 45225211 30.37
9 Millet 1 11420000 28384668 17.44
10 Okra 1 6346370 9623718 40.75
11 Papayas 1 5639300 12671038 40.23
12 Pigeon peas 1 3290000 4890099 65.95
13 Meat, buffalo 1 1615093 3724045 44.51
14 Milk, whole fresh buffalo 1 74709900 114015334 67.28
43.37
65.53
34
15 Milk, whole fresh goat 1 5180180 18340016 28.25
16 Ghee, butteroil of cow milk 1 137550 240558 57.18
17 Ghee, of buffalo milk 1 2863000 3605209 79.41
18 Beans, dry 2 4110000 15.49
19 Cabbages and other brassicas 2 9039220 26529580 12.59
20 Cashew nuts, with shell 2 753000 71778764 20.28
21 Castor oil seed 2 1733000 3713467 88.80
22 Cauliflowers and broccoli 2 8573280 1951509 35.46
23 Eggplants (aubergines) 2 13557820 24175040 27.01
24 Garlic 2 1252000 50193117 5.02
25 Groundnuts, with shell 2 6557000 24939965 14.93
26 Lentils 2 1100000 43915365 22.79
27 Onions, dry 2 19401680 4827122 21.93
28 Peas, green 2 3868630 88475089 22.20
29 Potatoes 2 46395000 17426421 12.16
30 Pumpkins, squash and gourds 2 4987123 381682144 19.79
31 Rice, paddy 2 157200000 25196723 21.20
32 Sesame seed 2 811000 741477711 13.01
33 Sugarcane 2 352142000 6235530 18.69
34 Tea 2 1207310 1884246253 21.71
35 Tomatoes 2 18735910 5561339 10.97
36 Wheat 2 95850000 170750767 13.15
37 Meat, goat 2 505064 729012175 9.14
38 Milk, whole fresh cow 2 66423450 5524075 10.13
39 Coconuts 3 11078873 655957920 18.31
40 Lettuce and chicory 3 1097102 60511756 4.39
41 Nutmeg, mace and cardamoms 3 21000 24976318 19.75
42 Oranges 3 7317610 10.33
43 Pepper (piper spp.) 3 51000 106339 11.02
70856360
35
462955
44 Rapeseed 3 7877000 73800809 10.67
45 Safflower seed 3 113000 733852 15.40
*: Ranks are based on the quantity. Source: FAOSTAT website accessed on 06/01/2017.
2.4 Export of Food Processing related Commoditie
The following table indicates the export volumes of Food Processing Sector:
Table-11
Year -------> 2011-12 2012-13 2013-14 2014-15 2015-16 (US $ Million)
(Apr-March) 2016-17 AAGR*
29672.37 ( Apr-Sep)
FPI-Exports 31459.58 35898.06 38051.43 36171.92 -17.97% 14483.06 -0.70
Growth (%) 14.11% 6.00% -4.94%
____
*: Average Annual Growth Rate for 4 years ending 2015-16; Source: DGCI&S.
• During 2015, India’s Share in world exports of processed food products was about 2.36 per cent. [Source: TRADE
MAP]
Table-12
Major item-wise export& Import of processed food & beverages products ( USD Million)
Export Import
Sr. No. Product Label 2015-16 2016-17 2015-16 2016-17
( April- Sept) ( April- Sept)
1. MEAT AND EDIBLE MEAT OFFAL. 4209.98 1916.35 1.95 1.37
2630.71 67.18 25.59
2. FISH AND CRUSTACEANS, MOLLUSCS AND 4486.28
OTHER AQUATIC INVERTABRATES. 133.94 51.82 19.39
3. DAIRY PRODUCE; BIRDS' EGGS; NATURAL 328.48
HONEY; EDIBLE PROD. OF ANIMAL ORIGIN,
NOT ELSEWHERE SPEC. OR INCLUDED.
