The food processing sector plays an important role in increasing farm income and creating off-farm jobs, reducing post-harvest losses in agriculture and allied sector production through on- and off-farm investments in preservation and processing infrastructure. Accordingly, Ministry of Food Processing Industries has undertaken several initiatives to give impetus to development of food processing sector in the country and has made significant achievements in its schemes during the year of 2024.
The notable achievements over past year are as follows: –
• Share of processed food exports in agri-food exports increased substantially from 13.7% in 2014-15 to 23.4% in 2023-24.
• Food processing sector is one of the largest employment providers in the organized manufacturing sector with 12.41% employment in the total registered/organized sector as per the report of Annual Survey of Industries (ASI), 2022-23.
• Since Jan 2024, a total of 46,643 Loans have been sanctioned under the credit linked subsidy component of the PMFME scheme
Other remarkable achievements over past year are as follows: –
1. Increase in sectoral assistance through Ministry budget-
Government of India has allocated B.E. of Rs. 3290.00 Crore to Ministry for development of Food Processing Sector in the Year 2024-25, which marks an increase of about 30.19 % from Revised Estimate (R.E.) of Rs. 2527.06 Crore in 2023-24.
2. Quantum jump in sectoral achievements-
• The Gross Value Added (GVA) in food processing sector has increased from Rs.1.34 lakh crore in 2014-15 to Rs.1.92 lakh crore in 2022-23 (as per 1st Revised Estimates)
• The sector has attracted USD 6.793 billion FDI equity inflow during April 2014- March 2024.
• The share of processed food exports in agri-food exports has increased substantially from 13.7% in 2014-15 to 23.4% in 2023-24.
• Food processing sector is one of the largest employment provider in the organized manufacturing sector with 12.41% employment in the total registered/organized sector as per the report of Annual Survey of Industries (ASI), 2022-23.
3. Achievements under the schemes-
4. Pradhan Mantri Kisan Sampada Yojana (PMKSY)
• PMKSY was approved with an allocation of Rs. 6,000 crore for the period 2016-20 (extended to 2020-21) for 14th FC cycle and has been approved to be continued after restructuring during 15th FC Cycle with allocation of Rs 5520 Crore.
• Since Jan 2024, 143 projects have been approved under various component schemes of PMKSY and 69 projects have been operational resulting in processing & preservation capacity of 14.41 Lakh MT. The approved projects, on their operationalization, are expected to leverage investment of Rs 2303.24 Crore benefiting about 3.53 lakh farmers and are expected to result in more than 0.57 lakh direct/indirect employment.
• In all, so far, 1646 projects have been approved under various component schemes of PMKSY, since their respective dates of launch. Out of these, 1087 projects have been operational resulting in processing & preservation capacity of 241.94 Lakh MT. The approved projects, on their operationalization, are expected to leverage investment of Rs 22778.60 Crore benefiting about 51 lakh farmers and are expected to result in more than 7.46 lakh direct/indirect employment.
• PMKSY has made a significant positive impact in terms of increase in prices of the agricultural produce at farm gate and reduction in its losses. NABCON’s evaluation study report on cold chain projects showed that completion of 70% of the approved projects has shown significant improvement in waste reduction up to 70% in case of fisheries and 85% in case of dairy products.
• During the presentation of the Annual Financial Statement for FY 2024-25 on July 22, 2024, the Hon’ble Finance Minister announced in paragraph 49 the provision of financial support for the setting up of
a. 50 multi-product food irradiation projects. In-principle approval of Ministry of Finance received in r/o 50 Irradiation projects. Expression of Interest floated on 07.08.2024 and 20 proposals have been received.
b. 100 food quality & safety testing labs with NABL accreditation will be facilitated. Accordingly, EFC Note in respect of setting up of 100 Food Testing Labs in next two years is under preparation.
B. Pradhan Mantri Formalisation of Micro Food Processing Enterprises Scheme
• Under Atmanirbhar Bharat Abhaiyaan, the Ministry of Food Processing Industries launched a Centrally Sponsored scheme named Pradhan Mantri Formalisation of Micro Food Processing Enterprises Scheme (PMFME) in June, 2020 to encourage ‘Vocal for Local’ in the sector in a total outlay of Rs. 10,000 crore in the period of FY 2020-2025 for this scheme. The scheme has been extended up to FY 2025-26.
• This is the first ever Government scheme for Micro Food Processing enterprises and is targeted to benefit 2 lakh enterprises through credit linked subsidy and adopting the approach of One District One Product.
