THIRTEENTH REPORT STANDING COMMITTEE ON AGRICULTURE (2019-2020) SEVENTEENTH LOK SABHA MINISTRY OF FOOD PROCESSING INDUSTRIES DEMANDS FOR GRANTS (2020-2021) Presented to Lok Sabha on 13.03.2020 Laid on the Table of Rajya Sabha on 13.03.2020 LOK SABHA SECRETARIAT NEW DELHI March, 2020/Phalguna, 1941 (Saka) C.O.A. No. 412 Price : Rs. 81.00 2020 BY LOK SABHA SECRETARIAT Published under Rule 382 of the Rules of Procedure and Conduct of Business in Lok Sabha (Sixteenth Edition) and printed by Chaudhary Mudran Kendra, Delhi-110053. CONTENTS PAGE COMPOSITION OF THE COMMITTEE (2019-20) ............................... (iii) INTRODUCTION ............................................................................... (v) PART I CHAPTER I INTRODUCTORY .............................................. 1 A. Developmental Initiatives ............................. 1 B. Demands for Grants for the year 2020-21 .... 3 C. Fund Surrendered ......................................... 7 D. Supplementary DFGs ................................... 10 E. Scheduled Castes Sub-Plan .......................... 14 F. Tribal Sub-Plan ............................................. 19 CHAPTER II SCHEME-WISE ANALYSIS ............................. 21 A. Mega Food Parks .......................................... 21 B. Scheme for Integrated Cold Chain and Value Addition Infrastructure ....................... 25 C. Scheme for creation/expansion of Food Processing & preservation capacities ........... 28 D. Scheme for creation of infrastructure for Agro-Processing Clusters ............................. 30 E. Scheme for creation of Backward and Forward Linkages ......................................... 31 F. Scheme for Food Safety and Quality Assurance Infrastructure ............................... 32 G. Scheme for Human Resources and Institutions .................................................... 35 (i) H. Operation Greens .......................................... 38 I. Skill Development ........................................ 42 PART II Observations/Recommendations of the Committee .......... 45 APPENDICES I. Minutes of the 20th Sitting of the Committee held on 19th February, 2020 ....................................................... 52 II. Minutes of the 22nd Sitting of the Committee held on 12th March, 2020 ........................................................... 55 (ii) COMPOSITION OF THE STANDING COMMITTEE ON AGRICULTURE (2019-20) Shri Parvatagouda Chandanagouda — Chairperson Gaddigoudar 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 (iii) 19. Shri V.K. 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 SECRETARIAT 1. Shri Shiv Kumar — Joint Secretary 2. Smt. B.Visala — Director 3. Shri Sumesh Kumar — Deputy Secretary 4. Shri S. Vijayaraghavan — Assistant Executive Officer (iv) INTRODUCTION I, the Chairperson, Standing Committee on Agriculture, having been authorized by the Committee to submit the Report on their behalf, present this Thirteenth Report on the Demands for Grants (2020-2021) of the Ministry of Food Processing Industries. 2. The Committee under Rule 331E(1)(a) of the Rules of Procedure and Conduct of Business in Lok Sabha considered the Demands for Grants (2020-21) of the Ministry of Food Processing Industries, which were laid on the table of the House on 11 February, 2020. The Committee took evidence of the representatives of the Ministry of Food Processing Industries at their Sitting held on 19 February, 2020. The Report was considered and adopted by the Committee at their Sitting held on 12 March, 2020. 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 Officers 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; SHRI P.C. GADDIGOUDAR, 12 March, 2020 Chairperson, 22 Phalguna, 1941(Saka) Standing Committee on Agriculture. (v) PART I CHAPTER I INTRODUCTORY 1.1. 