The growth
rate of gross value added in food Processing industries has increased from
1.91% in 2013-14 to 5.78% in 2014-15 at constant prices. Further, as per the
Annual Survey of Industries 2013-14, the food
processing industry as compared to other industries in the registered
sector has the largest number of factories and
engages largest number of employees. Further, as per Annual Survey of
Industries 2013-14 the total number of persons engaged in registered food
processing sector is 17.41 lakh which constitutes 11.69 per cent of employment
generated in all registered factory sector. As per the NSSO 67th
Round, 2010-11 unregistered food processing sector provides employment to 47.9
lakh workers.
Dr.
Saumitra Chaudhuri Committee in 2012 constituted by the then Planning
Commission had indicated cold storage requirement of 61 million tonnes. The
present capacity of cold storage is estimated at around 32 million tonnes in
the country.
The
Central Institute of Post-Harvest Engineering and Technology (CIPHET), Ludhiana
has estimated the annual value of harvest and post-harvest losses of major
agricultural produces at national level to be of the order of Rs. 92,651 Crore
calculated using production data of 2012-13 at 2014 wholesale prices. Annual
wastage of agricultural produce, milk, meat, marine and poultry products as
assessed by CIPHET is as under:
|
Commodity/Crop
|
Losses during Transportation
(%)
|
Losses during Farm Operations (including
transportation loss)
(%)
|
Losses during Storage
(%)
|
Overall Total Loss
(%)
|
Monitory value of the loss
(in Rs. crore)
|
|
Milk
|
0.02
|
0.71
|
0.21
|
0.92
|
4409
|
|
Meat
|
0.00
|
1.99
|
0.72
|
2.71
|
1235
|
|
Marine Fish
|
0.91
|
9.61
|
0.91
|
10.52
|
4315
|
|
Inland Fish
|
0.17
|
4.18
|
1.05
|
5.23
|
3766
|
|
Egg
|
0.36
|
4.88
|
2.31
|
7.19
|
1320
|
|
Poultry Meat
|
0.66
|
2.74
|
4.00
|
6.74
|
3942
|
|
Cereals
|
|
|
|
4.65-5.99
|
20698
|
|
Pulses
|
|
|
|
6.36-8.41
|
3877
|
|
Oilseeds
|
|
|
|
3.08-9.96
|
8278
|
|
Fruits & Vegetables
|
|
|
|
4.58-15.88
|
40811
|
To
curb the losses in supply chain of agriculture produce and to improve the
existing infrastructure for food processing, the Ministry of Food Processing
Industries has been implementing the Schemes of Mega Food Parks; Integrated
Cold Chain, Value Addition and Preservation Infrastructure; and Setting up/
Modernization of Abattoirs. The scheme for Mega Food Parks aims to provide
modern Infrastructure for food processing Units in the country on
pre-identified cluster basis. Under the scheme, grant-in-aid is provided @ 50%
of the eligible project cost in general areas and 75% thereof in difficult
areas and hilly areas i.e., North East Region including Sikkim, J&K,
Himachal Pradesh, Uttarakhand and ITDP notified areas of the states, subject to
a maximum of Rs.50.00 Crore per project. A total of 42 Mega Food Park projects
have been approved by the Government to be set up in the country. The Scheme
for Setting up/ Modernization of Abattoirs aims to provide hygienic finished
meat and meat products, slaughter waste management and pollution control. The
Scheme envisaged grant-in-aid @ 50% of the project cost in general areas and
75% for North- Eastern region subject to a maximum of Rs.15.00 Crore per
project. So far, 41 Abattoir projects have been sanctioned. The Scheme of Cold
Chain, Value Addition and Preservation Infrastructure aims at arresting
post-harvest losses of horticulture & non-horticulture produce and
providing remunerative price to farmers for their produce. Under the scheme,
financial assistance is provided in the form of grant-in-aid of maximum Rs.10
Crore per project for setting up of integrated cold chain and preservation
infrastructure facilities without any break from the farm gate to the consumer.
The integrated cold chain and preservation infrastructure can be set up by
individuals, groups of entrepreneurs, cooperative societies, Self Help Groups
(SHGs), Farmer Producer Organizations (FPOs), NGOs, Central/State PSUs, etc.