• Since Jan 2024, a total of 46,643 Loans have been sanctioned under the credit linked subsidy component of the PMFME scheme. An amount of Rs. 254.87 crore has been sanctioned as seed capital assistance to 71,714 Self Help Group (SHGs) members. 2 Incubation Centres approved and 11 Incubation Centres have been completed/inaugurated/commissioned during the period providing product development support to grass-root Micro Enterprises. 4 proposals of Marketing & Branding have been approved to provide branding support to the micro enterprises.
• Since the inception of the scheme, so far, total of 1,14,388 loans have been sanctioned under the credit linked subsidy component of the PMFME Scheme to individual beneficiaries, Farmer Producer Organizations (FPOs), Self Help Groups (SHGs) and Producer Cooperative Societies. An amount of Rs. 1032.31 crore has been released as seed capital assistance to 3.10 lakh Self Help Group (SHG) members. 76 Incubation Centres have been approved to be set up in ODOP processing lines and allied product lines with an outlay of Rs. 206.95 Crore. 15 Incubation centres have been completed/ inaugurated/ commissioned.
17 Proposals of marketing and branding have been approved including 2 National Level Proposals (NAFED Phase 1 and Phase 2) and 15 State Level Proposals.
C. Production Linked Incentive Scheme for Food Processing Industries (PLISFPI)
• In order to support creation of global food manufacturing champions commensurate with India’s natural resource endowment and support Indian brands of food products in the international markets, Central Sector Scheme – “Production Linked Incentive Scheme for Food Processing Industry (PLISFPI)” was approved by Union Cabinet on 31.03.2021 with an outlay of ₹10,900 Crore. The Scheme is being implemented over a six-year period from 2021-22 to 2026-27.
• The components of the Scheme are – Incentivising manufacturing of four major food product segments viz. Ready to Cook/ Ready to Eat (RTC/RTE) foods including Millet based products, Processed Fruits & Vegetables, Marine Products and Mozzarella Cheese (Category I). The second component relates to production of Innovative / Organic products of SMEs (Category II). The third component related to support for branding and marketing abroad (Category III) to incentivize emergence of strong Indian brands for in-store Branding, shelf space renting and marketing. From the savings under PLISFPI, a component for Production Linked Incentives Scheme for Millet Based Products (PLISMBP) was also carved out from the scheme to encourage the use of Millets in RTC/RTE products and incentivizing them under the PLI Scheme to promote its production, value addition and sale.
• A total of 171 proposals under different categories of Production Linked Incentive Scheme for Food Processing Sector (PLISFPI) are currently approved. Total investment to the tune of ₹8910 Crore has so far been reported under the Scheme, reportedly generating employment opportunities of 2.89 Lakhs . Total incentives to the tune of ₹1084.011 Crore has so far been disbursed under 85 eligible cases.
4. Ministry has provided financial assistance and logo support to various eligible organizations for organizing seminar, workshop, conference, exhibitions etc. across the country to create awareness among various stakeholders on schemes of the Ministry and to encourage investment for the development of food processing sector. Total 74 events have been organized in districts viz. Mumbai (Maharashtra), Indore (Madhya Pradesh), Siliguri (West Bengal), Kohima (Nagaland), Bhubaneshwar (Odisha), Ranchi (Jharkhand), Delhi, Mon (Nagaland), Jamnagar (Gujarat), Ahmedabad (Gujarat), Perambalur (Tamil Nadu), Chennai (Tamil Nadu), Guwahati (Assam), Hyderabad (Telangana), Kochi (Kerala), Bengaluru (Karnataka), Agartala (Tripura), Itanagar (Arunachal Pradesh), Aizawl (Mizoram), Patna (Bihar), Vijayawada (Andhra Pradesh), Kolkata (West Bengal), Bhopal (Madhya Pradesh), Ludhiana (Punjab), Jaipur (Rajasthan), Shillong (Meghalaya), Rayagada (Odisha), Ukhrul (Manipur), Lucknow (Uttar Pradesh), Gaya (Bihar), Unjha (Gujarat), Nagpur (Maharashtra), Rajkot (Gujarat), Silchar (Assam), Gangtok (Sikkim), Saharanpur (Uttar Pradesh), Pune (Maharashtra).
5. Activities/Achievements under “World Food India-2024”-
• Ministry of Food Processing Industries organized a Global Food Event “World Food India (WFI)” during 19th to 22nd September,2024 at Bharat Mandapam, Pragati Maidan, New Delhi. The event provided supportive platform for interaction and synergy between producers, food processors, equipment’s manufacturers, logistics players, cold chain players, technology providers, start-up & innovators, food retailors etc. and showcased the country as investment destination for food processing including possibilities for Shree Anna.
