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Production and Export of Meat canned luncheon ,cooked ham, chopped , and frozen chicken,mutton & goat and buffalo meat, etc.



Production and Export of Meat
             The meat products produced, processed and exported in the country includes canned luncheon meat, canned cooked ham, canned chopped meat, canned chicken, canned mutton & goat meat and frozen mutton, chicken, goat and buffalo meat, etc.

           
As per Agricultural and Processed Food Products Export Development Authority (APEDA), which regulates export of agricultural processed food products (including meat and meat products); the main types of Meat being exported from India are (1) Buffalo Meat, (2) Sheep & Goat Meat, (3) Processed Meat and (4) Poultry Meat.
            Details of the subsidy being provided by the Government of India under different schemes of different Ministries and Organisations for meat production, processing and export and the amount of such subsidy given during the last three years under these schemes is given below:

I           Ministry of Food Processing Industries (MoFPI)

            (a)        Ministry of Food Processing Industries (MoFPI) is implementing the Central Sector Scheme for Setting up/ Modernization of Abattoirs under which assistance in the form of grant-in-aid is provided to local bodies (Municipal Corporations and Panchayats)/ Public Sector Undertakings/ Co-Operatives/Boards under Government for establishment of modern abattoirs and modernisation of existing abattoirs. The scheme envisages a grant of 50% in general areas and 75% in difficult areas for cost of Plant and Machinery (P&M) and Technical Civil Work (TCW) and other eligible items subject to a maximum of Rs.15 crore per abattoir. Difficult areas include North Eastern States including Sikkim, Jammu & Kashmir, Himachal Pradesh, Uttarakhand and ITDP notified areas of the States.

            The amount of subsidy provided by MoFPI under the Scheme of Setting up/Modernisation of abattoirs during the last three years is as under:
Sr. No.
Year
Amount (Rs. Crore)
1.       
2012-13
9.34
2.       
2013-14
25.8
3.       
2014-15
10.29
4.       
2015-16 (Till 25.02.2016)
25.94

Total
71.37

(b) Ministry of Food Processing Industries had also implemented a Central Sector Scheme for Technology Upgradation/Modernization/ Establishment of Food Processing Industries including meat processing. This scheme is now being implemented for spillover liabilities of the 11th plan. Proposals received up to 31.03.2012 are being processed by the Ministry under the Central Sector Scheme. Under this scheme financial assistance is provided for setting up/ modernization/ expansion of food processing industries including meat & poultry processing industries in the country. The scheme envisages a grant of 25% in general areas and 33.33% in difficult areas for the cost of plant and machinery (P&M) and technical civil work (TCW) and other eligible items subject to maximum of Rs.50 lakh per unit in general areas and Rs. 75 lakh per unit in difficult areas including North eastern states including Sikkim, Jammu& Kashmir, Himachal Pradesh, Uttarakhand and ITDP notified areas of the States.
            Grants-in-Aid (GIA) to Meat & Poultry Sector during 2013-14, 2014-15 and 2015-16 under the Scheme for Technology Upgradation/Modernization /Establishment under committed liabilities of 11th Plan:
Sr. No.
Year
Amount (Rs. Crore)
1.       
2013-14
4.89
2.       
2014-15
4.38
3.       
2015-16 (as on 24.02.2016)
1.43

Total
10.7

This Scheme was subsumed under the Centrally Sponsored of National Mission on Food Processing (NMFP) with effect from 1.04.2012. However, the centrally sponsored scheme of NMFP has been delinked from Central support from Financial Year 2015-16.
Funds/assistance provided to Meat & Poultry Sector during 2012-13, 2013-14 & 2014-15 under the centrally sponsored scheme of National Mission on Food Processing:
Sr. No.
Year
Amount (Rs. Crore)
1.       
2012-13
1.56
2.       
2013-14
0.00
3.       
2014-15
0.25

Total
1.81
* Note- As the scheme has been delinked from central assistance w.e.f. 01.04.2015, no fund was released during the 2015-16

