Food Processing

Summary
  • India offers the largest diversified production base and has a growing food industry. India is
    • World’s largest milk-producing nation*
    • World’s largest producer, consumer and exporter of spices*
    • World’s second-largest producer of food grains, fruits and vegetables*
    • World's Second Largest producer of fish*
    • World's Second Largest Aquaculture Producer*
    • India is a Second-largest producers of Wheat*
    • India is the 4th Largest Sea Food Exporter*
    • India is the 5th largest exporter of millets globally. *
    • India ranks 8th in meat production in the world. *
  • India ranks 1st in milk production and contributes 23% to global milk production growing at a CAGR of about 6.2 percent to reach 209.96 mn tonnes in 2020-21.* 
  • India ranks 3rd in global egg production and produced at least 122.11 bn nos. in 2020-21 with per capita availability of egg at 91 eggs per annum in 2020-21.*
  • India is the world’s second-largest sugar producer after Brazil.*
  • Ministry has approved 23 Cold Chain projects, 3 Agro-Processing Clusters, 22 Food Processing Units in Uttar Pradesh under PMKSY. *
  • Andhra Pradesh, Maharashtra, Uttar Pradesh, Madhya Pradesh, Gujarat, Karnataka and Tamil Nadu are the major Fruits producing States, whereas Uttar Pradesh, West Bengal, Madhya Pradesh, Bihar, Gujarat, Maharashtra and Odisha are the major Vegetables producing States of the country.*
  • Food Processing sector engages maximum number of people with 20.05 lakhs consisting  12.32 % of the total employment share.*
  • There are 731 Krishi Vigyan Kendras (KVKs) in the country. The technologies developed out of research conducted by ICAR are taken to farmers’ fields for its assessment by KVKs to ascertain their location specificity under various farming systems. KVKs also conduct large number of technology demonstrations at farmers’ fields for their adoption by the farmers.* 
  • The requirement of cold storage in the country is 35 mn MT, while capacity of such storage is around 32 mn MT.*
  • 31% of export agricultural and processed food products target for 2022-23 achieved. *
Reasons to Invest
  • In addition to the rich resources, India has the sixth-largest food and grocery market globally and the country can provide a perfect blend of traditional and hygienic food, processed and packaged according to modern technology.*
  • Nivesh Bandhu brings together Central and State Government policies and incentives provided for the food processing sector. It is a one-stop platform for all stakeholders of the industry, including farmers, processors, traders, and logistics operators. To further help an investor make strategic decisions, the portal also includes a Food Map that can help investors find various project locations.*
  • A new provision has been introduced to the Legal Metrology Rules 2011 to indicate the unit sale price on pre-packed commodities, which will allow easier comparison of the prices of the commodities at the time of purchase.*
  • GOI has set a target to achieve one lakh crore export from the fishing sector by 2024-25 and also make it environment friendly. *
  • GOI is implementing Matsya Sampada Yojana and has infused INR 20,000 crore in the fishing sector through the scheme. The government is also focusing on Seaweed farming and empowering fisherwomen and promoting entrepreneurship in the sector.*
  • Country’s first-of-its kind, dedicated business incubator to be known as LINAC- NCDC Fisheries Business Incubation Centre (LlFlC) in Haryana’s Gurugram is established with costing of INR 3.23 crore to nurture fisheries start-ups under real market-led conditions.*
  • Startups and Farmer Producer Organizations (FPOs) will help in upscaling millets’ value chain, connecting to domestic and international markets and will create an inclusive framework to make India Millet Hub of the World.*
  • An integrated and hi-tech online portals on export/import of agricultural commodities and pesticides registration is launched to boost Ease of Doing Business in the sector.*
  • ‘National Beekeeping and Honey Mission’ aims to establish 5 big regional and 100 small honey and other Bee Products testing laboratories, out of which 3 world class state-of-the-art laboratories have been setup, whereas 25 small laboratories are in the process of being set up. *
  • In order to find a permanent solution to address the problem of excess sugar, Government is encouraging sugar mills to divert excess sugarcane to ethanol. *
  • For the year 2022-23, the government had set an export target of USD 23.56 bn for the agricultural and processed food products basket under APEDA. *
Key Achievements
  • Since the launch of Kisan Rail service on 7th August 2020 and upto 30th June 2022, Railways have operated around 2,359 Kisan Rail services, transporting approximately 7.9 lakh tonnes of perishables including onion, banana, potato, ginger, garlic, mango, grapes, pomegranate, oranges, chikoo, lemon, capsicum, cabbage, cauliflower, and other fruits and vegetables.*  
  • In the survey taken by NITI AAYOG along with National Informatics Centre (NIC) on the comparative study of the Data Governance Quality Index(DHQI) of 72 Central Ministries/Departments. In this survey, the Ministry of Food Processing came 1st among the other ministries.*
  • Climate resilient varieties of seeds in different crops tolerant to climatic stresses have been developed by ICAR. So far 8 varieties were released in rice, green gram, maize and lentil. Apart from this, 177 climate resilient varieties have reached the farmer’s field through large scale demonstrations across the country.* 
  • Integrated Cold Chain and Value Addition Infrastructure Scheme” which a component of the Pradhan Mantri Kisan Sampada Yojna (PMKSY) have 353 projects approved under the scheme till date for various States/UTs. *
  • Honey Mission has been started to bring sweet revolution and the Central Government has spent INR 500 crore on it. FPOs of honey-producing farmers are also being created under the GOI's plan to form 10 thousand new FPOs. To test honey properly, labs have been set up in many places in the country and processing facilities are also being increased. *
  • With the aim to provide warehousing facilities at the farm gate, registration fees is substantially reduced to INR 500 for FPOs/PACS/SHGs as compared to INR 5000 to INR 30,000/- for other conventional warehouses along with a reduction in other charges. *    
  • 170 FPOs/FPCs created under Mission Organic Value Chain Development for North Eastern Regions. *
  • India emerges as largest exporters of cucumber and gherkins in the world. India has crossed the USD 200 mn mark of export of agricultural processed product, - pickling cucumber, which is globally referred as gherkins or cornichons, in the last financial year. *
  • Jawaharlal Nehru Krishi Vishwavidyalaya (JNKVV) has developed two varieties each of oats and wheat, one of rice and three of niger which were tested under various agro-climatic conditions of the State(s) through All India Coordinated Research Projects. *
  • There is well established system available for analysis of seed quality of native Indian crop and trees in the Country. 161 State Seed Testing Laboratories and six Central Seed Testing Laboratories are functioning in the Country. These laboratories are analyzing seeds of native Indian crop and trees for various quality parameters. *
  • The institutes have developed wheat varieties that contribute nearly 60 mn tons of wheat to the nation’s granary worth INR 80,000 crores annually. Basmati varieties developed by the institute predominate basmati cultivation in India accounting for 90% of the total foreign exchange (INR 29,524 crores) earned through the export of Basmati rice amounting to INR 32,804 crores. *
  • 6 varieties of fruits and vegetables are developed viz., two varieties of mango Pusa Lalima, Pusa Shresth, brinjal variety Pusa Vaibhav, palak variety PusaVilayati palak, cucumber variety Pusa Gynoecious Cucumber Hybrid-18 and Pusa Alpana variety of rose.*
  • There are 726 Testing Laboratories for food products in the country. Out of these, 585 food testing laboratories have obtained Accreditation as per the international standards. *
  • A total of 304 high yielding varieties of pulses including 81 of Gram, 50 of Arhar, 38 of Mung, 35 of Urd, 33 of Lentil, 23 of Fieldpea, 19 of Cowpea and 25 of other pulses have been notified for commercial cultivation in the country during the last eight years.*
Recent Announcements

