Food and agro-processing activities including cold chain are included in the Priority Sector Lending (PSL) norms of the Reserve Bank of India (RBI). As reported by the RBI, there is no separate target for lending by banks to food and agro-processing units under the Priority Sector Lending guidelines. Loans to food and agro-processing units up to Rs 100 crore per borrower from the banking system, can be classified as lending to agriculture under PSL. Also, loans to MSMEs engaged in “food and agro processing” are eligible for classification under PSL. Data on credit outstanding to food and agro-processing sector under PSL norms during the last three years and current year is as under:
(Rs crore)
| 31-Mar-19 | 31-Mar-20 | 31-Mar-21 | 30-Sep-21 | |
| State Bank of India | 22236.85 | 20713.30 | 23730.34 | 16748.04 |
| Public Sector Banks, Others | 65286.88 | 61445.34 | 119402.51 | 62225.28 |
| Private Banks | 41901.48 | 43053.34 | 54950.79 | 44789.99 |
| Total | 129425.21 | 125211.98 | 198083.64 | 123763.30 |
The Ministry has not received any complaint related to denying of loans to the entrepreneurs engaged in food processing sector. As and when, any issue related to the banks is raised by the applicants availing benefits under various schemes of Ministry, the same is resolved through active interaction with the bank.
This information was given by Minister of State for M/o Food Processing Industries, Shri Prahlad Singh Patel in a written reply in Lok Sabha today.
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