Policy

Centre aims to formalise 2 lakh micro-food processing units by 2025

Our Bureau New Delhi | Updated on July 23, 2021

Prahlad Singh Patel   -  The Hindu

The scheme provides financial, technical and business support for these enterprises

The Food Processing Ministry on Friday said that it is implementing a Centrally-sponsored scheme with an outlay of ₹10,000 crore to encourage setting up or upgradation of 2 lakh micro-food processing enterprises. The scheme is being implemented from 2020-21 to 2024-25.

Minister of State for Food Processing Prahlad Singh Patel informed the Rajya Sabha in a written reply that the Central Scheme-PM Formalisation of Micro Food Processing Enterprises Scheme (PMFME) provides financial, technical and business support for these enterprises. “The enterprises can be set up or upgraded through credit-linked subsidy during five years from 2020-21 to 2024-25,” he added.

He further stated that the Ministry has so far 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.

This has been approved under the various component schemes of Pradhan Mantri Kisan SAMPADA Yojana, which is being implemented since 2016-17.

Capital subsidy

Under these component schemes of PMKSY, Food Processing Ministry provides mostly credit linked financial assistance (capital subsidy) in the form of grants-in-aid to entrepreneurs for setting up of food processing or preservation units. “These sanctioned projects are estimated to benefit about 34 lakh farmers on completion,” the Ministry stated.

In a separate written reply to a question in Rajya Sabha, Patel said the Ministry has recently conducted a third party evaluation of the mega food park scheme. “The evaluation study broadly covered the aspects of creation of food processing infrastructure including setting up of food processing units and its impact on value addition & processing, reduction in post-harvest losses, benefits to the farmers, employment generation, etc. through the MFP scheme,” he added.

The Ministry stated that it regularly monitors the progress of implementation of mega food park projects through periodical review meetings with promoters of projects at various levels including by the Inter-Ministerial Approval Committee.

Published on July 23, 2021

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