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Vision Statement The Ministry aims at building a sector which; • Provides safe, hygienic and
Vision Statement
The Ministry aims at building a sector which;
• Provides
safe,
hygienic
and
quality
food
products to the people.
• Makes available nutritious food items to larger
sections of the people.
• Builds a competitive and highly productive
industry.
• Promotes awareness of hygiene and safety
issues relating to food and availability of choice
to the consumers.
The Ministry would also aim at:
• Development of a knowledge based industry
which promotes high value addition and
through that, higher incomes and employment
in the economy.
• Bringing the benefits of technology to the food
processing sector and promote modernization
of agriculture as an essential component of a
strong and expanding economy.
ANNUAL REPORT 2013-2014 Government of India Ministry of Food Processing Industries Panchsheel Bhavan, August Kranti
ANNUAL REPORT
2013-2014
Government of India
Ministry of Food Processing Industries
Panchsheel Bhavan, August Kranti Marg, New Delhi-110049
Annual Report 2013-14 CONTENTSCONTENTS CHAPTER-1 Ministry of Food Processing Industries 1-8 • Background •
Annual Report 2013-14
CONTENTSCONTENTS
CHAPTER-1
Ministry of Food Processing Industries
1-8
• Background
• Allocation of Business
• Role of the Ministry
• Functions of the Ministry
• Organizational Structure of the Ministry
• Organisations Under Ministry of Food Processing Industries
• Information & Communication Technology (ICT) in Food Processing
• Information and Facilitation Centre
• Administrative Vigilance
• Performance Monitoring & Evaluation System
• Gender Budgeting
CHAPTER-2
General Status of Food Processing Industry
11-24
• Overview of the Food Processing Sector
• Stages of Processing of Food
• Raw Material Base of the Food Processing Industry
• Employment in Food Processing Sector
• Fixed Capital in Food Processing Industries
• Exports of Food Processing Related Commodities
• Foreign Direct Investment (FDI) in Food Processing Sector
• Losses in Supply Chain
• Food Processing Sector – Impediments
• Food Processing Sector – Growth Potential
CHAPTER-3
Recent Initiatives
27-33
• Long Term Strategies
• Fiscal Incentives for Speedy Growth of FPI Sector
• Setting up of an "Investors' Help Desk"
• Sevottam
Annual Report 2013-14 CHAPTER-4 Plan Schemes for Food Processing Sector 35-45 • General • 12th
Annual Report 2013-14
CHAPTER-4
Plan Schemes for Food Processing Sector
35-45
• General
• 12th Plan Proposals
• The Salient Features of the Plan Schemes
CHAPTER-5
Infrastructure Development in Food Processing Sector
47-58
• Infrastructure Development in Food Processing Sector
• Mega Food Parks Scheme
• Food Parks
• Scheme for Cold Chain, Value Addition and Preservation Infrastructure
• Setting up/Modernization of Abattoirs
CHAPTER-6
Scheme for Technology Upgradation/Establishment/
Modernization of FPI
61-62
Overview
CHAPTER- 7
Centrally Sponsored Scheme (CSS) – National Mission on
Food Processing (NMFP)
65-71
• Background
• Objectives of NMFP
• Structure at National Level
• Constitution of State Food Processing Development Councils (SFPDCS)
• The Major Programmes / Schemes covered under NMFP being implemented by States / UTS during
the 12th Plan
• Funding Pattern For NMFP
• Criteria for Allocation of Funds to the States
• Scheme - Wise Allocation of Funds
• Flexibility to the States
• Top up of Funds by the State Government
• Administrative Expenses for Implementation of NMFP
• Convergence with Schemes of State Governments
• State Specific Sectoral Focus
• Supervision and Monitoring by MOFPI
• Present Status of NMFP (As on 31.03.2014)
Annual Report 2013-14 CHAPTER-8 Food Safety & Quality and Research & Development 73-80 • Food
Annual Report 2013-14
CHAPTER-8
Food Safety & Quality and Research & Development
73-80
• Food Safety & Quality
• Quality Assurance Scheme
• Research and Development
• Food Testing Laboratories (FTL)
• Food Safety and Quality Management Systems
• Promotion of R&D Scheme – National Workshop on Research & Development
• Implementation of R&D Scheme through SERB
• R&D Projects Assisted During 11th Plan (April - 2007 to March - 2012)
CHAPTER – 9
Strengthening of Institutions
83-105
• Strengthening of Institutions
• National Institute of Food Technology Entrepreneurship and Management (NIFTEM)
• The Indian Institute of Crop Processing Technology (IICPT)
• Indian Grape Processing Board (IGPB)
• National Meat and Poultry Processing Board (NMPPB)
CHAPTER-10
Promotional Support for Food Processing Industries &
International Cooperation
107-113
• Promotional Support for Food Processing Industries
• International Cooperation
• Activities Under India Africa Forum Summit II
• Publicity
CHAPTER-11
Development of North - Eastern Region
115-118
• Assistance for Projects in North – East
• Promotional Activities
• Research & Development
• Horticulture Mission for North – East & Himalayan States (HMNEHS)
• Technology Mission
Annual Report 2013-14 CHAPTER-12 Progress made in use of Hindi in the Ministry of Food
Annual Report 2013-14
CHAPTER-12
Progress made in use of Hindi in the
Ministry of Food Processing Industries
121-122
CHAPTER-13
Results Framework Document
125-126
CHAPTER- 14
ICT Initiatives by the Ministry
129-131
Annexures
132-178
Annual Report 2013-14 1 CHAPTER MINISTRY OF FOOD PROCESSING INDUSTRIES 1 MINISTRY OF FOOD PROCESSING
Annual Report 2013-14
1
CHAPTER
MINISTRY OF
FOOD PROCESSING INDUSTRIES
1
MINISTRY OF FOOD PROCESSING
Annual Report 2013-14 CHAPTER-1 MINISTRY OF FOOD PROCESSING INDUSTRIES 1.1 BACKGROUND (ii) The Ministry of
Annual Report 2013-14
CHAPTER-1
MINISTRY OF FOOD PROCESSING INDUSTRIES
1.1
BACKGROUND
(ii)
The Ministry of Food Processing Industries
Planning, development and control of,
and assistance to, industries relating to
bread, oil seeds, meals (edible),
was set up in July 1988 to give an impetus
for breakfast foods, biscuits, confectionery
development of food processing sector in the
country. Subsequently, vide notification No.
DOC.CD-442/1999 dated 15.10.1999 this
Ministry
was made a Department and brought under the
(including cococa processing and
chocolate making), malt extract,
protein isolate, high protein food,
weaning food and extruded food
Ministry of Agriculture. It was again notified as
the
Ministry of Food Processing Industries vide
products (including other ready to eat
foods)
Cabinet Secretariat's Note No. 1/22/1/2001-Cab
(1) dated-06.09.2001. (iii) Specialized packaging for food
processing industry
1.2
ALLOCATION OF BUSINESS
(iv)
Beer including non-alcoholic beer
The subjects allocated to the Ministry are as
under:-
(v)
Alcoholic drinks from non-molasses
base
(i)
Industries relating to :-
(vi)
Aerated water and soft drinks
(a)
Processing and Refrigeration of
certain agricultural products like
milk powder, infant milk food,
1.3
ROLE OF THE MINISTRY
The Ministry of Food Processing Industries
malted milk food,
condensed is concerned with formulation and implementation
milk, ghee
and
other
dairy
of the policies and plans for the food processing
products, poultry
and meat products.
and eggs, meat industries within the overall national priorities and
objectives. A major issue facing the country is to
(b)
Processing of fish (including ensure remunerative prices to the farmers for their
canning and freezing) produce. If the surplus production of cereals, fruits,
vegetables, milk, fish, meat and poultry etc. is
(c)
Establishment and servicing
of processed and marketed both inside and outside the
development council for fish
processing industries
(d)
Technical assistance and advice to
fish processing industry
country, there will be greater opportunities for
adding to the income of farmers and employment.
A strong and dynamic food processing sector plays a
vital role in diversification and commercialization
of agriculture, enhancing shelf life, ensuring value
(e)
Fruit and vegetable
processing addition to agricultural produce, generating
industry (including freezing and
employments, enhancing income of farmers and
dehydration) and creating markets for export of agro foods. The
Ministry acts as a catalyst for bringing in greater
(f)
Food grains milling industry
2
MINISTRY OF FOOD PROCESSING
Annual Report 2013-14 investment into this sector, guiding and helping the 1.4.2 Policy Initiatives industry
Annual Report 2013-14
investment into this sector, guiding and helping the
1.4.2
Policy Initiatives
industry and creating a conducive environment
for
Several policy initiatives have been taken
healthy growth of the food processing industry. The
from time to time to promote growth of
the
Ministry aims at: processed food sector in the country. Some of these
• Better utilization and value addition of
are:
agricultural produce (a) Most of the processed food items have
• Minimizing wastage at all stages in the
food processing chain by development
been exempted from the purview of
licensing under the Industries
o f i n f r a s t r u c t u r e f o r s t o r a ge, (Development and Regulation) Act,
transportation and processing of agro
produce
1951, except items reserved from small
scale sector and alcoholic beverages.
• Induction of modern technology into (b) Automatic approval for foreign equity
the food processing industries upto 100% is available for most of the
processed food items excepting alcohol
• Encouraging R&D in food processing
for products and process development
and beer and those reserved for small
scale sector subject to certain
• Providing policy support, promotional conditions.
initiative and
facilities
to
promote
value added exports
• Create the critical infrastructure to fill
(c) Developing a strong supply chain for
perishable farm produce to reach
consumption and processing sector
the gaps in the supply chain from farm promptly.
to consumer
1.4
FUNCTIONS OF THE MINISTRY
(d) Building infrastructure and using
technology to convert such produce
into value added products.
The functions of the Ministry can be broadly
classified
under
policy
support,
development
1.4.3
Developmental Initiatives
initiative and promotional activities.
1.4.1
Policy support
(a) Creation of modern infrastructure for
growth of food processing sector
through Mega Food Parks, Integrated
(a)
Formulation and implementation of
Cold Chain and Modernization of
policies for the food processing sector Abattoirs Schemes.
within overall national priorities and
objectives. (b) Providing assistance to food processing
industries under various plan schemes.
(b)
Facilitating creation of a conducive
environment for healthy growth of the
(c)
Widening the R&D
base
in
food
food processing sector. processing by involvement of various
(c)
Promoting rationalization of tariff and
R&D institutes and support to R&D
activities.
duties
relating
to
food
processing
sector.
(d)
Human
Resource
Development
to
meet
the
growing
requirement
of
3
MINISTRY OF FOOD PROCESSING
Annual Report 2013-14 managers, entrepreneurs and skilled total sanctioned strength, number of employees in workers
Annual Report 2013-14
managers, entrepreneurs and skilled total sanctioned strength, number of employees in
workers in the food processing sector. position and number of employees belonging to
scheduled castes and scheduled tribes in the
(e)
A Centrally Sponsored Scheme
(CSS) - National Mission on Food
Processing (NMFP) has been launched
during 12th Plan (2012-13) for
decentralization of implementation
of Ministry's schemes, through State/
UT Governments.
Ministry of Food Processing Industries (as on
31-01-2014) are at Annexure-II.
1.6
ORGANIZATIONS UNDER MINISTRY
OF FOOD PROCESSING INDUSTRIES
(f)
Assistance for setting up of analytical
and testing laboratories, active
participation in the laying down
1.6.1 National Institute of Food Technology
Entrepreneurship & Management
(NIFTEM):
National Institute of Food Technology,
Entrepreneurship & Management (NIFTEM) has
of food standards and
their been set up at Kundli, Haryana by the Government
harmonization with
international
as an international centre of excellence, with a
standards. vision to work synergistically with the industry and
(g)
Investors' portal was launched and a similar institutions within India and outside.
book on “Opportunities in Agri NIFTEM on 08-05-2012 has been granted the status
Business: State Profile” has been of Deemed University under de-novo category by
released to facilitate investment in the the Government. NIFTEM commenced its first
food processing sector. Sector specific academic session from 16-08-2012. At present, the
queries from the investors will be institute is offering B.Tech (Food Technology and
handled by Invest India through the Management), along with M.Tech courses. The
“Investors' Portal.” institute has commenced Ph.D programmes during
the academic year 2013-14. Further details on
(h)
Sevottam,
charter
mark
in
service
NIFTEM are available in Chapter 9.
delivery
for
excellence
has
been
introduced in the Ministry.
1.6.2
Indian
Institute
of
Crop Processing
Technology (IICPT):
1.4.4
Promotional Initiatives
In
order
to
create
awareness
about
the
potential
and
prospect
of
Food
Processing
Indian Institute of Crop Processing
Technology, Thanjavur is an autonomous
organization under the administrative control of
Industries in
assistance for:
(a)
the country, this Ministry provides MFPI. The institute is in existence for the last four
decades, initially as a paddy research centre. As
Organizing Workshops, Seminars, other commodities such as millets, pulses and oil
Exhibitions and Fairs; seeds gained importance, it was decided in 2001 to
expand the mandate of this Institute to include the
(b)
Studies/Surveys etc. above commodities also. Hon'ble Union Finance
1.5
ORGANIZATIONAL STRUCTURE OF
THE MINISTRY
Minister in the Budget Speech of 2006- 07
The organizational structure of the Ministry
of Food Processing Industries is at Annexure-I. The
announced the intention of the Government to
upgrade the institute to a National-level Institute.
The institute is running B.Tech, M.Tech. and Ph.D
4
MINISTRY OF FOOD PROCESSING
Annual Report 2013-14 programmes in Food Process Engineering. During hygienic and internationally accepted 2013-14,
Annual Report 2013-14
programmes in Food Process Engineering. During
hygienic and internationally accepted
2013-14, IICPT commenced M.Tech (Food Science quality of meat and poultry products.
& Technology)
programme. More details on IICPT (ii) providing consultancy services for
are given in Chapter 9.