4. EDIBLE VEGETABLES AND CERTAIN ROOTS 1261.4 576.31 4022.31 1596.6
AND TUBERS. 698.87 3051.09 1543.72
5. EDIBLE FRUIT AND NUTS; PEEL OR CITRUS 1584.68
FRUIT OR MELONS.
36
6. COFFEE, TEA, MATE AND SPICES. 2954.87 1572.48 771.95 357.67
3059.25 188.59 139.82
7. CEREALS. 6272.02 115.48 56.93
29.6
8. PRODUCTS OF THE MILLING INDUSTRY; 299.47 762.79 328.72
MALT; STARCHES; INULIN; WHEAT GLUTEN. 194.93
9. OIL SEEDS AND OLEA. FRUITS; MISC. 1673.53
GRAINS, SEEDS AND FRUIT; INDUSTRIAL OR
MEDICINAL PLANTS; STRAW AND FODDER.
10. LAC; GUMS, RESINS AND OTHER VEGETABLE 868.99 366.13 203.37 108.74
SAPS AND EXTRACTS.
11. ANIMAL OR VEGETABLE FATS AND OILS AND 877.27 407.95 10530.35 5280.61
THEIR CLEAVAGE PRODUCTS; PRE. EDIBLE
FATS; ANIMAL OR VEGETABLE WAXEX.
12. PREPARATIONS OF MEAT, OF FISH OR OF 211.97 148.44 2.85 1.43
CRUSTACEANS, MOLLUSCS OR OTHER
AQUATIC INVERTEBRATES
13. SUGARS AND SUGAR CONFECTIONERY. 1763.61 736.51 692.56 324.18
88.4 212.96 103.01
14. COCOA AND COCOA PREPARATIONS. 193.31 59.23 26.49
260.84
15. PREPARATIONS OF CEREALS, FLOUR, STARCH 506.24
OR MILK; PASTRYCOOKS PRODUCTS.
16. PREPARATIONS OF VEGETABLES, FRUIT, NUTS 488.25 226.99 78.45 39.45
OR OTHER PARTS OF PLANTS.
17. MISCELLANEOUS EDIBLE PREPARATIONS. 568.83 301.16 137.37 72.97
18. BEVERAGES, SPIRITS AND VINEGAR. 320.51 150.66 559.58 334.6
19. RESIDUES AND WASTE FROM THE FOOD 802.68 329.8 382.28 268.34
INDUSTRIES; PREPARED ANIMAL FODER.
Total 29672.37 14483.06 21399.54 10468.7
Source: DGCI&S, 2016
2.5 FOREIGN DIRECT INVESTMENT (FDI) IN for trading, including through e-commerce in
FOOD PROCESSING SECTOR: respect of food products manufactured and/or
produced in India.
a. 100% FDI is permitted under the automatic
route in food processing industries. Foreign Direct Investment (FDI) equity inflows in Food
Processing sector in the country during last 6 years and
b. 100% FDI is allowed through approval route current year is as under:
37
Table-13 FDI (US $ Million)
S. No. Year (April- March) 188.67
1 2010-11 170.21
2 2011-12 401.46
3 2012-13 3,982.89
4 2013-14 515.86
5 2014-15 505.88
6 2015-16 500.77
7. 2016-17
( April –September)
Source: Department of Industrial Policy and Promotion (DIPP)
2.6 Losses in Supply Chain of Agri-Produce produces in 106 randomly selected districts was carried
out by CIPHET, Ludhiana. The aforesaid study considers
Study by CIPHET, Ludhiana on the extent of the quantitative loss as the material rendered “unfit for
harvest and post-harvest losses of major agricultural human consumption”. The different stages considered for
produces-2010: assessment of losses are harvesting, collection, thrashing,
grading /sorting, winnowing /cleaning, drying, packaging,
Despite the large production of food products in India, food transportation, and storage depending upon the commodity.
inflation and food security issues are major concerns for
policy makers in the country as they affect the basic need for The report of the study was released in 2010. The study
Indian citizens – to have sufficient, healthy and affordable has estimated that harvest and post-harvest losses of major
food. A nation-wide study on quantitative assessment agricultural produces at national level was of the order of
of harvest and post-harvest losses for 46 agricultural Rs. 44,143 crore per annum at 2008-2009 wholesale prices.
