92,549 Microfood Processing Firms Get ₹ 10,000 Crore Under The Center's Scheme

The Ministry of Food Processing Industries has sanctioned financial support to as many as 92,549 microfood processing enterprises till June 30 this year under its Rs 10,000 crore Pradhan Mantri Formalization of Micro Food Processing Enterprises (PMFME) scheme, the Parliament was informed on Thursday.

The scheme, which is operational for a period of five years from 2020–21 to 2024–25, offers technical, business, and financial support to all the unorganised microfood processing units, Minister of State for Food Processing Industries Ravneet Singh told the Lok Sabha in a written reply.

PMSKY scheme

The Ministry is also implementing other central sector schemes of the Pradhan Mantri Kisan Sampada Yojana (PMKSY) and the Production-Linked Incentive Scheme for the Food Processing Industry (PLISFPI) for the overall development of the food processing sector, he said.

The schemes are aimed at the creation of modern infrastructure with efficient supply chain management from farm gate to retail outlet and to help in providing better returns to farmers, creating employment opportunities, reducing wastage, increasing the processing level, and enhancing the export of processed foods, the Minister said, adding that all three schemes are demand-driven and implemented across the country.

Under sub-schemes of the PMKSY, the Ministry provides mostly credit-linked financial assistance in the form of capital subsidies to entrepreneurs, with a total outlay of Rs 5,520 crore for the 15th Finance Commission cycle.

It has sanctioned 41 mega food parks, 399 cold chain projects, 76 agro-processing clusters, 588 food processing units, 61 backward & forward linkage projects, & 52 Operation Greens projects till June 30, the Minister said.

PLISFPl scheme

PLISFPI is also 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 crore.

A total of 172 food processing companies have been given sanctions for assistance under various categories of the scheme so far, he added.

The Ministry also provides financial support, through its R&D scheme under PMKSY, to educational and research institutions, including the Council of Scientific & Industrial Research (CSIR)-recognized research and development (R&D) units in the private sector, for related demand-driven R&D projects, keeping in mind the need for innovative product and process development in the food processing sector.

Under the scheme, 72 research projects have been approved from 2017–18 until June 30, 2024, with an approved subsidy of Rs 26.12 crore, the Minister said. In addition, the National Institute of Food Technology, Entrepreneurship, & Management (NIFTEM) in Kundli and NIFTEM in Thanjavur, under the administrative control of the Ministry, are also engaged in R&D activities in the sector, he added.