Government Schemes for Food Processing Industries | PART 1 | GS PAPER 3
Production Linked Incentive Scheme for Food Processing Industry (PLISFPI)
Ministry of Food Processing Industries (MoFPI) launched an online portal for PLISFPI.
Scheme Objectives:
- Support Food manufacturing entities with stipulated minimum Sales and willing to make a minimum stipulated investment for expansion of processing capacity and Branding abroad to incentivize the emergence of strong Indian brands.
- Support creation of global food manufacturing champions.
- Strengthen select Indian brands of food products for global visibility and wider acceptance in the international markets.
- Increase employment opportunities for off-farm jobs.
- Ensuring remunerative prices of farm produce and higher income to farmers.
Pradhan Mantri Kisan SAMPADA Yojana
- In 2016, MoFPI introduced an umbrella Scheme for Agro-Marine Processing and Development of Agro-Processing Clusters or SAMPADA.
- In 2017, SAMPADA was renamed as the Pradhan Mantri Kisan Sampada Yojana (PMKSY).
- It is a Central Sector Scheme.
Objectives:
- To supplement agriculture.
- To create processing and preservation capacities.
- To modernize and expand existing food processing units with a view to increasing the level of processing.
- To add value leading to the reduction of wastage.
The following schemes will be implemented under PM Kisan SAMPADA Yojana :
- Mega Food Parks
- Integrated Cold Chain and Value Addition Infrastructure
- Creation/ Expansion of Food Processing/ Preservation Capacities (Unit Scheme)
- Infrastructure for Agro-processing Clusters
- Creation of Backward and Forward Linkages
- Food Safety and Quality Assurance Infrastructure
- Human Resources and Institutions
- Operation Greens
Under PMKSY, capital subsidy in the form of grants-in-aid ranging from 35% to 75% of the eligible project cost subject to a maximum specified limit is provided to investors under the various schemes for undertaking infrastructure, logistic projects, and setting up of food processing units in the country.
Mega Food Park Scheme
To provide a mechanism to link agricultural production to the market by bringing together farmers, processors, and retailers so as to ensure maximizing value addition, minimizing wastage, increasing farmers' income, and creating employment opportunities, particularly in the rural sector.
The Mega Food Park Scheme is based on the “Cluster” approach and envisages the creation of state of art support infrastructure in a well-defined Agri / horticultural zone for setting up modern food processing units in the industrial plots provided in the park with a well-established supply chain.
Mega food park typically consists of supply chain infrastructure including collection centers, primary processing centers, central processing centers, cold chain, and around 25-30 fully developed plots for entrepreneurs to set up food processing units.
Scheme of Cold Chain
To provide integrated cold chain and preservation infrastructure facilities, without any break, from the farm gate to the consumer.
It covers the creation of infrastructure facility along the entire supply chain viz. pre-cooling, weighing, sorting, grading, waxing facilities at farm level, multi-product/ multi-temperature cold storage, reefer vans, mobile cooling units for facilitating distribution of horticulture, organic produce, marine, dairy, meat, and poultry, etc.
Creation/ Expansion of Food Processing/ Preservation Capacities (Unit Scheme)
For the creation of processing and preservation capacities and modernization/ expansion of existing food processing units with a view to increasing the level of processing, value addition leading to reduction of wastage by preservation.
While the expansion of processing capacity is necessary to increase the level of processing and reduce wastage, the induction of modern technology is intended to make a clear difference in terms of process efficiencies as well as improving the quality of the end product.
Agro Processing Cluster
Development of modern infrastructure and common facilities to encourage a group of entrepreneurs to set up food processing units based on a cluster approach by linking groups of producers/ farmers to the processors and markets through a well-equipped supply chain with modern infrastructure.
Scheme for Creation of Backward and Forward Linkages
To provide effective and seamless backward and forward integration for the processed food industry by plugging the gaps in the supply chain in terms of availability of raw material and linkages with the market.
Food Safety & Quality Assurance Infrastructure
Quality and Food Safety have become competitive edge in the global market for food products.
It is in the interest of consumer safety and public health, there is a need to ensure that the quality food products manufactured and sold in the market meet the stringent parameters prescribed by the food safety regulator.
Keeping in view the aforesaid objectives, the government has been extending financial assistance under the scheme for setting up or upgrading Quality Control/Food Testing Laboratories.
Operation Greens
In Budget 2018-19, a new Scheme “Operation Greens” was announced on the line of “Operation Flood”, to promote Farmer Producers Organizations (FPOs), agri-logistics, processing facilities, and professional management.
Accordingly, the Ministry has formulated a scheme for integrated development of the Tomato, Onion, and Potato (TOP) value chain.
Reduction in post-harvest losses by creation of farm gate infrastructure, development of suitable agro-logistics, creation of appropriate storage capacity linking consumption centers.
Increase in food processing capacities and value addition in the TOP value chain with firm linkages with production clusters.
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