Year End Review-2015: Ministry of Food Processing Industries

The food processing sector has emerged as an important segment of the Indian economy in terms of its contribution to GDP, employment and investment. During 2014-15, the sector constituted as much as 9.0 per cent and 10.1 per cent of GDP in Manufacturing and Agriculture sector, respectively.  Food Processing Industries sector has grown at 7.1 per cent during this period.  The Ministry of Food Processing Industries is implementing various schemes for providing impetus to the development of food processing sector.

The Ministry has been implementing schemes for infrastructure development having components of Mega Food Parks; Cold Chain and Abattoirs. The milestones achieved in implementation of the schemes during 2015 are as under:


  • The Scheme of Mega Food Park was launched to provide modern infrastructure for food processing units in the country on pre-identified cluster basis.
  • The scheme envisages financial assistance in the form of grant-in-aid @ 50% of the eligible project cost in general areas and @ 75% in difficult areas, subject to a maximum of Rs.50.00 crore per project.
  • Presently, 39 Mega Food Parks have been granted approval. Out of these, 5 Mega Food Parks have become operational and remaining are under implementation.
  • During the current year, 16 Mega Food Park projects have been given in-principle approval, 9 Mega Food Parks have accorded final approval and 1 project at Nalbari (Assam) has been made operational. 3 projects at Jangipur (West Bengal), Khargon (Madhya Pradesh) and Ranchi (Jharkhand) are likely to be operationalized by 31st March, 2016.
  • It is expected that on an average, each project will have around 30-35 food processing units with a collective investment of Rs. 250 crores that would eventually lead to annual turnover of about Rs. 450-500 crores and creation of direct and indirect employment to the extent of about 30,000 persons.

Food Processing Fund at NABARD

  • To support the Mega Food Parks and the food processing units to be set up in such food parks by making available affordable credit, a Special Fund of Rs.2000 crore has been set up in National Bank for Agriculture and Rural Development (NABARD) in 2014-15. This fund called ‘Food Processing Fund’ was operationalized with effect from 11.11.2014.  Loan at concessional rate of interest may be availed from this fund for establishing food parks and food processing units in the Designated Food parks.
  • So far, the Ministry has notified 148 food parks in which concessional credit can be availed by food processing units. A loan of Rs. 519.20 crore has been sanctioned to 12 Mega Food Projects.

Cold Chain Scheme

  • The Cold Chain Scheme was launched to provide integrated cold chain and preservation infrastructure facilities without any break, from the farm gate to the consumer.
  • The scheme envisages financial assistance in the form of grant-in-aid @ 50% of the total cost of plant and machinery and technical civil works in general areas and 75% for difficult areas subject to a maximum of Rs.10.00 crore.
  • Government has approved 138 cold chain projects during 2009-2015 which will create a capacity of 118 lakh LPD of milk processing, 4.76 lakh MT of cold storage, 119 MT/ hour of IQF and 810 number of reefer van. These include 30 new cold chain projects approved by this Ministry in May, 2015.
  • 70 projects have become operational till December, 2015 and 68 projects are under implementation. The capacity created by 70 completed projects is 93.8395 lakh LPD of milk processing, 295933.1 MT of cold storage, 75.038 MT/ hour of IQF and 440 number of reefer vans.
  • Of this, 19 cold chain projects have been completed during 2015 creating capacity of 10 lakh LPD of milk processing, 55820 MT of cold storage, 9.25 MT/ hour of IQF and 80 number of reefer vans.

Modernisation/ Setting up of Abattoirs

  • Under the Scheme for Setting-up/Modernisation of Abattoirs, grant-in-aid is given to Local Bodies/Public Sector Undertakings etc. for establishment of modern abattoirs and modernisation of existing abattoirs.
  • The scheme envisaged grant-in-aid @50% of the project cost in general areas and 75% for North Eastern Region and difficult areas subject to a maximum of Rs.15.00 crore per abattoir.
  • Out of 40 approved projects, 5 Abattoirs have become operational which includes 1 (one) Abattoir project in Hyderabad completed this year. 1 project at Vishakhapatnam is likely to be completed shortly.
  • The Scheme has since been subsumed under NMFP w.e.f. 01/04/2014. NMFP has been delinked from Central Government support w.e.f. 2015-16 except for UTs.

