Policy Initiatives In Food Processing Sector | PIB Summary
|
Sr. No. |
Initiatives |
Impact |
| 1 | Creation of a Special Fund of Rs. 2000 crore in NABARD | Availability of affordable credit to Mega Food Parks and food processing units set up therein
Rs. 465 crore sanctioned to 12 number of Projects and Rs. 91 crore disbursed |
| 2 | Launched Investors Portal. | Information on potential and opportunities for investment in the food processing sector and incentives provided by the Central and State Governments were made available to the prospective investors at a single point
The queries of the investors were received and answered through the portal guiding them and making it easier for them to take decision |
| 3 | Strengthened Grievance Redressal System | Under the infrastructure schemes of Mega Food Parks and cold chain, a committee of three Independent Monitors was constituted to address the grievances of the applicants whose proposal for Mega Food Parks and Cold Chains could not be selected. The committee also provides personal hearing to the applicants before disposing of their grievances |
| 4 | Food Map of India | The Food Map enables investor to take decision with regard to locating their projects as the food map showed mapping of the potential of food processing in surplus production areas |
| 5 | Streamlining Project Monitoring process | The close monitoring of the projects regularly led to completion of three Mega Food Parks in comparison to two projects in previous six years and completion of 14 cold chain projects as against 12 in last six years.
This has also lead to significant improvement in utilization of plan fund allocation nearly 200% in all the schemes |
| 6 | Excise Duty on Machinery reduced from 10% to 6% | The reduction of duty resulted in reduction in cost of investment in the food processing projects and enhancing viability of the projects |
Year 2015-16
| Sr. No. | Initiative | Impact |
| 1 |
Food and agro-based processing unit and cold chain infrastructure have been classified under agriculture activities for Priority Sector Lending |
Availability of additional credit for food processing activities and infrastructure |
| 2 | Service Tax on pre-conditioning, pre-coding, ripening, waxing, retail packaging and labelling of fruits and vegetables exempted in cold chain projects | This is a big relief in terms of tax exemption to the cold chain operators as this facility was only available to the farmers at farm gate but not to the cold chain operators
This enhanced the viability of cold chain projects, encouraging more investment in the sector. |
Year 2016-17
| Sr. No. | Initiative | Impact |
| 1 | Permitting 100% FDI in retail trade including E-Commerce of food products manufactured and or produced in India |
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| 2 | To enhance the transparency and reduce human interface on-line software has been developed and put in use for filing of claims for the infrastructure development projects. This has also being expanded to other schemes. | On-line software has resulted in quicker disposal of the claims for grant by the projects and resulting in acceleration of the progress on the grant |
| 3 | Setting up of investment tracking and facilitation Desk of Invest India in the Ministry |
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| 4 | The Schemes of the Ministry have been restructured and new schemes have been launched under proposed SAMPADA. |
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| 5 | Excise Duty reduced from 12.5% to 6% on refrigerated containers | The reduction of duty resulted in reduction in cost of investment in the food processing projects and enhance their viability. |
YEAR 2017-18 |
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1
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2 |
Model Law on Contract Farming to be prepared to integrate farmers | The Contract Farming Law will integrate backward integration of the food processors with the farmers and attracting investment in post harvest management activities leading to increased benefit to the farmers and reduction in wastages. |
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3 |
A Dairy Processing and Development Fund of Rs. 8000 core to be set up in NABARD | The Fund will be used to modernize old and obsolete milk processing units particularly in cooperative sector and will result in enhancing milk processing capacity thereby adding more value to the produce of the farmers and increasing their income |
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4. |
National Policy on Food Processing | The policy will provide a road map for holistic development for the food processing sector, the potential and opportunities for the growth of supply chain and promote food processing in the country to create employment opportunities and ensure wellness of the farmers. |
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5. |
World Food India, 2017 |
Ministry is organising World Food India 2017 from 3rd to 5th November, 2017 in Delhi to showcase investment potential of India in the food processing sector and attract investment in the entire supply chain for inclusive development. |
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