Ministry of Food Processing Industries
azadi ka amrit mahotsav

Schemes for processing farmers produce in rural areas

Posted On: 11 AUG 2023 3:49PM by PIB Delhi

In order to ensure overall development of Food Processing Industries including processing of agro- products, Ministry of Food Processing Industries (MoFPI) has been incentivizing setting up/expansion of related infrastructure through its Central Sector Umbrella Scheme Pradhan Mantri Kisan SAMPADA Yojana (PMKSY), Production Linked Incentive Scheme for Food Processing Industry (PLISFPI) and Centrally sponsored PM Formalization of Micro Food Processing Enterprises (PMFME) scheme across the country including in rural areas and thus increasing the income of the farmers.

Under component schemes of PMKSY, MoFPI provides mostly credit linked financial assistance (capital subsidy) in the form of grants-in-aid to entrepreneurs. So far, Ministry has approved 41 Mega food Parks, 382 Cold Chain projects, 72 Agro Processing Clusters, 469 Food Processing Units, 61 Creation of Backward & Forward Linkages Projects & 46 Operation Green projects across the country under corresponding component schemes of PMKSY. The completed projects of PMKSY are estimated to benefit more than 32 lakh farmers across the country. In the evaluation study of Integrated Cold Chain and Value Addition Infrastructure Scheme conducted by M/s NABARD Consultancy Limited (NABCONS) in Year 2020, it has been estimated that captive projects under the scheme have resulted in increase in farm-gate prices by 12.38 % and each project is estimated to benefit more than 9500 farmers.

Ministry also provides financial, technical and business support for setting up/ upgradation of 2 lakh micro food processing enterprises under PMFME scheme. The scheme is operational for a period of five years from 2020-21 to 2024-25 with an outlay of Rs. 10,000 Crore. So far, a total of 43014 micro food processing enterprises have been sanctioned for assistance in the country.

PLISFPI is, inter alia, intended to support creation of global food manufacturing champions and support Indian brands of food products in 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. So far, a total investment of Rs 7800.53 Cr has been committed in projects located across the country under the scheme.

This information was given by Union Minister of State for Ministry of Food Processing Industries Shri Prahlad Singh Patel in a written reply in the Rajya Sabha today.

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