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 of Food Processing Industries 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 of Food Processing Industries 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. A. Developmental Initiatives 1.2 The Ministry in its Annual Report (2018-19) has stated that over the years agricultural production in India has consistently recorded higher output. India ranks first in the world in the production of Milk, Ghee, Pulses, Ginger, Bananas, Guavas, Papayas and Mangoes. Further, India ranks no. second in the world in the production of Rice, Wheat and 1 several other vegetables & fruits. Abundant supply of raw materials, increase in demand for food products and incentives offered by the Government has impacted Food Processing Sector positively. During the last 5 years ending 2017-18, Food Processing Sector has been growing at an Average Annual Growth Rate (AAGR) of around 8.41 per cent as compared to around 3.45 per cent in Agriculture at 2011-12 Prices. Food Processing Sector has also emerged as an important segment of the Indian Economy in terms of its contribution to GDP, employment and investment. The Sector constituted as much as 8.83 per cent and 10.66 per cent of GVA in Manufacturing and Agriculture Sector respectively in 2017-18 at 2011-12 prices. 2 B. Demands for Grants for the Year 2020-21 1.3 Going by the Expenditure Budget 2021, the Actual for the last 3 years and the BE for the year 2020-21 are: MINISTRY OF FOOD PROCESSING INDUSTRIES DEMAND NO. 41 Ministry of Food Processing Industries (Rs. in crores) Actual 2018-2019 Budget 2019-2020 Revised 2019-2020 Budget 2020-2021 Revenue Capital Total Revenue Capital Total Revenue Capital Total Revenue Capital Total 1 2 3 4 5 6 7 8 9 10 11 12 13 Gross 719.17 - 719.17 1196.60 - 1196.60 1042.79 - 1042.79 1232.94 - 1232.94 Recoveries -2.47 - -2.47 - - - - - - - - - Receipts - - - - - - - - - - - - Net 716.70 - 716.70 1196.60 - 1196.60 1042.79 - 1042.79 1232.94 - 1232.94 A. The Budget allocations, net of recoveries, are given below: CENTRE'S EXPENDITURE Establishment Expenditure of the Centre 1. Secretariat 25.08 - 25.08 27.00 - 27.00 29.39 - 29.39 32.16 - 32.16 3 4 1 2 3 4 5 6 7 8 9 10 11 12 13 2. International 0.31 - 0.31 0.16 - 0.16 0.32 - 0.32 0.16 - 0.16 Cooperation Total- 25.39 - 25.39 27.16 - 27.16 29.71 - 29.71 32.32 - 32.32 Establishment Expenditure of the Centre Central Sector- Schemes/Projects 3. Pradhan Mantri 591.63 - 591.63 1101.0 - 1101.00 889.43 - 889.43 1081.41 - 1081.41 Kisan Sampada Yojana OTHER CENTRAL SECTOR EXPENDITURE Autonomous Bodies 4. Indian Institute 24.20 - 24.20 32.00 - 32.00 77.50 - 77.50 77.89 - 77.89 of Food Processing Technology (IIFPT) 5. National 77.95 - 77.95 36.44 - 36.44 46.15 - 46.15 41.32 - 41.32 Institute of Food Technology Entrepreneurship and Management (NIFTEM) Total- 102.15 - 102.15 68.44 - 68.44 123.65 - 123.65 119.21 - 119.21 Autonomous Bodies Total-Other 102.15 - 102.15 68.44 - 68.44 123.65 - 123.65 119.21 - 119.21 Central Sector Expenditure TRANSFERS TO STATES/UTs Centrally Sponsored Schemes 6. Actual -2.47 - -2.47 - - - - - - - - - Recoveries Grand Total 716.70 - 716.70 1196.60 - 1196.60 1042.79 - 1042.79 1232.94 - 1232.94 B. Developmental Heads Economic Services 1. Food Storage 691.63 - 691.63 1059.59 - 1059.50 924.46 - 924.46 1092.64 - 1092.64 and Warehousing 5 6 1 2 3 4 5 6 7 8 9 10 11 12 13 2. Secretariat- 25.07 - 25.07 27.00 - 27.00 29.39 - 29.39 32.16 - 32.16 Economic Services Total-Economic 716.70 - 716.70 1086.50 - 1086.50 953.85 - 953.89 1124.80 - 1124.80 Services Others 3. North Eastern - - - 110.10 - 110.10 88.94 - 88.94 108.14 - 108.14 Areas Total-Others - - - 110.10 - 110.10 88.94 - 88.94 108.14 - 108.14 Grand Total 716.70 - 716.70 1196.60 - 1196.60 1042.79 - 1042.79 1232.94 - 1232.94 1.4 On being asked by the Committee to provide the details of Scheme-wise Budget Allocation and its utilization in the year 2019-20, the following information was provided to the Committee: (Rs. in crore) Sl. Budget Allocation (BE) BE RE Actual No.