Percentage of losses estimated for major produces
Crop Cumulative wastage (%)
Cereals 3.9 – 6.0
Pulses 4.3-6.1
Oil seeds 2.8-10.1
Fruits & Vegetables 5.8-18.0
Milk 0.8
Fisheries (Inland) 6.9
Fisheries (Marine) 2.9
Meat 2.3
Poultry 3.7
38
The following horticultural and cereal crops were reported to suffer high Losses:
Horticultural Crops Cereal Crops (2009-10)
Guava 18.0 % Wheat 6.0 %
Mango 12.7 % Paddy 5.2 %
Apple 12.3 % Bajra 4.8 %
Grapes 8.3 % Maize 4.1 %
Papaya 7.4 %
Banana 6.6 %
It may be seen that most of the wastage was happening in • The Report on the repeat study was submitted in
fruits and vegetables, pulses and cereals. March, 2015. The study has estimated that annual
value of harvest and post-harvest losses of major
Repeat Study by CIPHET, Ludhiana on the extent of agricultural produces at national level was of the
harvest and post-harvest losses of major agricultural order of Rs. 92,651 crore calculated using production
produces-2015: data of 2012-13 at 2014 wholesale prices.
• The Ministry of Food Processing Industries Percentage of losses estimated for major produces
assigned a repeat study to CIPHET, Ludhiana for
45 agricultural crops of 107 districts to assess the
position.
Crops Cumulative wastage (%)(2012-13)
4.65 - 5.99
Cereals 6.36 - 8.41
Pulses 3.08 - 9.96
Oil seeds 4.58 -15.88
Fruits & Vegetables 0.92
Milk 5.23
Fisheries (Inland) 10.52
Fisheries (Marine) 2.71
Meat 6.74
Poultry
39
The following horticultural and cereal crops have been reported to suffer high losses:
Horticultural crops Cereal crops (2012-13)
Guava 15.88% Paddy 5.53%
Apple 10.39% Bajra 5.23%
Mango 9.16% Wheat 4.93%
Grapes 8.63% Maize 4.65%
Banana 7.76%
Papaya 6.70%
In case of cereals, majority of losses occur at farm level of this wastage can be reduced thus providing remunerative
during harvesting, collection and threshing. Storage losses price to the producer as well as ensuring greater supply to
are only 0.75 – 1.21 percent. In case of fruits also, there are the consumer.
high losses in farm level operations.
Comparative Harvest and Post-Harvest losses of major
It may be seen that most of the wastage is happening in fruits crops and commodities in India as per Study Reports of
and vegetables. With adequate processing facilities, much CIPHET released in 2010 and 2015.
Percentage of losses estimated for major produces
Crops Cumulative wastage (percent)
Horticultural Crops as per report 2010 as per report 2015
Cereals 3.9 – 6.0 4.65 - 5.99
Pulses 4.3 – 6.1 6.36 - 8.41
Oil seeds 2.8 – 10.1 3.08 - 9.96
5.8 – 18.0 4.58 - 15.88
Fruits & Vegetables 0.8 0.92
Milk 6.9 5.23
2.9 10.52
Fisheries (Inland) 2.3 2.71
Fisheries (Marine) 3.7 6.74
Meat
Poultry
40
Horticultural and Cereal crops reported to suffer high losses
Horticultural Crops As per report 2010 As per report 2015
Guava 18.04% 15.88%
Mango 12.74% 9.16%
Apple 12.26% 10.39%
Grapes 8.30% 8.63%
Papaya 7.34% 6.70%
Banana 6.60% 7.76%
Cereal Crops As per report 2010 As per report 2015
Wheat 5.93% 4.93%
Paddy 5.19% 5.53%
Bajra 4.80% 5.23%
Maize 4.10% 4.65%
2.7 FOOD PROCESSING SECTOR – MAJOR CHALLENGES:
The major challenges facing the sector are illustrated below:-
41
These constraints are sought to be addressed under the schemes being implemented by the Ministry, as indicated in subsequent
chapters.
