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Revolutionizing India's Food Processing Landscape: Ministry's Milestones in FY 2023-24

The Ministry of Food Processing Industries' achievements in the fiscal year 2023-24 underscore its commitment to transforming the food processing sector.

Shivam Dwivedi
Revolutionizing India's Food Processing Landscape: Ministry's Milestones in FY 2023-24 (Photo Source: Ministry of Food Processing Industries)
Revolutionizing India's Food Processing Landscape: Ministry's Milestones in FY 2023-24 (Photo Source: Ministry of Food Processing Industries)

Throughout the fiscal year 2023–2024, the Ministry of Food Processing Industries has led transformative projects aimed at increasing farm revenue, generating jobs off-farm, and decreasing post-harvest losses. Focusing on both on- and off-farm investments, the ministry has accomplished outstanding milestones in a number of programs.

The government's commitment to the development of the food processing sector is evident in the budgetary allocations. The Ministry has been allocated a significant Budget Estimate (B.E.) of Rs 3287.65 crore for the fiscal year 2023-24, marking a substantial 73% increase from the Revised Estimate (R.E.) of Rs. 1901.59 crore in 2022-23.

Sectoral Achievements: A Quantum Leap

The Gross Value Added (GVA) of the food processing sector has witnessed a commendable surge, soaring from Rs. 1.34 lakh Crore in 2014-15 to an impressive Rs 2.08 lakh crore in 2021-22. Furthermore, the sector has attracted a substantial USD 6.185 billion FDI equity inflow from April 2014 to March 2023.

Processed food exports have significantly contributed to agri-exports, increasing from 13.7% in 2014-15 to an impressive 25.6% in 2022-23. The food processing sector stands out as a major employment provider in the organized manufacturing sector, contributing 12.22% to total registered/organized sector employment.

Pradhan Mantri Kisan SAMPADA Yojana (PMKSY): Transforming Agri-Processing Landscape

Under PMKSY, the Ministry has achieved substantial progress. Since January 2023, a total of 184 projects have been approved, with 110 projects completed, resulting in a processing & preservation capacity of 13.19 Lakh MT. These projects are expected to leverage an investment of Rs 3360 Crore, benefitting approximately 3.85 lakh farmers and generating over 0.62 lakh direct/indirect employment opportunities.

In total, 1401 projects have been approved under PMKSY, with 832 completed, leading to a processing & preservation capacity of 218.43 Lakh MT. These projects are expected to leverage an investment of Rs 21217 Crore, benefiting around 57 lakh farmers and generating over 8.28 lakh direct/indirect employment opportunities. Notably, the impact assessment indicates a significant reduction in agricultural produce losses, particularly in fisheries and dairy products.

Pradhan Mantri Micro Food Processing Industries Upgradation Scheme (PMFME): Nurturing Local Enterprises

Launched under the Atmanirbhar Abhiyaan, PMFME aims to promote 'Vocal for Local' in the food processing sector. With a total outlay of Rs 10,000 crore for the period 2020-2025, this scheme targets 2 lakh enterprises through credit-linked subsidies, adopting the One District One Product approach.

Since January 2023, PMFME has achieved a record high, with 51,130 loans sanctioned under the credit-linked subsidy component. An amount of Rs 440.42 crore has been released as seed capital assistance to 1.35 Lakh Self Help Group (SHG) members. The scheme has also witnessed the completion and inauguration of 4 Incubation Centers, providing crucial product development support to grassroots Micro Enterprises.

Since its inception, PMFME has sanctioned a total of 65,094 loans under the credit-linked subsidy component, with an amount of Rs 771 crore released as seed capital assistance to 2.3 Lakh Self Help Group (SHG) members. Additionally, 76 Incubation Centers have been approved, set to be established in One District One Product (ODOP) processing lines and allied product lines, with an outlay of Rs 205.95 crore.

From substantial budgetary allocations to transformative schemes like PMKSY and PMFME, the MoFPI is laying the foundation for a resilient and vibrant future for the food processing industry in India.

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