Govt Providing Grants-in-Aid and Subsidies for Setting Up Food Processing Units

The government is providing financial support in the form of grants-in-aid/subsidy for setting up food processing projects to encourage investments in both on-farm and off-farm preservation and processing infrastructure across the country. As many as 1,217 food processing projects have been approved with total project cost of Rs 31,308.24 crore including MoFPI grants-in-aid/subsidy of Rs 8,698.18 crore thereby attracting private investment of Rs. 22,610.06 crore under the component schemes of PMKSY since their inception to 2024-25 (till 30.06.2024).

Out of 1,217 food processing projects approved, 651 projects have been completed thereby creating preservation and processing infrastructure of 48.91 LMT/annum and 183.523 LMT/annum respectively, according to an official release.

Under the Capacity Building component of Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) scheme, trainings for both farmers and micro level entrepreneurs are being conducted on the thematic area “value addition of the products to reduce the post-harvest losses”, the release said, quoting Minister of State for Food Processing Industries Ravneet Singh.

Under PMFME scheme, 76 Common Incubation Centres have been approved across the country so that the farmers can utilise these facilities to process their produce by reducing post-harvest losses. PMFME cell of National Institute of Food Technology, Entrepreneurship and Management, Thanjavur (an autonomous academic cum research Institution) under this Ministry is regularly hosting webinars to make farmers aware about the PMFME scheme and value addition of different kinds of agricultural products.

26 Webinars have been conducted till date for different crops covering the various processing, value addition, storage and handling aspects. Around 37,330 people across the country have been benefitted from these webinars. Food Processing Business Incubation Centre of NIFTEM - Thanjavur also provides hands-on-training to FPOs on processing/value addition and storage of agri produces regularly and this centre has conducted more than 1500 trainings thereby covering 10,000 beneficiaries.

Indian Council of Agricultural Research (ICAR) through its research activities develops post-harvest machinery, storage structures and protocols, high value/value added products and conduct trainings to bring awareness among farmers and other stakeholders on need to reduce post-harvest losses of crops and commodities.

ICAR is promoting modern storage systems through technology transfer, training and outreach activities such as mass contact during Melas, Mera Gaon Mera Gaurav (MGMG) visits, public lectures, dissemination through diverse media channels, etc. Besides, the ICAR is offering consultancy services to Government and Non-Government agencies for storage related studies, development of modern storage protocols and upgrading the storage facilities.

Further, post-harvest reduction technologies are demonstrated and some gadgets and tools, which aid in storage, handling and processing of farm produce are distributed to deserving beneficiaries belonging to weaker sections of society through Scheduled Castes Sub-Plan funding. PMKSY is demand driven and it is not state, district, region or crop specific. Under PMKSY credit linked financial aid in the form of grants-in-aid/subsidy is provided for establishing food processing projects leading to creation of food processing and preservation infrastructure facilities.

During the period from 2018-19 to 2023-24, financial assistance of Rs.2, 513.27 crore has been provided to 553 food processing projects approved under the component schemes of PMKSY.