16th July 2022: Centre amends the Legal Metrology (Packaged Commodities) Rules 2011 for ease of doing business and reducing the compliance burden for the electronic industries.

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14th July 2022: Shri Parshottam Rupala launches AHIDF projects and felicitates entrepreneurs under AHIDF.

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14th July 2022: Shri Tomar launches Platform of Platforms (POP) under eNAM, over Rs 37 crore equity grant released to 1018 FPOs.

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12th July 2022: APEDA signs an MoU with Assam Agriculture University, Jorhat to conduct various training programmes on pre-harvest and post-harvest management and other research activities.

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12th July 2022: Department of Agriculture & Farmer Welfare and International Rice Research Institute (IRRI) sign Agreement on commencement of Phase -2 activities of IRRI South Asia Regional Centre (ISARC)

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Statistics
  • Exports of fresh fruits and vegetables have increased from USD 642 mn to USD 697 mn the first quarter of FY 22 thus showing a growth of 8.6% in correspondance to the same period last year.*
  • India’s exports of agricultural and processed food products rose up by 14% to USD 5987 Mn in the first three months FY 22.*
  • Other cereals’ exports increased from USD 237 mn in April-June 2021to USD 306 mn in April-June 2022 showing a growth of 29%.*
  • The export of meat, dairy and poultry products increased from USD 1023 mn in April-June 2021 to USD 1120 mn in April-June 2022 showing a growth of 9.5%.*
  • The export of rice increased from USD 2412 mn in April-June 2021 to USD 2723 mn in April-June 2022 showing a growth of 13%.*
  • Dairy products grew over by 96 percent standing at USD 634 mn in 2021-22 from USD 323 mn in 2020-21. *
  • Exports of Coffee values at  USD 108.18 mn in June 2022 and records positive growth vis-à-vis June 2021 of 26.47%.*
  • Exports of Tea values at USD 64.05 mn in June 2022 and records positive growth vis-à-vis June 2021 of 20.71%.*
  • Exports of other cereals values at USD 153.99 mn in June 2022 and records positive growth vis-à-vis June 2021 of 74.35%.*
  • Exports of Cereal preparations & miscellaneous processed items values at  USD 254.53 mn in June 2022 and records positive growth vis-à-vis June 2021 of 27.97%.*
  • Exports of Oil Seeds values at  USD 101.54 mn in June 2022 and records positive growth vis-à-vis June 2021 of 29.68%.*
  • Exports of Oil Meals values at  USD 134.34 mn in June 2022 and records positive growth vis-à-vis June 2021 of 21.93%.*
  • Export of poultry products rose to USD 71 mn in 2021-22 from USD 58 mn in the previous year and sheep/goat meat export is up by 34 percent at USD 60 mn in 2021-22 from USD 44 mn in the previous year. *
  • Exports of Fruits & Vegetables values at  USD 206.72 mn in June 2022.*
  • Exports of Spices values at USD 326.03 mn in June 2022 and records positive growth vis-à-vis June 2021 of 2.30%.*
  • Among the major spices, Cumin (14.8%), Garlic (14.7%), Ginger (7.5%), Fennel (6.8%), Coriander (6.2%), fenugreek (5.8%), Red chilli (4.2%) and Turmeric (1.3 %), show significant growth rate in production. *
  • Exports of Rice values at USD 925.64 mn in July 2022 and records positive growth vis-à-vis July 2021 of 30.20%.*
  • Rice shares 2.63 % of the total exports of the country in the month of July.*
  • Exports of Meat, dairy & poultry products valued at USD 386.41 mn in June 2022 and records positive growth vis-à-vis June 2021 of 17.23%.*
  • Exports of Marine Products values at  USD 724.54 mn in June 2022 and records positive growth vis-à-vis June 2021 of 12.22%.*
  • Exports of Cashew values at USD 23.09 mn in June 2022.*
  • A total of 110 food processing projects were completed / operationalized viz; Mega Food Park:1, Cold Chain:37, Unit:68, Food Testing Labs:4. *
  • Export of pulses reported a growth of 34 percent touching USD 358 mn in 2021-22 from USD 265 mn in 2020-21. *
  • Total Pulses production during 2021-22 is estimated at 27.75 mn tonnes which is higher by 3.92 mn tonnes than the last five years’ average production of 23.82 mn tonnes. *
  • Exports of other processed food items grew by 34 percent during 2021-22 to touch USD 1164 mn against USD 866 mn in 2020-21. *
  • The cashew exports grew by 7 percent to USD 452 mn in 2021-22 from USD 420 mn in the previous year. *
  • Floriculture products reported a rise of 33 percent when it touched USD 103 mn in 2021-22 from USD 77 mn in 2020-21. *
  • The production of Foodgrains in the country in FY 2021-22 is estimated at record 314.51 mn tonnes which is higher by 3.77 mn tonnes than the production of foodgrain during 2020-21. *
  • Total Oilseeds production in the country during 2021-22 is estimated at record 38.50 mn tonnes which is higher by 5.81 mn tonnes than the average oilseeds production. *
