Over 42,800 Food Processing Units Registered Under Government Incentive Schemes: Minister

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Over 42,800 Food Processing Units Registered Under Government Incentive Schemes: Minister

Synopsis

As of March 27, 2023, a total of 42,801 food processing industries have been registered in India to promote the sector's growth and development through various government schemes, according to a statement from the Minister of State for Food Processing Industries.

Key Takeaways

  • 42,801 food processing units registered in India.
  • Financial support through PMKSY, PLISFPI, and PMFME schemes.
  • Focus on value-added products and farmers' income.
  • Grants available for branding under PMFME.
  • One District One Product approach to support local industries.

New Delhi, March 27 (NationPress) A total of 42,801 food processing units have been officially registered across the nation to foster and ensure the comprehensive growth of the sector under various government initiatives, as stated in Parliament on Thursday.

The Ministry of Food Processing Industries (MoFPI) has been providing incentives for the establishment of infrastructure through its Central Sector schemes, including the Pradhan Mantri Kisan Sampada Yojana (PMKSY), the Production Linked Incentive Scheme for Food Processing Industry (PLISFPI), and the Centrally-sponsored Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme, as articulated by the Minister of State for Food Processing Industries, Ravneet Singh, in a written response to the Lok Sabha.

These schemes aim to develop value-added products that can lead to improved prices for agricultural and horticultural goods while boosting farmers' incomes across the nation. They are designed to encourage the preservation and processing of food items, as well as the modernization and capacity enhancement of food processing units. The Ministry also provides financial support to aspiring entrepreneurs for establishing various types of food processing units, according to the minister.

Through the PMKSY, credit-linked financial assistance in the shape of capital subsidies is offered to entrepreneurs for establishing food processing enterprises, with a total investment of Rs 5,520 crore allocated for the 15th Finance Commission cycle.

The PMFME scheme provides financial, technical, and business assistance for the establishment or upgrading of micro food processing enterprises, set to operate until 2025-26 with an allocation of Rs 10,000 crore.

The PLISFPI aims to nurture global food manufacturing leaders and support Indian food brands in the international market, operating from 2021-22 to 2026-27 with a budget of Rs 10,900 crore.

Grants of up to 50 percent for branding and marketing support are available for groups of farmers’ production organizations and self-help groups/cooperatives under the relevant section of the PMFME Scheme.

To boost local industries, the One District One Product (ODOP) approach has been adopted under the PMFME Scheme, facilitating economies of scale in procurement, common services, and product marketing. This framework aids in value chain development and the alignment of supporting infrastructure. ODOPs are identified by states and Union Territories based on agricultural production, availability of raw materials, and product perishability.

The MoFPI has pinpointed 40 clusters for 10 fruits across 15 states, 97 clusters for 11 vegetables in 25 states, and 1 cluster for marine produce in a single state under the Operation Greens scheme as part of the Pradhan Mantri Kisan Sampada Yojana to ensure better access to raw materials for food processing industries, the minister concluded.