The Government today said that India’s share of processed food exports in agri-exports has increased substantially from around 13 percent in 2014-15 to over 25 percent in 2022-23. In a statement, the Ministry of Food Processing Industries said that the food processing sector is one of the largest employment providers in the organised manufacturing sector with over 12 percent employment in the total registered sector. It added that the food processing sector plays an important role in increasing farm income and creating off-farm jobs through on- and off-farm investments in preservation and processing infrastructure.

 

The Ministry said that the government has undertaken several initiatives to give impetus to development of the food processing sector in the country. The Ministry has made significant achievements in its schemes during Financial Year 2023-24. 

 

Highlighting the achievements of Pradhan Mantri Micro Food Processing Industries Upgradation Scheme, the Ministry said that a total of 51 thousand 130 loans have been sanctioned since January this year under the credit-linked subsidy component of the scheme.

 It further said that the World Food India event which was held in November this year saw extensive participation from stakeholders across the board including more than 1200 national and international exhibitors. It added that the event also marks the signing of Memorandum of Understanding of above 33 crore Rupees. 

Around 30 companies, including 22 MSMEs, are taking advantage of the Production-Linked Incentive (PLI) scheme for manufacturing millet-based products, according to the Ministry of Food Processing Industries. The PLI for Millet Based Products (PLISMB) was carved out of the savings of the main PLI Scheme for the Food Processing Industries (PLIFPI) to encourage the use of millets in Ready to Cook/Ready to Eat (RTC/RTE).

 

According to the ministry, around 30 companies, including 22 MSMEs, are involved in the promotion of millet-based products under the PLISMBP.

 

The PLISMBP scheme -- approved in August with an outlay of Rs 1,000 crore arising out of the savings from other segments -- envisages the use of a minimum of 15 per cent millet content in the approved food products, it said in a statement.

 

Otherwise, under the PLISFPI, 176 proposals under different categories have been approved so far and about Rs 584.30 crore incentive has been released, it added.

 

In recent years, Tripura has experienced a remarkable surge in the export of goods to its neighboring country, Bangladesh, facilitated by the Integrated Check Posts (ICPs) and Land Custom Stations. 

 

Currently boasting two ICPs, namely at Akhaura (Agartala) and Sonamura in the Sepahijala district, along with eight strategically positioned Land Customs Stations, including key locations such as Agartala, Srimantapur, Muhurighat, Khowaighat, Dhalaighat, Manughat, Old Ragnabazar, and Sabroom.

 

Speaking on this noteworthy development, a senior official from Tripura's Industry and Commerce department, preferring anonymity, revealed that since the advent of the new government in 2018, trade between Tripura and Bangladesh has witnessed a substantial upswing.

 

The official emphasized, 'The escalating exports signify a robust expansion in the manufacturing sector. In the fiscal year 2017-18, Tripura's total export through various land custom stations and the Integrated Check Post amounted to Rs 12 crore, contrasting against an import of Rs 450 crore from Bangladesh.'

 

Highlighting the impressive trajectory, the official disclosed that the state government has now surpassed the Rs 250 crore mark in the last fiscal year concerning the import of goods.

 

According to a comprehensive report, the trade statistics reflect an upward trajectory: Rs 326 crores in 2017-18, Rs 452.00 in 2018-19, Rs 686 crore in 2019-20, Rs 662 crore in 2020-21, Rs 1015 crore in 2021-22, Rs 643 crores in 2022-23, and a notable Rs 143.27 crore in 2023-24 (Till August.).

Nearly 7,600 Farmer Producer Organisations (FPOs) were registered in India till November 30 this year, almost 75 per cent of the government’s target to form and promote 10,000 such organisations across the country by 2024.

In 2020, the Government of India launched a scheme to form and promote 10,000 new FPOs by 2024 with a budgetary provision of Rs 6,865 crore. The scheme was aimed at enabling farmers to enhance their bargaining power, leverage economies of scale, reduce in cost of production and increase farmers’ incomes through the aggregation of their agricultural produce.

 

In a reply to a question during the winter session of Parliament, it was stated that as of November 30, 2023, about 7,597 FPOs have been registered in India, under the scheme. In Uttar Pradesh, around 1,150 FPOs have been registered, followed by Madhya Pradesh (566), Maharashtra (521), Punjab (475) and Bihar (474).  

