STANDING COMMITTEE ON AGRICULTURE (2019-2020) 7 SEVENTEENTH LOK SABHA MINISTRY OF FOOD PROCESSING INDUSTRIES DEMANDS FOR GRANTS (2019-2020) SEVENTH REPORT LOK SABHA SECRETARIAT NEW DELHI December, 2019/Agrahayana, 1941 (Saka) 1 SEVENTH REPORT STANDING COMMITTEE ON AGRICULTURE (2019-2020) (SEVENTEENTH LOK SABHA) MINISTRY OF AGRICULTURE AND FARMERS WELFARE (DEPARTMENT OF AGRICULTURE, CO-OPERATION AND FARMERS WELFARE) DEMANDS FOR GRANTS (2019-2020) Presented to Lok Sabha on 12.12.2019 Laid on the Table of Rajya Sabha on 12.12.2019 LOK SABHA SECRETARIAT NEW DELHI December, 2019/Agrahayana, 1941 (Saka) 2 COA No. 404 Price : Rs. © 2019 By Lok Sabha Secretariat Published under Rule 382 of the Rules of Procedure and Conduct of Business in Lok Sabha (Fourteenth Edition) and Printed by 3 <CONTENTS> PAGE No. COMPOSITION OF THE COMMITTEE (2019-20)………………………… (iii) INTRODUCTION…………………………………………………………… (v) ABBREVIATIONS ………………………………………………………………….. (vi) REPORT PART- I CHAPTER I Introduction A. Role of Ministry B. Development Initiatives C. Growth Rate of Food Processing Sector D. Brief Highlights of DFG (2019-20) E. Surrender of Funds F. Supplementary DFGs G. Re-appropriation of Funds H. Financial Irregularities I. Budget and Cash Management Scheme J. Revenue Receipts K. Status of Utilization Certificate L. Gender Budgeting M. Schedule Caste Sub-Plan N. Tribal Sub-Plan O. Implemenation of Schemes in North Eastern Area P. Scheme-wise Analysis Q. Scheme for Mega Food Parks R. Scheme for Integrated Cold Chain and Value Addition Infrastructure S. Scheme for Creation/Expansion of Food Processing and Preservation Capacities T. Scheme for Creation of Infrastructure for Agro-Processing Clusters U. Scheme for Creation of Backward And Forward Linkages V. Scheme for Food Safety and Quality Assurance Infrastructure W. Scheme for Human Resources and Institutions X. Operations Greens- A Scheme for Integrated Development of Tomato, Onion and Potato PART-II RECOMMENDATIONS AND OBSERVATIONS OF THE COMMITTEE ANNEXURES Annexure-I: State-wise details of status of approved projects, allocations of funds and utilizations made under the Mega Food Parks Scheme since its inception Annexure-II: State-wise details of status of approved projects, allocations of funds and utilizations made under the Scheme for Cold chain and Value Addition Infrastructure since its inception. Annexure-III&IV: State-wise details of status of approved projects, allocations of funds and utilizations made under the Scheme for Creation/Expansion of Food Processing & Preservation Capacities since its inception. Annexure-V&VI: State-wise details of status of approved projects, allocations of funds and utilizations made under the Scheme for Creation of Infrastructure for Agro- Processing Clusters since its inception. Annexure-VII: State-wise details of status of approved projects, allocations of funds and utilizations made under the Scheme for Creation of Backward and Forward Linkages since its inception. Annexure-VIII&IX: State-wise details of status of approved projects, allocations of funds and utilizations made under the Scheme for Creation Food Safety and Quality Assurance Infrastructure since its inception. Annexure-X: State-wise list of project assisted under the Scheme of Implementation of HACC/ISO 22000, ISO 9000/GHP/GMP and other quality/safety management system in food processing units APPENDICES I. Minutes of the 10th Sitting of the Committee held on 07th November, 2019 II. Extract of Minutes of the 13th Sitting of the Committee held on 09th December, 2019 4 COMPOSITION OF THE STANDING COMMITTEE ON AGRICULTURE (2019-20) Shri Parvatagouda Chandanagouda Gaddigoudar- Chairperson MEMBERS LOK SABHA 2. Shri Afzal Ansari 3. Shri Horen Sing Bey 4. Shri Devendra Singh 'Bhole' 5. Shri A. Ganeshamurthi 6. Shri Kanakmal Katara 7. Shri Abu Taher Khan 8. Shri Bhagwanth Khuba 9. Dr. Amol Ramsing Kolhe 10. Shri Mohan Mandavi 11. Shri Devji Mansingram Patel 12. Smt. Shardaben Anilbhai Patel 13. Shri Bheemrao Baswanthrao Patil 14. Smt. Navneet Ravi Rana 15. Shri Vinayak Bhaurao Raut 16. Shri Pocha Brahmananda Reddy 17. Shri Mohammad Sadique 18. Shri Virendra Singh 19. Shri Vellalath Kochukrishnan Nair Sreekandan 20. Shri Mulayam Singh Yadav 21. Shri Ram Kripal Yadav RAJYA SABHA 22. Shri Partap Singh Bajwa 23. Sardar Sukhdev Singh Dhindsa 24. Shri Narayan Rane 25. Shri Kailash Soni 26. Shri Ram Nath Thakur 27. Shri Vaiko 28. Shri R. Vaithilingam 29 Smt. Chhaya Verma 30. Dr. Chandrapal Singh Yadav 31. Shri Harnath Singh Yadav 5 SECRETARIAT 1. Shri Shiv Kumar - Joint Secretary 2. Shri Arun K. Kaushik - Director 3. Shri Sumesh Kumar - Deputy Secretary 4. Shri S. Vijayaraghavan - Asst. Executive Officer (iv) 6 INTRODUCTION I, the Chairperson, Standing Committee on Agriculture, having been authorized by the Committee to submit the Report on their behalf, present this Seventh Report on the Demands for Grants (2019-2020) of the Ministry of Food Processing Industries. 