preparation of Detailed Project
1.6.3
Indian Grape Processing Board (IGPB):
Reports for setting up new and
modernization of old abattoirs.
The Indian Grape Processing Board has
been set up in the year 2009 at Pune, Maharashtra (iii) entering into Memorandum of
which is close to the principal grape growing/ Understanding with leading National
processing areas in the country. The 16 member Research and State Veterinar y
Board that is led by a professional from the Industry, Colleges/Universities for development
has been registered under the Societies Registration of meat and poultry processing
Act, 1860 at Pune.The important functions and
objectives of the Board are as under:
sector.
(iv)
• To focus on Research & Development,
imparting training to Meat workers/
Butchers, Meat shop owners etc.
Extension, and Quality
Up-gradation,
(v)
undertaking
training
of
municipal
market research and information,
domestic and international promotion
of Indian wine.
officers,
supervisors,
managers
etc.
employed
in
abattoirs,
processing
plants, retail establishments etc.
• To foster
sustainable development of
More
details
of
NMPPB are given in
Indian wine Industry.
chapter 9.
• To formulate a vision and action plan
for the growth of Indian Wine Sector
including research and development
for quality upgradation in new
technologies /processes.
1.7
INFORMATION & COMMUNICATION
TECHNOLOGY
(ICT)
IN
FOOD
PROCESSING
1.7.1
Ministry's Website:
More details of IGPB are given in The existing website of the Ministry
chapter 9. (www.mofpi.nic.in) is the focal point for
disseminating information in the quickest manner
1.6.4
National Meat & Poultry Processing Board
(NMPPB):
across the geographical regions regarding schemes
of the Ministry, the data base on food processing
The National Meat & Poultry Processing sector and allied areas. Ministry's website was
Board (NMPPB) was established in 2009. The redesigned and launched on 16th July, 2013 by Dr.
mandate of National Meat & Poultry Processing Charan Das Mahant, Hon'ble Minister of State for
Board is to oversee the growth and further Agriculture & Food Processing Industries. An
promotion of Meat and Poultry sector in the important feature of the new website is that it is
country. This has been considered necessary because interactive and user friendly. It has been designed
of a felt need for a focused intervention in meat and particularly keeping in mind the requirement of
poultrysector.TheBoardiscommittedto:-
investors in food processing industry with emphasis
on “how to avail benefit under different schemes”
(i)
helping the industry for production of
5
MINISTRY OF FOOD PROCESSING
Annual Report 2013-14 implemented by the Ministry. It seeks to disseminate 1.7.5 detailed information on
Annual Report 2013-14
implemented by the Ministry. It seeks to disseminate
1.7.5
detailed
information
on
funding,
physical
and
Procurement of Goods From Micro, And
Small Enterprises
financial progress in terms of schemes/ programmes
etc.
All
forms
under
different
schemes
are
downloadable.
Details
of
units
assisted
under
In line with the guidelines/policy of the
Government for the promotion of Micro and Small
Industries, efforts were made to procure goods from
variousSchemeshavealsobeengiven. these Enterprises to the extent possible. Percentage
1.7.2
Investors' Portal:
An 'Investors' Portal' was launched by Shri
Tariq Anwar, Hon'ble Minister of State for
Agriculture & Food Processing on 15th October,
2013. The portal is intended to disseminate
of procurement of goods/services from Micro and
Small Enterprises were 0.07 %( 2011-12), 0.03 %(
2012-13) and 1.22% in (2013-14).
1.8
INFORMATION AND FACILITATION
CENTRE
information on the state specific resource potential,
In pursuance of Government's commitment
policy support and fiscal incentives for
food to bring greater transparency in the administration
processing sector. The investors, both domestic and
foreign, can also seek guidance on specific issues by
posting their queries in the 'Investor' Query' of the
portal which will be promptly responded by experts,
engaged by 'Invest India' exclusively for the purpose
on behalf of the Ministry. Investors can access and
avail these services through
investors' Portal
through better access to information, Ministry of
Food Processing Industries has established an
Information and Facilitation Centre at its
headquarters in Panchsheel Bhawan. This helps
visitors and information seekers from various
segments of the society who are interested in getting
information relating to food processing sector.
(www.foodprocessingindia.co.in).
1.9
ADMINISTRATIVE VIGILANCE
1.7.3
Online Advertisement:
1.9.1
Ministry launched the Media/ Publicity
campaign of Online advertisement on 20.01.2014
Ministry of Food Processing Industries has
been taking due care for maintenance of
on different portals including Yahoo, Rediff, Times
efficiency and integrity of its personnel and
ensuring impartiality, objectivity and
of India, Dainik Jagaran and Dainik
Bhaskar transparency in decision-making.
through DAVP. The basic objective was to
popularize Investor' Portal and attract investment in
food processing sector in India. A large number of
Complaints and representations received
from the public are given due consideration
and are attended promptly ensuring fairness
investor's queries have been received which were and objectivity.
promptly responded to.
1.9.2
The instructions on vigilance issued by the
1.7.4
E-Procurement
CVC from time to time and extant rules and
Following introduction of mandatory e- procedures relating to vigilance matters are
Procurement w.e.f. 01.04.2007 as one of the thrust strictly adhered to. Shri J.P. Meena, IAS,
areas of action approved by Prime Minister, the Additional Secretary has been appointed as
Ministry of Food Processing Industries has initiated Chief Vigilance Office (CVO) for the
necessary steps to finalise the system of e- Ministry and its offices. Vigilance Awareness
Procurement, as per instructions received from Week was organized during 2013-14.
Ministry of Finance from time to time. 1.9.3 Review of the existing procedure is
6
MINISTRY OF FOOD PROCESSING
Annual Report 2013-14 conducted from time to time to streamline (RFD) for the Ministry has
Annual Report 2013-14
conducted from time to time to streamline (RFD) for the Ministry has been prepared
and make it more citizen friendly. The which is available on website of the
procedure for sanction of Grant-in-aid for Ministry. It provides for objectives, action
technological upgradation/establishment/ points, success indicators and weightage for
moder nization of food processing each activity under various schemes of the
industries under different Plan Schemes of Ministry and other work areas.
this Ministry has been decentralized w.e.f
1.11
GENDER BUDGETING
01.04. 2007 and now the banks have been
given powers to process the cases. To 1.11.1 Keeping in mind the fact that origin of food
make the system more transparent and processing lies in the culinary tradition of
accountable, the Ministry has introduced various communities, carried forward by
“Standard Operating Practices” for their women folk, this Ministry recognizes
processing the applications under Plan contribution of women in food processing.
Schemes to avoid delay and discretion. The Since ages, women are traditionally
RTGS system has been introduced for engaged in food processing activities like,
disbursement of grants-in-aid to the making pickles, papad, nuggets etc.
entrepreneurs/institutions. This ensures Schemes operated by this Ministry are
that there is no middle man between the aimed at providing facilities and incentives
banks and the applicants. The Ministry has for promotion of food processing industry
also appointed a panel of three in the country. These schemes are project
Independent Monitors to examine the oriented instead of being State, area,
grievances relating to selection of projects community, caste or gender specific.
under
Infrastructure Development
1.11.2 The beneficiaries of projects assisted by the
Schemes.
Ministry are those supplying raw materials
1.9.4
To monitor acquisition of movable and to food processing industries, people
immovable property by Government working in food processing plants and those
servants and source of their finance, the e n g a g e d i n m a r k e t i n g a c t i v i t i e s
Competent Authority scrutinizes their downstream. Although the benefit
annual property returns regularly. accruing to women from these schemes has
not been quantified, efforts are being made
1.9.5
All disciplinary cases are
expeditiously
processed following the prescribed
procedure to prevent delays. The
Chief
Vigilance Officer (CVO) reviews all
ongoing cases from time to time.
by the Ministry to ensure that the
maximum benefit of the schemes of the
Ministry could reach to the women
stakeholders of the sector.
1.9.6
Information useful to public has been made
accessible on the website.
1.10
PERFORMANCE
MONITORING
&
EVALUATION SYSTEM
As per the guidelines of Cabinet
Secretariat, Result Frame- work Document
1.11.3 A Gender Budget Cell under the
chairmanship of a Joint Secretary has been
set up in the Ministry for inducting and
effecting a change in the Ministry's policies
and programmes in a way that could tackle
gender imbalances, promote gender
equality and development and could ensure
7
MINISTRY OF FOOD PROCESSING
Annual Report 2013-14 that public resources through the Ministry's r e q u i r
Annual Report 2013-14
that public resources through the Ministry's r e q u i r e m e n t s a s a l s o p r o c e s s o f
budget are allocated and managed certification and accreditation of the units
accordingly.
1.11.4 Considering the need to understand the
which comply with these standards. The
study report makes suggestions on various
relevant issues including policy of the
gender implications of food
processing Ministry, Monitoring system to assess
industries and its potential for improving
livelihoods of women, Ministry entrusted a
Survey-cum-Study to Centre for Market
Research & Social Development, New
Delhi for suggesting an Integrated Gender
Action Plan pertaining to Food Processing
gender mainstreaming efforts, Gender
Audit of the Policies of the Government,
how to encourage the women SHGs to start
their food processing units, points of
convergence with the existing schemes of
sector including the required standards
and
other Ministries/ Departments and Gender
Budgeting etc.
parameters on the basis of which the units
can be certified as compliant with these
8
MINISTRY OF FOOD PROCESSING
9
9
10
10
Annual Report 2013-14 2 CHAPTER GENERAL STATUS OF FOOD PROCESSING INDUSTRY 11
Annual Report 2013-14 2 CHAPTER GENERAL STATUS OF FOOD PROCESSING INDUSTRY 11
Annual Report 2013-14
2
CHAPTER
GENERAL STATUS OF
FOOD PROCESSING INDUSTRY
11
Annual Report 2013-14 CHAPTER-2 GENERAL STATUS OF FOOD PROCESSING INDUSTRY 2.1 O V E R
Annual Report 2013-14
CHAPTER-2
GENERAL STATUS OF FOOD PROCESSING INDUSTRY
2.1
O V E R V I E W
O F
T H E
F O O D
PROCESSING SECTOR:
2.1.1
India is a richly endowed agricultural nation.
It has nearly a tenth of world's arable
land
and a fifth of world's irrigated land. India has
losing around Rs 40,000 crore for the lack of
post-harvest facilities and inadequate
processing. With adequate storage and
processing facilities, much of this waste can
be reduced while increasing remunerative
price to the producer as well as ensuring
all major climates of the world, enjoys long
sunshine hours, fairly good rainfall which
greater supply to the consumer at
appropriate price.
are ideally suited for round the year
cultivation. It has the largest cattle 2.1.3 Abundant supply of raw materials, increase
population, second largest goat & sheep in demand and incentives offered by the
population and a vast coastline. Given the government has impacted food processing
resource endowment, India has all the sector positively. In the last few years, the
potential to become one of the largest food food processing sector is growing at a faster
processing countries in the world. Potential rate than agriculture sector. Food Processing
for production is also matched by strong Sector has emerged as an important segment
demand for processed food products due to of the Indian economy in terms of its
rapid urbanization, change in preferences contribution to GDP, employment and
and practices in consumption. investment. The sector constitutes as much
as 9.0 and 11.0 per cent of GDP in
2.1.2
Over the years agricultural production
has
consistently recorded higher output and has
become self-sufficient in food grain. India
ranks No. 1 in the world in the production
of
Milk, Pulses, Ginger, Bananas,
Guavas,
Papayas and Mangoes. Further, India ranks
No. 2 in the world in the production of
Rice,
Wheat, Vegetable and horticulture products.
Manufacturing and Agriculture sector
respectively. During the last 5 years ending
2012-13, Food Processing Industries sector
has been growing at an Average Annual
Growth Rate (AAGR) of around 8.4 per
cent as compared to around 3.3 per cent in
Agriculture and 6.6 per cent in
Manufacturing.
Notwithstanding these achievements, it is a
matter of great concern that low level of
processing, inadequate post-harvest
2.2
CONTRIBUTION AND GROWTH OF
FOOD PROCESSING INDUSTRIES:
infrastructure facilities and lack
of 2.2.1 As seen in the table below, the Food
appropriate technologies result into huge
wastage of agriculture produce, particularly
Processing Sector has been growing faster
perishable commodities resulting not only in
than the agriculture sector. This is a positive
development indicating higher level of
loss to the national exchequer but a
severe
contribution of food processing sector to
hardship to our farmers and consumers.
GDP
as
compared
to
agriculture and
Some studies have revealed that we might be manufacturing sectors.
12
MINISTRY OF FOOD PROCESSING
Annual Report 2013-14   Contribution of Food Processing Industries to Gross Domestic Product at 2004-05
Annual Report 2013-14   Contribution of Food Processing Industries to Gross Domestic Product at 2004-05
Annual Report 2013-14   Contribution of Food Processing Industries to Gross Domestic Product at 2004-05
Annual Report 2013-14   Contribution of Food Processing Industries to Gross Domestic Product at 2004-05
Annual Report 2013-14   Contribution of Food Processing Industries to Gross Domestic Product at 2004-05
Annual Report 2013-14   Contribution of Food Processing Industries to Gross Domestic Product at 2004-05