  • Production of Wheat during 2021-22 is estimated at 106.41 mn tonnes. It is higher by 2.53 mn tonnes than the last five years’ average wheat production of 103.88 mn tonnes. *
  • Total production of Sugarcane in the country during 2021-22 is estimated at record 430.50 mn tonnes which is higher by 57.04 mn tonnes than the average sugarcane production of 373.46 mn tonnes. *          
  • The index of Industrial production of Food Products (weight: 5.30 percent) values at 133.2, increased by 4.2 percent in April 2022 over April 2021 which was valued at 127.8.*
  • The index of Industrial production of Beverages (weight: 1.03 percent) values at 118.7, increased by 29.7 percent in April 2022 over April 2021 which was valued at 91.5. *
  • Overall food production up from 265.05 MT in 2013-14 to 314.51MT in 2021-22; production of pulses increased from 19.26 MT to 27.75 MT and horticultural production from 280.70 MT to 341.63 MT during the same interval.*
Growth Drivers
  • A Memorandum of Agreement was signed between the Department of Agriculture & Farmer Welfare (DA&FW) and International Rice Research Institute (IRRI) on commencement of Phase -2 activities of IRRI South Asia Regional Centre (ISARC) to scale up the existing partnership for food and nutrition security in the South Asian region.* 
  • Since most rice varieties are high in GI and most of the Indians consume rice, the popularization of low GI rice varieties will reduce or even reverse India's increasing trend of diabetes.*
  • Shri Narendra Singh Tomar, launched the Platform of Platforms (POP) under the National Agriculture Market (e-NAM). This will increase farmers' digital access to multiple markets, buyers and service providers and bring transparency in business transactions with the aim of improving price search mechanism and quality commensurate price realisation.* 
  • APEDA signs a MoU with Assam Agriculture University, Jorhat to conduct various training programmes on pre-harvest and post-harvest management and other research activities.*
  • 41 service providers from different platforms are covered under POP facilitating various value chain services like trading, quality checks, warehousing, fintech, market information, transportation etc.*
  • Shri Tomar released an equity grant of more than INR 37 crore to 1,018 FPOs under the CSS which will benefit about 3.5 lakh farmers leading to the goal of setting up of 10 thousand FPOs.*
  • Animal Husbandry Infrastructure Development Fund (AHIDF) projects is launched to support the farmers.*
  • Credit Guarantee Online Portal along with five major plants setup are inaugurated with the support of AHIDF scheme to focus beyond poverty alleviation and increasing farmers income towards wealth creation in rural areas.* 
  • The Department of Consumer Affairs vide the Legal Metrology (Packaged Commodities), (Second Amendment) Rules 2022 has allowed the electronic products to declare certain mandatory declarations through the QR Code for a period of one year, if not declared in the package itself.*
  • GOI aims to bring 28-lakh hectares of land under cultivation to make India Aatmanirbhar in edible oil. *
  • Cabinet approves implementation of Pradhan Mantri Krishi Sinchayee Yojana for 2021-26. *
  • In a major boost to promote precision farming in India, GOI has issued guidelines to make drone technology affordable to the stakeholders of this sector. *
  • India and UK Launch Free Trade Agreement Negotiations to give major fillip to Indian exports in labor intensive sectors like Leather, Textile, Jewellery and processed Agri-products. *
  • India is placed among the top 10 Agri products exporting countries. GOI aims to put India in the top 5 countries in the field of Agri product export. *
  • India aims to double the marine product exports to INR One lakh crore from the present above INR 50,000 crore within the next five years.*
FDI Policy
  • 100% FDI is permitted under the automatic route in the Food and Processing industry in India.*
  • 100% FDI is allowed through the government approval route for trading, including through e-commerce in respect of food products manufactured or produced in India.*
  • The cumulative FDI equity inflow in the Food Processing industry is USD  11,083.87 mn during the period April 2000 to March 2022. This constitutes 1.83% of the total FDI inflow received across sectors.*
  • The cumulative FDI equity inflow in the Agricultural Services is USD   2,547.44 mn during the period April 2000 to March 2022. *
  • The cumulative FDI equity inflow in Vegetable Oil & Vanaspati is USD 1,029.63 mn during the period April 2000 to March 2022.*
  • The cumulative FDI equity inflow in Sugar is USD 239.38 mn during the period April 2000 to March 2022.*
  • The cumulative FDI equity inflow in Tea and Coffee (Processing & Warehousing Coffee & Rubber) is USD  163.50 mn during the period April 2000 to March 2022.*
  • The cumulative FDI equity inflow in Agricultural Machinery is USD 985.79 mn during the period April 2000 to March 2022.*
  • The cumulative FDI equity inflow in the Rubber Goods is USD 3,354.74 mn during the period April 2000 to March 2022.*

