schemes food processing ministry

Important schemes and Initiatives of Food Processing Ministry – Explainer

status of food processing sector

Pradhan Mantri Kisan SAMPADA Yojana

Government of India (GOI) has approved a new Central Sector Scheme – Pradhan Mantri Kisan SAMPADA Yojana (Scheme for Agro-Marine Processing and Development of Agro-Processing Clusters) with an allocation of Rs. 6,000 crore. The scheme will be implemented by Ministry of Food Processing Industries (MoFPI).

PM Kisan SAMPADA Yojana is a comprehensive package which will result in creation of modern infrastructure with efficient supply chain management from farm gate to retail outlet.

The following schemes will be implemented under PM Kisan SAMPADA Yojana :

  • Mega food parks
  • Integrated cold chain and value addition infrastructure
  • Infrastructure for agro processing clusters
  • Creation / Expansion of food Processing & Preservation Capacities
  • Food Safety and Quality Assurance Infrastructure
  • Human Resources Institutions

pradan mantri kisan sampada yojna

Mega Food Park

The Scheme of Mega Food Park aims at providing 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 rural sector.

The Mega Food Park project is implemented by a Special Purpose Vehicle (SPV) which is a Body Corporate registered under the Companies Act. A Mega Food Park is likely to benefit about 25000 farmers apart from creating employment for 5000 persons, especially in rural areas.

As of year 2017, the following Mega Food Parks were operationalized / inaugurated

  1.      Patanjali Food and Herbal Park, Haridwar (Uttarakhand);
  2.      The Indus Mega Food Park, Khargone (Madhya Pradesh);
  3.      Jharkhand Mega Food Park Ranchi (Jharkhand),
  4.      Jangipur Bengal Mega Food Park, Murshidabad(West Bengal)
  5.      Srini Food Park, Chittoor, (Andhra Pradesh);
  6.      North East Mega Food Park, Nalbari, (Assam);
  7.      International Mega Food Park, Fazilka, (Punjab);
  8.      Integrated Food Park,Tumkur, (Karnataka);
  9.      MITS Mega Food Park Pvt Ltd, Rayagada, (Odisha)

Foundation Stone for the following Mega Food Parks laid

  1.      Punjab Agro Industries Corporation Mega Food Park Project, Ludhiana
  2.      Mega Food Park developed by KINFRA at Palakkad in Kerala
  3.      Mega Food Park developed by KSIDC at Alappuzha in Kerala
  4.      Maize Based Mega Food Park in Kapurthala, Punjab

Hub and spoke model cold chain

Agro Processing Cluster

The scheme aims at development of modern infrastructure and common facilities to encourage group of entrepreneurs to set up food processing units based on cluster approach. Under the scheme, effective backward and forward linkages are created by linking groups of producers/ farmers to the processors and markets through well-equipped supply chain consisting of modern infrastructure for food processing closer to production areas and provision of integrated/ complete preservation infrastructure facilities from the farm gate to the consumer.

Each clusters have two basic components i.e.

  1. Basic Enabling Infrastructure (roads, water supply, power supply, drainage, ETP etc.),
  2. Core Infrastructure/ Common facilities (warehouses, cold storages, IQF, tetra pack, sorting, grading etc)

and at least 5 food processing units with a minimum investment of Rs. 25 crore. The units are set up simultaneous along with creation of common infrastructure.

Scheme for Creation/Expansion of Food Processing/Preservation Capacities

The main objective of the Scheme is creation of processing and preservation capacities and modernisation/ expansion of existing food processing units with a view to increasing the level of processing, value addition leading to reduction of wastage. The processing units undertake a wide range of processing activities depending on the processing sectors which results in value addition and/ or enhancing shelf life of the processed products.

Scheme is implemented through organizations such as Central & State PSUs/ Joint Ventures/ Farmer Producers Organization (FPOs)/ NGOs/ Cooperatives/ SHGs/ Pvt. Ltd companies/ individuals proprietorship firms engaged in establishment/ upgradation/ modernization of food processing units..

Scheme of Cold chain

The objective of the scheme of Cold Chain, Value Addition and Preservation Infrastructure is to provide integrated cold chain and preservation infrastructure facilities, without any break, from the farm gate to the consumer. It covers pre-cooling facilities at production sites, reefer vans, mobile cooling units as well as value addition centres which include infrastructural facilities like Processing / Multi-line Processing / Collection Centres, etc. for horticulture, organic produce, marine, dairy, meat and poultry etc.

The integrated cold chain project is set up by Partnership / Proprietorship Firms, Companies, Corporations, Cooperatives, Self Help Groups (SHGs), Farmer Producer Organizations (FPOs), NGOs, Central / State PSUs, etc. subject to fulfilment of eligibility conditions of scheme guidelines.

cold chain technologY

Operation Green

A new initiative “Operation Green” has been announced this Budget 2018-19, that ensures farmers get right price for their produce and to address the challenge of price volatility of perishable commodities like tomato, onion and potato that benefits customers. Its operations will be  handled by Ministry of Food Processing & Industries.

To prevent distress sale, a provision of Rs. 500 crore has been made in this budget. The government is looking at creating infrastructure for natural preservation of these crops and promoting the Farmers Producers Organization(FPO).

operation green

World Food India, 2017

Ministry organised World Food India 2017 from November 3-5th in Delhi to showcase investment potential of India in the Food Processing Sector. The event provided a platform for exhibiting innovative products and manufacturing processes showcasing the entire value chain of food processing industry with a vision to leverage innovation, technology, development & sustainability in the backdrop of achieving food security.

61 Countries and Global CEOs participated in the Fair along with 800 global & Domestic exhibitors from 27 States. The exhibition saw footfall from 75000 business visitors. Germany, Japan and Denmark were Partner Countries to World Food India whereas Italy & Netherlands were Focus Countries. The President of India at the Valedictory function of World Food India 2017 aptly termed it the “the Kumbh Mela of Indian Food”.

world food india program

Investors Portal ‘Nivesh Bandhu’ Launched

At the inaugural of World Food India, PM launched Nivesh Bandhu – Investors’ Portal on the occasion. The unique portal is aimed at bringing together information on Central and State government policies and incentives provided for the food-processing sector.

The portal maps resources upto the local level, with processing requirements. It is also a platform for business networking, for farmers, processors, traders, and logistics operators. The portal also includes Food Map of India. The Food Map enables investor to take decision with regard to locating their projects as the food map showed mapping of the potential of food processing in surplus production areas.

100% FDI for trading

Government has allowed 100% FDI for trading including through e-commerce, in respect of food products manufactured or produced in India. 100% FDI is already permitted in manufacturing of food products through automatic route.  This will provide impetus to the foreign investment in food processing sector, benefit farmers immensely and will create vast employment opportunities.

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