Vocal for local in food processing sector

Vocal for local in food processing sector
Photo - Mark Stebnicki via pexels

As part of Atmanirbhar Bharat Abhiyan - Vocal for Local Initiative in the food processing sector, Ministry of Food Processing Industries (MoFPI) is implementing a centrally sponsored "PM Formalisation of Micro food processing Enterprises (PMFME) Scheme" for providing financial, technical and business support for setting up / up-gradation of micro food processing enterprises in the country. The scheme is operational for five years, from 2020-21 to 2024-25, with an outlay of Rs. 10,000 Crore. The scheme primarily adopts the One District One Product (ODOP) approach to reap the benefit of scale in terms of procurement of inputs, availing common services and marketing of products. It provides the framework for value chain development and alignment of support infrastructure.

As per the Annual Survey of Industries, 2015-16 and 73rd Round Survey of National Sample Survey Organisation (NSSO), there are about 25 lakh unregistered/ unincorporated food processing enterprises in the country. The details of State-wise number of unregistered/unincorporated enterprises in the country are at Annexure-I.

The PMFME scheme is designed to address the challenges faced by the micro-enterprises and to tap the potential of groups and cooperatives in supporting the up-gradation and formalization of these enterprises. The scheme aims to enhance the competitiveness of new and existing individual micro-enterprises in the unorganized segment of the food processing industry and promote the formalization of the sector. The details of assistance available to Micro Food Processing Enterprises under PMFME Scheme:

(i). Support to Individual / Group Category Micro Enterprises: Credit-linked capital subsidy @35% of the eligible project cost, maximum ceiling Rs.10 lakh per unit;

(ii). Support to SHGs for seed capital: Seed capital @ Rs. 40,000/- per member of SHG engaged in food processing for working capital and purchase of small tools subject to maximum of Rs. 4 lakh per SHG Federation.

(iii). Support for Common Infrastructure: Credit linked capital subsidy @35% subject to maximum of Rs. 3 crore to support FPOs, SHGs, Cooperatives and any Government agency for setting up common infrastructure. The common infrastructure will also be available for other units and public to utilize on a hiring basis for substantial part of the capacity.

(iv). Branding and Marketing Support: Grant upto 50% for Branding and Marketing to groups of FPOs/ SHGs/ Cooperatives or an SPV of micro food processing enterprises.

(v). Capacity Building: The scheme envisages training for Entrepreneurship Development Skilling (EDP+): program modified to meet the requirement of food processing industry and product-specific skilling.

Capacity building and training is a critical component of the scheme in technical up-gradation and formalization of micro food processing enterprises. The focus areas for capacity building are entrepreneurship development, compliance with Food Safety and Standards Authority of India (FSSAI) standards, general hygiene, and other statutory compliances. District Resource Persons (DRPs) have been entrusted to provide handholding support to micro food processing enterprises to comply with FSSAI and other statutory requirements.

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.

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