B. Creation Infrastructure Facilities
C. Approval of New Infrastructure Facilities
As part of Hon’ble Prime Minister’s announcement of Aatmanirbhar Bharat Abhiyan, the Government, on 31st March, 2021, approved a Central Sector Scheme, namely “Production Linked Incentive Scheme for Food Processing Industry” with an outlay of INR 10,900 crores to be implemented for a period of seven years from 2021-2022 to 2026-27.
The primary objectives of this scheme are to support creation of global food manufacturing champions; support Indian brands of food products in the international markets; increase employment opportunities of off-farm jobs; and ensure remunerative prices of farm produce and higher income to farmers.
Specific food product segments, having high growth potential have been identified for providing support under the scheme. These include ready to cook/ready to eat (RTC/ RTE) foods including millet based products, processed fruits & vegetables, marine products and mozzarella cheese. Support to innovative and organic products of SMEs for these product segments and overseas Branding & Marketing are also covered under the scheme. A component for Millet Based Products has subsequently carved out from the scheme, with an outlay of ?800 Crore, to encourage the use of Millets in RTC/RTE products and incentivising them under the PLI Scheme to promote its value addition and their sale in domestic and export markets.
Under the PLI Scheme for Food Processing Industry, a total of 182 applications have been approved under different categories including 30 applications (8 large entities and 22 SMEs) under the PLI Scheme for Millet Based products.
The implementation of PLI scheme is likely to facilitate expansion of food processing capacity by nearly Rs. 30,000 crore and create additional direct and indirect employment opportunities for about 2.5 lakh persons by the year 2026-27. The investments by the PLI beneficiaries is likely to result in increase in sales and export of food products. A positive stimulus to domestic industry is expected as the scheme stipulates that in order to get incentive, the entire chain of manufacturing processes, including primary processing of the food products shall take place in India. The scheme will also facilitate promotion of Indian brands abroad.
As per the data being reported by the PLIS beneficiaries, investment of about ?4900 Crores has been made under the Scheme. Incentives amounting to ?800 Crores are likely to be disbursed in the current financial year. Sales based incentive of ?107.3 Crores has been disbursed so far.
Stakeholder consultations are also underway for introducing a PLI Scheme for Nutraceutical sector to enable this sector to reach its potential and find its rightful place.
The Prime Minister- Formalisation of Micro Food Processing Enterprises (PM-FME) scheme, aimed at promoting ‘vocal for local’ in the sector, under the Atmanirbhar Bharat Abhiyan, was launched in June 2020 to support 2 lakh micro food processing units with credit linked subsidy with a total outlay of Rs. 10,000crores over the period 2020-2025.
The Scheme adopts One District One Product (ODOP) approach to reap the benefit of scale in terms of procurement of inputs, availing common services, and marketing of products. These ODOP has been approved for 713 districts of 35 States/ UTs with 137 unique products.
76 proposals with an Outlay of Rs. 205.95 Crore have been approved which are mainly State Agriculture University, ICAR-KVKs, etc.
E. Operation Green scheme
ü Total Project Cost: Rs. 2218.69 Crore
ü Approved Grants-in-aid: Rs. 466.66 Crore*
ü Private Investment Leveraged: Rs.1752.03 Crore
ü Total Processing Capacity expected to be created: 8,21,780 MT per Annum
ü Total Preservation Capacity expected to be created: 1,81,616 MT
ü Employment Generation: 1,01,559 Nos.
ü Farmers to be benefitted: 1,42,554 Nos.
F. Economic Achievement of Food Processing Sector
1. Food processing sector has been identified as one of the Champion Sectors under “Make in India” and has emerged as an important segment of the Indian economy in terms of its contribution to GDP, exports, investment and employment.
2. The export of Processed-Food Products has increased from US$ 8.56 billion in 2020-21 to US$ 10.42 Billion in 2021-22. The share of processed food exports in total Agri- food exports has increased to 22.6% in 2021-22.
3. During 2021-22, food processing sector attracted US$ 709.72 Million of Foreign Direct Investment (FDI).
Ministry of Food Processing Industries (MoFPI), Government of India has set up a dedicated Investment Facilitation Cell with Invest India – the national investment promotion and facilitation agency of Government of India. Some of the key activities undertaken under Investment Promotion during 2022 were as follows –
1) Regular interactions with State Government and UT Administrations through Project Development Cell of MoFPI, to discuss about development of investible projects, potential investment interest, company specific issues, creating awareness about various initiatives of Government of India in the food processing sector
2) Food processing summits were organized in various states / UT such as Madhya Pradesh, West Bengal, Assam, Jharkhand, Meghalaya, Nagaland, Arunachal Pradesh, Odisha, Andaman & Nicobar etc. These summits focused on creating awareness about benefits under MoFPI schemes, B2G interactions etc.
3) Interactions were held with Indian and Foreign Missions to promote opportunities and attract investments in Indian food processing sector
4) Active participation in domestic events such as AAHAR 2022, Annapoorna ANUFOOD India and SIAL 2022. During these events, initiatives of the Ministry were showcased amongst relevant stakeholders, interactions were held with participating business visitors.
The Ministry of Food Processing Industries (MoFPI) commissioned a study titled “Study to assess Human Resource and Skill Requirements in Indian Food Processing Sector during 2021-2030” in October 2020 through M/s. Feedback Business Consulting Services Private Limited, Bangalore. The study was mandated to cover 11 sub-sectors of the Food Processing Sector as they are considered the major segments in terms of production, huge scope for increasing processing levels, the requirement of the skilled labour force in these sub-sectors, etc. The 11 sub-sectors are – Bread and Bakery products, Cold Chain (including logistics), Dairy Products, Fish and Seafood processing, Fruits & Vegetables Processing, Meat & Poultry Processing, Milling (Grains & Oilseeds), Beverages (Tea & Coffee), Ready-to-Eat & Ready-to-Cook Products, Soya Processing and Spices. The above Study report was finally accepted by the Ministry in September 2022 and has since been published on the Ministry’s website. The above study has identified that the net expected number of skilled human resource requirement in these 11 sub-sectors of Food Processing during 2021-30 is around 13.4 Lakh”.
G. Achievements of NIFTEMs
Research Publications
II. NIFTEM-Thanjavur, Tamil Nadu
· NIFTEM-T is approved CIC mentor for Kerala Agricultural University, Thrissur, Kerala, IIM Nagpur, TNAU, KVK Madurai, Tamil Nadu, ICAR – NRCB, Trichy, Tamil Nadu, and SASTRA, Thanjavur, Tamil Nadu.
· Various demonstration sessions have been conducted for the PMFME capacity building portal with Ministry NPMU, NIFTEM-K, Training partners, and state wise district officials and also developed web portal for updation of database for capacity building component of the scheme.
· Conducted trainings for 28 states for SRLM and SULM officials on MIS
· Self-learning modules have been developed for 5specificproducts.