March 11, 2021
It is shocking news but a Parliamentary panel has said that the performance of the Food Processing Industries Ministry has been quite poor. The Panel said the MoFPI, has consistently under-utilized allocated funds and even the flagship scheme Pradhan Mantri Kisan Sampada Yojana (PMKSY) has failed to garner a good response.
PMKSY is a scheme, approved in May 2017, under which eight sub-schemes are implemented, including mega Food Parks, integrated cold chain and value addition infrastructure.
The panel noted that the food processing industries ministry was allocated Rs. 1,308.66 crore in the BE 2021-22 fiscal. This was lower than its proposed demand of Rs. 3,490.07 crore. However, the allocated amount was higher than Rs. 1,247.42 crore given during BE 2020-21.
The committee observed that lower allocation of funds were due to less utilization of allocated funds by the ministry, which is clear from its statement given regarding scheme-wise outlay and expenditure for three years — 2018-19, 2019-20, and 2020-21.
The report also said that it is evident that underutilization of allocated funds consistently by the ministry is acting as a hindrance in achieving the objectives of the ministry i.e. addressing serious issues of food security, food inflation, and providing wholesome nutritious foods to the masses, ensuring better returns for the farmers, generating employment and earning foreign exchange through the exports.
Also, with respect to the utilization of funds for PMKSY, there is a terrible low utilization of funds for SC/ST and the northeastern region. Receipt of inadequate eligible proposals has been the reason attributed by the ministry for the under-utilization of funds.
According to the committee, MoFPI should analyze reasons for inadequate proposals being received and lack of awareness about the scheme can also be a reason for inadequate receipt of proposals. It recommended that the government should launch a “Special Awareness Drive” with the purpose of increasing awareness about various components of PMKSY.
There is no doubt about the immense benefits accruing to farmers with the establishment of a cold chain but the slow pace of implementation of this scheme is worrisome and the ministry to resolve the issues in setting up of cold storage unit.
With Operation Greens’, the panel said a total of 10 projects have been approved up to January 18 this year and out of them, five projects have been canceled for want of progress and the rest five are under implementation.
The panel said it appreciates the ministry’s decision to include other perishable commodities under the scheme in addition to tomatoes, potatoes, and onions as it will not only benefit the farmers from distressed sale of their products but will also, help in increasing their income. “The committee is, however, apprehensive about the proper implementation of this scheme with limited funds.
In case of Backward and Forward Integration for Food Processing Industries, the panel noted that this too has not got the “desired momentum as of now. Out of 62 projects approved, only 21 projects have been completed, and also utilization of the fund is less as against fund allocated at RE (Revised Estimate) stage.
Out of the 27 projects meant for the creation of an infrastructure in food processing skill training centres, only four projects have been completed so far.
However, the panel concurred with the view of the ministry to bring two agencies — Agricultural Processed Food Products Export Development Authority (APEDA) and Marine Product Exports Development Authority (MPEDA) — under the purview of the Food Processing Industries Ministry. These two agencies are currently under the Ministry of Commerce and industry.