It also quoted a study done by the National Bank for Agriculture and Rural Development (NABARD) in 2020-21 and 2021-22 on FPOs which showed an 18.75 per cent to 31.75 per cent increase in farm productivity for farmers associated with FPOs while their input cost reduced from Rs 50 to Rs 100 per bag of seed and fertiliser.

On their effectiveness, the NABARD study showed that collectivisation under FPOs did positively impact members, especially small and marginal farmers. It also said that primary producers through produce aggregation have enhanced their bargaining power. The study found that post-harvest losses were minimised and the FPOs helped farmers in storage facilities, enabling them to avoid distress sales of produce, and thereby ensuring better prices and an increase in income.

“Post-FPO formation, the annual income growth per acre was observed to be in the range of Rs 4,000 to Rs 30,500 in absolute terms and 14 per cent-60 per cent in relative terms,' the study findings were cited in the reply in Parliament.

 

The study also found that FPO membership translated into higher average price realisation for farmers in Kerala, Madhya Pradesh, Odisha and Rajasthan. “In Madhya Pradesh, the sampled farmers who had FPO membership registered an increase of 7.5 per cent in price realisation of produce in kharif (2019) and 12.5 per cent in rabi (2018) seasons. Similarly, in Kerala, the price realisation by FPO members increased by 45 per cent,' the study noted.

It also said aggregation of produce and bulk transport of inputs and outputs reduce marketing cost, thus, enhancing the net income of the producer, while activities like seed production, beekeeping, and mushroom cultivation with a higher margin than traditional business have resulted in higher income.

Under the FPO Scheme, the Centre provides financial assistance of 1.8 million per FPO for three years. A total of Rs 2.5 million is also given to the Cluster Based Business Organisations. The formation and promotion of FPOs are to be done through nine implementing agencies, such as the Small Farmers Agri-Business Consortium (SFAC), National Cooperative Development Corporation (NCDC) and NABARD. Implementing agencies engage CBBOs to aggregate, register and provide professional hand-holding support to FPOs for five years.

In a significant leap forward, the agricultural community of Assam achieved a milestone today as 500 kilograms of urad (lablab beans) from The Dihingpariya Farmer Producer Company of Nitaipukhuri, Sivasagar district, were sent for sale in the London market. This historic moment was marked by a virtual flag-off ceremony, graced by the presence of Agriculture Minister Atul Bora.

 

The initiative garnered momentum after the urad received commendable recognition in the local market, prompting the farmer producer company to explore international avenues. In addition to the lablab beans, 5000 Assam lemons (kaji nemu) from Tinsukia district also made their way to the London market, further showcasing the diverse and high-quality agricultural produce of the region.

 

Agriculture Minister Atul Bora, who virtually participated in the flag-off program, emphasized the significance of this achievement for the farmers of Assam. The event also witnessed the attendance of Trirang Bhartiya Borah, Director of the Department of Horticulture and Food Processing, Government of Assam, Abhishek Dey, Chairman of the Export Development Authority of Agriculture and Processed Food Products (APEDA), along with other officials.

 

The foray into the international market is being hailed as a major breakthrough for Assam’s farmers, opening doors for indigenously and organically produced agricultural products to find a substantial market in the international arena. This not only enhances the economic prospects for the farmers involved but also promotes Assam’s agricultural richness on a global scale.

 

The successful export of urad and lemons to London underscores the potential and quality of Assam’s agricultural products, showcasing the state’s commitment to sustainable and organic farming practices. The collaboration between government entities, farmer producer companies, and export authorities has played a pivotal role in facilitating this journey from local appreciation to global recognition.

 

As Assam takes strides towards becoming a key player in the international agricultural market, it not only benefits the farmers directly involved but also contributes to the overall economic development of the region. The diversification of markets for Assam’s agricultural produce signifies resilience and adaptability in the face of changing global dynamics.

 

The export of urad and lemons to the London market marks a momentous occasion for Assam’s farmers, signaling the beginning of a new chapter in the state’s agricultural landscape. With a rich tapestry of organically grown products, Assam is poised to make a lasting impact on the international stage, showcasing the bountiful offerings of its fertile lands.

Nearly 500,000 metric tons of rice from Taiwan and India will arrive beginning this month until February 2024, the Department of Agriculture (DA) said yesterday.

 

This is in preparation for the possible impact of the El Niño phenomenon on palay production.

 

'We received reports that around 100,000 tons of imported rice have already arrived in the country. This is part of the 495,000 MT committed by import permit holders to (Agriculture) Secretary (Francisco) Tiu Laurel,' DA Undersecretary Roger Navarro said in a statement yesterday.