Annual Report 2013-14

 

Contribution of Food Processing Industries to Gross Domestic Product at 2004-05 Prices

(Rs. Crore)

S.No.

Description

2008-09

2009-10

2010-11

2011-12

2012-13

 
 

GDP at Factor Cost, Of which

41,58,676

45,16,071

49,18,533

52,47,530

54,82,111

 

1

GDP-Agriculture*

5,88,757

5,92,110

6,47,305

6,82,016

6,90,646

 

2

GDP: Manufacturing

6,56,302

7,30,435

7,95,152

8,54,098

8,63,876

 

3

GDP-FPI

60,378

58,752

67,508

82,063

84,522

 
 

Growth (%)

         

AAGR $

4

GDP at Factor Cost

6.7

8.6

8.9

6.7

4.5

7.1

5

GDP-Agriculture*

-0.1

0.6

9.3

5.4

1.3

3.3

6

GDP: Manufacturing

4.3

11.3

8.9

7.4

1.1

6.6

7

GDP-FPI

5.3

-2.7

14.9

21.6

3.0

8.4

 

Share of FPI in GDP (%)

         

Average

8

GDP FPI as a share of GDP in Agriculture*

10.3

9.9

10.4

12.0

12.2

11.0

9

GDP FPI as a share of GDP in Manufacturing

9.2

8.0

8.5

9.6

9.8

9.0

Source: National Accounts Statisitcs-2014; * Excludes Forestry & Logging; $: Five Year Average Annual Growth Rate

GDP: Sum of GVA (value of output less the value of input used up in the process of production) of all resident producer units of the economy during the reference period.

2.2.2 Performance of this sector has improved significantly in the recent years.

Manufacturing sector was generally

at a higher rate than FPI

Performance of FPI improved substantially

2009-10.

2.3 KEY

FEATURES

OF

REGISTERED

FOOD PROCESSING INDUSTRIES:

growing 2.3.1 Annual survey of Industries (ASI) is the

main source of data on the number of units, employment, capital investment and output for Registered Food Processing Sector. ASI data are released annually and the latest data

along is available for 2011-12. The following table

gives industry-wise information on number of factories, employment, fixed capital and output in the food processing sector.

till

in 2011-12 registering a record growth

of

21.6 per cent. In the year 2012-13, the growth

of food processing sector decelerated

with slow growth both in agriculture and manufacturing sectors though the growth of

the sector was higher

and manufacturing sector.

than both agriculture

Principal Characteristics of Registered Food Processing unit: 2011-12

 

Unit

Factories*

Persons

Fixed Capital^

Value of

(numbers)

Engaged $

Output

 

(numbers)

(Rs. Crore)

(Rs. Crore)

Food Processing units#, of which

36,881

17,76,643

1,45,038

7,34,340

Grain Mill & Starch products

19,010

3,66,500

17,553

1,58,213

Vegetable & Animal oils and fats

3,394

1,21,232

18,409

1,97,325

Beverages

1,997

1,47,482

22,420

53,301

Dairy Products

1,653

1,49,775

10,695

87,015

Fruits and Vegetables products

1,078

62,448

5,060

10,309

Prepared Animal Feeds

755

44,462

2,741

26,602

MINISTRY OF FOOD PROCESSING

13

5,060 10,309 Prepared Animal Feeds 755 44,462 2,741 26,602 MINISTRY OF FOOD PROCESSING 13
5,060 10,309 Prepared Animal Feeds 755 44,462 2,741 26,602 MINISTRY OF FOOD PROCESSING 13
5,060 10,309 Prepared Animal Feeds 755 44,462 2,741 26,602 MINISTRY OF FOOD PROCESSING 13
5,060 10,309 Prepared Animal Feeds 755 44,462 2,741 26,602 MINISTRY OF FOOD PROCESSING 13
5,060 10,309 Prepared Animal Feeds 755 44,462 2,741 26,602 MINISTRY OF FOOD PROCESSING 13
5,060 10,309 Prepared Animal Feeds 755 44,462 2,741 26,602 MINISTRY OF FOOD PROCESSING 13
Annual Report 2013-14 Fish, crustaceans etc. 390 42,081 2,150 15,228 Meat Processing & Preserving
Annual Report 2013-14 Fish, crustaceans etc. 390 42,081 2,150 15,228 Meat Processing & Preserving
Annual Report 2013-14 Fish, crustaceans etc. 390 42,081 2,150 15,228 Meat Processing & Preserving
Annual Report 2013-14 Fish, crustaceans etc. 390 42,081 2,150 15,228 Meat Processing & Preserving
Annual Report 2013-14 Fish, crustaceans etc. 390 42,081 2,150 15,228 Meat Processing & Preserving
Annual Report 2013-14 Fish, crustaceans etc. 390 42,081 2,150 15,228 Meat Processing & Preserving

Annual Report 2013-14

Fish, crustaceans etc.