II         Agricultural and Processed Food Products Export Development Authority (APEDA) under Ministry of Commerce & Industry.
Export Promotion Scheme during XII plan Period.
Agricultural and Processed Food Products Export Development Authority (APEDA) under Ministry of Commerce & Industry is implementing Agricultural Export Promotion Scheme during XII plan Period.  Financial assistance is provided to all registered exporters. As regards the meat exporters the following assistance is available:
(1) Infrastructure Development:  Financial assistance is provided to the exporters for purchase of specialized transport units for maintaining cold chain during transportation of meat and for setting up of Effluent Treatment Plant (ETP).
(2) Quality Development:  Financial assistance is provided to the exporters for setting up of in-house lab and implementation of quality assurance system such as HACCP and ISO.  Development of quality standards for meat and meat product are also undertaken under the component.
(3) Transport Assistance:  This was being extended for export of meat to West African countries till 31.12.2013 and has since been withdrawn w.e.f. 1.1.2014 vide Department of Commerce letter dated 5.9.2014.
            Total subsidy provided to Meat Exporters from APEDA in last 3 years is as below:
Rs. In Crore
Name of the Components
2013-14
2014-15
2015-16 (April-Dec)
Development of Infrastructure (Specialized Transport Vehicle for meat products)
0.00
0.00
0.00
Quality & Quality Control (In-house laboratory & HACCP implementation for meat products)
0.06
0.26
0.07
Transport Assistance for meat products
14.61
3.71*
--
Grand Total
14.67
3.97
0.07
*The amount of disbursement for transport assistance is carryover of the applications received in 2013-14

III        Department of Animal Husbandry, Dairying and Fisheries
Rural Slaughter Houses (establishment/ modernization/ expansion) through Panchayati Raj Institutions as a Component under the National Livestock Mission.
Department of Animal Husbandry, Dairying and Fisheries, Ministry of Agriculture, Cooperation & Farmers Welfare is running a programme of Rural Slaughter Houses (establishment/ modernization/ expansion) through Panchayati Raj Institutions as a Component under the National Livestock Mission.  This Component supports slaughter houses in rural areas, with grant-in-aid under the scheme. No grant-in-aid has been released under the Scheme.
            The Central Sector Scheme for Setting up/ Modernization of Abattoir was transferred to the State Governments for implementation under the Centrally Sponsored Scheme of National Mission on Food Processing (NMFP) with effect from 1.04.2014. Proposals received up to 31.03.2014 are being processed by the Ministry under the Central Sector Scheme. Fresh proposals with effect from 01.04.2014 are to be submitted to State Governments. However, the Centrally Sponsored Scheme of NMFP has been delinked from Central support from Financial Year 2015-16.
The Central Sector Scheme for Technology Upgradation/Modernization/ Establishment of Food Processing Industries was subsumed under the Centrally Sponsored of National Mission on Food Processing (NMFP) with effect from 1.04.2012. However, the centrally sponsored Scheme of NMFP has been delinked from Central support from Financial Year 2015-16.
Transport subsidy which was being extended by APEDA for export of buffalo meat to West African countries only has been withdrawn w.e.f. 1.1.2014.
            This information was given by the Minister of State for Food Processing Industries Sadhvi Niranjan Jyoti in a written reply in Lok Sabha today.

***
Food Processing Units in Andhra Pradesh
           
            As per the Annual Annual Survey of Industries, 2012-13, Andhra Pradesh has the highest number of registered food  processing units in the country as per details below:




Factories
(Number)
Fixed Capital
(Rs. crore)
Employee
(Persons)
Processing and preserving of meat
11
23.74
244
Processing  and preserving of fish, crustaeans and molluscs and products thereof
72
442.26
9817
Processing and preserving of fruits and vegetables
143
364.71
14135
Manufacture of vegetable and animal oils and fats
421
2460.32
15818
Manufacture of dairy products
318
614.01
14832
Manufacture of grain mill products, starches and starch products
3563
1367.91
35266
Manufacture of other food products
822
1982.17
41021
Manufacture of prepared animal feeds
125
629.38
5114
Manufacture of beverages
261
962.49
8148

Total

5736

8873.99

144395


            The average horticulture production per processing unit in the fruits and vegetables sub-sector of Andhra Pradesh is lower than the national average. Lower availability of horticulture produce per processing unit is associated with lower processing burden and lower wastage.