Food Testing Laboratories

  • The Ministry is implementing a Scheme for Quality Assurance for setting up of Food Testing Laboratories.
  • The scheme envisages 100% grant-in-aid to Government agencies and 50% to Private Organisations / Universities for the cost of equipment and @25% of cost of Technical Civil Work and Furniture & Fixtures in general areas and higher grant @ 33% in difficult areas.
  • So far, 42 Food Testing Labs have been completed.
  • Presently, 40 Food Testing Labs are under implementation.
  • 5 Food Testing Labs have been completed during current year.

Technology Up gradation Scheme

  • The Ministry is also processing the proposals of committed liabilities of 11th Plan of Scheme of Technology Up gradation/ Modernization/ Establishment of Food Processing Industries.
  • During current year, 540 cases were approved amounting to Rs.95.33 crore.  Out of this, 173 cases are of 1st installment amounting to Rs.32.87 crore and 367 cases are of 2nd installment amounting to Rs.63.57 crore.


  • National Institute of Food Technology, Entrepreneurship and Management (NIFTEM) located at Kundli, Haryana is an autonomous organisation under the Ministry of Food Processing Industries. It has been accorded a deemed to be University under de-novo category on 08.05.2012.

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  • NIFTEM imparts B.Tech, M.Tech, Ph.D courses and research work in food technology and engineering.
  • NIFTEM is also conducting Skill Development trainings and outreach programmes for the benefit of students, farmers and entrepreneurs. It has conducted 104 such programmes skilling 8469 persons. NIFTEM has trained 44 persons under the PMKVY scheme.
  • Their M. Tech. students are getting 100% placements in leading food processing industries and also doing commendable research.
  • NIFTEM has also initiated a unique initiative “Village adoption program” for linking rural entrepreneurs and farmers. In this programme students of B. Tech (Food Technology & Management) and M. Tech students are divided into groups of 10 to 12 students under the guidance of Faculty (Mentor) and adopt a village and nurse it during the entire programme of study. The groups go and stay in the village twice a year for about 10-12 days each time in each semester. This is a two way learning process where while villagers gain scientific and technical knowledge through students who promote future possibilities of food processing among them, students obtain firsthand experience of Indian rural scenario and understand traditional processing technologies adopted by the villagers.
  • So far, 9 visits have been accomplished under this programme covering 39 villages across 18 States.
  • Recognizing the efforts of Village Adoption Porgramme, NIFTEM was awarded the  Agriculture Leadership Award for the year 2015 in the area of promoting rural entrepreneurship in rural sector. The efforts of NIFTEM were assessed by a Committee headed by Dr M.S. Swaminathan, father of Indian Green Revolution. The Award ceremony was organized by Agriculture Today Group on 18.9.2015 in New Delhi. Dr Ajit Kumar, Hon’ble Vice Chancellor, received the award from the hands of Shri Rajnath Singh, Hon’ble Home Minister of India in the presence of Shri Kaptan Singh  Solanki, Hon’ble Governor of Haryana.


