Govt sanctions Rs 10k cr for 92,549 food processing units

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

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 micro food processing units, Minister of State for Food Processing Industries Ravneet Singh told the Lok Sabha in a written reply.

The Ministry is also implementing other Central sector schemes of the Pradhan Mantri Kisan Sampada Yojana (PMKSY), and the Production Linked Incentive Scheme for 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, creation of employment opportunities, reducing wastage, increasing the processing level and enhancing the export of processed foods, the Minister said, adding that all these 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 subsidy 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.

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.

Keeping in view the requirement for innovative product and process development in the food processing sector, the Ministry also extends financial support to educational and research institutions including the Council of Scientific & Industrial Research (CSIR) recognised research and development (R&D) units in the private sector for related demand driven R&D projects through its R&D scheme under PMKSY.