            Government has been supporting the setting up of cold storage facilities in the country through provision of subsidy and tax benefits for eliminating wastage of perishables including fruits and vegetables. Ministry of Agriculture and Ministry of Food Processing Industries have been implementing schemes for setting up Cold Storage/  Cold Chain projects in the country. Out of 4197 Cold Storage/ Cold Chain projects assisted by Government, 185 Cold Storage/ Cold Chain projects are in Andhra Pradesh. To increase the level of food processing government has sanctioned 42 Mega Food Parks of which 3 are in Andhra Pradesh. A special corpus of Rs.2000 crore has also been constituted with NABARD to provide concessional credit for financing of Mega Food Parks and processing units to be set up therein and in other designated food parks. Government was also providing subsidy for setting up food processing units before the scheme was transferred to the state governments.

            Out of 3 Mega Food Parks approved for Andhra Pradesh, two are yet to achieve project completion and one has recently started commercial operations. The impact of Mega Food Parks on eliminating wastage is awaited. 

            This information was given by the Minister of State for Food Processing Industries Sadhvi Niranjan Jyoti in a written reply in Lok Sabha today.

***
Wastage of Agro-Products
            A study conducted by Central Institute of Post-Harvest Engineering and Technology (CIPHET), Ludhiana has estimated that annual value of harvest and post-harvest losses of major agricultural produces at national level was of the order of Rs. 92,651 crore based on production data of 2012-13 at 2014 wholesale prices.
The Ministry of Food Processing Industries is implementing a Central Sector Scheme, namely the Scheme for Infrastructure Development for Food Processing having components of Mega Food Parks, Integrated Cold Chain, Value Addition and Preservation Infrastructure and Modernization of Abattoirs.

Under the Scheme, 135 Integrated Cold Chain Projects have been sanctioned by the Ministry with the cold chain capacity of 4.75 Lakh MT of Cold Storage/Controlled Atmosphere/Modified Atmosphere storage, Deep Freezer, 114.75 MT/Hour of Individual Quick Freezer(IQF), 120.05 Lakh Litres Per Day of Milk Storage/Processing and 787 number of Reefer vehicles.

The Government is also providing various incentives to promote creation of cold chain infrastructure to reduce loss of agricultural produce. The details of such incentives are as follows:

·        Services of pre-conditioning, pre-cooling, ripening, waxing, retail packing, labeling of fruits and vegetables have been exempted from Service Tax in Budget 2015-16.

·        Loans to food & agro-based processing units and Cold Chain have been classified under Agriculture activities for Priority Sector Lending (PSL) as per the revised RBI Guidelines issued on 23/04/2015.

·        Under Section 35-AD of the Income tax Act 1961, deduction to the extent of 150% is allowed for expenditure incurred on investment for (i) setting up and operating a cold chain facility; and (ii) setting up and operating warehousing facility for storage of agricultural produce.  

·        Government has extended Project Imports benefits to cold storage, cold room (including for farm level pre-cooling) or industrial projects for preservation, storage or processing of agricultural, apiary, horticultural, dairy, poultry, aquatic and marine produce and meat. Consequently, all goods related to Food Processing, imported as part of the project, irrespective of their tariff classification, would be entitled to uniform assessment at concessional basic customs duty of 5%.

·        Refrigeration machineries and parts used for installation of  cold storage, cold room or refrigerated vehicle, for the preservation, storage, transport or processing of agricultural, apiary, horticultural, dairy, poultry, aquatic and marine produce and meat under Tariff Head: Chapter 84 are exempted from Excise Duty. 

·        Construction, erection, commissioning or installation of original works pertaining to post-harvest storage infrastructure for agricultural produce including cold storages for such purposes are exempted from Service tax.

·        Capital investment in the creation of modern storage capacity has been made eligible for Viability Gap Funding scheme of the Finance Ministry. Cold chain and post-harvest storage has been recognized as an infrastructure sub-sector.