  • The Indian Institute of Crop Processing Technology (IICPT) is a pioneer Research and Development and Educational Institution under the Ministry of Food Processing Industries, Government of India. The Institute was upgraded as a national institute and called as Indian Institute of Crop Processing Technology. IICPT has now state of art facilities including NABL accredited Food Safety and Quality Testing Laboratory; ISO 9000, 14000 and 22000 Certified Food Processing Business Incubation cum- Training Centre; AICTE approved Teaching Laboratories and Research Laboratories.
  • IICPT’s Academic programmes are affiliated to Tamil Nadu Agricultural University (TNAU). Current year intake: 46, 10, and 4 in B.Tech., M.Tech. and Ph.D. in Food Process Engineering, respectively and 10 in M.Tech. in Food Science and Technology.
  • At present, IICPT has developed and commercialized 28 technologies (eg. idli dry mix toSupreme Power Food Products, SSR Products and others).
  • 25 gadgets and 6 technologies are ready for commercialization.
  • The Institute has filed for 15 patents.  
  • IICPT has conducted over 293 skill development programmes during the past year, for over 4122 beneficiaries. Out of these, 17 have established their own industries and 51 have secured industry-based jobs (especially after the programme).
  • The institute is affiliated to Food Industry Capacity and Skill Initiative (FICSI) as a Training Provider under PMKVY.
  • Training on modern techniques for rice quality analysis for 400 QC officers of Tamil Nadu Civil Supply Corporation (TNCSC), at Food Safety and Quality Testing Laboratory.  
  • IICPT has a FSSAI referral laboratory for food sample testing and analysis.
  • Food testing services utilized and benefited by 921 beneficiaries.
  • Mobile Food Testing Laboratory inaugurated by Hon’ble Minister of State, Sadhvi Niranjan Jyoti and has been taken to the field (across different parts of the state) for demonstrations and popularization.
  • IICPT is doing consultancy services for nutritional labeling, shelf-life studies and food quality analysis for 2 industries, technical guidelines for establishment of Modern Rice Mills for 3 beneficiaries, guidelines for improvements in rice milling systems for > 10 beneficiaries, and has provided technical solutions to existing problems in various other food industries.
  • A Regional Center of IICPT has been established at Guwahati, Assam. During the current year 2015, 36 skill training programmes for 482 beneficiaries were organized there.

Skill Development 

  • The Ministry is associating with the Sector Skill Council i.e., Food Industry Capacity & Skill Initiatives (FICSI) in taking forward skill development in Food Processing Sector.
  • So far, FICSI has developed 52 draft Qualification Packs (QPs) for food processing industry out of which 27 QPs are approved by QRC (Qualification Review Committee).
  • Skill development programme has been launched in 30 Centres across 11 States of the country on 4th September, 2015.  So far, 12182 persons have been enrolled for training and 124 training centres have been affiliated in 25 States.
  • On Ministry’s initiative a module on entrepreneurship has been added in all trainings to make them more meaningful and result oriented.  Course curriculum for these QPs is being developed by NIFTEM to ensure quality and standardized content which is also being shared with all States and Universities.

Research and Development 

  • List of R&D research projects/ findings have been uploaded on the Ministry’s website for better dissemination, commercial adoption and use by the farmer & entrepreneur.
  • An R&D portal is in the process of being set up at NIFTEM to disseminate the outcome of the R&D projects assisted by the Ministry and catalogue all research in the food processing sector in the country.
  • All the Vice Chancellors of State Agricultural Universities, State governments have been requested to take up R&D projects which are farmer centric so that the findings are available with the stakeholders.  They have also been requested to disseminate the information available in MoFPI website and also to submit their research findings for uploading on Ministry’s website and R&D portal.

Investors’ Portal  

  • An Investors’ Portal has been developed by the Ministry with the intention to disseminate information on the state-specific resource potential, policy support and fiscal incentives offered to investors in food processing sector.  The investors, both domestic & foreign, can also seek guidance on specific issues by using information available on the portal.  

Food Maps 

  • Surplus and deficient areas of various agricultural and horticultural produce in the country have been identified. It will help in planning processing clusters by means of setting up suitable facilities in different parts of the country. The map is available on the website of the Ministry.

Exemption From Service Tax 

  • At the behest of the Ministry the services of pre-conditioning, pre-cooling, ripening, waxing, retail packing, labeling of fruits & vegetables have been exempted from Service Tax w.e.f. 01/04/2015.

Priority Sector Lending

  • At the behest of the Ministry Reserve Bank of India has issued  guidelines dated 23.04.2015,for bank loans to food and agro processing units to form part of Agriculture for Priority Sector Lending (PSL) subject to aggregate sanction limit of Rs. 100 crore per borrower. It will ensure greater flow of credit to entrepreneurs for setting up of food processing units and attract investment in the sector.

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