Read more about Foreign Direct Investment Policy in India >

Production Linked Incentive (PLI) Scheme

The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi has given its approval to introduce the Production-Linked Incentive (PLI) Scheme in Food Products for Enhancing India’s Manufacturing Capabilities and Enhancing Exports – Atmanirbhar Bharat.

Financial Outlay- INR 10,900 crore

Products: Ready to Eat / Ready to Cook (RTE/ RTC), Marine Products, Fruits & Vegetables, Honey, Desi Ghee, Mozzarella Cheese, Organic eggs and poultry meat

For more details on PLI Schemes, Click Here

Sector Policy
  • Food Processing is recognized as a Special Focus Sector in the National Manufacturing Policy. *
  • Under Mission Organic Value Chain Development in North East Region (MOVCDNER), Farmers are provided subsidy of INR 31000/ ha / 3 years under PKVY and INR 32500/ ha/ 3 years under MOVCDNER for various organic inputs including organic fertilisers. *
  • Under National Food Security Mission (NFSM), financial assistance is provided for promotion of Bio-Fertilizer (Rhizobium/ PSB) @50% of the cost limited to Rs.300 per ha. *
  • The Government is implementing Agricultural Marketing Infrastructure (AMI), a sub-scheme of Integrated Scheme for Agricultural Marketing (ISAM) under which assistance is provided for construction/ renovation of godowns/ warehouses in the rural areas in the States to enhance the storage capacity for agriculture produce. Under the scheme, Government provides subsidy at the rate of 25% and 33.33% on capital cost of the project based on the category of eligible beneficiary. Assistance is available to Individuals, Farmers, Group of farmers/growers, Agri-preneurs, Registered Farmer Produce Organizations (FPOs), Cooperatives, and state agencies etc. The scheme is demand driven. *
  • Food and agro-based processing units can avail loans under Priority Sector Lending. * It will ensure a greater flow of credit to entrepreneurs for setting up food processing units and attract investment in the industry.
  • Government has set up a special fund called "Food Processing Fund" of approximately USD 265 Mn in National Bank for Agriculture and Rural Development (NABARD) for extending affordable credit to designated food parks and the individual food processing units in the designated food parks. *
  • Ministry of Food Processing Industries is also keen on developing an integrated and comprehensive National Food Processing Policy, for which a draft has already been circulated among the stakeholders to receive suggestions and recommendations. * It aims to build India’s National Food Grid and National Cold Chain Grid apart from the retail markets at every nook and corner of the country.
  • Ministry of Food Processing Industries (MoFPI) provides a host of financial assistance to food processing companies in India, under the umbrella scheme of Pradhan Mantri Kisan Sampada Yojna (PMKSY). The following schemes are included under PMKSY: *
    • Mega Food Parks
    • Integrated Cold Chain and Value Addition Infrastructure
    • Creation/ Expansion of Food Processing/ Preservation Capacities (Unit Scheme)
    • Infrastructure for Agro-processing Clusters
    • Creation of Backward and Forward Linkages
    • Food Safety and Quality Assurance Infrastructure
    • Human Resources and Institutions
    • Operation Greens
  • The Union Cabinet of India has announced a new central sector scheme of Agriculture Infrastructure Fund. Under the scheme, INR 1 lakh cr will be provided by banks and financial institutions to feasible projects for post-harvest management infrastructure and community farming assets. The financial support will be in the form of medium - long term debt financing facility and all loans under this financing facility will have interest subvention of 3% per annum up to a limit of INR 2 cr. *
  • The Cabinet Committee on Economic Affairs of the Government of India has approved the setting up of Animal Husbandry Infrastructure Development Fund (AHIDF). AHIDF will incentivize investments in infrastructure for dairy and meat processing and value addition infrastructure and establishment of animal feed plant in the private sector. Farmer Producer Organizations (FPOs), MSMEs, Section 8 companies, private companies and individual entrepreneurs with a minimum 10% margin money will be the eligible beneficiaries of the scheme. The remaining 90% would be the loan component which will be provided by scheduled banks. A total amount of INR 15000 cr. has been approved for the Animal Husbandry Infrastructure Development Fund (AHIDF). *

National Mission for Sustainable Agriculture (NMSA)*

  • It is one of the Missions within the National Action Plan on Climate Change (NAPCC). The mission aims to evolve and implement strategies to make Indian agriculture more resilient to the changing climate.  