2.8 FOOD PROCESSING SECTOR– GROWTH POTENTIAL:
The above illustration indicates the various factors which It is essential to build sustainable supply chains,
are likely to increase the demand for processed food which will link the farmer to the processing and marketing
in coming years. Programmes to increase the output of centers seamlessly. In the absence of on–farm cooling and
Indian agriculture without corresponding investments in grading arrangements and slow development of cold chain
processing facilities is likely to lead to a mismatch resulting infrastructure, the farmer is compelled to sell his produce to
in rural distress and decline in farmers’ income. The most the ‘Adathiya (Broker)’ without waiting for a better price. If
important step for improving the bargaining capacity of the the farmer is enabled to grade and store his produce close to
farmer is to add value to his produce. This will come about farm, the farmer will be empowered to demand and obtain
if farmers are able to produce according to the requirements a better price from the processors and also add value to his
and standards demanded by the market. Food processors produce.
and the retailers can provide the necessary demand for
the agricultural produce and facilitate the flow of market Considerable investments are required in rural
information, technology and inputs to the farmer so that infrastructure and components of the supply chain by way
he can tailor his output to the needs of the market. In the of grading and packing centers, controlled atmosphere,
process the farmers will be able to raise their own level of storage facilities, reefer vans, testing laboratories, etc.,
income and employment. The consumer is also likely to which may not come from private sources at this stage of the
benefit as there will be an increase in the supply of food development of the food processing industry. It is therefore
products with a longer shelf life. essential that public investment is significantly increased
to fund these components of rural infrastructure to enable
42
private enterprise to take up the remaining components of Government has also declared investment in Food
the supply chain which can be undertaken commercially. Parks covered under the Harmonized List of Infrastructure
This is borne out by the experience of developed countries Sub-sectors (HLIS)” vide Government of India Notification
where the state has stepped in to build rural infrastructure dated 13th October 2014. Accordingly, Mega Food Parks
in a big way. Carefully calibrated subsidies, exploring will be able to access to infrastructure lending on easier
innovative strategies, empowering rural producers & terms.
consumers through better awareness and support to
entrepreneurs in terms of technology and training are some In the context of “MAKE IN INDIA” campaign,
of the ways in which this Ministry has catalyzed growth in the Ministry has been disseminating information to
this sector. potential investors to attract investment to the sector
through a dedicated “Investors Portal” in which a range
2.9 “MAKE IN INDIA” Programme of information like resource base, availability of land,
state specific policies, fiscal incentives are shared with
Food processing sector has been identified as one of the potential investors. The Ministry is also collaborating
the priority sector under “MAKE IN INDIA” an initiative with Invest India to help the investors in terms of locating
of Hon’ble Prime Minister of India. With a view to attract joint venture partners, extending hand holding services,
investment to this sector, Ministry of Food Processing expedite regulatory approvals and provide investors after
Industries has been implementing schemes for development care services. The investor can also put their query in
of infrastructure for promoting food processing industries. the Investors portal which is promptly attended to by the
Mega Food Parks with common utility like road, electricity, Ministry for guiding the investors.
water supply, sewage facility and common processing
facility like pulping, packaging, cold storage, dry storage Ministry is also organising Road Shows to attract
and logistics are being promoted in areas with strong FDI including FDI in retail and promote Make in India
agricultural resource base. These parks provide fully Initiative.
developed plots and factory sheds to entrepreneurs on long
term lease basis where they can set up food processing units Ministry is also planning to hold mega International
in “plug & play model”. food processing exihibition–World Food India in November,
2017 to attract FDI and promote Make in India.
