Food processing sector grows at 8.29% in last five years
NEW DELHI: Minister of State for Ministry of Consumer Affairs, Food & Public Distribution Shri Danve Raosaheb Dadarao in a written reply in Rajya Sabha said that as per NAS 2019 estimates, the food processing sector (NIC 10 and 11) is growing at the annual average rate of 8.19% during the last five years ending 2017-18. Data on growth rate specific to retail (food & grocery) sector is not available.
For promoting growth in food processing sector, the Ministry of Food Processing Industries (MoFPI) is implementing an Umbrella Scheme-Pradhan Mantri Kisan Sampada Yojana (PMKSY) with an outlay of ₹6,000 crore.
MoFPI is also implementing the scheme “Operation Greens” under the PMKSY since November 2018 for integrated development of supply chain exclusively of tomato, onion and potato (TOP) crops in selected States on pilot basis.
Government has taken a number of policy initiative to promote food processing sector permitting 100% FDI through automatic route in manufacturing of food products and 100% FDI under government approval route for trading, including ecommerce.
In respect of food products produced or manufactured in India, creation of a special fund of ₹2000 crores in National Bank for Agriculture and Rural Development (NABARD) to provide affordable credit to food processing industries, classification of food & agro-based processing units and cold chain as agricultural activity for Priority Sector Lending (PSL), 100% exemption of income tax on profit for new food processing units, 100 percent income tax exemption from profit derived by FPOs having annual turnover up to Rs.100 crore for activities such as post-harvest value addition to agriculture.
100% deduction of expenditure incurred on investment on establishment and operation of cold chain/warehousing facility for storage of agricultural produce, concessional import duty for plant and machinery under project imports benefit scheme, import duty exemption on import of raw material under advance authorization scheme.