 

Animal Husbandry Infrastructure Development Fund (AHIDF): *

  • The Cabinet Committee on Economic Affairs of the Government of India has approved the setting up of Animal Husbandry Infrastructure Development Fund (AHIDF). AHIDF will incentivize investments in infrastructure for dairy and meat processing and value addition infrastructure and establishment of animal feed plant in the private sector. 
  • Farmer Producer Organizations (FPOs), MSMEs, Section 8 companies, private companies and individual entrepreneurs with a minimum 10% margin money will be the eligible beneficiaries of the scheme. The remaining 90% would be the loan component which will be provided by scheduled banks.
  • A total amount of INR 15000 cr. has been approved for the Animal Husbandry Infrastructure Development Fund (AHIDF).
  • PM Formalization of Micro Food Processing Enterprises Scheme (PMFME) for providing financial, technical, and business support for the up-gradation of existing micro food processing enterprises.

The Farmers' Produce Trade and Commerce (Promotion and Facilitation) Act, 2020 *

  • This act creates an ecosystem where the farmers and traders enjoy the freedom of choice relating to the sale and purchase of farmers’ produce.
  • This act facilitates remunerative prices through competitive alternative trading channels.
  • The main aim of this act is to promote efficient, transparent and barrier-free inter-State and intra-State trade and commerce of farmers’ products
  • In order to support section 17 of the Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Act, 2020, Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Rules, 2020 came into force on 22 October 2020.

Operation Green (Top to Total) *

  • Ministry of Food Processing Industries (MoFPI) as a part of Aatmanirbhar Bharat Abhiyan extended the Operation Greens Scheme from Tomato, Onion and Potato (TOP) to all fruits & vegetables (TOTAL) for a period of six months on a pilot basis. The objective of the intervention is to protect the growers of fruits and vegetables from making distress sales.
  • In a Budget speech for 2021-2022, Government has announced the expansion of the scope of “Operation Greens scheme” from Tomato, Onion & Potato (TOP) to 22 perishable products, so as to boost value addition in agriculture and allied products and their exports.
  • 6th Amended Scheme Guideline for Short term Intervention under Operation Greens TOP to TOTAL.
  • Subsidy for transportation of all fruits & vegetables via any type of train service by Indian Railway under Operation Greens - TOP to TOTAL 

PM Kisan Samman Nidhi *

  • Hon'ble PM, Shri Narendra Modi released the 7th instalment of financial benefit under PM Kisan Samman Nidhi to establish Indian agricultural markets in the world.
  • More than 1,10,000 cr rupees have been released so far and 10.59 cr farmer families have been benefitted.
  • Under the PM-KISAN Scheme more than 1.60 lakh crore rupees have been transferred to more than 11.54 crore Farmers till December (2021)
  • As on 9th December 2021, the database of farmers registered under PM-KISAN includes 11.64 Crores farmers.

Crop Insurance Scheme *

  • The Pradhan Mantri Fasal Bima Yojana (PMFBY) successfully completes 5 Years of operations on 13th January 2021. The Scheme benefits farmers who face crop losses due to various reasons.

Micro Irrigation Fund *

  • Micro Irrigation Fund with a corpus of INR 5,000 cr was created with NABARD during 2018-19 with an objective to facilitate the States in mobilizing the resources and to provide top-up/additional incentives to farmers for incentivising micro-irrigation beyond the provisions available under PMKSY-PDMC.

Pradhan Mantri Kisan Maan Dhan Yojana *

  • Pradhan Mantri Kisan Maan Dhan Yojna (PMKMY) Scheme aims to provide a social security net for the Small and Marginal Farmers (SMF) by way of pension, as they have minimal or no savings to sustain their livelihood during their old age and to support them in the event of the consequent loss of livelihood.
  • 21,42,718 Farmers have been enrolled under Pradhan Mantri Kisan Maandhan Yojana (PM-KMDY).

Pradhan Mantri Kisan Sampada Yojana (PMKSY)*

  • Under the component schemes, MoFPI provides credit linked financial assistance (capital subsidy) in the form of grants-in-aid to entrepreneurs for setting up of food processing / preservation industries with farm level infrastructure like primary processing facilities, collection centers etc.
  • GOI has continued the umbrella PMKSY scheme with an allocation of INR 4600 crores till March 2026. 
  • Under PMKSY, 41 Mega Food Parks, 348 Cold Chain projects, 68 Agro-Processing Clusters, 281 proposals under Creation/Expansion of Food Processing & Preservation Capacities (CEFPPC),  61 Creation of Backward and Forward Linkages Projects & 06 Operation Green projects across the country have been approved. 

Dairy processing and Infrastructure Development Fund (DIDF) *

  • DIDF is a programme wherein assistance at subsidised rate of interest (Interest Subvention) will be given. The project focuses on building an efficient milk procurement system by setting up of processing and chilling infrastructure & installation of electronic milk adulteration testing equipment at village level.

National Edible Oil Mission- Oil Palm *

  • National Mission on Edible Oils - Oil Palm (NMEO-OP) has been launched with the aim to augment the availability of edible oil in the country by harnessing area expansion, increasing crude palm oil production with the aim to reduce the import burden.
  • The salient features of NMEO-Oil palm include assistance for planting material, inputs for intercropping upto gestation period of 4 years and for maintenance, establishment of seed gardens, nurseries, micro irrigation, bore well/pumpset/water harvesting structure, vermi compost units, solar pumps, harvesting tools, custom hiring centre cum harvester Groups, farmers and officers training, and for replanting of old oil palm gardens etc.
  • The total approved cost of the NMEO (Oil Palm) Scheme is INR 11,040 crore. For the year 2021-22, a total of INR 10422.69 lakh has been approved for various state annual action plans.