            So far, 3.12 Lakh Metric Tonne of Cold Storage/Controlled Atmosphere/Deep Freezer, 77 Metric Tonne/Hour of Individual Quick Freezer(IQF), 95 Lakh Litres Per Day of Milk Storage/Processing and 456 Number of Reefer Vehicles have been created under the Scheme of Cold Chain, Value Addition and Preservation Infrastructure.
            Under the Scheme of Cold Chain, Value Addition and Preservation Infrastructure of the Ministry of Food Processing Industries stand alone cold storages are not assisted. The financial assistance is provided for creating an integrated cold chain having components of cold storage, minimal processing and reefer vehicles etc.

            National Center for Cold Chain Development (NCCD) under Department of Agriculture, Co-operation & Farmers Welfare has conducted a study “All India Cold Chain Infrastructure Capacity (Assessment of Status & Gap)”. As per the study the Cold Chain requirement in the country stands as follows:

Type of Infrastructure
Infrastructure Requirement (A)
Infrastructure Created (B)
All India Gap
(A-B)
Cold Storage*
35.10 million tons
31.82 million tons
3.28 million tons
Pack-house
70,080 nos.
249 nos.
69,831 nos.
Reefer Vehicles
61,826 nos.
9,000 nos.
52,826 nos.
Ripening Chambers
9,131 nos.
812 nos.
  8,319 nos.

*Gap may be 8.25 million tones considering the operational capacity of 26.85 million tones.
The study has not covered perishable produce like milk and other milk products like cheese, yogurt, paneer, marine products, fish and meat etc. However, ice cream is included under the frozen category. Only fruits and vegetables currently consumed and capable of being handled in cold chain have been considered.

Ministry of Agriculture and Farmers Welfare has accepted the Report and it has been circulated to State Governments for reference and future development of Cold-chain.
            To accelerate the availability of cold storage and to improve the efficiency of Cold Chain Management a Task Force under the Chairmanship of Secretary, Ministry of Food Processing Industries was set up by the Prime Minister’s Office in 2014 with a view to re-visiting the strategies, financial incentives to all cold storage/ cold chain related schemes and recommend institutional mechanism for enhancing capacity of cold chain in the country. The Task Force has, inter alia, recommended that the Government should aim at creating an additional capacity of 7.5 million tonnes over the next five years with fund allocation of Rs. 6,100 crore. Out of this, 5 million tonnes may be created together by National Horticulture Mission and National Horticulture Board (2.5 million tonnes each) under Mission for Integrated Development of Horticulture Scheme of Department of Agriculture, Cooperation and Farmers Welfare and 2.5 million tonnes under the scheme of the Ministry of Food Processing Industries. The Government has accepted the report.

            This information was given by the Minister of State for Food Processing Industries Sadhvi Niranjan Jyoti in a written reply in Lok Sabha today.

***
Food Processing Industries Minister Welcomes 100% FDI in Marketing of Food Produced and Manufactured in India
Minister for Food Processing Industries, Smt. Harsimrat Kaur Badal thanked the Hon’ble PM and Hon’ble Finance Minister for approving and announcing the policy of 100% FDI in marketing of food products produced and manufactured in India in the General Budget, 2016-17. This will provide impetus to the foreign investment in food processing sector, benefit farmers immensely and will create vast employment opportunities.

Interacting with the media to apprise them about the initiatives relating to food processing in the Union budget announced yesterday, Smt. Harsimrat Kaur Badal said that this step will lead to creation of ‘’Swadeshi” infrastructure with ‘’Videshi’’ money. This will help farmers get remunerative prices for their produce, transfer of technology and modern agricultural practices required for producing agricultural produce on a large scale to meet the requirements of organized marketing.

A unified agriculture marketing e-platform will be set up which will bring markets to the doorstep of farmers. This coupled with 100% FDI in marketing of food products produced and manufactured in India would result in big buyers reaching out to farmers for their agri-horti produce.

