Vocal for local in food processing sector

As part of Atmanirbhar Bharat Abhiyan – Vocal for Local Initiative in the food processing sector, the Ministry of Food Processing Industries (MoFPI) is implementing a centrally sponsored ‘PM Formalisation of Micro food processing Enterprises (PMFME) Scheme’ for providing financial, technical, and business support for setting up / up-gradation of micro food processing enterprises in the country. The scheme is operational for a period of five years from 2020-21 to 2024-25 with an outlay of Rs 10,000 Crore. The scheme primarily adopts One District One Product (ODOP) approach to reap the benefit of scale in terms of procurement of inputs, availing common services and marketing of products. It provides the framework for value chain development and alignment of support infrastructure.

As per the Annual Survey of Industries, 2015-16 and 73^rd Round Survey of National Sample Survey Organisation (NSSO), there are about 25 lakh unregistered/ unincorporated food processing enterprises in the country. The details of the State-wise number of unregistered/unincorporated enterprises in the country are in Annexure-I.

The PMFME scheme is designed to address the challenges faced by the micro-enterprises and to tap the potential of groups and cooperatives in supporting the up-gradation and formalization of these enterprises. The scheme aims to enhance the competitiveness of new and existing individual micro-enterprises in the unorganized segment of the food processing industry and promote the formalization of the sector. The details of assistance available to Micro Food Processing Enterprises under the PMFME Scheme –

Support to individual/group category micro enterprises – Credit-linked capital subsidy @35% of the eligible project cost, maximum ceiling Rs10 lakh per unit.

Support to SHGs for seed capital – Seed capital @Rs 40,000 per member of SHG engaged in food processing for working capital and purchase of small tools subject to a maximum of Rs 4 lakh per SHG Federation.

Support for common infrastructure – Credit linked capital subsidy @35% subject to a maximum of Rs 3 crores to support FPOs, SHGs, Cooperatives, and any Government agency for setting up of common infrastructure. The common infrastructure will also be available for other units and the public to utilize on a hiring basis for a substantial part of the capacity.

Branding and marketing support – Grant up to 50% for branding and marketing to groups of FPOs/ SHGs/ Cooperatives or an SPV of micro food processing enterprises.

Capacity Building – The scheme envisages training for Entrepreneurship Development Skilling (EDP+) – a program modified to meet the requirement of the food processing industry and product-specific skilling.

Capacity building and training is a critical component of the scheme in the technical up-gradation and formalization of micro food processing enterprises. The focus areas for capacity building are entrepreneurship development, compliance with Food Safety and Standards Authority of India (FSSAI) standards, and general hygiene and other statutory compliances. District Resource Persons (DRPs) have been entrusted to provide handholding support to micro food processing enterprises for compliance with FSSAI and other statutory requirements.

Annexure

State-wise details of the State-wise number of unregistered/unincorporated enterprises in the country

Source – pib.gov.in

This information was given by Minister of State for M/o Food Processing Industries, Prahlad Singh Patel in a written reply in Lok Sabha today.