National Agriculture Market (e-NAM) Scheme *

  • GOI had launched National Agriculture Market (e-NAM) Scheme with the objective of creating online transparent competitive bidding system to facilitate farmers with remunerative prices fotheirheir produce.
  • Under the e-NAM Scheme, Government is providing free software and assistance of INR 75.00 Lakh per mandi for related hardware including quality assaying equipments and creation of infrastructure like cleaning, grading, sorting, packaging and compost unit etc.
  • 1000 mandis of 18 States and 3 UTs have been integrated with e-NAM platform till November 2021.

Schemes on Paramparagat Krishi Vikas Yojana (PKVY) *

  • Farmers are primarily encouraged for organic cultivation using organic fertilizers and provided hands-on training about on-farm production of organic fertilizers and its use. 
  • Organic cultivation on either side of River Ganga, large area certification and support for individual farmers has also been introduced under PKVY to increase coverage using organic fertilizers.

Bhartiya Prakritik Krishi Padhati (BPKP) *

  • The scheme has been introduced as a sub-scheme of PKVY for the promotion of traditional indigenous practices including Zero Budget Natural Farming (ZBNF).
  • The scheme mainly emphasizes on exclusion of all synthetic chemical inputs and promotes on-farm biomass recycling with major stress on biomass mulching, use of cow dung-urine formulations and plant based preparations.
  • Under BPKP, financial assistance of INR 12200/ha for 3 years is provided for cluster formation, capacity building and continuous handholding by trained personnel, certification and residue analysis.
  • Until now, under natural farming an area of 4.09 lakh ha area has been covered and a total fund of INR 4980.99 lakh has been released in 8 States across the country.

National Mission on Oilseeds and Oil Palm (NMOOP) *

  • Financial assistance@ 50% subsidy to the tune of Rs. 300/- per ha is being provided for different components including bio-fertilizers, supply of Rhizobium culture/Phosphate Solubilising Bacteria (PSB)/ Zinc Solubilising Bacteria(ZSB)/ Azatobacter/ Mycorrhiza and vermi compost.

The SOP for drone regulation for pesticide application *

  • It covers important aspects like statutory provisions, flying permissions, area distance restrictions, weight classification, overcrowded areas restriction, drone registration, safety insurance, piloting certification, operation plan, air flight zones, weather conditions, SOPs for pre, post and during operation, emergency handling plan.

Conformity Assessment Scheme *

  • PM launches a Portal and Logo dedicated to the Conformity Assessment Scheme of milk products to ensure Quality & Food safety of Milk and Milk products across the country.

The Scheme focuses on: 

  • Simplify the certification process
  • Create an instantly recognisable logo for public to be reassured about dairy product quality
  • Increase the sales of milk and milk products in organized sector and in turn enhancing income of farmers
  • Develop a quality culture in the dairy sector

Pradhan Mantri Matsya Sampada Yojana (PMMSY)*

  • Government is implementing the flagship scheme of PMMSY for benefit of fishers and fish farmers in the country with a highest outlay of INR 20050 crore. The scheme will increase the fish production and productivity and improve the socio-economic status of the fishers.

  • PMMSY, is implemented over a period of 5 years from FY 2020-21 to FY 2024-25 in all States/Union Territories and has set a target of INR 1,00,000 crore fisheries export, additional 70 lakh tonnes fish production, and generation of 55 lakh employment in the years to come.

National Food Security Mission (NFSM) *

  • The Department of Agriculture and Farmers Welfare (DA&FW) is implementing a Sub-Mission on Nutri-Cereals (Millets) to enhance area, production & productivity of millets including bajra.
  • Under this Sub-Mission, bajra is being promoted in 89 districts of 9 states including 14 districts of Gujarat. North Eastern States, Himachal Pradesh and UTs of Jammu & Kashmir and Ladakh have been given flexibility to include the districts under programme.
  • Through the efforts made by the Government, the production of millets has increased from 14.52 million tonnes in 2015-16 to 17.96 million tonnes in 2020-21.
  • The production of bajra has also increased from 8.07 million tonnes to 10.86 million tonnes during the same period.
Financial Support

Union Budget 2022-23

  • The total budgetary allocation for FY 2022-23 towards the  Ministry of Food Processing Industries is INR  2941.99 cr.
  • The total budgetary allocation for FY 2022-23 towards the Department of Agriculture and Farmers Welfare is INR 1,24,000 cr.
  • The total budgetary allocation for FY 2022-23 towards the Department of Agricultural Research and Education is INR  8,513.62  cr.
  • The total budgetary allocation for FY 2022-23 towards the Department of Food and Public Distribution is INR 2,15,959.58 cr.
  • The total budgetary allocation for FY 2022-23 towards the Department of Fisheries is INR 2,118.47 cr.
  • The total budgetary allocation for FY 2022-23 towards the Department of Animal Husbandry and Dairying is INR 3,918.84 cr.
  • Budget 2022 endeavours to create level playing field for domestic tractor and also paves way for capacity creation in tractor manufacturing

Agriculture Infrastructure Fund (AIF) *

  • Agriculture Infrastructure Fund (AIF) was launched on 9th August 2020. The aim of the fund is to provide medium to long term debt financing for investment in viable projects for post-harvest management Infrastructure and community farming assets through interest subvention and financial support. 
  • The scheme shall be in effect for 10 years i.e. from FY 2020 to FY 2029.
  • A total of 8702 Projects of Primary Agricultural Credit Societies are sanctioned under the Agriculture Infrastructure Fund (AIF) with a loan amount of INR 6254 Crores.