• The event was organized in an area of 70,000 squares meters in Bharat Mandapam, New Delhi. Technical sessions, Minister level Meetings, Industry Roundtables apart from inaugural session were held in Bharat Mandapam. The event was the one of the biggest congregation of senior government dignitaries, global investors and business leaders of major global and domestic agri-food companies. Key components of the events were-Exhibition, Conferences & Knowledge Sessions, Food Street, Indian ethnic food products and specific pavilion segments focussed on-(a) Fruits and Vegetables; (b) Dairy & Value-added dairy product; (c ) Machinery and packaging; (d) Read to Eat/Ready to Cook, (e ) Technology and Innovations & (f) Pet Food products etc.
• The World Food India-2024 was inaugurated jointly by Shri Pralhad Joshi, Union Minister of Consumer Affairs, Food & Public Distribution and New & Renewable Energy, Shri Chirag Paswan, Minister of Food Processing Industries & Shri Ravneet Singh Bittu, Minister of State for Food Processing Industries & Railways in the Plenary Hall of Bharat Mandapam on 19th September, 2024.
• A high-level industry roundtable discussion was convened on 19th September 2024 at the Summit Hall, Bharat Mandapam, New Delhi. It was co-chaired by Shri Piyush Goyal, Hon’ble Union Minister of Commerce and Industry; and Shri Chirag Paswan, Hon’ble Union Minister of Food Processing Industries. Shri Ravneet Singh Bittu, Hon’ble Minister of State for Food Processing Industries and railways graced the meet. The roundtable was also attended by Secretaries and senior Government officials from allied line ministries and departments (Ministry of Finance, Ministry of Agriculture & Farmers Welfare, FSSAI, Department of Promotion of Industry and Internal Trade, Department of Fisheries, Department of Commerce, Ministry of MSME) along with over 100 distinguished industry leaders including CEOs from Britannia, Coca-Cola, ITC, Mondelez, PepsiCo, Tetrapak, and Tata Consumer Products. The primary objective of the High-Level CEO Roundtable was to facilitate a strategic dialogue between prominent industry leaders in the agri-food sector and senior government officials. This exclusive forum aimed to address pivotal industry challenges, including government subsidy frameworks, taxation structures, trade classifications, and regulatory complexities.
• The Mega Food Event was supported by 09 Ministries/Departments of the Government of India, 8 associate bodies, and 26 States/UTs. The event featured a remarkable turnout of 1557 exhibitors, 20 country pavilions, and notable participation from 809 buyers from 108 countries and 2390 foreign delegates. 13 State Ministers and 4 Central Ministers graced World Food India 2024. Spanning an expansive area of 70,000 square meters across nine exhibition halls, the event provided a comprehensive platform for showcasing the latest advancements in the food processing industry. The event exhibited over 100 One District One Product items.
• 16 international delegations, including 06 Ministerial delegations participated in the event. Japan participated as the Partner Country while Iran & Vietnam participated as the Focus Countries. Different activities like Exhibitions, exclusive pavilions on Technology, Machinery, sub-sectors etc, over 18000 B2B, B2G meetings, 40 conferences/seminars were key attractions of the event.
• Food Safety and Standard Authority of India(FSSAI) organized Global Food Regulators Summit (GFRS)-2024 as a part of World Food India-2024. A Reverse Buyer Seller Meet (RBSM) was also organized in association with D/o Commerce & its associated bodies i.e. APEDA, MPEDA/Commodity Boards as a part of Event.
• Activities/ Achievements under PMFME Scheme as a part of World Food India 2024
• During the Inaugural event of World Food India 2024 held on 19th-22nd September 2024, the Hon’ble Minister of Food Processing Industries, Hon’ble Minister of Consumer Affairs, Food & Public Distribution & of New and Renewable Energy and Hon’ble Minister of State, FPI, sanctioned an amount of Rs. 245 Cr. for 70,000 SHG members.
• Credit linked back-ended subsidy released to 25,000 beneficiaries of the PMFME scheme amounting to Rs. 701 Cr.
• Around 1100 Pickle varieties from across the country were showcased along with an interactive display of the map of India which further elaborated the State-wise details of the pickle manufacturers. With an aim to provide the market linkage to the enterprises, all the 1100 pickles were QR Coded through which the product information was accessed by the visitors during the 4-day WFI event.
• Around 550 ODOP products and 200 non-ODOP products were showcased at the PMFME product display wall along with the QR code integration, displaying the enterprise and product information for the interested buyers.