43
44
45
Chapter-3
RECENT INITIATIVES
3. PROMOTING INVESTMENT IN FOOD for skill development of rural youths under
PROCESSING SECTOR: Swarnajayanti Gram Swarojgar Yojana (SGSY)
of Ministry of Rural Development.
Keeping in view the role of food processing sector
in terms of its contribution to employment, reduction • Putting in place a network of food testing labs
in wastages and ensuring higher returns to farmers, (Government/Private) by providing incentives.
Government has been promoting private investment through
a number of interventions. The recent initiatives taken by • Encouragement for larger participation in Codex
the Government are given in the following paragraphs. deliberations and setting up/strengthening
of Codex cell in Food Safety and Standards
3.1 LONG TERM STRATEGIES Authority of India (FSSAI) to promote,
coordinate and monitor related initiatives at the
3.1.1 The XII Plan document recognized the importance of level of stakeholders.
the food processing sector. Some of the key strategies
set out in the document are as follows:- • Setting up of an Innovation Fund and Venture
Capital Fund for Food Processing to promote
• Setting up of National Mission on Food innovations and technology development.
Processing to improve coordination and
implementation of schemes and to enable 3.2 FISCAL INCENTIVES FOR GROWTH OF
greater involvement of State Governments. FOOD PROCESSING SECTOR
• Expanding existing infrastructure development From time to time, Government of India has
schemes - Mega Food Parks Scheme and announced a number of fiscal incentives for promoting
Integrated Cold Chain Scheme. investment in food processing sector. The main objective
of these concessions is to encourage level of processing of
• Modernization of Abattoirs - Establishment of agricultural and related products so that wastages, which are
new abattoirs and modernization of existing currently very high particularly in perishable products such
abattoirs. as fruits & vegetables, milk, fish and meat is minimized.
The major incentives given by the Government are as
• Development and strengthening of existing and under:-
new institutions.
Fiscal Incentives provided by the Government to
• Taking up a nation-wide skill development Food Processing Sector
programme along the lines of special projects
Income Tax
Items Provisions
Business of processing, preservation and packaging of fruits The amount of deduction shall be of hundred percent
or vegetables or meat and meat products or poultry or marine of the profits and gains derived from such industrial
or dairy products or from the integrated business of handling, undertaking for five assessment years beginning with
storage and transportation of food grains. the initial assessment year and thereafter, twenty-five per
cent (or thirty percent where the assesses is a company)
of the profits and gains derived from the operation of such
facility in a manner that the total
46
period of deduction does not exceed ten consecutive
assessment years and subject to fulfilment of the condition
that it begins to operate such business on or after the Ist
day of April, 2001 (Provided that the provisions of this
section shall not apply to an undertaking engaged in
the business of processing, preservation and packaging
of meat or meat products or poultry or marine or dairy
products if it begins to operate such business before
the 1st day of April, 2009)[section 80-IB, 11(A) of the
Income Tax Act, 1961] (The benefit would be available
for the unit set up before 1st April, 2017)
Setting up and operating a cold chain facility; and setting up Deduction to the extent of 100% is allowed for expenditure
and operating warehousing facility for storage of agricultural incurred on investment Under Section 35-AD of the
produce. (not available for expansion of the unit) Income tax Act 1961. (With effect from 1st April, 2017;
currently @ 150%)
Bee – keeping and production of honey and beeswax, Setting Business allowed 100% deduction under section 35-AD
up and operating a warehousing facility for storage of sugar of the Income Tax Act 1961, deduction for expenditure
incurred on investment is allowed if this investment is
wholly and exclusively for the purpose.
Excise Duty
Items Provisions
Milk, milk products, vegetables, nuts and fruits Nil (Chapter 4,7,8 of CE)
Processed fruits and vegetables Rate of 2% without CENVAT or 6% with CENVAT.