390

42,081

2,150

15,228

Meat Processing & Preserving

146

20,621

1,362

10,008

Source: Annual Survey of Industries (ASI), MOSPI; # Includes Food Products & Beverages (Division-10 & Division-11 of NIC 2008 classification); *: Factory Registered under Factory Act 1948; $: Person Engaged included all persons employed directly or through an agency including family members; ^: Fixed Capital:

Depreciated value of Fixed Assets owned by factory.

 

2.3.2 This sector has a total of 36,881 registered Capital in FP sector has also increased units with fixed capital of nearly Rs 1.45 lakh significantly by 20.16 per cent. crore and producing an output of around Rs

7.34

industries constituting food processing 2.4.1 Food processing sector is highly labour

absorptive and less capital intensive in nature. As per ASI: 2011-12, among all industries 'Food products' generated the

number highest employment (12.13%), followed by

of factories in Food Processing Sector [constituting both Food Products: Division-

2011-12 is capital requirement, fixed capital to output

as ratio for Food Products is 0.18 implying food

36,881. This is 2.91 per cent higher

10 & Beverages: Division- 11] in

'Textiles' (10.86%), 'Basic metals' (8.11%) and 'Wearing apparel' (6.87%). In terms of

sector are grain mill, sugar, edible oils, beverages and dairy products.

2.3.3 As can be seen from the table, total

2.4

INTER INDUSTRY COMPARISON:

lakh

crore

in

value

terms.

Major

compared to 2010-11.The sector has generated employment to the tune of 17.77 lakh persons which is higher by 6.92 per cent

compared as compared to last year. Similarly, Fixed industries.

products requires less capital for producing one unit of output, in value term, as

to other labour intensive

Comparison among Employment Intensive Industries across Divisions *: 2011-12

 

Description

Unit

Food

Beverages

Textiles

Apparel

Leather

All

 

Products

Division

Division

Division

Division

Factory

Division-10

-11

-13

-14

-15

Principal Characteristics

Factories

Numbers

34,884

1,997

18,790

9,168

4,049

2,17,554

Employment

Numbers

16,29,161

1,47,482

14,58,073

9,22,725

3,04,811

1,34,29,956

Fixed Capital

Rs. crore

1,22,619

22,420

1,17,876

16,773

7,142

19,49,551

Output

Rs. crore

6,81,039

53,301

2,94,745

77,930

35,911

57,76,024

Input

Rs. crore

6,12,865

39,989

2,52,429

60,927

29,456

47,98,666

Structural Ratios:

Fixed Capital per Employee

Rupees

7,52,648

15,20,166

8,08,436

1,81,772

2,34,297

14,51,644

Gross Output per Factory

Rs Lakh

1,952

2,669

1,569

850

887

2,655

Output per Employee

Rupees

41,80,303

36,14,085

20,21,470

8,44,567

11,78,150

43,00,851

Technical Co-efficient:

Fixed Capital/ Output

0.18

0.42

0.40

0.22

0.20

0.34

Output/ Input

1.11

1.33

1.17

1.28

1.22

1.20

Source: Annual Survey of Industries (ASI);*: Divisions as per NIC-2008 Classification adopted in ASI

14

MINISTRY OF FOOD PROCESSING

of Industries (ASI);*: Divisions as per NIC-2008 Classification adopted in ASI 14 MINISTRY OF FOOD PROCESSING
of Industries (ASI);*: Divisions as per NIC-2008 Classification adopted in ASI 14 MINISTRY OF FOOD PROCESSING
of Industries (ASI);*: Divisions as per NIC-2008 Classification adopted in ASI 14 MINISTRY OF FOOD PROCESSING
of Industries (ASI);*: Divisions as per NIC-2008 Classification adopted in ASI 14 MINISTRY OF FOOD PROCESSING
of Industries (ASI);*: Divisions as per NIC-2008 Classification adopted in ASI 14 MINISTRY OF FOOD PROCESSING
of Industries (ASI);*: Divisions as per NIC-2008 Classification adopted in ASI 14 MINISTRY OF FOOD PROCESSING
Annual Report 2013-14 2.4.2 Similarly, fixed capital per employee is very registered FPI is available
Annual Report 2013-14 2.4.2 Similarly, fixed capital per employee is very registered FPI is available
Annual Report 2013-14 2.4.2 Similarly, fixed capital per employee is very registered FPI is available
Annual Report 2013-14 2.4.2 Similarly, fixed capital per employee is very registered FPI is available
Annual Report 2013-14 2.4.2 Similarly, fixed capital per employee is very registered FPI is available
Annual Report 2013-14 2.4.2 Similarly, fixed capital per employee is very registered FPI is available

Annual Report 2013-14

2.4.2

Similarly, fixed capital per employee is very registered FPI is available for 2011-12. Among favorable at Rs 7.52 lakh per employee in the industry, highest number of registered “Food Product” industry as compared to Rs factories are located in 'Andhra Pradesh', 8.08 lakh in “Textiles” and overall industry which accounts for about 25 per cent of the average of Rs 14.51 lakh. total factories in FPI sector industries followed by 'Tamil Nadu' (14%) and 'Maharashtra'

F O O D SECTOR:

Information on the principal characteristics of Micro, Small & Medium Enterprises (MSME) is generated through periodic census conducted by the Office of Development Commissioner, MSME. The fourth All India Census of Micro, Small & Medium Enterprises (2006-07): Registered Sector gives an extensive information on Employment, Number of Enterprises, Market value of Fixed Assets, GVA and other important economic parameters on MSME registered in the District Industries Centres (DICs) of the State/UT, KVIC, Coir Board and under section 2m (i) & 2m (ii) of the Factories Act, 1948. The following table gives an overview of Food Processing Industries in MSME Sector:

M S M E

(8%) and Punjab (7.5%). State-wise distributionof registeredFPI isgivenbelow:

2.5

2.5.1

P RO C E S S I N G

I N

State-wise estimated Number of Factories in Registered FPI units for 2011-12

S. No.

Name of the State

Total

1

Andhra Pradesh

9,359

2

Andaman & Nicobar Islands

4

3

Assam

1,212

4

Bihar

715

5

Chandigarh (U.T.)

23

6

Chhattisgarh

1,028

7

Dadra & Nagar Haveli

8

8

Daman & Diu

35

9

Delhi

145

10

Goa

85

11

Gujarat

1,924

12

Haryana

650

13

Himachal Pradesh

171

14

Jammu & Kashmir

150

15

Jharkhand

169

16

Karnataka

1,979

17

Kerala

1,437

18

Madhya Pradesh

754

19

Maharashtra

3,113

20

Manipur

18

21

Meghalaya

18

22

Nagaland

12

23

Odisha

875

24

Pudducherry

70

25

Punjab

2,784

26

Rajasthan

777

27

Sikkim

18

28

Tamil Nadu

5,186

29

Tripura

55

30

Uttar Pradesh

2,116

31

Uttarakhand

381

32

West Bengal

1,600

Source: Annual Survey of Industries, 2011-12

 

Principal Characteristics of Registered* Units in FPI: MSME Census-2006-07

Working Enterprises*

Number

2,23,018

Market value of Fixed Assets

Rs. crore

60,195.91

Gross Output

Rs. crore

1,37,287.4

Total Inputs

Rs. crore

94,628.17

GVA

Rs. crore

42,659.24

Employment

Number

14,68,426

*Includes all the enterprises permanently registered up to 31.03.2007 with District Industries Centres (DICs) of the State/UT, KVIC, Coir Board and under section 2m (i) & 2m (ii) of the factories Act. 1948; Classification of industry is as per NIC-2004.

2.6

2.6.1

STATE-WISE

DISTRIBUTION

OF

REGISTERED

FACTORIES

IN

FP

SECTOR:

As per ASI: 2011-12, the total number of factories in the registered FP sector in the country is 36,881. State-wise distribution of

MINISTRY OF FOOD PROCESSING

15

in the registered FP sector in the country is 36,881. State-wise distribution of MINISTRY OF FOOD
in the registered FP sector in the country is 36,881. State-wise distribution of MINISTRY OF FOOD
in the registered FP sector in the country is 36,881. State-wise distribution of MINISTRY OF FOOD
in the registered FP sector in the country is 36,881. State-wise distribution of MINISTRY OF FOOD
in the registered FP sector in the country is 36,881. State-wise distribution of MINISTRY OF FOOD
in the registered FP sector in the country is 36,881. State-wise distribution of MINISTRY OF FOOD
2.7 2.7.1 Annual Report 2013-14 STAGES OF PROCESSING OF FOOD: Ministries. Nevertheless, since food processing
2.7 2.7.1 Annual Report 2013-14 STAGES OF PROCESSING OF FOOD: Ministries. Nevertheless, since food processing
2.7 2.7.1 Annual Report 2013-14 STAGES OF PROCESSING OF FOOD: Ministries. Nevertheless, since food processing
2.7 2.7.1 Annual Report 2013-14 STAGES OF PROCESSING OF FOOD: Ministries. Nevertheless, since food processing
2.7 2.7.1 Annual Report 2013-14 STAGES OF PROCESSING OF FOOD: Ministries. Nevertheless, since food processing
2.7 2.7.1 Annual Report 2013-14 STAGES OF PROCESSING OF FOOD: Ministries. Nevertheless, since food processing

2.7

2.7.1

Annual Report 2013-14

STAGES OF PROCESSING OF FOOD: Ministries. Nevertheless, since food processing industries from the economic

activity point of view include all edible processed food, data analyzed by this Ministry includes the entire sector. The different stages of processing of food, is depicted in the flow chart below:

the Allocation of Business Rules for Central

within the purview of other Ministries

made from molasses, as these items fall

coffee, tea, oilseeds, sugar, spices and

does not deal with a few food items such as

The Ministry of Food Processing Industries

alcohol

under

Supply Chain in Food Processing Industries Procurement Primary Secondary Inputs Production Retailing & Storage
Supply Chain in Food Processing Industries
Procurement
Primary
Secondary
Inputs
Production
Retailing
& Storage
Processing
Processing

2.7.2

2.7.3

Primary Processing relates to conversion of that its original physical properties undergo a raw agricultural produce, milk, meat and fish change and if the transformed product is into a commodity that is fit for human edible and has commercial value, then it consumption. It involves steps such as comes within the domain of Food cleaning, grading, sorting, packing etc. Food Processing Industries. (b) Other Value- Processing Industries usually deal with Added Processes: If there is significant value higher levels of processing where new or addition (increased shelf life, shelled and h i g h e r v a l u e f o o d p r o d u c t s a r e ready for consumption etc.) such produce manufactured. From an analytical also comes under food processing, even if it perspective, food processing can be viewed as does not undergo manufacturing processes. different levels of processing – primary,

secondary and tertiary.