The scheme is primarily private sector driven and proposals
under this scheme are invited through Expression of Interest (EOI). The
scheme is available in all States/UTs and rural & urban areas. So far, 134
Integrated Cold Chain Projects have been sanctioned by the Ministry in the
country to reduce the cold chain gap. Of this, 88 Integrated Cold Chain
projects have achieved completion and commenced commercial operation, 46
Integrated Cold Chain projects are in various stages of implementation. The
impact of these 134 integrated Cold Chain projects being assisted by Ministry
in the country under the Scheme of Cold Chain, Value Addition and Preservation
Infrastructure in respect of expected capacity creation is 4.92 Lakh MT of Cold
Storage/Controlled Atmosphere/Deep Freezer, 113.90 MT/Hour of Individual Quick
Freezer (IQF), 54.65 Lakh Litter Per Day of Milk Storage/Processing and 761
Number of Reefer Vans. Capacity created from 88 completed cold chain projects
is 3.31 Lakh MT of Cold Storage/CA/Deep Freezer, 77.15 MT/Hr of Individual
Quick Freezing,31.80 Lakh Litre Per Day of Milk Processing/Storage and 423
Number of Reefer Vans. State wise funds are not allotted under the scheme of
Cold Chain, Value Addition and Preservation Infrastructure. However, Details of
number of projects with state-wise and year-wise funds released under the scheme
of Cold Chain, value addition and Preservation Infrastructure of Ministry of
Food Processing Industries during last three years and the current year are at Annexure-I.
In
addition, National Horticulture Mission (NHM), National Horticulture Board (NHB),
and National Cooperative Development Corporation (NCDC) under Department of
Agriculture, Cooperation and Farmers Welfare, Ministry of Agriculture &
Farmers Welfare and Agricultural and Processed Food Products Export Development
Authority (APEDA) under Department of Commerce, Ministry of Commerce and
Industries, Government of India are also providing assistance for setting up
cold storages under their respective schemes.
Various
other incentives provided by the Government to promote creation of cold chain
infrastructure are at Annexure-II.
In addition to operationalisation of 4 Mega Food
Parks and 29 Cold Chain Projects during 2016-17, Government has also approved
setting up of 100 cold chain projects and 250 units under the scheme of
creation/expansion of food processing and preservation. The projects set up
under the Schemes of this Ministry are granted financial assistance at a higher
rate in difficult areas and North East Region as compared to general areas.
This
information was given by the Minister of State for Food Processing Industries
Sadhvi Niranjan Jyoti in a written reply in Lok Sabha today.
*********
MJPS
Annexure I
ANNEXURE
REFERRED TO IN REPLY TO PARTS (c) & (d) OF LOK SABHA UNSTARRED QUESTION NO.
3887 FOR ANSWER ON 09TH AUGUST, 2016 REGARDING WASTAGE OF
AGRICULTURAL PRODUCE
Details
of number of units with state-wise and year-wise funds released (in Crore)
under the scheme of Cold Chain, value addition and Preservation Infrastructure.
|
Name of the state
|
2013-14
|
2014-15
|
2015-16
|
2016-17*
|
|
|
Nos.
|
Amount
|
Nos.
|
Amount
|
Nos.
|
Amount
|
Nos.
