New scheme will generate investment of Rs 35,000 crore, says Food Processing Industries Minister

Vibha Sharma

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Tribune News Service

New Delhi, June 29

The “PM Formalisation of Micro Food Processing Enterprises (PM FME)” will generate investment of Rs 35,000 crore and employment for 9 lakh skilled and semi-skilled workers, Food Processing Industries Minister Harsimrat Kaur Badal said on Monday, officially launching the scheme announced by Prime Minister Narendra Modi as a part of “Atmanirbhar Bharat Abhiyan” during the Coviid-19 crisis.

Terming the scheme as “historic and game changer”, Harsimrat Kaur said it will benefit 8 lakh units through access to information, training, better exposure and formalisation through financial, technical and business support for up-gradation of existing micro food processing enterprises.

To be implemented over a period of five years from 2020-21 to 2024-25 with an outlay of Rs 10,000 crore, the expenditure will be shared in  60:40 ratio between the Central and State Governments, in 90:10 ratio with North Eastern and Himalayan states, 60:40 ratio with UTs with legislature and 100% by Centre for other UTs.

Highlighting the importance of local food processing units, the Union Minister said rural entrepreneurs in villages have a long tradition of supplying Indian food products to local population. Their importance has been amply emphasised by the PM, she added.

However, the sector faces a number of challenges due to lack of access to modern technology and equipment, training, access institutional credit, basic awareness on quality control of products and branding and marketing skills that limit their performance and growth.

They contribute much less in terms of value addition and output despite its huge potential, she said.

“The sector comprising nearly 25 lakh units contributes to 74% of employment in food processing sector. Nearly 66% of these units are located in rural areas and about 80% of them are family-based enterprises supporting livelihood of rural household and minimizing their migration to urban areas,” the minister said.

The scheme adopts “One District One Product” (ODOP)under which states will identify food product in a particular district keeping in view the existing clusters and availability of raw material.

The ODOP product can be a perishable produce-based product, a cereal-based product or a food product. The list includes mango, potato, litchi, tomato, tapioca, kinnu, bhujia, petha, papad, pickle, millet-based products, fisheries, poultry, meat as well as animal feed.

Preference would be given to those producing ODOP products but units producing other products would also be supported, she said.

The scheme also focuses on waste to wealth products, minor forest products and Aspirational Districts. Existing Individual micro food processing units desirous of upgradation can avail credit-linked capital subsidy at 35% of the eligible project cost with a maximum ceiling of Rs 10 lakh per unit.

Seed capital at Rs 40,000 per SHG member would be provided for working capital and purchase of small tools, she added.

Meanwhile, the Operation Greens Scheme has been extended from tomato, onion and potato (TOP) crops to other notified horticulture crops.

The scheme provides subsidy for transportation and storage from surplus production area to major consumption centres with an objective of protecting growers from making distress sale and reducing post -harvest losses.

The MoFPI is planning to start free online skill classes for SC and ST entrepreneurs, in collaboration with NIFTEM and FICSI, for providing e-learning. It has identified 41 courses and job roles like baking, making jam, pickles, for which access to digital content would be made available. Once certified, these entrepreneurs would have better employment potential, or they can start their own venture, said Harsimrat Kaur.