Food processing includes (a)

Manufactured 2.8.1 In the last 5 years ending 2012-13, the

Processes: If any raw product of agriculture,

animal husbandry or fishing is

through a process [involving employees,

RAW MATERIAL BASE OF THE FOOD PROCESSING INDUSTRY:

2.8

horticulture sector has shown an average growth rate of 4.43 per cent. India is

transformed

now leading in processed agricultural power, machines or money] in such a way commodities as shown in the following table:

 

India's Rank* in World production of Agricultural & related products for 2012

 
 

(Production in MT)

S.No.

Item

   

2012

 
   

Rank*

India

World

% share

1

Bananas

1

2,48,69,490

10,19,92,743

24.4

2

Areca nuts

1

4,82,000

11,27,182

42.8

3

Chick peas

1

77,00,000

1,16,25,545

66.2

4

Chillies and peppers, dry

1

12,99,940

33,52,163

38.8

5

Ginger

1

7,03,000

20,95,056

33.6

6

Mangoes, Mangos teens, Guavas

1

1,52,50,000

4,21,39,837

36.2

7

Millet

1

1,03,30,000

2,98,66,016

34.6

8

Okra

1

60,00,000

83,59,944

71.8

16

MINISTRY OF FOOD PROCESSING

2,98,66,016 34.6 8 Okra 1 60,00,000 83,59,944 71.8 16 MINISTRY OF FOOD PROCESSING
2,98,66,016 34.6 8 Okra 1 60,00,000 83,59,944 71.8 16 MINISTRY OF FOOD PROCESSING
2,98,66,016 34.6 8 Okra 1 60,00,000 83,59,944 71.8 16 MINISTRY OF FOOD PROCESSING
2,98,66,016 34.6 8 Okra 1 60,00,000 83,59,944 71.8 16 MINISTRY OF FOOD PROCESSING
2,98,66,016 34.6 8 Okra 1 60,00,000 83,59,944 71.8 16 MINISTRY OF FOOD PROCESSING
2,98,66,016 34.6 8 Okra 1 60,00,000 83,59,944 71.8 16 MINISTRY OF FOOD PROCESSING
Annual Report 2013-14 9 Papayas 1 51,60,390 1,24,11,566 41.6 10 Pigeon peas 1 26,50,000
Annual Report 2013-14 9 Papayas 1 51,60,390 1,24,11,566 41.6 10 Pigeon peas 1 26,50,000
Annual Report 2013-14 9 Papayas 1 51,60,390 1,24,11,566 41.6 10 Pigeon peas 1 26,50,000
Annual Report 2013-14 9 Papayas 1 51,60,390 1,24,11,566 41.6 10 Pigeon peas 1 26,50,000
Annual Report 2013-14 9 Papayas 1 51,60,390 1,24,11,566 41.6 10 Pigeon peas 1 26,50,000
Annual Report 2013-14 9 Papayas 1 51,60,390 1,24,11,566 41.6 10 Pigeon peas 1 26,50,000

Annual Report 2013-14

9

Papayas

1

51,60,390

1,24,11,566

41.6

10

Pigeon peas

1

26,50,000

42,37,122

62.5

11

Meat indigenous, Buffalo

1

15,34,990

35,93,540

42.7

12

Milk, whole fresh Buffalo

1

6,60,00,000

9,74,17,135

67.7

13

Milk, whole fresh Goat

1

48,50,000

1,78,46,118

27.2

14

Beans, dry

2

36,30,000

2,35,98,102

15.4

15

Cauliflowers and Broccoli

2

70,00,000

2,12,66,789

32.9

16

Garlic

2

11,50,000

2,48,36,877

4.6

17

Groundnuts, with shell

2

57,79,000

4,11,85,933

14.0

18

Lemons and limes

2

22,00,000

1,51,18,462

14.6

19

Lentils

2

9,50,000

45,57,972

20.8

20

Onions, dry

2

1,63,08,990

8,28,51,732

19.7

21

Peas, green

2

36,50,000

1,84,90,920

19.7

22

Potatoes

2

4,50,00,000

36,48,08,768

12.3

23

Pumpkins, squash and gourds

2

49,00,000

2,46,16,115

19.9

24

Rice, paddy

2

15,26,00,000

71,97,38,273

21.2

25

Sesame seed

2

6,10,000

40,36,289

15.1

26

Tea

2

10,00,000

48,18,118

20.8

27

Tomatoes

2

1,75,00,000

16,17,93,834

10.8

28

Wheat

2

9,48,80,000

67,08,75,110

14.1

29

Meat indigenous, Goat

2

6,03,735

52,94,435

11.4

30

Milk, whole fresh Cow

2

5,40,00,000

62,57,53,801

8.6

*: Ranks are based on Quantity of the production. Data Source: FAOSTAT accessed on 3/2/2014.

 

2.8.2 According to the information available with infrastructure for storage, transportation and the Government, very small quantity of processing. The demand for processed agricultural commodities is processed. This product is now increasing and in the last few is due to the preference of Indians for fresh years a number of companies have started fruits and non-availability of modern their operations.

Production Statistics of Raw Material for Food Processing Industries: Fruits & Vegetables (In 000' MT)

(In 000' MT)

1,80,000 1,60,000 1,40,000 1,20,000 1,00,000 80,000 60,000 40,000 20,000 2008-09 2009-10 2010-11 2011-12
1,80,000
1,60,000
1,40,000
1,20,000
1,00,000
80,000
60,000
40,000
20,000
2008-09
2009-10
2010-11
2011-12
2012-13
Vegetable
1,29,077
1,33,738
1,46,555
1,56,325
1,62,187
Fruits
68,466
71,516
74,878
76,424
81,285
2012-13 Vegetable 1,29,077 1,33,738 1,46,555 1,56,325 1,62,187 Fruits 68,466 71,516 74,878 76,424 81,285

Source: National Horticulture Board.

MINISTRY OF FOOD PROCESSING

17

68,466 71,516 74,878 76,424 81,285 Source: National Horticulture Board. MINISTRY OF FOOD PROCESSING 17
68,466 71,516 74,878 76,424 81,285 Source: National Horticulture Board. MINISTRY OF FOOD PROCESSING 17
68,466 71,516 74,878 76,424 81,285 Source: National Horticulture Board. MINISTRY OF FOOD PROCESSING 17
68,466 71,516 74,878 76,424 81,285 Source: National Horticulture Board. MINISTRY OF FOOD PROCESSING 17
68,466 71,516 74,878 76,424 81,285 Source: National Horticulture Board. MINISTRY OF FOOD PROCESSING 17
68,466 71,516 74,878 76,424 81,285 Source: National Horticulture Board. MINISTRY OF FOOD PROCESSING 17
Annual Report 2013-14 Production Statistics of Raw Material for Food Processing Industries: Milk (Million Tonnes)
Annual Report 2013-14
Production Statistics of Raw Material for Food Processing Industries: Milk (Million Tonnes)
135
130
125
120
115
110
105
100
2008-09
2009-10
2010-11
2011-12
2012-13
Milk
112.2
116.4
121.8
127.9
132.4
Source: Department of Animal Husbandry, Dairying & Fisheries.
Meat Producton in India (Million Tonnes)
6.0
5.0
4.0
3.0
2.0
1.0
0.0
2008-09
2009-10
2010-11
2011-12
2012-13
Meat
4.2
4.5
4.9
5.5
5.9
Source: Department of Animal Husbandry, Dairying & Fisheries.
Egg Producton in India (Billion Numbers)
70.0
60.0
50.0
40.0
30.0
20.0
10.0
0.0
2008-09
2009-10
2010-11
2011-12
2012-13
Egg
55.56
60.27
63.02
66.45
69.73
Source: Department of Animal Husbandry, Dairying & Fisheries.
18
MINISTRY OF FOOD PROCESSING
(Million Tonnes)
(Million Tonnes)
(Million Numbers)
Annual Report 2013-14 2.9 2.9.1 EMPLOYMENT IN FOOD PROCESSING SECTOR Food Processing Industry is one
Annual Report 2013-14 2.9 2.9.1 EMPLOYMENT IN FOOD PROCESSING SECTOR Food Processing Industry is one
Annual Report 2013-14 2.9 2.9.1 EMPLOYMENT IN FOOD PROCESSING SECTOR Food Processing Industry is one
Annual Report 2013-14 2.9 2.9.1 EMPLOYMENT IN FOOD PROCESSING SECTOR Food Processing Industry is one
Annual Report 2013-14 2.9 2.9.1 EMPLOYMENT IN FOOD PROCESSING SECTOR Food Processing Industry is one
Annual Report 2013-14 2.9 2.9.1 EMPLOYMENT IN FOOD PROCESSING SECTOR Food Processing Industry is one

Annual Report 2013-14

2.9

2.9.1

EMPLOYMENT IN FOOD PROCESSING SECTOR

Food Processing Industry is one of the major employment intensive segments constituting

in

all Registered Factory sector in 2011-12. According to the latest Annual Survey of Industries (ASI) for 2011-12, the total

12.13 per cent of employment generated

number of persons engaged in registered food processing sector is 17.77 lakhs. During the last 5 years ending 2011-12, employment in registered food processing sector has been increasing at an Annual Average Growth Rate of 3.79 per cent. Unregistered food processing sector supports employment to 47.9 lakh workers as per the NSSO 67th Round, 2010-11.