2. The Committee under Rule 331E(1)(a) of the Rules of Procedure considered the Demands for Grants (2019-20) of the Ministry of Food Processing Industries, which were laid on the table of the House on 17 July, 2019. The Committee took evidence of the representatives of the Ministry of Food Processing Industries at their Sitting held on 07 November, 2019. The Report was considered and adopted by the Committee at their Sitting held on 09 December, 2019. 3. For facility of reference and convenience, the Recommendations/Observations of the Committee have been printed in bold letters in Part-II of the Report. 4. The Committee wish to express their thanks to the officials of the Ministry of Food Processing Industries for appearing before the Committee and furnishing the information that they desired in connection with the examination of Demands for Grants of the Ministry. 5. The Committee would also like to place on record their deep sense of appreciation for the invaluable assistance rendered to them by the officials of Lok Sabha Secretariat attached to the Committee. NEW DELHI; P.C. GADDIGOUDAR 10 December, 2019 Chairperson, 19 Agrahayana, 1941 (Saka) Standing Committee on Agriculture (v) 7 REPORT PART I Introduction 1.1 Agriculture is back bone of Indian economy and around 54.6% of the population in the Country is engaged in agriculture and allied activities (census 2011). India has achieved a remarkable growth in agriculture, increasing food grain production from 82.02 million tonnes in 1960-61 to about 275.11 million tonnes in 2016-17.Now, our country is not only self-sufficient in the production of foodgrains to meet food requirement of the country but Agriculture is also contributing towards foreign earning. However, despite the large scale production in India, food inflation and food security issues are major concerns for the policy makers in country as they affect the basic need for the citizens i.e. to have sufficient, healthy and affordable food. A nation-wide study on quantitative assessment of Harvest and Post-harvest losses for 45 agricultural produces in 107 randomly selected districts was carried out by Central Institute of Post-Harvest Engineering & Technology (CIPHET), Ludhiana in the year 2015. It has been estimated that annual value of Harvest and Post- harvest losses of major agricultural produces at national level was at Rs. 92,651crore. It has been found that the case of cereals, majority of losses occur at farm level during harvesting, collection and threshing. Storage losses are only 0.75 – 1.21 percent. In the case of fruits also, most of the wastage is occurring in fruits and vegetables. Considering the extent of losses, there is an urgent need to push for establishment of Food Processing Industries in all parts of Country. With adequate food processing facilities, much of this wastage can be reduced, thus, paving the way for providing the remunerative prices to the producers as well as ensuring greater supply to the consumers. 1.2 The Food Processing Industry (FPI) is of enormous significance as it provides vital linkages and synergies that it promotes between the two pillars of the economy, i.e. Agriculture and Industry. If there are good food processing industries in India, raw materials such as grains or meat can be converted into food for domestic and foreign consumption. Food processing industries can absorb a major share of workers from the Agriculture Sector, who face disguised unemployment. It can result in better productivity and GDP growth. 8 A. Role of the Ministry 1.3 The Ministry of Food Processing Industries is concerned with formulation and implementation of the policies for the food processing industries within the overall national priorities and objectives. A major issue facing the country is to ensure remunerative prices to the farmers for their produce. If the surplus production of cereals, fruits, vegetables, milk, fish, meat and poultry, etc., are processed and marketed both inside and outside the country, there will be greater opportunities for adding to the income of farmers and employment. A strong and dynamic Food Processing Sector plays a vital role in diversification and commercialization of agriculture, enhancing shelf life, ensuring value addition to Agricultural Produce, generation of employment, enhancing income of farmers and creating markets for export of agro foods. The Ministry acts as a catalyst for bringing in greater investment into this Sector, guiding and helping the industry and creating a conducive environment for healthy growth of the Food Processing Industry. The Ministry aims at: i. Creating the critical infrastructure to fill the gaps in the supply chain from farm to consumer; ii. Funding projects for Value addition of agricultural produce; iii. Funding projects for minimizing wastage at all stages in the food processing chain by the development of infrastructure for storage, transportation and processing of agro- produce; iv. Funding projects for Induction of modern technology in the food processing industries; v. Encouraging R&D for product and process development; vi. Providing policy support, promotional initiative and facilities to promote value added produce for domestic consumption and also exports.