100% FDI decision in food processing sector will play a big role in doubling farmers’ income by 2022

100% FDI decision in food processing sector will play a big role in doubling farmers’ income by 2022: Minister

Aspire to turn India into the food factory for the world in the next few years: Minister

I am looking at a market that goes to the farmer’s doorsteps: Smt. Harsimrat Kaur Badal

Food Processing Industries Minister inaugurates 31^st edition of AAHAR

Highest ever participation in International Food and Hospitality Fair 2016

Amidst the global slowdown, India continues to be one bright spot. Many foreign players whom I met at international food expositions, requested me to put in a word, so that they can participate in AAHAR. This is testimony to the changed global outlook towards India and the strengthening of ‘Brand India’, thanks to the global outreach of Hon’ble Prime Minister Shri Narendra Modi. Under his leadership, the Government has worked hard to create an environment conducive to the growth of the economy. The food processing sector in India is going to be one bright spot which will propel this growth.

-          Union Food Processing Industries Minister, Smt. Harsimrat Kaur Badal, at inauguration of AAHAR 2016

Inaugurating the International Food and Hospitality Fair 2016, being held at Pragati Maidan, New Delhi, the Minister said that the Budget decision to allow 100% FDI in multi-brand retail for food products produced and processed in India will play a catalytic role in leapfrogging Indian economy. She underlined that the decision pertains to FDI in 100% swadeshi and home-grown food.

The average Indian spends 40% of his income on eatables, and only 10% of what we grow is processed in India. Recalling these facts, the Minister pointed to the huge opportunity that beckons investors. She said that the FDI decision would give a boost to the sector, and would contribute to the eventual aim of uplifting farmers and doubling farmers’ income by 2022.

I wish I did not have to go the market; I wish the market came to me.

Recalling the big market access challenge that India’s farmers face, Smt. Badal said that she is looking at a market that goes to the farmer’s doorsteps, an industry that chases the farmer. She said that the 100% FDI decision would usher in a partnership between industry and farmers, play a huge role in creating backward infrastructure linkages and plugging wastages, thereby improving the farmers’ prospects.

The Minister spoke also of the e-marketing platform that is slated to be launched in April 2016, hailing it as a revolutionary initiative by the Prime Minister. She said that the digital platform will integrate 585 regulated markets, providing farmers and traders with access to opportunities for purchase/ sale of agri-commodities at optimal prices in a transparent manner. Smt. Badal spoke also of the Government’s vision to tap the potential for organic farming in North East India.

Stating that 42 Mega Food Parks are coming up, the Minister said that foreign players can tie up with these parks in pursuing ‘Make In India’, even for specific nations of their choice. This would be facilitated by the plug-and-play model under which these parks would operate, wherein common infrastructural facilities would be provided. Smt. Badal said that she aspires to turn India into the food factory for the world in the next few years.

Aspire to turn India into the food factory for the world in the next few years

-          Union Food Processing Industries Minister, Smt. Harsimrat Kaur Badal

The Minister congratulated the India Trade Promotion Organization for the unprecedented participation response to AAHAR 2016, especially with its focus on new and young entrepreneurs, and added attractions such as a Culinary Art Competition.

The Chairman and Managing Director, ITPO, Shri L. C. Goyal said that AAHAR has transformed from a trade promotion event to a growth propelling event. He said that it has become India’s best known brand in food and hospitality sector, having acquired a prominent place in the global calendar of international expositions.

Shri Goyal said that the decision to allow 100% FDI in the sector would have a huge multiplier effect, by reducing post-harvest wastage, helping crop diversification, incentivizing global players to invest and produce in India and by creating a large number of jobs. He said that this would also help the other objectives of Make in India, Skill India and Start up India.

The Chairman said that ITPO’s role is being reoriented, with introduction of e-tendering and e-refunds. He said that the proposal to redevelop Pragati Maidan Complex into a world-class exhibition-cum-convention complex is at an advanced stage of consideration. He underlined that the administration will not allow any event to be adversely affected, due to the redevelopment project. Noting that AAHAR 2016 has broken previous records in terms of both number of exhibitors and space given to exhibitors, Shri Goyal said that the new motto of ITPO is ‘Better and Bigger’.

