STANDING COMMITTEE ON AGRICULTURE 17 (2015-16) SIXTEENTH LOK SABHA MINISTRY OF FOOD PROCESSING INDUSTRIES [Action Taken by the Government on the Observations/Recommendations contained in the Fourth Report (Sixteenth Lok Sabha) of the Standing Committee on Agriculture (2014-15)] SEVENTEENTH REPORT LOK SABHA SECRETARIAT NEW DELHI December, 2015/Agrahayana, 1937 (Saka) SEVENTEENTH REPORT STANDING COMMITTEE ON AGRICULTURE (2015-16) (SIXTEENTH LOK SABHA) MINISTRY OF FOOD PROCESSING INDUSTRIES ‘DEMANDS FOR GRANTS (2014-15)’ [Action Taken by the Government on the Observations/Recommendations contained in the Fourth Report (Sixteenth Lok Sabha) of the Standing Committee on Agriculture (2014-15)] Presented to Lok Sabha on 16.12.2015 Laid on the Table of Rajya Sabha on 16.12.2015 LOK SABHA SECRETARIAT NEW DELHI December, 2015/Agrahayana, 1937 (Saka) COA No. 327 Price : Rs. 94.00 © 2016 BY LOK SABHA SECRETARIAT Published under Rule 382 of the Rules of Procedure and Conduct of Business in Lok Sabha (Fifteenth Edition) and printed by M/s. India Offset Press, A-1 Mayapuri Ind. Area, Phase 1, New Delhi 110 064. CONTENTS PAGE COMPOSITION OF THE COMMITTEE.................................................. (iii) INTRODUCTION................................................................................... (v) CHAPTER I Report..................................................................... 1 CHAPTER II Observations/Recommendations which have been accepted by the Government................................... 25 CHAPTER III Observations/Recommendations which the Committee do not desire to pursue in view of the Government’s replies...................................................................... 51 CHAPTER IV Observations/Recommendations in respect of which replies of the Government have not been accepted by the Committee.......................................................... 52 CHAPTER V Observations/Recommendations in respect of which final replies of the Government are still awaited....... 60 ANNEXURES I. Extract of Minutes of the 11th Sitting of the Committee held on 10.12.2015.................................................. 63 II. Modifications in the Scheme Guidelines of Mega Food Park on 19.12.2009, 17.11.2011 and 10.02.2012....... 65 APPENDIX Analysis of Action Taken by the Government on the Observations/Recommendations Contained in the Fourth Report (Sixteenth Lok Sabha) of the Standing Committee on Agriculture (2014-15)........................... 68 (i) BLANK COMPOSITION OF THE STANDING COMMITTEE ON AGRICULTURE (2015-16) Shri Hukm Deo Narayan Yadav — Chairperson MEMBERS Lok Sabha 2. Prof. Ravindra Vishwanath Gaikwad 3. Prof. Richard Hay 4. Shri Sanganna Karadi 5. Shri Nalin Kumar Kateel 6. Md. Badaruddoza Khan 7. Shri C. Mahendran 8. Dr. Tapas Mandal 9. Shri Janardan Mishra 10. Shri Ajay Nishad 11. Shri Dalpat Singh Paraste 12. Shri Nityanand Rai 13. Shri Mukesh Rajput 14. Shri Konakalla Narayana Rao 15. Shri C.L Ruala 16. Shri Arjun Charan Sethi 17. Shri Satyapal Singh (Sambhal) 18. Shri Virendra Singh 19. Shri Dharmendra Yadav 20. Shri Jai Prakash Narayan Yadav 21. Shri B.S. Yeddyurappa (iii) Rajya Sabha 22. Shri A.W. Rabi Bernard 23. Shrimati Renuka Chowdhury 24. Sardar Sukhdev Singh Dhindsa 25. Shri Janardan Dwivedi 26. Shri Vinay Katiyar 27. Shri Mohd. Ali Khan 28. Shri Rajpal Singh Saini 29. Shri Ram Nath Thakur 30. Shri Shankarbhai N. Vegad 31. Shri Darshan Singh Yadav SECRETARIAT 1. Shri U.B.S. Negi — Joint Secretary 2. Shri Arun K. Kaushik — Director 3. Smt. Juby Amar — Additional Director (iv) INTRODUCTION I, the Chairperson, Standing Committee on Agriculture (2015-16), having been authorized by the Committee to submit the Report on their behalf, present this Seventeenth Report on action taken by the Government on the Observations/Recommendations contained in the Fourth Report (Sixteenth Lok Sabha) of the Standing Committee on Agriculture (2014-15) on ‘Demands For Grants (2014-15)’ pertaining to the Ministry of Food Processing Industries. 2. The Fourth Report (Sixteenth Lok Sabha) of the Standing Committee on Agriculture (2014-15) on ‘Demands For Grants (2014-15)’ of the Ministry of Food Processing Industries was presented to Lok Sabha and laid on the Table of Rajya Sabha on 19 December, 2015. The Action Taken Notes on the Report were received on 18 March, 2015 3. The Report was considered and adopted by the Committee at their Sitting held on 10.12.2015. 4. An analysis of the action taken by the Government on the Observations/Recommendations contained in the Fourth Report (Sixteenth Lok Sabha) of the Committee is given in Appendix. NEW DELHI; HUKM DEO NARAYAN YADAV 14 December, 2015 Chairperson, 23 Agrahayana, 1937 (Saka) Standing Committee on Agriculture. (v) BLANK CHAPTER I REPORT This Report of the Committee on Agriculture deals with the action taken by the Government on the Observations/Recommendations contained in the Fourth Report (Sixteenth Lok Sabha) of the Committee on Agriculture (2014-15) on “Demands for Grants (2014-15)” pertaining to Ministry of Food Processing Industries which was presented to Lok Sabha and laid on the Table of Rajya Sabha on 19.12.2014. 