Govt allocates Rs. 10,000 crore to upgrade 2 lakh micro food processing units

New Delhi, Jul 23 (KNN) Ministry of Food Processing Industries (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.  

The Central Scheme-PM Formalisation of Micro Food Processing Enterprises Scheme (PMFME) provides financial, technical and business support for these enterprises, Union Minister of State for Food Processing Industries Prahlad Singh said in a statement in the Rajya Sabha on Friday.

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

The component schemes of PMKSY are Mega Food Park, Integrated Cold Chain and Value Addition Infrastructure, Creation /Expansion of Food Processing & Preservation Capacities, Infrastructure for Agro-Processing Clusters, Creation of Backward & Forward linkages, Food Safety and Quality Assurance Infrastructure, Human Resource and Institutions, and 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 the Year 2020, it has been estimated that captive projects under the scheme have resulted in an increase in farm-gate prices by 12.38 % and each project is estimated to benefit more than 9500 farmers.