Refrigeration machineries and parts used for installation Nil (No.12/2012-CE,17th March, 2012)
of cold storage, cold room or refrigerated vehicle, for the
preservation, storage, transport or processing of agricultural,
apiary, horticultural, dairy, poultry, aquatic and marine produce
and meat
Pasteurizing, dying, evaporating, etc machinery used in dairy Nil(No.12/2012-CE,17th March,2012)
sector
Machinery for the preparation of meat, poultry, fruits, nuts Reduced to 6% in Budget 2014-15 (No. 12/2014-Central
or vegetables and on presses, crushers and similar machinery Excise, Dated: 11th July, 2014)
used in the manufacture of wine, cider, fruit juices or similar
beverages and packing machinery
Soya Milk Drinks, Flavoured Milk of Animal origin Duty of 2% without CENVAT or 6% with CENVAT.
Parts of machineries for the preparation of meat or poultry, 6% (No. 12/2014-Central Excise, Para xviii, Dated: 11th
fruits, nuts or vegetables. July, 2014)
Refrigerated containers 6% (12/2016- Central Excise, Para xx, Dated: 1st March,
2016)
Capital goods and spares thereof, raw materials, parts & NIL (12/2016- Central Excise, Para 23, Dated: 1st March,
material handling equipments for cargo vessel of various kinds 2016)
including refrigerator vessels for the transport of meat, fruit or
the like.
47
Floating factories of all kinds (for processing whales, NIL (12/2016- Central Excise, Para 23, Dated: 1st March,
preserving fish or the like), whale catchers. 2016)
Trawlers and other fishing vessels. NIL (12/2016- Central Excise, Para 23, Dated: 1st March,
2016)
Customs Duty
Items Provisions
All goods related to Food Processing, imported as part of the Irrespective of their tariff classification, are entitled to
project, uniform assessment at concessional basic customs duty
of 5%.( Ref. Notification No. 12/2012 dated 17.3.2012)
Hazelnuts 10% (Ref. Notification No. 12/2013-Customs dated
1.3.2013).
De-hulled Oat grains 15% (Ref. Notification No. 12/2013-Customs dated
1.3.2013)
Cold Chain including pre-cooling unit, pack houses, sorting Concessional 5% Basic Customs Duty (BCD) as presently
and grading lines and ripening chambers. available under project imports for cold storage, cold room
to be also extended (Notification No. 21/2016-Customs,
dated 1st March, 2016)
Refrigerated Container 5% (Notification No. 12/2016-Customs, dated 1st March,
2016)
Service tax
Items Provisions
Services of pre-conditioning, pre-cooling, ripening, waxing, Full Exemption (Ref. Service Tax notification No.
retail packing, labelling of fruits and vegetables 25/2012- Service Tax dated 20th June 2012 as amended
by Notification 3/2013 dated 1st March 2013 and 6/2015
dated 1st March 2015 issued under Section 93 Chapter v
of the Finance Act, 1994- Power to grant exemption from
service tax.)
Construction, erection, commissioning or installation of Full Exemption (Ref. Service Tax notification No.
original works pertaining to post-harvest storage infrastructure 25/2012- Service Tax dated 20th June 2012 as amended
for agricultural produce including cold storages for such by Notification 3/2013 dated 1st March 2013 and 6/2015
purposes dated 1st March 2015 issued under Section 93 Chapter v
of the Finance Act, 1994- Power to grant exemption from
service tax.)
Service including processes out at an agricultural farm Full Exemption Under Section (Ref. Section 66 D(d) (iii)
including tending, pruning , cutting, harvesting , drying, Chapter v of the Finance Act, 1994
cleaning, trimming , sun drying, fumigating, curing, sorting,
grading, cooling or bulk packaging and such like operations
which do not alter the essential characteristics of agricultural
produce but make it only marketable
48
Mechanized Food grain handling system, machinery or Full exemption (Ref. Service Tax notification No.
equipment for units processing agricultural produce as food 25/2012- Service Tax dated 20th June 2012 as amended
stuff excluding alcoholic beverages; by Notification 3/2013 dated 1st March 2013 and 6/2015
dated 1st March 2015 issued under Section 93 Chapter v
of the Finance Act, 1994- Power to grant exemption from
service tax.)
