Parliament Parliamentary Committee
Committee finds only 42% of ₹2,000 crore food processing fund disbursed
The Standing Committee on Agriculture, Animal Husbandry, and Food Processing examined the initiatives taken in the food processing sector under the Make in India program to assess growth, investment, and infrastructure challenges.
830 croreOnly Rs 830 crore (42%) of the Rs 2,000 crore Special Food Processing Fund set up in 2014-15 was disbursed until Ma…
Who it concerns: Ministry of Food Processing Industries, State Governments, Lending Institutions, and the general public (specifically MSMEs, food processing units, and rural/semi-urban consumers).
What the committee found
- Committee recommended expediting the Foreign Direct Investment (FDI) approval process to incentivize foreign investment.
- Committee recommended evaluating credit flows in rural areas under the Priority Sector Lending Scheme through an impact assessment study.
- Committee recommended the Ministry engage with lending institutions and states to resolve delayed subsidy releases under the PM Formalisation of Micro Food Processing Enterprises Scheme.
- Committee recommended setting annual formalisation targets and conducting regular monitoring to maximize the formalisation of food processing units.
- Committee requested information on lower sanctions and disbursements under the Special Food Processing Fund, loan repayments by mega food parks, and the operational capacity of borrowers.
- Committee recommended integrating all relevant authorities on the National Single Window System to facilitate statutory approvals.
- Committee recommended promoting MSME participation in e-commerce platforms in rural and semi-urban areas.
- Committee recommended FSSAI increase efforts to enhance food safety compliance, ensure adequate personnel, and explore blacklisting individuals rather than just units for adulteration.
- Committee recommended completing 36 pending food testing labs under the PM Kisan SAMPADA Yojana on a priority basis and upgrading existing labs.
- Committee recommended conducting an updated study to assess post-harvest losses in India.
- Committee recommended exploring the setup of wholly government-owned cold storages, value-chain modern infrastructure, and supply chain management systems in districts.
- Committee recommended prioritizing resource allocation to low-coverage regions for cold chain and storage facilities and incentivizing advanced storage technologies.
Also in the document
- Only Rs 830 crore (42%) of the Rs 2,000 crore Special Food Processing Fund set up in 2014-15 was disbursed until March 2025.
- Credit availed by beneficiaries under the PM Formalisation of Micro Food Processing Enterprises Scheme has declined due to delayed subsidy release by state governments.
- The Committee identified geopolitical uncertainty as the key reason for the moderation or decline in FDI over the last three years.
How this was written
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The original document
Parliamentary Standing Committee reports (via PRS Legislative Research)
Committee report · Ref. food-processing-sector-under-make-in-india-program
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