Production-Linked Incentive (PLI) Scheme *

  • PLI Scheme for Food Processing Industry was approved by the Cabinet on 31.3.2021 for implementation during 2021-22 to 2026-27 with an outlay of INR 10,900 cr.
  • Products - Ready to Eat / Ready to Cook (RTE/ RTC) Marine Products Fruits & Vegetables Mozzarella Cheese Innovative & Organic Food Products including free-range poultry egg & meat
  • The scheme is meant for Indian companies and subsidiaries of MNCs operating in India with minimum sales of food products manufactured in India.
  • The objective of the scheme is to support the creation of global food manufacturing champions; support Indian brands of value-added food products in the international markets; increase employment opportunities for off-farm jobs and ensuring remunerative prices of farm produce and higher income to farmers.
  • Under PLI Scheme for Food Processing Industries issued an EOI from prospective beneficiaries and total of 165 applicants registered and activated for submission of application.
  • No company will get more than 25% of the total budget for the segment and no company will get less than 5% of the segment outlay.48
Investment Opportunities

INVESTIBLE PROJECTS:

  • Fruits and vegetables: preserved, candied, glazed and crystallized fruits and vegetables, juices, jams, jellies, purees, soups, powders, dehydrated vegetables, flakes, shreds and ready-to-eat curries.
  • Food preservation by fermentation: wine, beer, vinegar, yeast preparation, alcoholic beverages. Beverages: fruit-based, cereal-based.
  • Dairy: liquid milk, curd, flavored yogurt, processed cheese, cottage cheese, Swiss cheese, blue cheese, ice cream, milk-based sweets.
  • Food additives and nutraceuticals.
  • Confectionery and bakery: cookies and crackers, biscuits, bread, cakes and frozen dough.
  • Meat and poultry: eggs, egg powder, cut meats, sausages and other value-added products. Fish, seafood and fish processing – processing and freezing units.
  • Grain processing – oil milling sector, rice, pulse milling and flour milling sectors.
  • Food preservation and packaging: metal cans, aseptic packs.
  • Food processing equipment: canning, dairy and food processing, specialty processing, packaging, frozen food/refrigeration and thermo-processing.
  • Consumer food: packaged food, aerated soft drinks and packaged drinking water. Spice pastes.
  • Supply chain infrastructure – this niche has investment potential in food processing infrastructure, the government’s focus is on supply chain related infrastructures like cold storage, abattoirs and food parks.
  • The establishment of food parks – a unique opportunity for entrepreneurs, including foreign investors to enter in the Food Processing industry in India.
  • One District One Focus Product (ODOFP) programme cover products of agriculture and allied sectors for 728 districts of the country.

 