1.2 The Ministry of Food Processing Industries have furnished Action Taken Replies in respect of all the 16 Observations/Recommendations contained in the Report. These replies have been categorized as under:— (i) Observations/Recommendations that have been accepted by the Government: Recommendation Serial Nos. 1, 2, 5, 8, 9, 10, 12, 13, 14, 15 and 16 Chapter II Total-11 (ii) Observations/Recommendations in respect of which the Committee do not desire to pursue in view of the Government’s reply: Recommendation Serial No. NIL Chapter III Total-0 (iii) Observations/Recommendations in respect of which action taken replies of the Government have not been accepted by the Committee: Recommendation Serial Nos. 3, 4, 6 and 11 Chapter IV Total 04 (iv) Observations/Recommendations in respect of which final replies of the Government are still awaited: Recommendation Serial No. 07 Chapter V Total-01 1.3 The Committee trust that utmost importance would be given to implementation of the Observations/Recommendations accepted by the Government. In cases, where it is not possible for the Ministry to implement the Recommendations in letter and spirit for any reason, the matter should be reported to the Committee with reasons for non-implementation. The Committee desire that further Action Taken Notes on the Observations/Recommendations contained in Chapter-I of this Report be furnished to them at an early date. 1.4 The Committee will now deal with the action taken by the Government on some of the Recommendations in the succeeding paragraphs. A. Allocation of Funds Recommendation (Serial No. 3) 1.5 The Committee had observed/recommended as under:— “The Committee are aware that India is a significant contributor in agriculture produce. Within the country agriculture sector accounts for 19% of the GDP and 12% of country’s exports providing employment to over 50% of the workforce. However, a study carried out by CIPHET in 2009 on 46 agricultural produces in 106 randomly selected districts has revealed that the estimated harvest and post- harvest losses of major agricultural produces at national level was of the order of Rs. 44,143 crore per annum at 2009 wholesale prices. They find that the two biggest contributors to food losses are the 2 lack of refrigerated transport and high quality cold storage facilities for food manufacturers and food sellers. Needless to emphasize the significance to save this national loss and convert into an asset by development of a knowledge based industry which promotes high value addition and through that higher incomes and employment in the country. The Ministry of Food Processing, Industries being the nodal Ministry, for the purpose, formulates and plans for the FPI within the overall national priorities and objective. From the magnitude of losses and gigantic work ahead for providing safe, hygienic and quality food products through modernization of agriculture and value addition to the products it can be easily deduced that there is an urgent need for huge investment in the sector. The Committee are, however, concerned to note that the Ministry had proposed a plan allocation of Rs. 1280.33 crore whereas Rs. 770.00 (i.e. only 60%) has been actually provided for the year 2014-15 as a result of which the Ministry had to downsize the targets. They were apprised that the Ministry has now sought Rs. 156.00 crore at RE stage to upscale the targets of some of their major performing schemes. The Committee desire that Planning Commission should accord the warranted significance to this highly potential component of the economy i.e. the food processing sector. The Committee, therefore, expect the Government to grant the amount sought by the Ministry at the RE level for the purpose of financing their well performing schemes.” 1.6 In its Action Taken Reply, the Ministry has stated as under:— “Against the allocation of Rs. 14604 crore sought by the Ministry for the 12th Five Year Plan, the Planning Commission has approved only Rs. 5990 crore. As such, on an average Rs. 1198 crore had to be provided annually to the Ministry. However, the year-wise budget allocation has been much less. Ministry has been able to utilize almost 3 entire allocation. The position of expenditure during 2012-13, 2013-14 and 2014-15 is given below:— (Rs. in crore) Sl. Name of Scheme 2012-13 2013-14 2014-15 No. (upto 16.02.2015) BE RE AE BE RE AE BE RE AE 1. Scheme for Infrastructure 191.00 184.19 183.89 247.00 241.92 224.49 315.00 229.62 209.17 Development 2. Scheme for Technology 100.00 186.46 186.19 160.00 163.92 162.08 160.00 157.03 142.63 Upgradation/Establishment/ Modernization of Food Processing Industries 3. Scheme for Quality Assurance, 35.00 31.91 31.34 35.00 35.66 35.01 36.00 41.28 29.23 Codex Standards, R&D and other Promotional Activities 4. Scheme for Human Resource 4.00 4.00 3.98 4.00 4.00 3.78 4.00 3.75 3.27 Development 5.