PMKSY expected to leverage investment of Rs 31,400 crore: Minister

The Pradhan Mantri Kisan Sampada Yojana (PMKSY) is expected to leverage investment of Rs 31,400 crore to generate 334 lakh tonnes of agro-produce worth Rs 1.04 lakh crore, Union Minister of State for Food Processing Industries Rameswar Teli said on Wednesday.

The scheme will benefit 20 lakh farmers and create 5.3 lakh direct and indirect jobs in the current financial year 2019-20, he said in a written reply to a question in the Lok Sabha.

The food processing sector witnessed inflow of foreign direct investments (FDIs) totalling 3.28 billion dollars during April 2014 to March 2019. Seven FDI proposals for retail trading in food products were approved amounting to 705 million dollars. during 2017-18.

Teli said India allows 100 per cent FDI under the automatic route in food processing sector. The same is also allowed through government approval route for retail trading in respect of food products manufactured in the country.

The schemes being implemented under PMKSY are: mega food parks; integrated cold chain and value addition infrastructure; creation and expansion of food processing and preservation capacities; infrastructure for agro-processing clusters; creation of backward and forward linkages; food safety and quality assurance infrastructure; and human resources and institutions.

Teli said the government has created a special fund of Rs 2,000 crore in National Bank for Agriculture and Rural Development (NABARD) to provide affordable credit to food processing industries. The Goods and Services Tax (GST) rates have been lowered for majority of food products and 100 per cent exemption of income tax is given on profit for new food processing units.

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