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Introduction

The Ministry of Food Processing Industries was set up in July, 1988 to give an impetus to the development of food processing industries in the country. Subsequently vide Notification No. Doc. CD-442/99 dated 15.10.99 this Ministry was made a Department and brought under the Ministry of Agriculture. It has once again been notified as Ministry of Food Processing Industries vide Cabinet Secretariats Note No. 1/22/1/2001-Cab.(1) dated 06.09.2001 . The single most important problem facing the country perhaps is providing remunerative price to the farmers for their produce without incurring additional burden of subsidy through minimum support prices or some such measures. This problem could be solved largely if the surplus production of cereals, fruits, vegetables, milk, fish, meat and poultry etc. are processed and marketed aggressively including through exports. Food processing adds value, enhances shelf life, and encourages crop diversification. Food Processing Industries create large employment per unit of investment. Food processing coupled with marketing has thus the potential of solving the basic problems of agricultural surpluses/wastages/rural jobs/better prices to the growers etc . A strong and dynamic food processing sector accordingly plays a vital role in diversification and commercialization of agriculture, ensures value addition to the agricultural produce, generates employment, enhances income of farmers and creates surplus for export of agro foods. The Ministry of Food Processing Industries is concerned with the formulation and implementation of the policies & plans for the food processing industries within the overall national priorities and objectives.

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Area Covered under the Food and Processing Ministry

1. Fruit and vegetable processing industry (including freezing and dehydration). 2. Food-grain milling industry. 3. Processing & refrigeration of certain agricultural products (milk powder, infant milk food, malted milk food, condensed milk, ghee and other dairy products, poultry and eggs, meat & meat products. 4. Processing of fish (including canning and freezing) 5. Planning, development and control of, and assistance to industries relating to bread, oilseeds, meals (edible), breakfast foods, biscuits, confectionery (including cocoa processing and chocolate making), malt extract, protein isolate, high protein food, weaning food and extruded food products (including other ready-to-eat foods). 6. Beer, including non-alcoholic beer. 7. Alocoholic drinks from non-molasses base. 8. Aerated waters and soft drinks. 9. Specialized packaging for food processing industries. 10.Establishment and servicing of the Development Councils for fish processing industries. 11.Technical assistance and advice to fish processing industry. 12.North Eastern Regional Agricultural Marketing Corporation Limited (NERAMAC).

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ORGANISATIONS INDUSTRIES

UNDER

MINISTRY

OF

FOOD

PROCESSING

a). DIRECTORATE OF F&VP The Directorate of F&VP in the Ministry of Food Processing industries is responsible for implementation of Fruit Products Order (FPO), 1955 issued under the Essential Commodities Act, 1955 to ensure hygienic and good quality products to be manufactured and sold.Their job is also to guide units on better quality and hygienic products. The Directorate of F&VP has four Regional Offices at Delhi, Kolkata, Mumbai & Chennai & two sub offices at Lucknow & Guwahati under the administrative control of Regional Offices at Delhi and Kolkata respectively. b). PADDY PROCESSING RESEARCH CENTRE The Paddy Processing Research Centre at Thanjavur is an autonomous body under the administrative control of the Ministry. This Centre was set up in December, 1984 as a Society.The Centre carries out basic research work on different applied aspects of rice processing and by-product utilization like drying, storage, parboiling, milling, bran stabilization and oil extraction etc. The Centre is fully funded by this Ministry. Its mandate is being extended to cover all grain milling including oil & pulse seeds. c). NORTH EASTERN REGIONAL AGRICULTURAL CORPORATION LIMITED (NERAMAC) MARKETING

The North Eastern Regional Agricultural Marketing Corporation Limited (NERAMAC) was incorporated on 31 March, 1982 as a Government of India Enterprise with its registered Office at Guwahati. The two main objectives for setting up of NERAMAC were to purchase the marketable surplus of fruit and vegetables in the North Eastern region to the maximum possible extent through a network of centres and to make necessary arrangement for its processing and marketing. The authorised capital of the Corporation is Rs.1000 lakhs and the paid up capital is Rs.762 lakhs as on 31.3.2001. Staff strength of NERAMAC as on 1.4.2001 was 55. The main infrastructure of NERAMAC is as under:i) Fruit Juice Concentrate Plant, Nalkata: Set up at Nalkata (Tripura) during June 1988 with an initial capital investment of Rs.3.60 crores and an installed capacity of processing 48 MT of pineapple per day. Cashew Processing Unit, Agartala: Set up in 1994-95 at Agartala (Tripura), this plant has roasting capacity of 500 kg. of Cashewnut per day. Juice vending machines: These are being operated at a very few places in N.E. for retail sale of pineapple juice
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ii)

iii)

Power And Function


In the era of economic liberalization where the private, public and co-operative sectors are to play their rightful role in the development of food processing sector, the Ministry acts as a catalyst for bringing in greater investment into this sector, guiding and helping the industry in the proper direction, encouraging exports and creating a conducive environment for healthy growth of the food processing industry. Within this overall objectives, the Ministry aims at: Better utilization and value addition of agricultural produce for enhancement of income of farmers. Minimizing wastage at all stages in the food processing chain by the development of infrastructure for storage, transportation and processing of agro-food produce. Induction of modern technology into the food processing industries from both domestic and external sources. Maximum utilization of agricultural residues and by-products of the primary agricultural produce as also of the processed food industry. Encouraging R&D in food processing for product & process development and improved packaging. Providing policy support, promotional initiatives and physical fac ilities to promote value added export

