Ministry of Food Processing: 2023 Achievements & Initiatives

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 FY 2023-24. The notable achievements over past year are as follows:

1. Increase in sectoral assistance through Ministry budget-

Government of India has allocated B.E. of Rs 3287.65 crore to Ministry for development of Food Processing Sector in year 2023-24, which marks an increase of about 73% from Revised Estimate (R.E) of Rs. 1901.59 crore in 2022-23.

2. Quantum jump in sectoral achievements -

• The Gross Value Added (GVA) of food processing sector has increased from Rs.1.34 lakh Crore in 2014-15 to Rs 2.08 lakh crore in 2021-22.
• The sector has attracted USD 6.185 billion FDI equity inflow during April 2014-March 2023.
• The share of processed food exports in agri-exports has increased substantially from 13.7% in 2014-15 to 25.6% in 2022-23.
• Food processing sector is one of the largest employment provider in the organised manufacturing sector with 12.22% employment in the total registered/organised sector.

3. Achievements under the schemes-

(A)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 4600 Crore.
• Since Jan 2023, So far, a total of 184 projects have been approved under various component schemes of PMKSY and a total of 110 projects have been completed resulting in processing & preservation capacity of 13.19 Lakh MT. The approved projects, on their completion, are expected to leverage investment of Rs 3360 Crore benefiting about 3.85 lakh farmers and are expected to result in more than 0.62 lakh direct/indirect employment.
• In all, so far, a total of 1401 projects have been approved under various component schemes of PMKSY, since their respective dates of launch. Out of these, 832 projects have been completed resulting in processing & preservation capacity of 218.43 Lakh MT. The approved projects, on their completion, are expected to leverage investment of Rs 21217 Crore benefiting about 57 lakh farmers and are expected to result in more than 8.28 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.

 (B) Pradhan Mantri Micro Food Processing Industries Upgradation Scheme (PMFME) –

• • Under Atmanirbhar Abhiyaan, the Ministry of Food Processing Industries launched a Centrally Sponsored Scheme named Pradhan Mantri Micro Food Processing Industries in June, 2020 to encourage 'Vocal for Local' in the sector with a total outlay of Rs 10,000 crore in the period of 2020-2025 for this scheme.
  • 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 2023, a total of 51,130 loans have been sanctioned under the credit linked subsidy component of the PMFME scheme, which is highest achievement during any calendar year since launch of the scheme. An amount of Rs 440.42 crore has been released as seed capital assistance to 1.35 Lakh Self Help Group (SHG) members. 4 Incubation Centers have been completed and inaugurated during the period providing product development support to grass-root Micro Enterprises.
  • Since the inception of the scheme, so far, a total of 65,094 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 771 crore has been released as seed capital assistance to 2.3 Lakh Self Help Group (SHG) members.
  • 76 Incubation Centers have been approved to be set up in ODOP processing lines and allied product lines with an outlay of Rs 205.95 crore.
    1. 3. 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 Rs. 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 Millets 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 relates to support for branding and marketing abroad (Category-III) to incentivise 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.
• On 10.08.2023, the proposal of the Ministry has been approved for inviting EoI for manufacture of Millet-based products (Millets 2.0) with an outlay of Rs. 1000 Crore arising out of the savings from the other segments.
• A total of 176 proposals under different categories of Product Linked Incentive scheme for Food Processing sector (PLISFPI) have been approved so far. The scheme was likely to lead to investment of Rs 7722 Crore, increase in processed food sales turnover worth Rs 1.20 Lakh Crore and generate employment opportunities of 2.50 Lakh. With Incentives of Rs. 584.30 Crore released till date to the supported companies under the scheme, processed food sales turnover of about Rs 2.01 Lakh Crore, investment of Rs 7099 Crore and 2.36 Lakh employment generation has already been achieved through supported projects.
• 30 companies, including 22 MSMEs, are involved in the promotion of Millet based products under PLISMBP. The scheme envisages the use of a minimum of 15% millet content in the approved food products.

