Working Groups for the Eleventh Five Year Plan (2007-2012)

Food Processing Industries (FPI) Sector

Dated 08 June 2006

In the context of the preparation of the Eleventh Five Year Plan (2007-2012), it has been decided to set up a Working Group on on Food Processing  Industries.

The terms of reference and composition of the Working Group will be as follows:

I  Terms of Reference:

1. To  critically appraise the  policies,  programmes  and  achievements  of FPI sector, in relation to production, employment (both direct and indirect) and exports during the Tenth Plan period and to analyse the reasons for shortfalls, if any, and suggest appropriate remedial measures.
2. To suggest a policy framework for the development of FPIs considering socio-economic objectives, training needs, modernisation, technological upgradation, quality improvement, productivity, employment generation, exports, etc, for the Eleventh Plan and set targets for each year of the Eleventh Plan period. The Working Group may give special emphasis on service units, self-employment, incentives to FPI units including tiny and small units to graduate to medium and large scale, to improve the strengths of the FPI sector to enable them to face global competition in view of the economic liberalisation, WTO regime, SAFTA and Chinese impact on Indian economy.
3. To suggest measures for increasing the productivity of individual workers/artisans/entrepreneurs through training, improved tools, equipment and processes, common facilities, quality standards, HACCP, GMP, etc. and assess the requirement of tools, equipment and machinery, common facility centres, testing facilities, etc, to meet the suggested targets of production and quality standards, HACCP, GMP, etc.
4. To suggest measures for dispersal of FPI activities, particularly in relatively backward states/areas, hill areas, rural areas and effective reduction of regional imbalances in industrial growth and utilisation of agricultural and horticultural products of the regions.
5. To set out objectives and suggest schemes and programmes for the promotion of FPI units for their growth during the Eleventh Plan period with a perspective period of 10 years.
6. In the light of physical targets suggested for the Eleventh Plan period for production, employment and exports, to make estimates of Plan outlays required for promotional/developmental schemes and investment required in the sector to achieve the above targets.
7. To recommend the role of the government, voluntary and other agencies, particularly small industry associations keeping in view the socio-economic objectives and their strategy for development.
8. To estimate the requirements of institutional finance/credit and to suggest measures to achieve the flow of required institutional finance. The Working Group should also suggest innovative measures for meeting the requirements of working capital and term loans.
9. The Working Group may also suggest innovative financial instruments for raising funds from the capital market for meeting the financial requirements of the FPI sector.
10. To review the existing training facilities, entrepreneurship development and estimate the gaps prevalent during the Tenth Plan period and to suggest measures to meet the requirements in quantitative and qualitative terms for the Eleventh Plan.
11. To estimate the requirements and availability of critical/scarce raw materials and other inputs and make recommendations for meeting them along with required forward and backward linkages.
12. To recommend effective marketing strategies, including the role of consortia, State Agro Industries Development Corporations, large houses, etc.
13. To review the existing planning and monitoring mechanism at Central/State/Local levels and to recommend measures to improve the same to build up a comprehensive data base for FPI sector.
14. To review the working of the existing R and D institutions and to suggest measures for their reorganisation, revitalisation and linkages with other R and D establishments in defence, electronics, universities, etc, to meet the objectives of the Eleventh Five Year Plan. The Working Group may also suggest appropriate time-bound R and D programmes and mechanism for their commercial utilisation, dissemination and delivery to the ultimate users of technology.
15. To recommend a suitable strategy for promotion and augmentation of exports and suggest annual targets for the Eleventh Plan period with a perspective plan for a period of 10 years. The Group may also work out an estimate for indirect exports from the FPI sector.
16. To review the growth of mother ancillary units over the Eleventh Plan period and to make recommendations for the Tenth Plan with a 10-year perspective.
17. To examine the feasibility and desirability of bringing all SSE products under quality certification by upgradation of quality standards, testing facilities, etc.
18. To identify key areas and explore ways for implementing Public-Private Partnership model in identified areas for sustainable development of sector.
19. To review the existing mechanism of data collection and also suggest measures to improve accuracy and authenticity of data base.
20. To review the existing coverage of developmental schemes/ programmes for SC/ST/Minorities/Women engaged in the sector and to suggest specific measures for their upliftment and promotion.
21. To make such other recommendations as are considered appropriate.

II. Composition of the Working Group