Govt Schemes to Boost Food Processing Sector, Enhance Infrastructure, and Support Farmers

The Centre has initiated various scheme for the overall development of food processing sector, including creation of modern infrastructure with efficient supply chain management from farm gate to retail outlet. An official release said the Ministry of Food Processing Industries (MoFPI) is implementing Central Sector Schemes of Pradhan Mantri Kisan SAMPADA Yojana (PMKSY), and Production Linked Incentive Scheme for Food Processing Industry (PLISFPI) and Centrally sponsored Prime Minister Formalisation of Micro Food Processing Enterprises (PMFME) for this purpose.

The release said that the Centre intends to help in providing better returns to farmers, creation of employment opportunities, reducing wastage, increasing the processing level and enhancing the export of the processed foods. All the schemes are demand-driven and implemented across the country.

Under sub-schemes of PMKSY, MoFPI provides mostly credit-linked financial assistance (capital subsidy) to entrepreneurs with a total outlay of Rs.5,520 crore for the 15th Finance Commission Cycle. MoFPI has sanctioned 41 Mega Food Parks, 399 Cold Chain projects, 76 Agro-Processing Clusters, 588 Food Processing Units, 61 Backward & Forward Linkages Projects & 52 Operation Greens projects till June 30, 2024.

MoFPI also provides financial, technical and business support for setting up/ upgradation of micro food processing enterprises under PMFME scheme. The scheme is operational for a period of five years from 2020-21 to 2024-25 with a total outlay of Rs.10,000 crore. A total of 92,549 sanctions have been given to micro food processing enterprises till June 30 2024.

PLISFPI is, inter alia, intended to support the creation of global food manufacturing champions and support Indian brands of food products in the international market. The scheme is being implemented over a six-year period from 2021-22 to 2026-27 with an outlay of Rs.10,900 crores. As many as 172 food processing companies have been given sanctions for assistance under various categories of the scheme so far.

Keeping in view the requirements of innovative product and process development in food processing sector, MoFPI extends financial support to educational and research institutions including Council of Scientific & Industrial Research (CSIR) recognised Research and Development (R&D) units in private sector for related demand driven R&D projects through its R&D scheme under PMKSY. A total of 72 research projects have been approved since 2017-18 till June 30, 2024 with an approved subsidy of Rs.26.12 crore.

In addition, National Institute of Food Technology, Entrepreneurship & Management (NIFTEM) Kundli and NIFTEM, Thanjavur, under the administrative control of MoFPI, are engaged in R&D activities in the sector, the release quoting Minister of State for Food Processing Industries Ravneet Singh.