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Flagship Programme in FPIs

Flagship Programme in FPIs

Thedevelopment of food processing industries in the country, the Ministry is implementing a major flagship Central Sector Scheme of Infrastructure Development for food processing having components of Mega Food Parks, Cold Chain, Value Addition and Preservation Infrastructure and Setting up / Modernization of Abattoirs.As per latest Annual Survey Industries: 2012-13, the total number of factories in the registered food processing sector in the country was 37,175.In terms of investment in fixed capital, registered food processing sector is growing annually at an average of 18.47 per cent during five years ending 2012-13. As per latest, ASI 2012-13, the Fixed Capital in food processing industries was at ₹ 1,58,865 crore.

For setting up of integrated cold chain and preservation infrastructure facilities in the country, Ministry of Food Processing Industries is implementing a Central Sector Scheme of Cold Chain, Value Addition and Preservation Infrastructure since 2008. Under the scheme, financial assistance @ 50% of the total cost of plant & machinery and technical civil works in general areas and 75% for NE region and difficult areas (North Eastern states, Sikkim, J&K, Himachal Pradesh and Uttarakhand) subject to a maximum grant-in-aid of ₹ 10 crore per project is provided for setting up the cold chain infrastructure.Under this scheme, a total 66 projects with 2,92,391 metrictonne storage capacity for fruits and vegetables have been sanctioned by the Ministry during the last three years and the current year. In addition, 30850 MT cold storage capacity for fruits and vegetables, have been created in 7 operational Mega Food Parks projects under the Scheme of Mega Food Parks of this Ministry.

Government is also providing various other incentives to promote creation of cold chain infrastructure in the country as detailed below:

• Services of pre-conditioning, pre-cooling, ripening, waxing, retail packing, labeling of fruits and vegetables have been exempted from Service Tax in Budget 2015-16.

• Loans to food & agro-based processing units and Cold Chain have been classified under Agriculture activities for Priority Sector Lending (PSL) as per the revised RBI Guidelines issued on 23/04/2015.

• Under Section 35-AD of the Income tax Act 1961, deduction to the extent of 150% is allowed for expenditure incurred on investment for (i) setting up and operating a cold chain facility; and (ii) setting up and operating warehousing facility for storage of agricultural produce.

• Government has extended Project Imports benefits to cold storage, cold room (including for farm level pre-cooling) or industrial projects for preservation, storage or processing of agricultural, apiary, horticultural, dairy, poultry, aquatic and marine produce and meat. Consequently, all goods related to Food Processing, imported as part of the project, irrespective of their tariff classification, would be entitled to uniform assessment at concessional basic customs duty of 5%.

• Refrigeration machineries and parts used for installation of cold storage, cold room or refrigerated vehicle, for the preservation, storage, transport or processing of agricultural, apiary, horticultural, dairy, poultry, aquatic and marine produce and meat under Tariff Head: Chapter 84 are exempted from Excise Duty.

• Construction, erection, commissioning or installation of original works pertaining to post-harvest storage infrastructure for agricultural produce including cold storages for such purposes are exempted from Service tax.

• Capital investment in the creation of modern storage capacity has been made eligible for Viability Gap Funding scheme of the Finance Ministry. Cold chain and post-harvest storage has been recognized as an infrastructure sub-sector. 

Air Pollution

Air Pollution

The Government has notified National Ambient Air Quality Standards envisaging 12 pollutants to control air pollution under the Environment (Protection) Act, 1986. These norms have been formulated to adopt uniform methodology for measurement of air pollutants with the help of network of 612 monitoring stations set up across the country. The Government has also notified emission standards for on-road vehicles and mass emission standards for new vehicles under the Motor Vehicles Act, 1988. The same are enforced by Transport Departments of the State Governments through Pollution Under Control (PUC) regime. Central Pollution Control Board (CPCB) has set up a mechanism called ‘Environmental Surveillance Squad’ (ESS) programme for carrying out surprise inspections of industrial units based on adoption of a uniform approach and elimination of subjectivity in scheduling of inspection. The role of State Pollution Control Boards / Pollution Control Committees is critical in enforcing the provisions of the Environment (Protection) Act, 1986, Water (Prevention and Control of Pollution) Act, 1974 and the Air (Prevention and Control of Pollution) Act, 1981.

