GOALS / OBJECTIVES OF MFPI -Promotion of FPIs resulting in :-Reduction in wastages -Value / quality addition -Employment generation -Remunerative income

for farmers

STATUS OF FOOD PROCESSING INDUSTRIES -Size of food market in India - Rs. 8,60,000 Crores -Primarily processed food market Rs. 2,80,000 crore -Value added processed food market Rs. 1,80,000 crore -The Sector attracted a total investment of Rs.38,531 Crores during the 9th plan period -Investment during the 10th plan is estimated at Rs. 62,105 Crores -Industry growth rate during the last five years is estimated at 7.14% against G DP of 6.2% -Investment required during next ten years Rs. 1,50,000 crore

LEVEL OF PROCESSING, VALUE ADDITION ETC. -Fruits & Vegetables Sector at 2%, -Poultry 6%, -Milk 35% (only 13% in modern dairies), -Marine products 8%, -Buffalo meat 21%. -Value addition 20% -Wastage Rs. 58,000 crore

CONSTRAINTS OF FPI SECTOR -Lack of suitable infrastructure -Lack of adequate quality control & testing infrastructure -Inefficient supply chain vis a vis involvement of middlemen -Lack of processable varieties of farm produce -Seasonality of raw material -High inventory carrying cost -High taxation, high packaging cost -Affordability and cultural preference of fresh food.

ROLE OF MFPI A) Policy support -FPI sector delicensed except alcoholic beverages -FPI included in priority sector of lending (1999)

-100% FDI on automatic route -Excise duty waived on F&VP (from 2000 01) -Income tax holiday for F&VP (from 2004 05) -Customs duty reduced on freezer van from 20 to 10% (from 2005 (B) Promotional support -Assistance for workshop / seminars / fairs / exhibitions -Assistance for studies / surveys -publications / Films (c) Regulatory -Implementation of FPO -Implementation of MFPO -Enactment of FSS Bill 2005

06)

(d) Developmental / financial support under various schemes under 10th Plan:-Scheme for infrastructure development -Scheme of technology upgradation / establishment / modernization of food pr ocessing industries. -Scheme for human resource development -Schemes for quality assurance, R&D, codex, bar coding and establishment of lab s.

SCHEME FOR INFRASTRUCTURE DEVELOPMENT Food Park Scheme: -Intends to make provision of common facilities like cold storage, food testing effluent treatment plant, power, water supply, etc.-25% of the project cost in g eneral areas and 33.33% in difficult areas subject to a maximum of Rs.4 crores -Land required :- 30 acres -Units to be located :- 20 minimum MODERNIZATION OF ABATTOIRS -25% of the project cost in general areas and 33.33% in difficult areas subject to a maximum of Rs.4 crores. Admissible to local bodies only. INTEGRATED COLD CHAIN -25% of the project cost in general areas and 33.33% in difficult areas with a c ommon ceiling of Rs.75 lakhs. -Admissible for non horticultural produce IRRADIATION FACILITIES Objectives are :-prevent infestation (spices in flour) / change in chemical composition of potat o etc. -Enhance shelf life by irradiation Eligibility for assistance

-Technology to be guaranteed by he Department of Atomic Energy -Grant @ 25% of the project cost in general areas and 33.33% in difficult areas subject to a maximum of Rs.5 crores.

SCHEME FOR TECHNOLOGY UPGRADATION / ESTABLISHMENT / MODERNIZATION -Assistance @ 25% of the project cost subject to a maximum of Rs. 50 lakhs in General Areas and 33.33% up to Rs. 75 lakhs in Difficult areas.

SCHEME FOR HUMAN RESOURCE DEVELOPMENT Food Processing Training Centre Single produce line FPTC -Grant of Rs. 2.00 lakh as fixed capital cost and Rs. 1.00 lakh as revolving see d capital Multi product line FPTC -Grant of Rs. 7.50 lakh as fixed capital cost and Rs. 2.00 lakh as revolving see d capital

CREATION OF INFRASTRUCTURE FACILITIES FOR RUNNING DEGREE/DIPLOMA COURSES -Grant upto to Rs. 50 lakhs is provided to HRD Institutions such as colleges, un iversities, technical institutions etc. for library, pilot plants, food labs etc . ENTREPRENEURSHIP DEVELOPMENT PROGRAM -Maximum assistance of Rs.1 lakh per EDP, which should be at least for a period of 4 weeks and the number of trainees should not be less than 20.

SETTING UP OF FOOD QUALITY CONTROL LABORATORY -Entire cost of capital equipment is paid by MFPI for establishment of such labs to Central / State Government organizations -33% of the capital cost in general areas and 50% in difficult areas is paid for such labs set up in private sector

RESEARCH & DEVELOPMENT IN PROCESSED FOOD SECTOR Assistance : -Entire cost of capital equipment is paid by MFPI for establishment of such labs to Central / State Government organizations -33% of the capital cost in general areas and 50% in difficult areas is paid for such labs set up in private sector

WHO IS ELIGIBLE -Governmental organizations -Non-Governmental Organisations -Cooperatives -Private Sector Industries -Public Sector Undertakings -HRD and R&D Institutions.

RECENT INITIATIVES -Food Safety & Standards Bill, 2005 -Vision, Strategy & Action Plan -Formulation of National Food Processing Policy

STATES INITIATIVES REQUESTED -Amendment -Lowering -Declaring -Integrate to APMC Acts of VAT rates industry seasonal promotional structure