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

80.80.STATUS OF FOOD PROCESSING INDUSTRIES Size of food market in India .2% Investment required during next ten years ± Rs. 1. 8.105 Crores Industry growth rate during the last five years is estimated at 7.000 crore Value added processed food market ± Rs.38.60.Rs.000 crore The Sector attracted a total investment of Rs. 62.000 Crores Primarily processed food market ± Rs. 1. 2.50.531 Crores during the 9th plan period Investment during the 10th plan is estimated at Rs.000 crore .14% against GDP of 6.

58. Marine products 8%.000 crore . Poultry 6%. VALUE ADDITION ETC. Value addition 20% Wastage Rs. Milk 35% (only 13% in modern dairies). Fruits & Vegetables Sector at 2%.LEVEL OF PROCESSING. Buffalo meat 21%.

high packaging cost Affordability and cultural preference of fresh food. .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.

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 .

codex.(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. bar coding and establishment of labs. R&D.

food testing effluent treatment plant. 25% of the project cost in general areas and 33.30 acres Units to be located :.33% in difficult areas subject to a maximum of Rs. power. etc.SCHEME FOR INFRASTRUCTURE DEVELOPMENT Food Park Scheme ‡ Intends to make provision of common facilities like cold storage. water supply.20 minimum ‡ ‡ ‡ .4 crores Land required :.

MODERNIZATION OF ABATTOIRS 25% of the project cost in general areas and 33.33% in difficult areas with a common ceiling of Rs. INTEGRATED COLD CHAIN ‡25% of the project cost in general areas and 33. Admissible to local bodies only.4 crores.33% in difficult areas subject to a maximum of Rs. ‡Admissible for non ± horticultural produce .75 lakhs.

IRRADIATION FACILITIES Objectives are :(a) prevent infestation (spices in flour) / change in chemical composition of potato etc.33% in difficult areas subject to a maximum of Rs. .5 crores. (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% up to Rs.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. 75 lakhs in Difficult areas. .

7.00 lakh as fixed capital cost and Rs. 2.00 lakh as revolving seed capital Grant of Rs. 1. 2.00 lakh as revolving seed capital Multi product line FPTC ‡ .SCHEME FOR HUMAN RESOURCE DEVELOPMENT Food Processing Training Centre Single produce line FPTC ‡ Grant of Rs.50 lakh as fixed capital cost and Rs.

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

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. .

2005 ‡ Vision.RECENT INITIATIVES ‡ Food Safety & Standards Bill. 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 .

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