100% FDI will bring in higher efficiencies in food processing industry and trade, and will make our food products more competitive in international markets.

In addition to above, following announcements made in the budget 2016-17 will accelerate the growth of food processing sector:-

(i) The budget of the Ministry has been enhanced by 21% against the overall increase of 11% of Government of India as a whole.

(ii) To promote use of refrigerated containers in the supply chain, the basic custom duty and excise duty has been reduced from 10% to 5% and from 12.5% to 6%, respectively.

(iii) Access to market is critical for the income of the farmers. A unified agriculture marketing e-Platform will be dedicated to the nation on the birth anniversary of Baba Saheb Dr. Bhim Rao Ambedkar on 14th April this year. This will connect to 585 regulated wholesale markets in the country.

(iv) Food Processing to play a pivotal role in realising the vision of Government to double farmer’s income by 2022.

FSSAI was insisting upon product by product approval for all foods that do not have standards in the FSS Regulations, 2011. This was resulting in delays in launch of new products in the market and was also inhibiting innovation. Hon’ble Minister had taken up the difficulties faced by the industry with FSSAI and the Hon’ble Health Minister. Pursuant to the intervention by the Hon’ble Minister FPI, FSSAI have now approved more than 8000 new Additives harmonized with the International Codex Standards. They have also notified an amendment to the regulations as a result of which non-standardized food products called proprietary foods {except novel food and nutraceuticals} that use ingredients and additives approved in the regulations will no longer require product approval. This has provided considerable relief to the industry.

Supplementing the observations of Smt. Badal, the Minister of State for Food Processing Industries Sadhvi Niranjan Jyoti said that the union budget for 2016-17 will provide impetus to maximisation for income of the farmers.
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Use of Radiation Technology in FPI
Government of India has cleared several commodities under new Atomic Energy (Radiation Processing of Food & Allied Products) Rules 2012 in Food Safety and Standards (Food Products Standards and Food Additives) Regulations, 2011 for preservation through irradiation. A major facility in the Government sector catering to irradiation of fresh horticultural produce is the KRUSHAK facility at Lasalgaon, Nashik District, Maharashtra State, India. The facility has been used for irradiating mangoes for export to USA since 2007. Radiation processing plant at Vashi, Navi Mumbai, under the Department of Atomic Energy, has been processing spices and dry ingredients for microbial decontamination since the year 2000.

With the objective of arresting post-harvest losses of horticulture & non-horticulture produce, Ministry of Food Processing Industries is operating a scheme for Cold Chain, Value Addition and Preservation Infrastructure for grant of financial assistance for setting up inter alia, irradiation facilities by individuals or group of entrepreneurs, cooperative societies, Self Help Group etc.

The energy involved in irradiation is not strong enough to cause changes at the atomic level, and since the food is never in contact with a radioactive source, the food cannot become radioactive. Several extensive reviews of toxicological data by regulatory and health organizations, have determined that food irradiated at doses below 10 kGy is safe. In fact, food is safer after being irradiated because the process destroys harmful bacteria that may be present. Numerous published research studies have tried to identify problems resulting from eating irradiated foods but failed to disclose any health risks. Several of these studies were long term, multi-generation feeding studies, involving several species of test animals. A joint study group of FAO/IAEA/WHO in 1997 evaluated data on wholesomeness of food irradiated with doses above 10 kGy and recommended that food irradiated with any dose to achieve technical objectives is safe and nutritionally adequate. No upper limit, therefore, needs to be imposed as long as food is irradiated based on prevailing good manufacturing practices.

Among the legislations that govern food irradiation in the country, The Atomic Energy (Control of Irradiation of Food) Rules 1991, the primary legislation that regulates food irradiation was amended and the notification issued recently in June 2012. A generic class-based approval has been approved for increasing the product range for radiation processing. It will provide year long availability of feedstock for irradiation plants and improve their economic viability. Irradiation of food is also governed under the Food Safety and Standards Act, 2006 and the Regulations issued thereunder.

This information was given by the Minister of State for Food Processing Industries Sadhvi Niranjan Jyoti in a written reply in Lok Sabha today.


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