Persons employed in Registered FP units

(Million Tonnes)

18.00 17.50 17.00 16.50 15.50 15.00 14.50 14.00 13.50 2007-08 2008-09 2009-10 2010-11 2011-12 (P)
18.00
17.50
17.00
16.50
15.50
15.00
14.50
14.00
13.50
2007-08
2008-09
2009-10
2010-11
2011-12 (P)
Persons
15.05
15.64
16.06
16.62
17.77
(In Lakh)
14.00 13.50 2007-08 2008-09 2009-10 2010-11 2011-12 (P) Persons 15.05 15.64 16.06 16.62 17.77 (In Lakh)

2.10

2.10.1

Source: Annual Survey of Industries (ASI).

F O O D

PROCESSING INDUSTRIES:

fixed capital, FP sector is

growing at an AAGR of 20.35 per cent

In terms of

F I X E D

C A P I T A L

I N

during five years ending 2011-12. As per the latest, ASI 2011-12, the Fixed Capital in FP Industry stood at Rs. 1,45,038 crore.

 

Fixed Capital* in Registered Food Processing Industries

 

Year

2007-08

2008-09

2009-10

2010-11

2011-12 (P)

AAGR #

Fixed Capital (Rs. Crore)

68,335

81,156

99,482

1,20,705

1,45,047

Growth Rate (%)

18.93

18.76

22.58

21.33

20.17

20.35

Source: Annual Survey of Industries, CSO; *: Fixed capital: Depreciated value of Fixed Assets owned by factory. #: Average Annual Growth Rate for 5 years.

MINISTRY OF FOOD PROCESSING

19

value of Fixed Assets owned by factory. #: Average Annual Growth Rate for 5 years. MINISTRY
value of Fixed Assets owned by factory. #: Average Annual Growth Rate for 5 years. MINISTRY
value of Fixed Assets owned by factory. #: Average Annual Growth Rate for 5 years. MINISTRY
value of Fixed Assets owned by factory. #: Average Annual Growth Rate for 5 years. MINISTRY
value of Fixed Assets owned by factory. #: Average Annual Growth Rate for 5 years. MINISTRY
value of Fixed Assets owned by factory. #: Average Annual Growth Rate for 5 years. MINISTRY
Annual Report 2013-14 Fixed Capital in Registered FP units (Rs. Crore) 1,50,000 1,00,000 50,000 2007-08
Annual Report 2013-14 Fixed Capital in Registered FP units (Rs. Crore) 1,50,000 1,00,000 50,000 2007-08
Annual Report 2013-14 Fixed Capital in Registered FP units (Rs. Crore) 1,50,000 1,00,000 50,000 2007-08
Annual Report 2013-14 Fixed Capital in Registered FP units (Rs. Crore) 1,50,000 1,00,000 50,000 2007-08
Annual Report 2013-14 Fixed Capital in Registered FP units (Rs. Crore) 1,50,000 1,00,000 50,000 2007-08
Annual Report 2013-14 Fixed Capital in Registered FP units (Rs. Crore) 1,50,000 1,00,000 50,000 2007-08

Annual Report 2013-14

Fixed Capital in Registered FP units

(Rs. Crore)

1,50,000 1,00,000 50,000 2007-08 2008-09 2009-10 2010-11 2011-12 Fixed 68,335 81,156 99,482 1,20,705 1,45,047
1,50,000
1,00,000
50,000
2007-08
2008-09
2009-10
2010-11
2011-12
Fixed
68,335
81,156
99,482
1,20,705
1,45,047
Capital
1,00,000 50,000 2007-08 2008-09 2009-10 2010-11 2011-12 Fixed 68,335 81,156 99,482 1,20,705 1,45,047 Capital

Source: Annual Survey of Industries; *: Fixed capital: Depreciated value of Fixed Assets owned by Factory.

2.11

EXPORTS

RELATED COMMODITIES:

OF

FOOD

PROCESSING

2.11.1 All agricultural produce when exported undergo an element of processing. Hence all edible agricultural commodities exported

are included in the export data. The value of exports in the sector has been showing an increasing trend with Average Annual Growth Rate (AAGR) of 20.53 per cent for five years ending 2013-14.

       

Export of processed Food & Related Commodities (US $ Million)

   

Year

2009-10

2010-11

2011-12

2012-13

2013-14 (P)

AAGR*

Export (US $ Million)

14,787

20,427

31,762

36,212

37,798

20.53

(%) Growth

-9.35

38.14

55.49

14.01

4.38

Source: DGCI&S, Kolkata; *: Average Annual Growth Rate for 5 years

 

Export of processed Food & Related Commodities (US $ Million)

40,000 37,798 35,000 36,212 30,000 25,000 31.762 20,000 14,787, 20,427 15,000 10,000 5,000 2009-10 2010-11
40,000
37,798
35,000
36,212
30,000
25,000
31.762
20,000
14,787,
20,427
15,000
10,000
5,000
2009-10
2010-11
2011-12
2012-13
2013-14
(US $ Million)

20

Source: DGCI&S, Kolkata

MINISTRY OF FOOD PROCESSING

2010-11 2011-12 2012-13 2013-14 (US $ Million) 20 Source: DGCI&S, Kolkata MINISTRY OF FOOD PROCESSING
2010-11 2011-12 2012-13 2013-14 (US $ Million) 20 Source: DGCI&S, Kolkata MINISTRY OF FOOD PROCESSING
2010-11 2011-12 2012-13 2013-14 (US $ Million) 20 Source: DGCI&S, Kolkata MINISTRY OF FOOD PROCESSING
2010-11 2011-12 2012-13 2013-14 (US $ Million) 20 Source: DGCI&S, Kolkata MINISTRY OF FOOD PROCESSING
2010-11 2011-12 2012-13 2013-14 (US $ Million) 20 Source: DGCI&S, Kolkata MINISTRY OF FOOD PROCESSING
2010-11 2011-12 2012-13 2013-14 (US $ Million) 20 Source: DGCI&S, Kolkata MINISTRY OF FOOD PROCESSING
Annual Report 2013-14 2.11.2 The value of processed food exports India's total exports. The exports
Annual Report 2013-14 2.11.2 The value of processed food exports India's total exports. The exports
Annual Report 2013-14 2.11.2 The value of processed food exports India's total exports. The exports
Annual Report 2013-14 2.11.2 The value of processed food exports India's total exports. The exports
Annual Report 2013-14 2.11.2 The value of processed food exports India's total exports. The exports
Annual Report 2013-14 2.11.2 The value of processed food exports India's total exports. The exports

Annual Report 2013-14

2.11.2 The value of processed food exports

India's total exports. The exports of

during 2013-14 was of the order of major processed food & related

commodities from Food processing sector, is given below:

US $ 37.79 Billion (total exports US $ 312 Billion) constituting 12.1 per cent of

 

Exports of major processed food & related commodities from Food Processing sector

 

S.No.

Exports

2012-13

2013-14

2013-14

     

(US $ Million)

(%) Growth

(%) Share

 

Total Exports

3,00,401

3,12,621

4.07

-

 

Exports-FPI, of which

36,212

37,798

4.38

12.1

1

Marine products

3,464.08

5,014.89

44.77

13.3

2

Rice- Basmati

3,564.04

4,866.33

36.54

12.9

3

Meat & meat preparations

3,291.98

4,481.35

36.13

11.9

4

Rice-other than Basmati

2,651.97

2,875.67

8.44

7.6

5

Cashews

746.97

842.39

12.77

2.2

6

Fresh Vegetables

605.23

842.30

39.17

2.2

7

Fresh Fruits

607.79

726.76

19.57

1.9

Source:

DGCI&S, Kolkata

       

2.12

FOREIGN

DIRECT

INVESTMENT

(FDI)

IN

FOOD

PROCESSING

SECTOR:

2.12.1 Foreign Direct Investment (FDI) is permissible for all the processed food products up to 100 per cent on automatic route except for items reserved for Micro and Small Enterprises (MSEs) subject to applicable laws/regulatories, securities and other conditionalities. For manufacture of

items reserved for Micro, Small & Medium enterprises, FDI is permissible under automatic route up to 24 per cent of the capital. If foreign investment is more than 24 per cent, Industrial License under Industries (Development & Regulation), Act 1951 is required.Foreign Direct Investment (FDI) inflows in Food Processing sector in the country during last 6 years and current year is as below:

S. No.

Year (April- March)

FDI (Rs. Crore)

FDI (US $ Million)

1

2007-08

279.01

70.17

2

2008-09

455.59

102.71

3

2009-10

1,314.23

278.89

4

2010-11

858.03

188.67

5

2011-12

826.16

170.21

6

2012-13

2193.65

401.46

7

2013-14

25,106.73

3,982.88

Source: Department of Industrial Policy and Promotion (DIPP)

 

2.13

2.13.1 Despite the large production of food in India, food inflation and food security issues

LOSSES IN SUPPLY CHAIN: Indian citizens – to have sufficient, healthy and affordable food. A nation-wide study on

quantitative assessment of harvest and post-

harvest losses for 46 agricultural produces in country are major as concerns they affect for policy the basic makers need in the for out 106 by randomly CIPHET, selected Ludhiana. districts was carried

MINISTRY OF FOOD PROCESSING

21

C I P H E T , selected L u d h i a n a
C I P H E T , selected L u d h i a n a
C I P H E T , selected L u d h i a n a
C I P H E T , selected L u d h i a n a
C I P H E T , selected L u d h i a n a
C I P H E T , selected L u d h i a n a
2.13.2 Annual Report 2013-14 The study mainly considers the quantitative depending upon the commodity. loss
2.13.2 Annual Report 2013-14 The study mainly considers the quantitative depending upon the commodity. loss
2.13.2 Annual Report 2013-14 The study mainly considers the quantitative depending upon the commodity. loss
2.13.2 Annual Report 2013-14 The study mainly considers the quantitative depending upon the commodity. loss
2.13.2 Annual Report 2013-14 The study mainly considers the quantitative depending upon the commodity. loss
2.13.2 Annual Report 2013-14 The study mainly considers the quantitative depending upon the commodity. loss

2.13.2

Annual Report 2013-14

The study mainly considers the quantitative depending upon the commodity.

loss as the material rendered “unfit

human consumption”. The different stages

considered for assessment of losses

harvesting, collection, threshing, grading/ sorting, winnowing/cleaning, drying, packaging, transportation, and storage

for

are

2.13.3 The report of the study was released in 2010. The study has estimated harvest and post- harvest losses of major agricultural produces at national level was of the order of Rs. 44,143 croreperannum at2009wholesaleprices.