 

Meanwhile, a total of 20,000 bags – equivalent to 1,000 MT – delivered before Christmas Day constituted the first batch of the 40,000 bags of rice donated by Taiwan, Navarro said.

 

Another 75,000 MT will arrive from India starting this week until early January, the DA official said.

 

'The 75,000 MT due in the coming weeks is part of the 295,000 MT of rice India has allocated to the Philippines,' Navarro said.

 

In October, India approved the export of over one million MT to seven countries, with the Philippines getting over 28 percent of the export allocation.

 

'With the arrival of imported rice and the volume harvested by farmers in recent months, the country will have sufficient supply of the national food staple until the next harvest which starts in March,' Navarro noted.

 

These imported rice will be slapped with an import duty of 35 percent, he said.

 

He noted that the country’s daily rice consumption is 36,000 MT per day, or 1.08 million tons monthly.

 

Economic managers, especially the Bangko Sentral ng Pilipinas (BSP), are closely watching the rice supply situation due to its impact on inflation.

 

The BSP has aggressively raised interest rates since last year to tame inflation, which affects the purchasing power of consumers and undermines economic growth.

 

Based on monitoring of the DA, the retail price of local regular milled rice was pegged at P52 per kilo; local well-milled rice, P56 per kilo; local premium rice, P62 per kilo and local special rice, P68 per kilo.

 

Imported well-milled rice was sold at P58 per kilo; imported premium rice, P61 per kilo and imported special rice, P65 per kilo.

 

‘Prices still high’

Rice watch group Bantay Bigas said the extension of low tariffs on commodities, particularly on rice, under Executive Order 50 only shows that these measures did not deliver the goal of lowering prices.

 

'The consumers did not feel the effect of the low tariff but the price of food products continues to rise, especially rice,' Bantay Bigas spokesperson Cathy Estavillo said in Filipino.

 

She said this extension will only serve the interests of importers and traders and will result in billions of forgone government revenues.

 

'Our call remains to strengthen local production through support services and subsidies to farmers, post-harvest facilities and issue an EO to stop the implementation of Republic Act 11203 (Rice Tariffication Law) so that the trading function of the National Food Authority can be immediately restored. The NFA can buy a significant volume of farmers’ produce,' Estavillo said.

 

'[We will also call for the] immediate release of the P12-billion fund from the Rice Competitiveness Enhancement Fund and distribute it to farmers. We call on different sectors and agricultural stakeholders to unite against the re-extension of low tariffs,' she said.

 

Meanwhile, former agriculture secretary Leonardo Montemayor criticized the decision to extend the lower tariffs on rice, corn and pork until the end of 2024, saying that for the last three years of its implementation, hog raisers and farmers suffered from the yearly leeway given to imported agricultural commodities but which did not benefit the consumers and the government.

 

'It has also caused the Bureau of Customs, the government billions of revenue losses,' Montemayor said in a radio interview.

 

He said that if economic managers will solely depend on lower tariffs, the target of affordable food will not happen and that what should be done is strengthen local production if the government wants cheaper agricultural commodities for Filipinos.

 

'Based on our experience in the last three years as the lower tariffs started in the middle of 2021, during the time of (former) president (Rodrigo) Duterte, it failed to bring down the retail prices of rice, corn and pork,' Montemayor said.

 

'Even with tariff of 35 percent or 40 percent for in quota or out quota, it (retail prices of pork) should not exceed P300 but the cheapest imported pork was pegged at P400 and above,' Montemayor noted.

 

'What is the guarantee that the extension of the lower tariffs will benefit the consumers? On the part of the farmers, it affects their production,' he said.

 

Montemayor also backed the imposition of suggested retail price on pork to prevent overpricing in the market.

 

He added that the promise of affordable prices for consumers does not happen, same with rice, based on monitoring of the DA in Metro Manila markets, imported well-milled and regular milled rice were not available as imported premium rice was sold for as high as P60 per kilo and imported special rice, P66 per kilo.

 

At the same time, Montemayor said farmers will be further affected by the lower tariff on imported corn as the prevailing price in the world market was only P14 to P15 per kilo compared to P19 per kilo for locally produced corn.

 

'Even if you impose tariffs, the retail price of imported corn will be P16, P17 (per kilo). It will affect the retail price of corn, especially with lower tariffs,' he noted.