Explore projects to invest in Food Processing sector >

Foreign Investors
  • Kraft (USA)
  • Mars (USA)
  • Nestle (Switzerland)
  • McCain (Canada)
  • Danone (France)
  • Ferrero (Italy)
  • Del Monte (USA)
  • Kagome (Japan)
  • Kelloggs (USA)
  • Pepsi (USA)
  • Unilever (United Kingdom)
  • Perfetti (Italy)
  • Cargill (USA)
  • Coca Cola (USA)
  • Hershey (USA)
  • Metro Cash & Carry (Germany)
  • Walmart (US)
  • Yakult (Japan)
  • Amazon (USA)
Agencies
Sources
  1. Nivesh Bandhu, Investor Portal, http://foodprocessingindia.gov.in/
  2. Annual Report 2018-19, Department of Agriculture, Cooperation & Farmers Welfare, Ministry Of Agriculture & Farmers Welfare, http://agricoop.nic.in/sites/default/files/AR_2018-19_Final_for_Print.pdf
  3. Annual Report 2018-19, Ministry of Food Processing Industries, https://mofpi.nic.in/sites/default/files/eng_mofpi_annual_report_2018-19.pdf
  4. Nivesh Bandhu, Investor Portal, http://foodprocessingindia.gov.in/
  5. Annual Report 2018-19, Department of Agriculture, Cooperation & Farmers Welfare, Ministry Of Agriculture & Farmers Welfare, http://agricoop.nic.in/sites/default/files/AR_2018-19_Final_for_Print.pdf
  6. Nivesh Bandhu, Investor Portal, http://foodprocessingindia.gov.in/
  7. World Food India – 2019, Consulate General of India, https://cgivancouver.gov.in/pdf/WFI.pdf
  8. Nivesh Bandhu, Investor Portal, http://foodprocessingindia.gov.in/
  9. Annual Report 2018-19, Ministry of Food Processing Industries, https://mofpi.nic.in/sites/default/files/eng_mofpi_annual_report_2018-19.pdf
  10. “Annual Survey of Industries Vol I 2017-18”, National Sample Survey Office – Industrial Statistics Wing, Ministry of Statistics and Programme Implementation, http://www.csoisw.gov.in/cms/cms/Files/70.pdf
  11. Annual Report 2018-19, Ministry of Food Processing Industries, https://mofpi.nic.in/sites/default/files/eng_mofpi_annual_report_2018-19.pdf
  12. Consolidated FDI Policy, https://invest-india-revamp-static-files.s3.ap-south-1.amazonaws.com/2020-04/FDI%20Policy%202019%20revised_19%20April%202020.pdf
  13. National Manufacturing Policy, DPIIT, https://dipp.gov.in/sites/default/files/po-ann4.pdf
  14. Press Release, Ministry of Food Processing Industries, https://mofpi.nic.in/sites/default/files/pressnote_eng.pdf_0.pdf
  15. Loans For Food Parks And Food Processing Units In Designated Food Parks, NABARD, https://www.nabard.org/content.aspx?id=570
  16. Draft National Food Processing Policy, Ministry of Food Processing Industries,  https://mofpi.nic.in/sites/default/files/sejda-52v.pdf
  17. About PMKSY Scheme, Ministry of Food Processing Industries, https://mofpi.nic.in/Schemes/about-pmksy-scheme
  18. Cabinet approves Central Sector Scheme  of financing   facility under   'Agriculture Infrastructure Fund', PIB, https://pib.gov.in/PressReleasePage.aspx?PRID=1637221
  19. Expenditure Budget - Ministry of Food Processing Industries, India Budget, https://www.indiabudget.gov.in/doc/eb/sbe41.pdf
  20. Expenditure Budget - Central Sector Schemes, India Budget, https://www.indiabudget.gov.in/doc/eb/stat4b.pdf
  21. Cabinet approves establishment of Animal Husbandry Infrastructure Development Fund, PIB, https://pib.gov.in/PressReleasePage.aspx?PRID=1633918
  22. State/UT-wise details of Mega Food Park projects as of 27.02.2020, Ministry of Food Processing Industries, https://mofpi.nic.in/sites/default/files/37_mfps_stateut-wise_details_as_of_27.02.2020_3.pdf
  23. Consolidated list of State-wise 291 Approved Cold Chain Projects as on 30.04.2020, Ministry of Food Processing Industries, https://mofpi.nic.in/sites/default/files/website_30.04.2020_0.pdf
  24. Nivesh Bandhu, Investor Portal, http://foodprocessingindia.gov.in/
  25. Signing of MOU between the Government of India and the United Nations' World Food Programme for cooperation during 2019 – 2023, Department Of Agriculture, Cooperation & Farmers Welfare, Ministry of Agriculture & Farmers' Welfare, http://agricoop.nic.in/recentinitiatives/signing-mou-between-government-india-and-united-nations-world-food-programme
  26. Factsheet on FDI - April 2000 to March 2022, Department for Promotion of Industry and Internal Trade, https://dpiit.gov.in/sites/default/files/FDI_Factsheet_March_2022_23May2022.pdf

  27. Ministry Notice, http://agricoop.nic.in/sites/default/files/219745_0.pdf
  28. Ministry Notice, http://egazette.nic.in/WriteReadData/2020/222595.pdf
  29. MINISTRY OF FOOD PROCESSING, https://mofpi.nic.in/sites/default/files/op1462018ddog.pdf
  30. MINISTRY OF FOOD PROCESSING, https://mofpi.nic.in/sites/default/files/monthly_summary_0.pdf
  31. Annual Report, MINISTRY OF FOOD PROCESSING, http://agricoop.nic.in/sites/default/files/ACFW%20English%20%20Annual%20Report%202019-20.pdf
  32. PIB Release, https://www.pib.gov.in/PressReleasePage.aspx?PRID=1671912
  33. MINISTRY OF FOOD PROCESSING, https://mofpi.nic.in/sites/default/files/monthly_summary_october.pdf
  34. PIB Release, https://www.pib.gov.in/PressReleasePage.aspx?PRID=1680343
  35. MINISTRY OF FOOD PROCESSING, https://mofpi.nic.in/sites/default/files/20201222164534.pdf
  36. MINISTRY OF FOOD PROCESSING, https://mofpi.nic.in/sites/default/files/all_cabinet_ministers.pdf
  37. PIB Release, https://www.pib.gov.in/PressReleasePage.aspx?PRID=1683647
  38. PIB Release, https://www.pib.gov.in/PressReleasePage.aspx?PRID=1683793
  39. PIB Release, https://pib.gov.in/PressReleseDetailm.aspx?PRID=1646632
  40. Year-End Review 2020 of Ministry of Agriculture & Farmer Welfare, https://www.pib.gov.in/PressReleasePage.aspx?PRID=1685570
  41. PIB Release, https://pib.gov.in/PressReleasePage.aspx?PRID=1685570
  42. http://egazette.nic.in/WriteReadData/2021/224630.pdf
  43. PIB Release, https://www.pib.gov.in/PressReleasePage.aspx?PRID=1692625
  44. PIB Release, https://www.pib.gov.in/PressReleasePage.aspx?PRID=1703196
  45. PIB Release, https://www.pib.gov.in/PressReleasePage.aspx?PRID=1705222
  46. PIB Release, https://www.pib.gov.in/PressReleasePage.aspx?PRID=1705511
  47. PIB Release, https://www.pib.gov.in/PressReleasePage.aspx?PRID=1710134
  48. MINISTRY OF FOOD PROCESSING,https://mofpi.nic.in/sites/default/files/20210409170744.pdf
  49. https://commerce.gov.in/wp-content/uploads/2021/06/Reforms-to-promote-Agri-Export.pdf

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