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Content

• Mega Food Park Scheme
• PLISFPI (Production Linked Incentive Scheme for Food Processing Industry)
• PM Formalization of Micro Food Processing Enterprises (PM FME)

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1. Infrastructure Improvement
   • Pradhan Mantri Kisan SAMPADA Yojana (Scheme for Agro-Marine Processing and Development of Agro-Processing Clusters) – a central sector scheme with an allocation of Rs 6,000 crore for the period 2016-20 for creation of modern infrastructure with efficient supply chain in the food processing sector.
     • It has incorporated other schemes related to food processing under it including Mega Food Parks, Integrated Cold Chain and Value Addition Infrastructure, Creation/Expansion of Food Processing/Preservation Capacities, Infrastructure for Agro-Processing Clusters, Creation of Backward and Forward Linkages, Food Safety and Quality Assurance
       Infrastructure, and Human Resource and Institutions.
   • Mega Food Park Scheme, 2008
     • It focuses on establishing mega food clusters for creating major infrastructure facilities in India to add value and reduce wastage at each stage of the supply chain (from farm to market). MoFPI provides a assistance of 50% of the project cost (excluding land), subject to a maximum of Rs 50 crore.
   • Modernization of Abattoirs Scheme:
     • Enhance processing and preservation capacities to improve quality and reduce wastage.
2. Production Linked Incentive Scheme for Food Processing Sector (PLISFPS)
   • A central sector scheme for implementation during 2021-22 to 2026-27 with an outlay of Rs 10,900 crore.
   • Aimed at increasing the production capacity and improved international branding for the Food Processing Sector in India.
3. One of the priority sector under Make in India initiatives
4. Steps to ensure Credit Availability
   • The government has set up a Special Fund of Rs 2,000 crore in NABARD to make available affordable credit at concessional rate of interest to designated food parks and agro-processing units.
   • Food and Agro Processing Units and Cold Chain infra have been brought under the ambit of Priority Sector Lending
   • Subsidized credit through PM FME
5. Pradhan Mantri Formalization of Micro Food Processing Enterprise (PM FME) provides credit linked subsidies to individuals/SHGs/FPOs etc. for food processing infra development. It also helps in development of common infrastructure like labs, warehouses etc.; support for marketing and branding; training; product development; packaging etc. it is based on One District One Product (ODOP) approach.
6. Other steps for Attracting Investment in the sector:
   • 100% FDI is permitted under the automatic route for food processing sector.
     • For e-commerce in respect of food products manufactured and/or produced in India, 100% FDI through approval route is allowed.
   • MoFPI, GoI have signed MoU with Japan, Italy, Vietnam and Taiwan for promotion of investment in the Food Processing Sector. (July 2022)

1) MEGA FOOD PARK SCHEME

• Ministry: MoFPI
• This scheme is now a component of Pradhan Mantri Kisan Sampada Yojana (PMKSY).
• It focuses on establishing mega food clusters for creating major infrastructure facilities in India to add value and reduce wastage at each stage of the supply chain (from farm to market). MoFPI provides a assistance of 50% [75% in NE and Hilly states] of the project cost (excluding land), subject to a maximum of Rs 50 crore.
• The park is developed on Hub and Spoke Model, where Central Processing Centre acts as Hub and PPCs and CCs act as Spokes.
  • Facilities for primary processing and storage is created near the farm in the form of Primary Processing Centre (PPC) and Collection Centre (CC).
  • Common facilities and enabling infrastructure for providing secondary and tertiary infrastructure and processing services is created and Central Processing Centre (CPC).

• Under the scheme government has sanctioned setting up of 42 Mega Food Parks in the country.
  • Of this final approval to 38 MFP have been given. Out of these, as of Aug 2021, 22 Mega Food Parks are operational.
• Advantages
  • Contributes to reduction of food wastage, increased income of farmers, better value addition etc.
  • Gives boost to food processing sector (hence to export and employment opportunities) by creation of high quality infrastructure.
  • Capacity building of producers and processors and creation of efficient supply chain along with significant direct and indirect employment generations.

2) PLISFPI (PRODUCTION LINKED INCENTIVE SCHEME FOR FOOD PROCESSING INDUSTRY)

• PLISFPI has been formulated based on the PLI Scheme for NITI Aayog under ‘Aatmanirbhar Bharat Abhiyan for Enhancing India’s Manufacturing Capabilities and Enhancing Exports”.
• It is a Central Sector Scheme for implementation during 2021-22 to 2026-27 with an outlay of Rs 10,900 crore.
• Objectives of the scheme:
  • Support FPIs with stipulated minimum sales and willing to make minimum stipulated investments for expansion of processing capacity and branding abroad to incentivize emergence of strong Indian brands:
    • Support creation of Global Manufacturing Champions.
    • Strengthen select Indian Brand of food products for global visibility and wider acceptance in the international markets
    • Increase employment opportunities in off-farm jobs.
    • Ensuring remunerative prices of farm produce and higher income to farmers.
• MoFPI invited applications for availing sales based incentives and grants for undertaking Branding & Marketing activities abroad under the scheme from three categories of applicants:
  • Category 1: Applicants are large entities who apply for Incentives based on Sales and Investment Criteria. Applicant under this category could undertake branding & marketing activities abroad also and apply for grant under the scheme with a common application.
  • Category 2: SMEs applicants manufacturing innovative/ organic products who apply for PLI incentive based on sales.
  • Category 3: Applicants applying solely for grant for undertaking Branding & Marketing activities abroad.

3) PM FORMALIZATION OF MICRO FOOD PROCESSING ENTERPRISES (PM FME)

• Ministry: MoFPI
• Launched in June 2020 as part of “AtmaNirbhar Bharat Abhiyan”.
• It is a centrally sponsored [60:40 (90:10 for SCS)] scheme which will be implemented over a period of five years 2020-21 to 2024-25 with an outlay of Rs 10,000 crores.
• The scheme is expected to benefit 2 lakh micro food processing units through credit linked subsidy.
• Key Steps Planned:
  • Credit Linked Subsidy @35% of the eligible project cost with a maximum ceiling of Rs. 10 lakh per unit would be provided existing individual micro-food processing enterprises.
  • Seed capital @Rs 40,000 per SHG member would be provided for working capital and purchase of small tools.
  • FPOs/SHGs/ Producer Cooperatives would be provided credit linked grant of 35% for capital investment along the value chain.
  • Support for development of Common infrastructure – through credit linked grant @35% for development of common infrastructure including common processing facility, lab, warehouse, cold storage, packaging and incubation centre through FPOs/SHGs/ cooperatives or state owned agencies or private enterprises to use by micro units in the cluster.
  • Support for marketing and branding would be provided to develop brands for micro units and groups with 50% grant at State or regional level which could benefit large number of micro units in clusters.
  • Special focus on Capacity Building and Research
    • NIFTEM and IIFPT, the two academic institutions under MoFPI along with state level technical institutions selected by state would be provided support for training of units, product development, appropriate packaging and machinery for micro units.
• The scheme adopts one district one product approach (ODOP) to reap benefit of scale in terms of procurement of inputs, availing common services, and marketing of products.
  • The state will identify the food product for a district keeping in view the existing clusters and availability of raw material.
  • ODOP product could be cereal based, perishable or a food product widely produced in a district and their allied sector. E.g. mango, potato, litchi, bhujia, petha, papad, fisheries, poultry, meat, animal feed etc.
  • Preference would be given to ODOP product but other units would also be supported.
  • But support of common infrastructure, branding, marketing etc. would be available for ODOP only.
  • The scheme also places focus on waste to wealth products, minor forest products and Aspirational districts