Agri Business

Food Processing Sector’s share in country’s total FDI inflows at just 1.5 per cent : Ministry

Our Bureau | | Updated on: Dec 04, 2021
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FDI inflows in the food processing sector declined by 54 per cent in 2020-21

The Ministry of Food Processing has said that the sector’s share in total Foreign Direct Investment (FDI) inflows in the country is pegged at just about 1.5 percent and more investments are required for overall growth of the sector.

Infact, the FDI inflows in the food processing sector declined by 54 per cent in 2020-21 compared to the previous fiscal.

In a written reply, Minister of State for Food Processing Industries Prahlad Singh Patel informed Rajya Sabha that FDI in the food processing sector stood at Rs 2,934.12 crore in 2020-21 compared to Rs 6,414.67 crore in the previous fiscal. In 2018, FDI in the food processing sector stood at Rs 4430.44 crore.

“The share of FDI in the Food Processing sector is only 1.5 per cent of total FDI inflows and the sector needs more investments both domestic as well as Foreign direct investment. The Ministry of Food Processing Industries (MoFPI) is implementing a Central Sector scheme Pradhan Mantri Kisan Sampada Yojana (PMKSY) since 2016-17 for overall growth and development of the food processing sector including for boosting investment,” he stated in his reply.

The government allows 100 percent FDI in food processing.

Also, through the PM Formalisation of Micro Food Processing Enterprises Scheme (PM FME), the Ministry plans to support 2 lakh micro food processing units through credit linked subsidy based on One District One Product (ODOP) classification.

Under the ODOP scheme, so far the Ministry has approved 137 "unique products" in 710 districts across 35 States and UTs.

Meanwhile, in a separate written reply the Ministry informed the Rajya Sabha, that as of October 31, “a total of 122 Primary Processing Centres with processing capacity of 8500 MT, Dry Warehouse capacity of 116450 MT, Cold Storage capacity of 56520 MT and deep freezer capacity of 1750 MT have been approved for assistance in 41 Mega Food Parks.” This was under the Pradhan Mantri Kisan Sampada Yojana.

Published on December 04, 2021

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