The steps taken by the Government to mitigate air pollution in cities in the country include the following:-

(i) Notification of National Ambient Air Quality Standards envisaging 12 pollutants;

(ii) Formulation of environmental regulations / statutes;

(iii) Setting up of monitoring network for assessment of ambient air quality;

(iv) Introduction of cleaner / alternate fuels like gaseous fuel, ethanol blend etc. replacing petrol and diesel;

(v) Promotion of cleaner production processes;

Taking note of the gravity of Air Pollution, the Government has taken some more measures, which include:

(i) Launched National Air Quality index by the Prime Minister in April, 2015 starting with 10 cities and now extended to 23 cities;

(ii) Implementation of Bharat Stage IV (BS-IV) norms in 63 selected cities and universalization of BS-IV by 2017;

(iii) Decision taken to leapfrog directly from BS-IV to BS-VI fuel standards by 1st April, 2020;

(iv) Comprehensive review of all Waste Management Rules including Municipal Solid Waste, Plastic Waste, Hazardous Waste, Bio-medical Waste and Electronic Waste.

(v) Ban on burning of leaves, biomass, municipal solid waste;

(vi) Promotion of public transport network of metro, buses, e-rickshaws and promotion of car pooling, Pollution Under Control, lane discipline, vehicle maintenance;

(vii) Revision of existing environmental standards and formulation of new standards for prevention and control of pollution from industries.

(viii) Regular co-ordination meetings at official and ministerial level with Delhi and other State Governments within the NCR.

(ix) Issuance of directions under Section 5 of Environment (Protection) Act, 1986 and under Section 18(1)(b) of Water (Prevention and Control of Pollution) Act, 1974 and Air (Prevention and Control of Pollution) Act, 1981.

(x) Installation of on-line continuous (24x7) monitoring devices by major industries. 

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Water Pollution

Water Pollution

The Central Pollution Control Board (CPCB) in association with State Pollution Control Boards (SPCBs) / Pollution Control Committees(PPCs) is monitoring the quality of water bodies at 2500 locations across the country under National Water Quality Monitoring Programme (NWQMP) which indicate that organic pollution is the predominant cause of water pollution. Based on the magnitude of organic pollution, CPCB in 2008 identified 150 polluted river stretches which increased to 302 in 2015. The rivers stretches are polluted mainly due to discharge of untreated / partially treated sewage and discharge of industrial wastewater. CPCB assessed the total volume of municipal wastewater generation in the country at about 61,948 MLD as against the installed sewage treatment capacity of 23,277 MLD leaving a wide gap of more than 38,671 MLD. Similar observations were made by WHO in its reports on water pollution.

The steps taken by the Government to address the issues of water pollution include the following:-

i. Preparation of action plan for sewage management and restoration of water quality in aquatic resources by State Governments;

ii. Installation of Online Effluent Monitoring System to check the discharge of effluent directly into the rivers and water bodies;

iii. Setting up of monitoring network for assessment of water quality;

iv. Action to comply with effluent standards is taken by SPCBs / PCCs to improve the water quality of the rivers;

v. Financial assistance for installation of Common Effluent Treatment Plants for cluster of Small Scale Industrial units;

vi. Issuance of directions for implementation of Zero Liquid Discharge;

vii. Issuance of directions under Section 5 of Environment (Protection) Act, 1986 to industries and under Section 18(1)(b) of Water (Prevention and Control of Pollution) Act, 1974;

viii. Implementation of National Lake Conservation Plan (NLCP) and National Wetland Conservation Programme (NWCP) for conservation and management of identified lakes and wetlands in the country which have been merged in February, 2013 into an integrated scheme of National Plan for Conservation of Aquatic Eco-systems (NPCA) to undertake various conservation activities including interception, diversion and treatment of waste water, pollution abatement, lake beautification, biodiversity conservation, education and awareness creation, community participation etc. 