Percentage of losses estimated for major produces

Crop

Cumulative wastage (per cent)

Cereals

3.9 – 6.0 per cent

Pulses

4.3-6.1 per cent

Oil seeds

2.8-10.1 per cent

Fruits & Vegetables

5.8-18.0 per cent

Milk

0.8 per cent

Fisheries (Inland)

6.9 per cent

Fisheries (Marine)

2.9 per cent

Meat

2.3 per cent

Poultry

3.7 per cent

Source: CIPHET Study on post-harvest losses, 2010

2.13.4

It may be seen that most of the wastage is CIPHET, Ludhiana for same 106 districts to

happening in fruits and vegetables, pulses and assess the position at present. The study is cereals. With adequate processing facilities, expectedtobecompletedinJanuary,2015. much of this waste can be reduced thus

increasing remunerative wage to the producer as well as ensuring greater supply to the

consumer. The Ministry of Food Processing The major challenges facing the sector are

Industries has assigned a repeat study to

2.14

FOOD

PROCESSING

SECTOR

IMPEDIMENTS:

illustrated below:-

Supply Chain Infra Gaps (Lack of primary processing, storage and distribution facilities)

Supply Chain Institutional Gaps (procurement dependence on APMC markets)

Lack of product development and Innovation

Challenges for Food Processing Sector
Challenges for
Food Processing
Sector

Inadequate focus on quality and safety standards

Inadequate link between production and processing (lack of processable varieties)

Seasonability of operations and low capacity utilization

22

MINISTRY OF FOOD PROCESSING

processable varieties) Seasonability of operations and low capacity utilization 22 MINISTRY OF FOOD PROCESSING
processable varieties) Seasonability of operations and low capacity utilization 22 MINISTRY OF FOOD PROCESSING
processable varieties) Seasonability of operations and low capacity utilization 22 MINISTRY OF FOOD PROCESSING
processable varieties) Seasonability of operations and low capacity utilization 22 MINISTRY OF FOOD PROCESSING
processable varieties) Seasonability of operations and low capacity utilization 22 MINISTRY OF FOOD PROCESSING
processable varieties) Seasonability of operations and low capacity utilization 22 MINISTRY OF FOOD PROCESSING
Annual Report 2013-14 These constraints are sought to be addressed Ministry, as indicated in subsequent
Annual Report 2013-14
These constraints are sought to be addressed
Ministry,
as
indicated
in
subsequent
in the schemes being implemented by the chapters.
2.15
FOOD PROCESSING SECTOR– GROWTH POTENTIAL:
Increasing spending
on Food products
Increasing Urbanization -
Lifestyle and Aspirations
Challenges for
Food Processing
Sector
Increasing Nuclear
Families and
Working Women
Changing demographics –
Rise in disposable incomes
Demand for Functional
Foods/Neutraceuticals
Growth of Organized
Retail and Private Label
Penetration
2.15.1 The figure above indicates the various factors be benefitted as there will be an increase in
which are likely to increase the demand for the supply of food products with a higher
p r o c e s s e d f o o d i n c o m i n g ye a r s. shelf life.
Programmes to increase the output of Indian
2.15.2 It is essential to build sustainable supply
agriculture without
corresponding chains, which will link the farmer to the
investments in processing facilities is likely to
lead to a mismatch resulting in rural distress
processing and marketing centres seamlessly.
In the absence of on–farm cooling and
and decline in farmers' income. The
single g rading ar rangements and slow
most important step for improving the
bargaining capacity of the farmer is to add
development of cold chain infrastructure,
value to his produce. This will come about
if
the farmer is compelled to sell his produce to
the 'Adathiya (Broker)' without waiting for a
farmers are able to produce according to the
requirements and standards demanded
better price. If the farmer is enabled to grade
by and store his produce close to farm, the
the market. Processing industries and
farmer will be empowered to demand and
retailers can provide the necessary
demand
for the agricultural produce and facilitate the
obtain a better price from the processors and
also add value to his produce.
flow of market information, technology and
inputs to the farmer so that he can tailor his
output to the needs of the market and in the
process raise his own level of income and
employment. The consumer is also likely to
2.15.3 Considerable investments are required in
rural infrastructure and components of the
supply chain by way of grading and packing
centres, controlled atmosphere storage
23
MINISTRY OF FOOD PROCESSING
Annual Report 2013-14 facilities, reefer vans, testing laboratories, infrastructure in a big way. Carefully etc.,
Annual Report 2013-14
facilities, reefer vans, testing laboratories, infrastructure in a big way. Carefully
etc., which may not come from private calibrated subsidies, exploring innovative
sources at this stage of the development of strategies, empowering rural producers &
the food processing industry. It is, therefore, consumers through better awareness and
essential that public investment is support to entrepreneurs in terms of
significantly increased to fund these technology and training are some of the
components of rural infrastructure to enable ways in which this Ministry has catalyzed
private enterprise to take up the remaining growth in this sector.
components of the supply chain which can
be undertaken commercially. This is
borne
out by the experience of developed countries
where the State has stepped in to build rural
These constraints are sought to be addressed
in the schemes being implemented by the
Ministry, as indicated in subsequent
chapters.
24
MINISTRY OF FOOD PROCESSING
25
25
26
26
Annual Report 2013-14 3 CHAPTER RECENT INITIATIVES 27
Annual Report 2013-14 3 CHAPTER RECENT INITIATIVES 27
Annual Report 2013-14
3
CHAPTER
RECENT INITIATIVES
27
Annual Report 2013-14 CHAPTER-3 RECENT INITIATIVES 3.1 LONG TERM STRATEGIES related initiatives at the level
Annual Report 2013-14
CHAPTER-3
RECENT INITIATIVES
3.1
LONG TERM STRATEGIES
related
initiatives
at
the
level
of
stakeholders.
3.1.1
The
XII
Plan
document
recognizes
the
importance of the food processing sector. • Setting up of an Innovation Fund and
Some of the key strategies set out in the Venture Capital Fund for Food
document are as follows:- Processing to promote innovations and
technology development.
Setting up of National Mission on
Food Processing to improve
coordination and implementation of
schemes and to enable greater
involvement of State Governments.
3.2
FISCAL
INCENTIVES
FOR
SPEEDY
GROWTH OF FPI SECTOR
3.2.1
Fiscal Incentives for the promotion of Food
Processing Sector
1
• Expanding and modifying
existing From time to time, Government of India has
infrastructure development schemes-
announced a number of fiscal incentives for
Mega Food Parks
Cold Chain Scheme.
Scheme, Integrated promoting investment in food processing sector.
The major incentives given by the Government are
• Moder nization of Abattoirs - under:-
Establishment of new abattoirs and
3.2.1.1 Income Tax relief:
modernization of existing abattoirs.
(a) Deduction in expenditure: Under
• Develop and strengthening of existing
Section 35-AD of the Income tax Act
and new institutions. 1961, deduction for expenditure
• Taking
up
a
nation-wide
skill
development
programme
along
the
incurred on investment is allowed if
this investment is wholly and
exclusively for the purpose of any
lines
of
special
projects
for
skill
development of
SGSY of MoRD.
specified business (Details given
rural youths under below). However, this deduction is
allowed only for the investment made
• Putting in place a network of food in the previous year and prior to
testing labs (Government/Private) by commencement of its operations.
providing incentives.
• Encouragement for larger participation
Businesses allowed 150% deduction
(provided the taxpayer has commenced
in Codex deliberations and setting up/ its business on or after 01.04.2012)
strengthening of Codex cell in FSSAI
to promote, coordinate and monitor
(a)
Setting up and operating a cold
chain facility
1 Fiscal Incentives indicated are illustrative. Details regarding the incentives and their duty implications can be ascertained
from the relevant Act and Notifications issued by the Department of Revenue, Ministry of Finance.
28
MINISTRY OF FOOD PROCESSING
Annual Report 2013-14 (b) S e t t i n g u p a n
Annual Report 2013-14
(b)
S e t t i n g u p a n d o p e r a t i n g Services including processes carried
warehousing facility for storage of out at an agricultural farm including
agricultural produce; Business tending, pruning, cutting, harvesting,
allowed 100% deduction drying, cleaning, trimming, sun drying,
fumigating, curing, sorting, grading,
(c)
Bee-keeping and production of
honey and beeswax
cooling or bulk packaging and such like
operations which do not alter the
(d)
Setting up and operating a essential characteristics of agricultural
warehousing facility for storage of
sugar
produce but make it only marketable
for the primary market.
(b)
Deduction of Tax from profit: Under
Section 80 IB(11A) of the Income Tax
Act, 1961, new units (ie not formed by
(Ref. Section 66 D(d) (iii) Chapter V of
the Finance Act, 1994)
(ii)
Exempted category:
splitting up or by way of reconstruction
of an existing business) in the business Ministry of Finance vide notification
of processing, preservation and dated 20-6-2012 has given exemption
packaging of fruits or vegetables, meat of Service Tax for following services:-
& meat product, poultry, marine
or
(a)
C o n s t r u c t i o n ,
E r e c t i o n ,
dairy products are permitted to claim
Commissioning or installation of
deduction from Income tax. original works pertaining to post-
This tax incentive is available as 100% harvest storage infrastructure for
tax exemption for the first 5 years of agricultural produce including
operation, and after that, at the rate of Cold storages for such purposes;
25% of the profits being exempted
from (b) Mechanized food grain handling
tax; 30% in case of a company. This
benefit is available only for ten years
system, machinery or equipment
provided that such business
commenced on or after 1.04.2001.
for units processing agricultural
had produce as food stuff excluding
alcoholic beverages;
If any business relating to meat, meat
products, poultry, marine products or
(c)
dairy products has started
after
1.4.2009, the above benefits would be
available, but not to the units
operating
Services provided by a goods
transport agency by way of
transportation of fruits, vegetables,
eggs, milk, food grains or pulses in
a goodscarriage;and
in such business before 01.04.2009.
(d)
Services of loading, unloading,
3.2.1.2 Service Tax
packing, storage or warehousing
(i)
Negative List: Under Finance Act, of agricultural produce.
1994, Service Tax is not leviable on
items contained in the
Negative List.
(Ref. Service Tax notification No.
25/2012-Service Tax dated 20th
These services are as follow:-
29
MINISTRY OF FOOD PROCESSING
Annual Report 2013-14 June 2012 issued under Section 93 3.2.1.4 Central Excise Duty: Chapter V
Annual Report 2013-14
June 2012 issued under Section 93
3.2.1.4 Central Excise Duty:
Chapter V of the Finance Act,
1994- Power to grant exemption
from service tax.)
(a)
Food Products
In order to promote food processing
industry, the Government has given
3.2.1.3 Customs Duty:
concessions in Central Excise Duty
(i)
Government has extended Project from time to time. Duty structure of
Imports' benefits to the following some of the processed food items are as
projects:
under:-
(a)
Projects for the installation of
(i) Nil Duty in Milk, Milk Products
mechanized food grain handling (Chapter 4), Vegetables (Chapter
systems and pallet racking systems
7), Nuts and Fruits, fresh & Dried
in 'Mandis' and Warehouses for (Chapter 8).
food grains and sugar; (ii) As against standard excise rate of
(b)
C o l d
s t o r a g e,
c o l d
r o o m
1 2 % ,
P r o c e s s e d
Fr u i t s
&
(including for farm level pre- Vegetables (Chapter 20) carries a
cooling) or industrial projects merit rate of 2% without
for
preservation,
storage
or
CENVAT or 6% with CENVAT.
processing of agricultural,
apiary,
horticultural, dairy, poultry,
aquatic and marine produce and
meat.
(iii) Soya Milk Drinks, Flavoured Milk
of Animal origin also carries a
duty of 2% without CENVAT or
6% with CENVAT.
Consequently, all goods related to
Food Processing, imported as part
(iv)
of the project, irrespective of
their
tariff classification, would be
entitled to uniform assessment
at
concessional basic customs duty.
(Ref. Notification No 12/2012
dated 17.3.2012)
Excise duty on “Tapioca Starch
manufactured and captively
consumed within the factory of
their production, in the
manufacture of Tapioca Sago
(Sabudana)” and excise duty on
Tapioca Sago (Sabudana) has
been reduced to nil in the Budget
(ii)
Customs duty on Hazelnuts has been 2013-14. (Notification No
reduced from 30% to 10%. (Ref. 12/2013-Central Excise 1.3.2013)
Notification
No
12/2013-Customs
(b)
Food Processing machinery:
dated 1.3.2013)
(i)
(iii)
Customs Duty on De-hulled Oat grains
has been reduced from 30% to 15%.
(Ref. Notification
No 12/2013-
Customs dated 1.3.2013)
All 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,
30
MINISTRY OF FOOD PROCESSING
Annual Report 2013-14 dairy, poultry, aquatic and marine Invest India have entered into an Agreement
Annual Report 2013-14
dairy, poultry, aquatic and marine Invest India have entered into an Agreement
produce and meat are exempted on 18.12.2013 for the setting up of an
from Excise Duty. “Investors' Help Desk” for offering online
support to investors in food processing
(ii)
Pasterising,
drying,
evaporating,
sector, both domestic and foreign, with
etc. machinery used in Dairy sector
regard to their queries, guide them and
isexemptedfrom ExciseDuty. provide hand holding services particularly at
[Notification No 12/2012-Central the initial stage for setting up of their units.
Excise dated 17.3.2012] Investors, both domestic and foreign, could
avail benefit of Help Desk by posting their
3.3
SETTING
UP
OF
AN
“INVESTORS'
HELP DESK”
query in the investors' portal in the Ministry's
website.
3.3.1
Ministry of Food Processing Industries and
Signing and exchange of Agreement between the Ministry of Food Processing Industries and Invest India for the setting up of an Investors'
“Help Desk” in the august presence of Shri Sharad Pawar, Hon'ble Minister (A&FPI) and Smt. Naina Lal Kidwai, President, FICCI on 18.12.2013
3.3.2
Government has been offering a number of launched a National Mission on Food
fiscal incentives for promoting food Processing in April 2012 with a view to
processing sector. Apart from this, a number ensuring active participation of State
of schemes are being implemented for Governments in this endeavor. In the recent
promoting this sector by extending grant-in- years, food processing sector has been
aid. These include setting up of Mega Food growing at a pace much faster than
Parks, Cold Chain, Abattoirs and setting up
agriculture and manufacturing sector. There
and up-gradation of technology of food is a need to accelerate this pace by
processing units. Government has also disseminating the benefit extended by the
31
MINISTRY OF FOOD PROCESSING
Annual Report 2013-14 Government among the investors, so that community. Given its mandate and they
Annual Report 2013-14
Government among the investors, so that community. Given its mandate and
they are able to appreciate the attractiveness expertise, “Invest India” is favorably placed
of this sector and make informed decisions to guide the investors' in setting up their food
on investment. processing units. It was in this background,
3.3.3 the Ministry of Food Processing Industries
Government has permitted foreign direct
investment up to 100 per cent in
food
processing sector through automatic route.
In terms of market size, India has a domestic
market of over a billion population with
300
million strong middle class consumers.
India's domestic food market is estimated to
reach US $ 258 billion by 2015 (FICCI-EY
report, 2009). India is a richly endowed
agricultural nation and is favorably
positioned in terms of closeness to the
markets of Middle East, Africa and South
East Asia. There is a need to proactively
entered in to an Agreement with “Invest
India' for on- line support to the investors in
food processing sector. The current initiative
of collaboration with Invest India is intended
to offer online support to investors with
regard to their queries and provide hand
holding services in the initial stage for setting
up of their units.
3.4 SEVOTTAM:
market India as an attractive destination. Of
The Ministry of Personnel, Public
Grievances & Pensions has identified the Ministry
of Food Processing Industries as one of the
organisations to take up Sevottam certification in
late, this sector has been attracting lot
of 2006 as a means to achieve excellence in delivery of
attention from the foreign investors. These
investors need some hand holding services in
public services. Following steps have been taken by
this
Ministry
towards
achieving the Sevottam
the initial stages so that they can easily tackle certification:-
the requirements of different procedural
formalities for setting up their manufacturing
activities.
(i)
3.3.4 Ministry of Food Processing Industries
released a book “Opportunities in Agri
Business: State profiles” and launched an
“Investors' Portal” for Food Processing
C i t i z e n s ' C h a r t e r f o r m u l a t e d
associating the staff side and
stakeholders and also in consultation
with DOP&T. The existing Charter has
been placed on the website of the
Ministry and is displayed in the
Information Facilitation Centre of the
Industry. These two initiatives are
intended Ministry. Based on various changes in
to
provide
information,
particularly
to
investors, about infrastructure facilities for
setting up food processing units,
availability
of raw materials, marketing infrastructure,
sector specific state agencies and fiscal
incentives in a user friendly mode.
the functioning of the Ministry, the
Citizen's Charter is being further
updated and the same will be finalized
in consultation with stake holders.
(ii)
3.3.5 “Invest India”, a joint venture between DIPP
and FICCI, has a mandate to promote
Redressal of public grievances system
is in place. A Deputy Secretary-level
Officer has been designated as Public
foreign investment in India and act as a
first
Grievance Officer. The aggrieved
public can drop his representation
point of reference for global investing
32
MINISTRY OF FOOD PROCESSING
Annual Report 2013-14 either in the complaint box installed cater to the specific local needs
Annual Report 2013-14
either in the complaint box installed cater to the specific local needs
near the reception of the Ministry or
place it on the website of the Ministry
pertaining to minimization of loss of
agricultural produce, increasing
or forward the grievances directly to the p r o c e s s i n g l e v e l a n d e n s u r e
Public Grievance Officer.
remunerative prices to the farmers.
(iii) The Ministry has launched a new (iv) Modernization of office has been
scheme under the 12 the Plan, viz. undertaken for creating better working
National Mission on Food Processing environment and increasing efficiency.
(NMFP) to be implemented through
(v)
the States/UTs with a view to ensuring
better participation of State and UT
Governments and decentralization of
identification, approval and
monitoring of projects. Under the
umbrella of NMFP several schemes
which were earlier implemented by the
Ministry are now being implemented
Information Facilitation Centre is in
place and an Under Secretary level
Officer is in charge of that Centre.
(vi)
A new Transformer has been installed
by BSES for uninterrupted power
supply to the building.
(vii)
t h r o u g h t h e S t a t e a n d U T
Governments. The NMFP scheme is
The Review Committee on Records
Management has been constituted and
a special drive is underway to improve
the records management system of the
likely to be more people centric and will Ministry.
33
MINISTRY OF FOOD PROCESSING
34
34
Annual Report 2013-14 4 CHAPTER PLAN SCHEMES FOR FOOD PROCESSING SECTOR 35
Annual Report 2013-14 4 CHAPTER PLAN SCHEMES FOR FOOD PROCESSING SECTOR 35
Annual Report 2013-14
4
CHAPTER
PLAN SCHEMES FOR
FOOD PROCESSING SECTOR
35
Annual Report 2013-14
Annual Report 2013-14
 