|
Amount
|
|
Andhra Pradesh
|
2
|
4.28
|
0
|
0
|
2
|
4.00
|
0
|
0
|
|
Arunachal Pradesh
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
|
Assam
|
0
|
0
|
2
|
6.54
|
2
|
2.27
|
0
|
0
|
|
Bihar
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
|
Chhattisgarh
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
|
Gujarat
|
2
|
3.49
|
3
|
12.05
|
3
|
10.31
|
1
|
3.87
|
|
Haryana
|
1
|
21.37
|
2
|
19.35
|
2
|
10.28
|
3
|
8.63
|
|
Himachal Pradesh
|
3
|
10.50
|
3
|
6.57
|
4
|
18.02
|
2
|
3.12
|
|
Jammu & Kashmir
|
0
|
0
|
2
|
4.80
|
2
|
16.06
|
2
|
4.80
|
|
Jharkhand
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
|
Karnataka
|
1
|
2.08
|
2
|
7.38
|
2
|
1.97
|
0
|
0
|
|
Kerala
|
1
|
4.80
|
0
|
0
|
0
|
0
|
0
|
0
|
|
Madhya Pradesh
|
1
|
2.37
|
2
|
5.50
|
2
|
3.89
|
1
|
2.50
|
|
Maharashtra
|
6
|
9.96
|
11
|
27.66
|
13
|
36.84
|
8
|
22.06
|
|
Manipur
|
1
|
5.00
|
1
|
2.45
|
0
|
0
|
0
|
0
|
|
Meghalaya
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
|
Mizoram
|
2
|
8.00
|
2
|
2.49
|
0
|
0
|
0
|
0
|
|
Nagaland
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
|
Odisha
|
0
|
0
|
1
|
0.566
|
1
|
0.92
|
0
|
0
|
|
Punjab
|
4
|
13.67
|
3
|
10.32
|
4
|
12.67
|
2
|
5.00
|
|
Rajasthan
|
0
|
0
|
1
|
2.02
|
3
|
9.22
|
2
|
2.95
|
|
Sikkim
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
|
Tamil Nadu
|
1
|
1.79
|
0
|
0
|
0
|
0
|
0
|
0
|
|
Telangana
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
|
Tripura
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
|
Uttar Pradesh
|
3
|
4.94
|
3
|
7.50
|
2
|
10.69
|
1
|
1.99
|
|
Uttarakhand
|
1
|
2.25
|
7
|
37.43
|
5
|
14.52
|
2
|
5.00
|
|
West Bengal
|
2
|
7.26
|
1
|
0.433
|
2
|
7.3
|
1
|
1.65
|
|
Andaman & Nicobar
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
|
Chandigarh
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
|
Dadar& Nagar Haveli
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
|
Damn and Diu
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
|
Lakshadweep
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
|
Delhi
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
|
Puducherry
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
|
Total
|
31
|
101.76
|
46
|
153.059
|
49
|
158.96
|
25
|
61.57*
|
*As on date 31.07.2016
ANNEXURE-II
ANNEXURE
REFERRED TO IN REPLY TO PARTS (c) & (d) OF LOK SABHA UNSTARRED QUESTION NO.
3887 FOR ANSWER ON 09TH AUGUST, 2016 REGARDING WASTAGE OF
AGRICULTURAL PRODUCE
Details
of various other incentives provided by the Government to the cold chain sector
·
Services of pre-conditioning, pre-cooling,
ripening, waxing, retail packing, labeling of fruits and vegetables have been
exempted from Service Tax in Budget 2015-16.
·
Loans to food & agro-based processing units
and Cold Chain have been classified under Agriculture activities for Priority
Sector Lending (PSL) as per the revised RBI Guidelines issued
on 23/04/2015.
·
Under Section 35-AD of the Income tax Act 1961,
deduction to the extent of 150% is allowed for expenditure incurred on
investment for (i) setting up and operating a cold chain facility; and
(ii) setting up and operating warehousing facility for storage of
agricultural produce.
·
Government has extended Project Imports benefits
to cold storage, cold room (including for farm level pre-cooling) or industrial
projects for preservation, storage or processing of agricultural, apiary,
horticultural, dairy, poultry, aquatic and marine produce and meat.
Consequently, all goods related to Food Processing, imported as part of the
project, irrespective of their tariff classification, would be entitled to
uniform assessment at concessional basic customs duty of 5%.
·
Refrigeration machineries and parts used for
installation of cold storage, cold room or refrigerated vehicle, for
the preservation, storage, transport or processing of agricultural, apiary,
horticultural, dairy, poultry, aquatic and marine produce and meat under Tariff
Head: Chapter 84 are exempted from Excise Duty.
·
Construction, erection, commissioning or
installation of original works pertaining to post-harvest storage
infrastructure for agricultural produce including cold storages for such
purposes are exempted from Service tax.
·
Capital investment in the creation of modern
storage capacity has been made eligible for Viability Gap Funding scheme of the
Finance Ministry. Cold chain and post-harvest storage has been recognized as an
infrastructure sub-sector.