FDI inflows in the food processing sector stood at $393.41 million in 2020-21Foreign direct investment (FDI) in food processing sector decreased 54 per cent to Rs 2,934.12 crore in 2020-21 as compared to the previous year, the government said on Friday.
In a written reply to the Rajya Sabha, Minister of State for Food Processing Industries Prahlad Singh Patel notified that the FDI in the food processing sector stood at Rs 4,430.44 crore in 2018-19, Rs 6,414.67 crore during 2019-20 and Rs 2,934.12 crore during the 2020-21 monetary year.The minister stated that the FDI inflows in the food processing sector stood at $393.41 million in 2020-21 as versus $904.70 million in the previous year.
During the 2018-19 financial, the FDI inflow was $628.24 million, while the FDI was $904.9 million in 2017-18 and $727.22 million in 2016-17.
Patel informed that 100 per cent FDI is permitted under the automatic path for the sector.
The share of FDI in the food processing sector is just 1.5 per cent of overall FDI inflows and the sector needs more financial investments both domestic along with foreign direct financial investment, Patel said.The Ministry is implementing a central sector scheme Pradhan Mantri Kisan Sampada Yojana (PMKSY) considering that 2016-17 for overall growth and development of food processing sector including for increasing investment, he added.Patel said the ministry is likewise carrying out a centrally sponsored scheme-PM Formalisation of Micro Food Processing Enterprises Plan (PM FME) to upgrade and support 2 lakh micro food processing units through credit linked aid based on One District One Product (ODOP) method.