 

For his part, Philippine Pork Producers Federation president Nonon Tambago said the move to extend the lowering of tariff has further affected the confidence of local swine farmers amid the slump in farmgate price as it reached P175 per kilo.

 

'We are deeply disappointed with the decision to extend the lower tariff on pork until Dec. 31, 2024. Over the past three years, multiple executive orders have been issued to lower tariffs, but they have not achieved the goal of making pork more affordable for consumers,' Tambago told The STAR.

 

He noted that despite the decrease in farmgate price, the retail price remains high at P350 per kilo.

 

'Instead of focusing solely on lowering tariffs, it is crucial to address the gap between farmgate and retail prices as part of a long-term solution. It is important for economic managers to consider the real situation faced by thousands of local farmers, rather than consistently favoring a few importers and traders,' Tambago added.

 

Samahang Industriya ng Agrikultura executive director Jayson Cainglet said it was unfortunate that the economic team succeeded in convincing President Marcos to issue EO 50.

 

'Here (in the Philippines), it is the reverse. Local producers are penalized and importers are rewarded and pampered with four straight years of reduced tariffs on rice, pork and corn,' Cainglet said.

The negotiations for the proposed free trade agreement (FTA) between India and Oman are moving at a fast pace and the pact is likely to be signed next month, a senior government official said.

 

Export sectors which could get a boost from the agreement include motor gasoline, iron and steel products, electronics, machinery, textiles, plastics, boneless meat, essential oils, and motor cars.

 

According to a report of think-tank GTRI, these goods at present face a 5 per cent import duty in Oman.

 

About 16.5 per cent of Indian exports to Oman, worth about $ 800 million and goods such as wheat, medicines, basmati rice, tea, coffee and fish that already have duty-free access, will not see additional benefits from the agreement, it added.

 

Currently, over 80 per cent of its goods enter Oman at an average of 5 per cent import duties, the report has said.

 

Oman's import duty ranges from 0 to 100 per cent along with the existence of specific duties. A duty of 100 per cent is applicable on specific meats, wines and tobacco products.

 

Officials of the two countries concluded the second round of talks for the pact, officially dubbed as Comprehensive Economic Partnership Agreement (CEPA) earlier this month in Muscat.

 

'With Oman, there's a very good progress and both sides are very eager to conclude this deal. It may be signed in January 2024,' the official said. India has potential for export of products such as light oils and preparations of petroleum and bituminous minerals, medicaments, parts and accessories for motor vehicles, iron ores and concentrates, ferrous products obtained by direct reduction of iron ore, and aluminium.

 

The negotiations on the text of most of the chapters have been concluded by both sides.

 

Oman is India's third-largest export destination among the Gulf Co-operation Council (GCC) countries. India already has a similar agreement with another GCC member UAE, which came into effect in May 2022.

 

On the imports front, India's merchandise imports from Oman were USD 7.9 billion in 2022-23.

 

Key imports are petroleum products ($ 4.6 billion) and urea $ 1.2 billion). These account for 73 per cent of imports.

 

Other key products are propylene and ethylene polymers, pet coke, gypsum, chemicals, and iron and steel.

 

GTRI's report has stated that Oman's products, particularly in sectors like oil and gas, petrochemicals, and certain types of manufactured goods, will find a more receptive market in India, post-implementation of the trade agreement.

 

On the services side, it added that, in 2022, India's service exports to Oman were worth about $ 2.8 billion, while its imports were $ 0.2 billion.

 

'Oman's population is about 5 million. Oman's higher per capita income ($ 25,060) compared to India's ($ 2,370) could mean a demand for more diversified and possibly higher-value goods and services in Oman, which India could aim to supply,' GTRI Co-Founder Ajay Srivastava has said.

 

The bilateral trade stood at $ 12.39 billion in 2022-23. India's exports have increased from $ 2.25 billion in 2018-19 to $ 4.48 billion in 2022-23. Imports from the Gulf nation were $ 8 billion in the last fiscal.

 

In such agreements, two trading partners either significantly reduce or eliminate customs duties on a maximum number of goods traded between them. They also ease norms to promote trade in services and attract investments.

 

Experts have stated that beyond the immediate economic benefits, the CEPA holds considerable strategic importance for India.

 

It serves as a gateway for India to strengthen its footprint in Middle Eastern economies. This partnership with Oman can act as a catalyst, enhancing India's geopolitical presence and fostering deeper ties with other Middle Eastern countries.

