Monday, May 21, 2018


MoFPI to implement schemes to promote & develop food processing sector
Tuesday, 03 January, 2017, 08 : 00 AM [IST]
Our Bureau, New Delhi
The ministry of food processing industries (MoFPI) is implementing a number of central sector schemes for the promotion and development of the food processing sector in the country since the 12thFive-year Plan.

The major achievements of the ministry in 2016 were as under:

The government has allowed 100 per cent foreign direct investment (FDI) for trading, including through e-commerce, in respect of food products manufactured or produced in India. One hundred per cent FDI is already permitted in manufacturing of food products through the automatic route. This will provide an impetus to foreign investment in the food processing sector, benefit farmers immensely and create vast employment opportunities.

The following additional fiscal concessions have been granted for boosting the investment in the food processing sector:
  • Reduction in excise duty on refrigerated containers from 12.5 per cent to six per cent
  • Reduction in basic custom duty on refrigerated containers from 10 per cent to five per cent
  • Extension of five per cent basic customs duty, as presently available under project imports for cold storage and cold room to cold chain, including pre-cooling unit, pack house, sorting and grading lines and ripening chambers

Under the scheme of mega food parks:

  • The Indus Mega Food Park, Khargone (Madhya Pradesh); JharkhandMega Food Park, Ranchi(Jharkhand)and Jangipur Bengal Mega Food Park, Murshidabad(West Bengal) were made operational and inaugurated
  • The foundation stone of Punjab Agro Industries Corporation (PAIC) Mega Food Park Project in Ludhiana was laid
  • As such, eight mega food parks have been made operational so far
  • A mega food park is likely to benefit about 25,000-30,000 farmers, apart from creating employment for 5,000-6,000 people, especially in ruralareas
  • The mega food park projects in Satara (Maharashtra), Ajmer (Rajasthan), Rayagada (Odisha) and Agartala (Tripura) are at advanced stage, and will be operationalised by the end of the current financial year
  • The National Bank for Agriculture and Rural Development (NABARD) has sanctioned a term loan of Rs 427.69 crore to ten mega food park projects and two processing units under the food processing fund of Rs2,000 crore, and out of this, an amount of Rs81.10 crore has been disbursed.The ministry has notified 157 designated food parks in different states for the purpose of availing affordable credit from the special fund with NABARD  
Under the scheme of integrated cold chain and value addition infrastructure:
  • Twenty projects were operationalised in 2016.With their operationalisation, the ministrycreated an additional capacity of 0.63 lakh metric tonnes of cold storage, 15 metric tonnes per hour of individual quick freezing (IQF), 10.65 lakh litres per day of milk processing/storage and 99 reefer vans during the year
  • During the lasttwo-and-a-halfyears, 54 integrated cold chain projects were made operational, taking the total number of cold chain projects to 91. The ministry has so far assisted 135 cold chain projects having a capacity of 3.67 lakh metric tonnes of cold storage, 94.29 metric tonnes per hour ofIQF, 37.93 lakh litres per day of milk processing/storage and 549 reefer vans
  • The guidelines of the scheme were revised on the basis of feedback and the experience of the ministry to make them investor-friendly
  • On an average, each cold chain project benefits about 500 farmersin the fruit and vegetable sector and about 5,000 farmers in the dairy sector and creates employment for 100 people
The ministry has invited expressions of interest (EOIs) to fill up vacant slots of mega food parks and cold chain projects.The ministry has received 54 proposals against eight vacant slots of mega food parks and 308 proposals for 100 cold chain projects, which stand testimony to the increasing interest of the investors in this sector.

Under the scheme of setting up/modernisation of abattoirs, one project at Panjim (Goa) was operationalised.

During the year, ten food testing labs were completed.

FSSAI has simplified product approval.
  • Approved a large number of new additives harmonised with the International Codex standards
  • Notified an amendment to the regulations as a result of which non-standardised food products called proprietary foods (except novel food and nutraceuticals) that use ingredients and additives approved in the regulations will no longer require product approval. This has provided considerable relief to the industry

A Web-based online system was operationalised for processing claims for release of grants-in-aid under the schemes of mega food parks and the integrated cold chain and value addition infrastructure.

The National Institute of Food Technology, Entrepreneurship and Management (NIFTEM) at Kundli, Sonepat, Haryanaand the Indian Institute of Crop Processing Technology (IICPT) at Thanjavur, Tamil Nadu are being developed by the government as the centres of excellence. Graduates from these institutes have got 100 per cent placements.

The ministry is also taking steps to implement a new scheme, namely Scheme for Agro-Marine produce Processing and Development of Agro-clusters (Sampada) for the overall development of the food processing sector, for providing enabling infrastructure, expanding processing and preservation capacities, controlled temperature logistics and backward and forward linkages, with an allocation of Rs 6,000 crore for a period co-terminus with the 14th Finance Commission.
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