MoFPI to invest Rs 10,000 crore for setting up 2 lakh micro food processing enterprises by 2024-25

Sanctioned projects are estimated to benefit about 34 lakh farmers on completion
MoFPI to invest Rs 10,000 crore for setting up 2 lakh micro food processing enterprises by 2024-25
Photo - Mark Stebnicki from Pexels

Union Minister of State for Food Processing Industries Prahlad Singh Patel said that as part of the Aatmanirbhar Bharat Initiative, MoFPI is implementing a Centrally Sponsored Scheme for setting up/upgrading 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 crore. In a written reply to a question in the Rajya Sabha, Patel said, “The Central Scheme-PM Formalization 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 Mantri Kisan SAMPADA Yojana (PMKSY) since 2016-17 for overall growth and development of the food processing sector, including the 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 food processing and 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 and Forward Linkages Projects, and 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 NABARD Consultancy (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.

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