PRESENTATION ON

FOOD PROCESSING

INDUSTRIES
BY MINISTRY OF FOOD PROCESSING INDUSTRIES

GOALS / OBJECTIVES OF MFPI

Promotion of FPIs resulting in : Reduction in wastages Value / quality addition Employment generation Remunerative income for farmers

STATUS OF FOOD PROCESSING INDUSTRIES

Size of food market in India - Rs. 8,60,000 Crores Primarily processed food market Rs. 2,80,000 crore Value added processed food market Rs. 1,80,000 crore The Sector attracted a total investment of Rs.38,531 Crores during the 9th plan period Investment during the 10th plan is estimated at Rs. 62,105 Crores Industry growth rate during the last five years is estimated at 7.14% against GDP of 6.2% Investment required during next ten years Rs. 1,50,000 crore

LEVEL OF PROCESSING, VALUE ADDITION ETC. Fruits & Vegetables Sector at 2%,

Poultry 6%,
Milk 35% (only 13% in modern dairies), Marine products 8%, Buffalo meat 21%. Value addition 20% Wastage Rs. 58,000 crore

CONSTRAINTS OF FPI SECTOR

Lack of suitable infrastructure Lack of adequate infrastructure quality control & testing

Inefficient supply chain vis a vis involvement of middlemen

Lack of processable varieties of farm produce

Seasonality of raw material High inventory carrying cost

High taxation, high packaging cost

Affordability and cultural preference of fresh food.

ROLE OF MFPI
(a) Policy support
(i) FPI sector delicensed except alcoholic beverages (ii)FPI included in priority sector of lending (1999) (iii)100% FDI on automatic route (iv)Excise duty waived on F&VP (from 2000 01) (v)Income tax holiday for F&VP (from 2004 05) (vi)Customs duty reduced on freezer van from 20 to 10% (from 2005 06) Contd

(b) Promotional support (i) Assistance for workshop / seminars / fairs / exhibitions

(ii) Assistance for studies / surveys

(iii)publications / Films

(c) Regulatory
(i) Implementation of FPO (ii) Implementation of MFPO (iii)Enactment of FSS Bill 2005

(d) Developmental / financial support under various schemes under 10th Plan:

Scheme for infrastructure development

Scheme of technology upgradation / establishment / modernization of food processing industries. Scheme for human resource development
Schemes for quality assurance, R&D, codex, bar coding and establishment of labs.

SCHEME FOR INFRASTRUCTURE DEVELOPMENT

Food Park Scheme
Intends to make provision of common facilities like cold storage, food testing effluent treatment plant, power, water supply, etc. 25% of the project cost in general areas and 33.33% in difficult areas subject to a maximum of Rs.4 crores
Land required :- 30 acres Units to be located :- 20 minimum

MODERNIZATION OF ABATTOIRS
25% of the project cost in general areas and 33.33% in difficult areas subject to a maximum of Rs.4 crores. Admissible to local bodies only.

INTEGRATED COLD CHAIN 25% of the project cost in general areas and 33.33% in difficult areas with a common ceiling of Rs.75 lakhs. Admissible for non horticultural produce

IRRADIATION FACILITIES
Objectives are :-

(a) prevent infestation (spices in flour) / change in chemical composition of potato etc.
(b) Enhance shelf life by irradiation

Eligibility for assistance Technology to be guaranteed by he Department of Atomic Energy Grant @ 25% of the project cost in general areas and 33.33% in difficult areas subject to a maximum of Rs.5 crores.

SCHEME FOR TECHNOLOGY UPGRADATION / ESTABLISHMENT / MODERNIZATION Assistance @ 25% of the project cost subject to a maximum of Rs. 50 lakhs in General Areas and 33.33% up to Rs. 75 lakhs in Difficult areas. .

SCHEME FOR HUMAN RESOURCE DEVELOPMENT

Food Processing Training Centre

Single produce line FPTC

Grant of Rs. 2.00 lakh as fixed capital cost and Rs. 1.00 lakh as revolving seed capital Grant of Rs. 7.50 lakh as fixed capital cost and Rs. 2.00 lakh as revolving seed capital

Multi product line FPTC

CREATION OF INFRASTRUCTURE FACILITIES FOR RUNNING DEGREE/DIPLOMA COURSES

Grant upto to Rs. 50 lakhs is provided to HRD Institutions such as colleges, universities, technical institutions etc. for library, pilot plants, food labs etc. ENTREPRENEURSHIP DEVELOPMENT PROGRAM Maximum assistance of Rs.1 lakh per EDP, which should be at least for a period of 4 weeks and the number of trainees should not be less than 20.

SETTING UP OF FOOD QUALITY CONTROL LABORATORY

Entire cost of capital equipment is paid by MFPI for establishment of such labs to Central / State Government organizations

33% of the capital cost in general areas and 50% in difficult areas is paid for such labs set up in private sector

RESEARCH & DEVELOPMENT PROCESSED FOOD SECTOR

Assistance

IN

Entire cost of capital equipment is paid by MFPI for establishment of such labs to Central / State Government organizations 33% of the capital cost in general areas and 50% in difficult areas is paid for such labs set up in private sector

WHO IS ELIGIBLE
Governmental organizations Non-Governmental Organisations Cooperatives Private Sector Industries Public Sector Undertakings HRD and R&D Institutions.

RECENT INITIATIVES
Food Safety & Standards Bill, 2005 Vision, Strategy & Action Plan Formulation of Processing Policy National Food

STATES INITIATIVES REQUESTED Amendment to APMC Acts

Lowering of VAT rates

Declaring industry seasonal

Integrate promotional structure