68 crore persons getting subsidized foodgrains under NFSA

68 crore persons getting subsidized foodgrains under NFSA

The Government of India has accorded high priority to the issue of hunger and malnutrition in the country and is implementing several schemes/programmes through State Governments/UT Administrations to improve food security situation in the country. These include Targeted Public Distribution System (TPDS), Wheat Based Nutrition Programme (WBNP) for providing Supplementary Nutrition, Integrated Child Development Services (ICDS) Scheme for pre-school children and pregnant and lactating mothers through the Ministry of Women and Child Development. Mid-Day-Meal Scheme (MDM) for primary and upper primary children through Ministry of Human Resource Development, Annapurna Scheme for the senior citizens, Nutritional Programme for Adolescent Girls, Emergency Feeding Programme, etc. This information was given by the Minister of Consumer Affairs, Food and Public Distribution, Shri Ram Vilas Paswan in a written reply in Lok Sabha today.

The Minister said that National Food Security Act, 2013 (NFSA) provides for coverage of upto 75% of the rural population and upto 50% of the urban population for receiving foodgrains (rice, wheat & coarsegrains) at highly subzided rates. Thus, 81.35 crore persons which constitute about two-thirds of the population is covered under NFSA. This coverage has been delinked from poverty estimates. The eligible families under NFSA comprise of priority households and Antyodaya Anna Yojana (AAY) families. Priority households are entitled to receive 5 Kg of foodgrains per person per month at highly subsidized price of Rs.3, 2 & 1 per Kg. for rice, wheat & coarsegrains respectively. The existing AAY households, which constitute the poorest of the poor, will continue to receive 35 Kg. of foodgrains per household per month. The Act also provides that in case annual allocation of foodgrains to any State under the Act is less than the average annual offtake of foodgrains for the last three years under normal TPDS, the same shall be protected. Implementation of the Act has started in 30 States/Union Territories (UTs), covering about 68 crore persons. Foodgrains allocation under erstwhile TPDS is being continued in remaining States/UTs.

He said that Government of India has provisionally allocated 289.46 lakh tonnes under NFSA and 207.31 lakh tonnes of foodgrains under erstwhile TPDS during current year. Further, an additional 50.01 lakh tonnes of foodgrains have also been allocated during the current year for Below Poverty Line (BPL) and Above Poverty Line (APL) families to the States/UTs where NFSA has not been implemented. In addition, during the current year, 11.70 lakh tonnes of foodgrains have been allocated to the States for festival, calamities and other additional requirements. The Government has also allocated 52.18 lakh tonnes of foodgrains under Other Welfare Schemes such as Mid Day Meal Scheme, Annapurna Scheme, SC/ST/OBC Hostel Scheme, Welfare Institutions Scheme, SABLA Scheme and Wheat Based Nutrition Programme Scheme.

Shri Paswan said that the Act also has a special focus on nutritional support to women and children. Pregnant women and lactating mothers are entitled to meals as per nutritional norms as well as to receive maternity benefit of not less than Rs.6,000. Children upto 14 years of age are entitled to meals as per the prescribed nutritional standards. Higher nutritional standards have been fixed for malnourished children upto 6 years of age. In case of non-supply of entitled foodgrains or meals, the beneficiaries will receive food security allowance. 

Fertilizer companies are required to print the MRP and available subsidy on each bag of P&K fertilizers.

            The Minister of State for Chemicals & Fertilizers  Shri Hansraj Gangaram Ahir informed the Lok Sabha  today in reply to an Unstarred Question  that  the existing mechanism put in place to monitor the prices of P&K fertilizers is as under:-

i.                    Sale of fertilizers above the printed  price is punishable under the EC Act.

ii.                  (a) It has been made mandatory for the fertilizer companies to submit alongwith their subsidy claims, the cost data of their fertilizer products from 2012-13 onwards in prescribed format on six monthly basis . The Department has also appointed Cost Accountants/ Firms to scrutinize the said cost data to ensure that the prices fixed by the fertilizer companies are reasonable.

(b) It has also been stipulated in the provisions that in cases, where after scrutiny, unreasonableness of MRP is established or where there is no correlation between the cost of production or acquisition and the MRP printed on the bags, the subsidy would be restricted or denied even if the product is otherwise eligible for subsidy under NBS Scheme. In proven case of abuse of subsidy mechanism, the Department of Fertilizers, on the recommendation of Inter-Ministerial Committee may exclude any grade/grades of fertilizers of a particular company or the fertilizer company itself from the NBS Scheme. This punitive provision checks overpricing of Fertilizers.

