On Anvil are 41 Mega Food Parks, 353 Cold Chain projects, 63 Agro Processing Clusters and 292 Food Processing Units

Union Minister of State for Food Processing Industries Shri Prahlad Singh Patel said on July 23 that as part of the Aatmanirbhar Bharat Initiative, MoFPI is implementing a Centrally Sponsored Scheme for setting up/upgradation of 2 lakh micro food processing enterprises.

The enterprises can be set up or upgraded through credit linked subsidy during five years from 2020-21 to 2024-25 with an outlay of Rs. 10,000 crores.

In a written reply to a question in the Rajya Sabha, Shri Patel said, the Central Scheme-PM Formalisation of Micro Food Processing Enterprises Scheme (PMFME) provides financial, technical and business support for these enterprises.

Moreover, the Ministry of Food Processing Industries (MoFPI) has been implementing Central Sector Umbrella Scheme – Pradhan MantriKisan SAMPADA Yojana (PMKSY) since 2016-17 for overall growth and development of food processing sector, including processing of agro- products and thus increasing the income of the farmers.

The component schemes of PMKSY are – (i) Mega Food Park, (ii) Integrated Cold Chain and Value Addition Infrastructure, (iii) Creation /Expansion of Food Processing & Preservation Capacities, (iv) Infrastructure for Agro-Processing Clusters, (v) Creation of Backward & Forward linkages, (vi) Food Safety and Quality Assurance Infrastructure, (vii) Human Resource and Institutions, (viii) Operation Greens. Under component schemes of PMKSY, MoFPI provides mostly credit linked financial assistance (capital subsidy) in the form of grants-in-aid to entrepreneurs for setting up of food processing / preservation industries.

So far, Ministry has approved 41 Mega food Parks, 353 Cold Chain projects, 63 Agro Processing Clusters, 292 Food Processing Units, 63 Creation of Backward & Forward Linkages Projects & 6 Operation Green projects across the country under corresponding component schemes of PMKSY.

These sanctioned projects are estimated to benefit about 34 lakh farmers on completion. In the evaluation study of Integrated Cold Chain and Value Addition Infrastructure Scheme conducted by M/s NABARD Consultancy Limited (NABCONS) in Year 2020, it has been estimated that captive projects under the scheme have resulted in increase in farm-gate prices by 12.38 % and each project is estimated to benefit more than 9500 farmers.

In another reply, Patel said that Government has been consistently encouraging and incentivizing increased private sector investment for overall development of Food Processing sector of the country to promote value addition in agricultural and allied sector and reduce wastage.

So far, 792 projects out of a total of 818 projects have been approved for setting up food processing Industries by the private sector with approved Grants in Aid of Rs 5792 Crores.

In a written reply to a question in the Rajya Sabha, he said, in order to further increase private sector participation in the sector, Government has recently taken three major initiatives.

Firstly, Government has approved the introduction of “Production Linked Incentive scheme” for Food Processing Sector with an outlay of Rs 10,900 Crore to support creation of global food manufacturing champions and support Indian brands of food products in international market.

Secondly, with a view to extend incentives to the private micro food enterprises, Self Help Groups (SHGs), Farmer Producer Organizations (FPOs) and Cooperatives, spread all over the country, MoFPI is implementing centrally sponsored “PM Formalisation of Micro food processing Enterprises Scheme”. The scheme aims to provide financial, technical and business support for upgradation/ setting up of two lakh micro food processing units based on One District One Product (ODOP) approach in a period of five years from 2020-21 to 2024-25 with an outlay of Rs. 10,000 crores.

Thirdly, in the budget speech for 2021-2022, Government has announced expansion of scope of “Operation Greens scheme” from Tomato, Onion & Potato (TOP) to 22 perishable products, so as to boost value addition in agriculture and allied products and their exports.

Ministry of Food Processing Industries (MoFPI) is implementing a Central Sector umbrella scheme- Pradhan MantriKisanSampadaYojana (PMKSY) since 2016-17 for overall growth and development of food processing sector, mostly through private sector participation. Under the component schemes, MoFPI provides credit linked financial assistance (capital subsidy) in the form of grants-in-aid to entrepreneurs for setting up of food processing / preservation industries with farm level infrastructure like primary processing facilities, collection centres etc.