20 lakh farmers expected to benefit as PMKSY expected to leverage investment of Rs 31400 crore

Food processing sector witnesses FDI equity inflow of US$ 3.28 billion in April 2014 to March 2019

Pradhan Mantri Kisan SAMPADA Yojana (PMKSY) is expected to leverage investment of Rs 31400 crore, handle of 334 lakh MT agro-produce valuing Rs 104125 crore, benefit 20 lakh farmers and generate 530500 direct/ indirect employment in the country by the year 2019-20. This was stated by Union Minister of State for Food Processing Industries Rameswar Teli, in a written reply to a question in the Lok Sabha.

The Minister added that under PMKSY following schemes are implemented:

1. Mega Food Parks;

2. Integrated Cold Chain and Value Addition Infrastructure;

3. Creation / Expansion of Food Processing & Preservation Capacities;

4. Infrastructure for Agro-processing Clusters;

5. Creation of Backward and Forward Linkages;

6. Food Safety and Quality Assurance Infrastructure; and

7. Human Resources and Institutions

He also stated that 100% FDI is permitted under the automatic route in food processing sector. 100% FDI is also allowed through Government approval route for retail trading, in respect of food products manufactured and/or produced in India. The sector has witnessed FDI equity inflow of US$3.28 billion during April 2014 to March 2019. Seven FDI proposals for retail trading in food products have been approved amounting to about US$ 705 million during 2017-18.

The Minister also informed steps/measures taken to boost the growth of food processing sector in the country. Which are: creation of a special fund of Rs 2000 crore in National Bank for Agriculture and Rural Development (NABARD) to provide affordable credit to food processing industries, classification of food & agro-based processing units and cold chain as agricultural activity for Priority Sector Lending (PSL); lower Goods & Services Tax (GST) rates for majority of food products, 100% exemption of income tax on profit for new food processing units, 100% income tax exemption from profit derived by FPOs having annual turnover of Rs 100 crore for activities such as post-harvest value addition to agriculture, concessional import duty for plant and machinery under project imports benefit scheme, import duty exemption on import of raw material under advance authorization scheme etc.

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