CHAPTER-4

 
 

PLAN SCHEMES FOR FOOD PROCESSING SECTOR

 

4.1

GENERAL

4.2

12th PLAN PROPOSALS:

A strong and dynamic food processing sector 4.2.1 Working Group on Food Processing plays a significant role in diversification of agricultural Industries for the 12th Plan has

 

activities, improving value-addition opportunities and recommended for continuation of following creating surplus for export of agro-food products. schemes as Central Sector Schemes during

This requires policies and plans for improvement of

 

the 12th Plan period:-

food processing infrastructure including

up-gradation

 

I.

Infrastructure Development Schemes

of technology and enforcement of quality standards, promoting investment in food processing, thus (a) Mega Food Parks

 

assisting in domestic market and export growth.

Food

(b)

Cold Chain, Value Addition and Perseveration Infrastructure

Processing adds value, enhances shelf-life and reduces

 

wastage. It provides remunerative prices to the farmers, generates employment opportunities and provides convenience to consumers. Food Processing

(c)

Setting up / Modernization of Abattoirs approved in 11th Plan

has tremendous export potential, enabling the farmer

II.

Strengthening of Institutions

to add value to his produce both in terms of

quantity

and quality so that he can meet the requirements and standards of the market at all stages of value chain, processing and retail, would be critical for improving

 

(a) National Institute of Food Technology Entrepreneurship & Management

his economic sustainability and bargaining capacity. Considerable investments are required in rural

infrastructure and components of the supply chain

by

(b)

I n d i a n

I n s t i t u t e

o f

C r o p

Processing Technology

way of

grading and packing centers, controlled

(c)

Indian Grape Processing Board

atmosphere facilities, reefer vans, cold storage for (d) N a t i o n a l M e a t & Po u l t r y

 

perishable cargo at port/airport/ railway stations, a Processing Board

chain of testing laboratories to meet

international

 

quality standards, etc., which are not likely to come

 

III.

Quality Assurance, HACCP and R&D and Promotional Activities

from private sources. Significant public investments would, therefore, be required to create suitable 4.2.2 Working Group has also recommended for a infrastructural facilities to develop a sustainable new Centrall