 

Commenting on the proposed pact, international trade expert and Hi-Tech Gears Chairman Deep Kapuria said this would further help India in consolidating its market access not only in Oman but also enable Indian companies to access the wider Middle East region.

 

This government has earlier inked trade agreements with Australia, UAE and Mauritius.

Nagpur oranges may soon consolidate its position in the Gulf nation as local farmers, exporters and Government agencies are working together to push the citrus fruit in the international markets. The agencies have also set an ambitious target of exporting more than 500 metric tonnes of oranges in countries like Bahrain, Kuwait, Qatar, Saudi Arabia, and the United Arab Emirates in the season starting from February 2024. As of now, the exporters are selling 100-200 metric tonnes of oranges per season to these countries. Dr Nagpal Lokhare, Deputy General Manager in Agricultural and Processed Food Products Export Development Authority (APEDA), told The Hitavada on Tuesday that efforts are being put in to sensitise farmers, exporters and others to tap overseas markets. 'We are conducting seminars for farmers and exporters and providing them all kind of possible support. We are also participating in exhibitions, especially in the Gulf countries to promote oranges,' he said highlighting the recently conducted exhibitions in Dubai and Riyadh.

 

Two exporters including Pravin Wankhade of Universe Exports and Saurabh N Yadav of New India Export, took part in the exhibitions. Grown under the golden sun of Vidarbha, Nagpur mandarins boast a unique thin skin, a delightful burst of flavour and a seedless bite. Renowned for their sweetness and juiciness, they’re a prized possession in international markets. In addition to this, APEDA has identified more than 15,000 farmers based in Nagpur and Amravati districts. 'We are providing all kinds of assistance to grow export quality oranges,' Lokhare added. The authorities are creating awareness among the farmers and other stake holders on sorting, grading, and packing to ensure the oranges arrive fresh and tempting. Special refrigerated containers and improved logistics are essential to increase the shelf life of the fruit. It is important to note that India used to export 1,800 to 2,000 metric tonnes of oranges to Bangladesh.

 

However, after the Bangladesh Government hiked import duty on oranges from 5 per cent to 25 per cent, India’s export of the citrus fruit slipped to 200-300 metric tonnes per season. The duty hike made the oranges too costly for the Bangladeshi consumers. APEDA is developing Nagpur district as a cluster for Nagpur oranges as part of the Agriculture Export Policy. The APEDA officer in Mumbai has been nominated as a nodal officer for implementation of AEP and cluster development of Nagpur orange.

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:

 

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.

 

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.

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.

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 3rd 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.

 

The UAE has initiated the process of channelising its long-promised $2-billion investments into food parks in India, starting with Gujarat, after the two countries sorted out concerns on curbs imposed by the Essential Commodities Act, sources have said.

 

The investments are being made as part of the four nation I2U2 (India-Israel-UAE-USA) initiative to develop a series of integrated food parks across India to enhance food security in the Middle East and South Asia.

 

'India has agreed to waive ECA curbs for a specified volume of commodities (coming under the ambit of the Act) that would be proposed to be processed and exported from the parks by the investors. The UAE will specify the quantities at a later stage of development,' a source tracking the matter told businessline.

 

Park in Kandla

The first food park is likely to be set up on land near Kandla where the investors would get into contract farming arrangements with locals. 'The UAE is in talks with the State government for various permissions and work is expected to start soon. The investments will be made in tranches,' the source added. 

 

The UAE had first promised in 2018 to invest in food parks in India which later got dovetailed into the I2U2 initiative announced at the Leaders’ Summit in July 2022. It was virtually attended by Prime Minister Narendra Modi, US President Joe Biden, Israeli Prime Minister (former) Yair Lapid and UAE President Sheikh Mohamed bin Zayed Al Nahyan.

 

These food parks would incorporate state-of-the-art climate-smart technologies to reduce food waste and spoilage, conserve fresh water, and employ renewable energy sources, per the joint statement signed by the leaders at the Summit.

 

Shortlisted crops

The UAE has been worried about the ECA as three of the shortlisted crops to be processed in the food parks – onions, rice and bananas – are covered under the Act. Since the ECA allows stock-holding limits to be imposed by the government if a certain commodity is in short supply, it could affect business prospects in the food parks.

 

'Now that the Centre has agreed that ECA would not apply on commodities processed in the food parks up to a certain quantity requested by the UAE, the problem has been sorted out,' the source said.