Service of Loading, unloading, packing, storage or warehousing Full exemption (Ref. Service Tax notification No.
of agricultural produce. 25/2012- Service Tax dated 20th June 2012 as amended
by Notification 3/2013 dated 1st March 2013 and 6/2015
dated 1st March 2015 issued under Section 93 Chapter v
of the Finance Act, 1994- Power to grant exemption from
service tax.)
Service by way of transportation by rail of agricultural produce Full exemption (Ref. Service Tax notification No.
25/2012- Service Tax dated 20th June 2012 as amended
by Notification 3/2013 dated 1st March 2013 and 6/2015
dated 1st March 2015 issued under Section 93 Chapter v
of the Finance Act, 1994- Power to grant exemption from
service tax.)
Service by way of transportation by rail or a vessel and by a Full exemption (Ref. Service Tax notification No.
goods transport agency used for transportation of milk, food 25/2012- Service Tax dated 20th June 2012 as amended
grain including flours, pulses and rice by Notification 3/2013 dated 1st March 2013 and 6/2015
dated 1st March 2015 issued under Section 93 Chapter v
of the Finance Act, 1994- Power to grant exemption from
service tax.)
Services provided by National Centre for Cold Chain NIL
development under Department of Agriculture, Cooperation
and Farmers Welfare, Government of India by way of
knowledge dissemination
Services provided by a goods transport agency, by way of NIL (3/2013- Service Tax, Para (1 -V) Dated: 1st March,
transport in a goods carriage of agricultural produce, foodstuff 2013)
including flours, tea, coffee, jaggery, sugar, milk, products, salt
and edible oil, excluding alcoholic beverages.
Credit Facilities
Items Provisions
Food & agro-based processing units and Cold Chain Classified under Agriculture activities for Priority Sector
Lending (PSL) as per the revised RBI Guidelines issued
on 23/04/2015.
Capital investment in the creation of modern storage Eligible for Viability Gap Funding scheme of the
capacity and Cold Chain Finance Ministry
Cold chain and post-harvest storage Recognized as an infrastructure sub-sector(DEA
&RBI)
Food parks Recognized as Infra sub Sector(DEA)
49
3.3. Availability of Affordable Credit detailed project report to the regional offices of NABARD
located in the States where project is to be set up. The rate
A special fund of Rs.2000 crore has been set up in of interest charged is linked to Prime Lending Rate (PLR)
National Bank for Agriculture and Rural Development to NABARD and the risk rating undertaken by NABARD
(NABARD) to provide credit at affordable rates to boost for the borrowing entity. The details of the scheme can
food processing sector. Under this fund, loan is extended to be viewed at NABARD website https://www.nabard.org/
individual entrepreneurs, cooperatives, farmers producers foodprocessing.pdf
organizations, corporate, joint venture, SPV and entities
promoted by the Government for setting up, modernization, The Ministry has notified 157 designated food
expansion of food processing units and development of parks in different states for the purpose of availing affordable
infrastructure in designated food parks. Loans are extended credit from special fund with NABARD. NABARD has
upto 95% of the eligible project cost for entities promoted by sanctioned term loan of Rs. 464.49 Crore to 10 Mega
the State Governments while other categories of promoters Food Park projects and 2 processing units under this Fund
are extended loans upto 75% of the project cost. To avail and out of this an amount of Rs. 83.33 Crore has been
loan, the entrepreneurs may submit application along with disbursed.
Hon’ble Union Minister, FPI, with Canadian Delegates
50
The words you are searching are inside this book. To get more targeted content, please make full-text search by clicking here.
annual_report_final-ilovepdf-compressed_1
Discover the best professional documents and content resources in AnyFlip Document Base.
Search