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Major Decision taken last 3 year

Most of the processed food items have been exempted from the purview of licensing under the Industries, Development and regulation, Act, 1951, except items reserved for smallscale sector and alcoholic beverages. As per extent policy Foreign Direct Investment up to 100% is permitted under the automatic route in the food infrastructure like Food Park, Cold Chain and warehousing. DI policy for manufacture of items reserved for the Small Scale Industry sector is uniform for all items so reserved and a separate dispensation for items in the food-processing sector is not contemplated. MRTP (Monopolies and Restrictive Trade Practices Act) rules and FERA (Foreign Exchange Regulation Act) regulations have been relaxed and given more freedom to encourage investment and expansion by large corporate.

Fiscal policy and taxation:

Custom duty rates have been substantially reduced on food processing plant and equipments, as well as on raw materials and intermediates, especially for export production.

Export promotion:

Food processing industry is one of the growing areas identified for exports. Free Trade Zones (FTZ) and Export Processing Zones (EPZ) have been set up with all infrastructures. Also, setting up of 100% Export oriented units (EOU) is encouraged in other areas. They may import free of duty all types of goods, including capital foods.

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Major achievement in last 3 year

(i)

Fruits & Vegetable processing Industry (including freezing and dehydration)

(ii) Foodgrain milling industry (iii) Dairy products such as milk powder, infant milk food, malted milk food, condensed milk, ghee etc. (iv) Processing and refrigeration of poultry and eggs, meat & meat products. (v) Processing of fish (including canning and freezing). (vi) Establishment and servicing of the Development Councils for food processing industries. (vii) Technical assistance and advice to food processing industry. (viii) Fishing and fisheries beyond territorial waters. (ix) Planning, development and control of, and assistance to industries relating to bread, oilseeds, meals (edible), breakfast foods, biscuits, confectionery (including cocoa processing and chocolate making), malt extract, protein isolate, high protein food, weaning food and extruded food products (including other ready-to-eat foods). (x) Specialised packaging for food processing industries. (xi) Beer, including non-alcoholic beer. (xii) Alcoholic drinks from non-molasses base. (xiii) Aerated waters/soft drinks and other processed food.

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Achievement with statistical data

Government have also approved various proposals like JV/FC/IL/100% EOU envisaging an investment of over Rs.7679 crores and employment of approx. Out of this, the foreign investment is to the tune of Rs.2528 crores which constitute about 11 % of the total foreign investments approved so far. Since August 1991 till February, 1995, 3046 Industrial Entrepreneur Memoranda (IEM) envisaging an investment of Rs.38409 crores and employment of 5.26 lakh persons have been received for various sectors of the food processing. Out of the IEMs, filed in the postliberalisation period, 2592 IEMs envisaging an investment of Rs.33255 crores and employment of approx. 4.76 lakh persons are for non urban areas. About 45% of these investments are proposed to be made in the backward areas. Of these, 371 proposals having an investment of approx. Rs.3462 crores and direct employment of 56328 persons have already been implemented. Export of marine products continue to show an increasing trend. During April-December, 1994, 177330 metric tonnes of marine products were exported with a value of Rs.2206.52 crores as against an export of 1,54,458 metric tonnes valued at Rs.1,684 crores during the same period in 1993. It is expected that by the end of the financial year, the total export of marine products will touch a figure of Rs.3120 crores. Due to better processing, packaging, etc. unit value realisation improved from Rs.100.8 per Kg in 1993-94 to Rs.124.4 per Kg in 1994-95.

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Success of existing Plan

Food Parks- carefully planned, cluster based, privately driven. Abattoirs- publicly owned and privately managed. Cold chains- integrated cold chain facilities and strategic distribution centres. Street Food- upgrading quality and hygiene in the cities/towns. Wine Policy- liberalized, leveraging the agri/horticultural surpluses. Testing & certification labs- both public and private Importantly, the Ministry has to be strengthened appropriately, to meet the challenges in implementing various new initiatives proposed for energizing the food-processing sector in the country. Priority Areas for Intervention The priority areas identified for intervention therefore are:

Infrastructure development The food park scheme is proposed to be modified into a scheme for an Integrated Food Zone/Mega Food park Modernization of Abattoirs and setting up of National Meat Board Cold Chain, Value Addition and Preservation infrastructure (Cold storages, Reefer vans Irradiation Centres Research and development Products, Technology, Quality and Skills Capacity Building Human Resource Development, Research & Development, Quality, Safety, Related Infrastructure Implementation of Food Safety and Standards Act, 2006. Establishment of NIFTEM Modernization of PPRC, Thanjayur into a National Crop Processing Center Upgrading safety and quality of street food and establishing food streets in identified Wine Sector Development- Establishment of Wine Board

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