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88 drugs and surgical and consumables are included in Jan Aushadhi Scheme

88 drugs and surgical and consumables are included in Jan Aushadhi Scheme

            With a view to achieving the objective of making available quality medicines at affordable prices, the Government has been taking several regulatory and fiscal measures from time to time.   In order to provide further relief to the common man in the area of healthcare, a countrywide campaign for ensuring  availability of generic medicines at  affordable prices to all, in the name of “Jan Aushadhi”, was launched by the Department of Pharmaceuticals in November, 2008 in collaboration with the State Governments as a direct market intervention strategy.

            Under the Jan Aushadhi Scheme, those Jan Aushadhi Stores proposed within Government hospital premises, a one-time financial assistance to the extent of Rs.2.50 Lakh (Rs.1 Lakh for furnishing, Rs.50000/- for computer and peripherals, Refrigerator etc. and another Rs.1 Lakh worth medicines to commence operations) is granted.  Besides, the Jan Aushadhi Stores run by private entrepreneurs/ pharmacists/Non-Governmental Organizations/charitable organizations that are linked with the Bureau of Pharma Public Sector Undertakings of India (BPPI), the implementing agency through internet will get an incentive upto Rs.1.50 lakh.  This will be given @ 10% of monthly sales subject to a ceiling of Rs.10,000/- per month upto a limit of Rs.1.5 lakhs.  In North-Eastern States, Naxal affected areas and tribal areas , the rate of incentive will be 15% and subject  to a monthly ceiling of Rs.15,000/- and total limit of Rs.1.5 lakhs.  The margin available for the Retailers is upto  20% and for Distributors upto 10% has also been increased so as to ensure a reasonable level of profitability for them. 

Measures taken by the Government for preservation of Ethnic and Tribal medicinal practices

Measures taken by the Government for preservation of Ethnic and Tribal medicinal practices

A research council viz. Central Council for Research in Ayurvedic Sciences (CCRAS) of AYUSH ministry has been implementing a Tribal Health Care Research Programme (THCRP) which aims at collecting information on folk medicines / traditional practices prevalent in different parts of the country besides extending health care services to tribal population. Presently, the programme is being implemented through 16 peripheral institutes / units of CCRAS located in different part of the country. CCRAS through its peripheral institutes / units (viz. Itanagar - Arunachal Pradesh, Bangalore-Karnataka, Jhansi-Uttar Pradesh and Tari khet – Uttarakhand) is also conducting Medico-ethno Botanical survey at different regions across the country for documenting and publishing the same from time to time. The data regarding tribal medicine and practices documented so far are under the process of validation.

In addition, National Medicinal Plants Board (NMPB) under its scheme has also supported some R&D projects on ethnobotanical records to Assam, Karnataka, Mizoram, Manipur, Maharashtra and Uttar Pradesh on medicinal usage of local flora by tribal people.

The NMPB through FRLHT, Bangalore has developed a database on Indian medicinal plants which contain information about the habitat and therapeutic uses of more than 7,000 medicinal plants species. This database is in public domain for access to the existing information.

In addition, research councils of this ministry viz. CCRAS, CCRUM and CCRS are also engaged in survey, documentation of medicinal flora of different area of the country and publish the data from time to time.

To prevent misappropriation of the country’s traditional medicinal knowledge, Ministry of AYUSH in collaboration with CSIR has established a Traditional Knowledge Digital Library (TKDL) which entails transcription of Ayurveda, Unani, Siddha codified texts into English, German, French, Japanese and Spanish. The database is shared with patent offices of other countries and forms part of their pre-grant searches.

In addition, the Government of India has established a National Institute “The North Eastern Institute of Folk Medicine (NEIFM) at Pasighat, East Siang District, Arunachal Pradesh under Ministry of AYUSH with the objective to survey, document and validates folk medicine practices, remedies and therapies prevalent in the region with a view to revitalize, promote and harness these local health traditions for the wellbeing of wider public especially living in North Eastern Region. The activities of the institute will also help in protecting the knowledge and resources of folk medicines in the North Eastern Region.