(4) Activities/Achievements as part of “International Year of Millets (IYM)-2023)”-

• Shree Anna has been one of the key focus areas of the Ministry in International Year of Millets.
• Ministry has significantly augmented Shree Anna processing & preservation infrastructure through its schemes. 
• 30 Millet based proposals for Production linked Incentive with an outlay of Rs 800 Crore, which includes proposals from 8 large entities and 22 MSMEs, have been approved under PLISFPI.
•  So far, a total of 1825 loan have been sanctioned amounting Rs. 91.08 Crore for individual millet processing units from various states under PMFME scheme.  In addition, Ministry has identified 19 districts with Millet Products as One District One Product (ODOP) under its PMFME scheme and has approved 3 Marketing & Branding proposals for Millet Products. Also, 17 incubation centres have been approved in 10 states having Millet Processing lines.
• Ministry has also organized a series of Millet Roadshows/ conferences/exhibitions across 27 districts spread across the country. Two-day Millet Festival has been organized in  districts viz. Mandla (Madhya Pradesh), Bhojpur (Bihar), Vijayanagar (Andhra Pradesh), Agra (Uttar Pradesh), Madhurai (Tamil Nadu), Nuapada (Odisha), Mahabubnagar (Telangana), Jodhpur (Rajasthan), Khunti (Jharkhand), Tirap (Arunachal Pradesh), Almora (Uttarakhand), Palakkad (Kerala), Surat (Gujarat), Patna (Bihar), Ahmedabad (Gujarat), Chandigarh, Raipur (Chhattisgarh), Pune (Maharashtra), Jaipur (Rajasthan), Coimbatore (Tamil Nadu), Mandya (Karnataka), Kolkata (West Bengal), Amritsar (Punjab),  Hyderabad (Telangana), Jammu (Jammu & Kashmir), Port Blair (Andaman & Nicobar)  and Thane (Maharashtra) as part of the celebration of International Millet Year 2023.

(5) Activities/Achievements as part of “International Year of Millets (IYM)-2023)”-

• Ministry organized a Global Food Event “World Food India” (WFI) during 3-5 November, 2023 at Pragati Maidan, New Delhi. The event provided supportive platform for interaction and synergy between producers, food processors, equipment 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 Ground Floors of Halls Nos 1,2,3,4,5,6 & 14 (measuring 49,174 Sq meter of area) apart from open spaces of about 10,000 sq meter area in Paragti Maidan, New Delhi. Technical Sessions, Ministerial Meetings, Industry Roundtables apart from inaugural and valedictory sessions 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, Sri Anna based activities, 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) Ready to Eat/ Ready to Cook & (e) Technology and Innovations etc.
• World Food India’ 2023 was inaugurated by Shri Narendra Modi, Hon’ble Prime Minister in the Plenary Hall of Bharat Mandapam on 3^rd Nov 2023.  He inaugurated the exhibition in Hall No 14, visited MoFPI pavilion and portions of Technology Pavilion and interacted with select Industry Representatives in the inauguration. Valedictory session of 'World Food India 2023' held on 5th November at Bharat Mandapam was graced by the esteemed presence of the Hon’ble President of India, Smt Droupadi Murmu.
• World Food India had extensive participation from stakeholders across the board, including more than 1200 national and international exhibitors, representatives from 90 countries, 91 Global CXOs, 15 overseas ministerial and business delegations and MoU/ Investment promise of above Rs. 33,000 crore. Different activities like Exhibitions, exclusive pavilions on Technology, Machinery, Sub-sectors etc, B2B, B2G meetings, 47 conferences/seminars were key attractions of the event. Ministry also organized global Reverse Buyer Seller Meet in association with D/o Commerce & its associated bodies i.e. APEDA, MPEDA/Commodity Boards as a part of the Event.