Lok Sabha Question No. 300 (STARRED), answered on 2021-03-16
Subject: Micro Food Processing Enterprises
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: Manickam Tagore B

## GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA STARRED QUESTION No. *300

ANSWERED ON 16 TH  MARCH, 2021

## MICRO FOOD PROCESSING ENTERPRISES

## *300.  SHRI MANICKAM TAGORE B.:

Will the Minister of FOOD PROCESSING INDUSTRIES be pleased to state:

- (a) whether the Government has proposed/launched any scheme for formalisation of micro food processing enterprises with an outlay of Rs. 10,000 crore for providing credit-linked subsidy to 2 lakh micro food processing units across the country;
- (b) if so, the details thereof;
- (c) whether  the  Government  has  fixed  any  target  for  strengthening  infrastructure  of  the industry across the country; and
- (d) if  so,  the details thereof including the financial support to the State Government in this regards?

## ANSWER

THE MINISTER OF FOOD PROCESSING INDUSTRIES (SHRI NARENDRA SINGH TOMAR)

(a) to (d):  A statement is laid on the Table of the House.

## STATEMENT  REFERRED  TO  IN  REPLY  TO  PART  (a)  to  (d)  OF  LOK  SABHA STARRED QUESTION NO.*300  ANSWERED ON 16 TH   MARCH,  2021  REGARDING 'MICRO FOOD PROCESSING ENTRPRISES'.

(a) to (d):  Yes Sir.

As  a  part  of  Aatmnirbhar  Bharat  Abhiyan,  Ministry  of  Food  Processing  Industries  has launched an all India centrally sponsored "PM Formalisation of Micro food processing Enterprises (PMFME) Scheme" for providing financial, technical and business support for upgradation of existing micro food processing enterprises. It is to be implemented for a period of five years from 2020-21 to 2024-25 with an outlay of Rs.10,000 crore.

The Scheme adopts One District One Product (ODOP) approach to reap benefit of scale in terms  of  procurement  of  inputs,  availing  common  services  and  marketing  of  products.  ODOP approach  would  provide  framework  for  value  chain  development    and  alignment  of  support infrastructure.

The objectives of the scheme are to build capability of two lakh micro enterprises through increased access to credit, integration with organized supply chain by strengthening branding & marketing, increased access to common services, strengthening of institutions, research & training in  the  food  processing  sector.  The  scheme  provides  for  credit  linked  subsidy  at  35%  for upgradation of individual units, groups and common infrastructure.

Support under the PMFME scheme is provided for common infrastructure to FPOs, SHGs, Cooperatives,  any  Government  agency  or  private  enterprises.  Common  infrastructure  created under  the  scheme  will  be  available  for  other  units  and  public  to  utilize  on  hiring  basis  for substantial part of the capacity. Credit linked grant would be available @ 35% of the eligible project cost for setting sup common infrastructure.

The following common infrastructure would be funded under the Scheme:

- i) Premises for assaying of agriculture produce, sorting, grading, warehouse and cold storage at the farm-gate
2. ii) Common processing facility for processing of ODOP produce;
3. iii) Incubation Centre having one or more product lines, which could be utilized by micro units on a  hire  basis  for  processing  of  their  produce.  The Incubation  Centre  should  partly  be  used  for training purpose.

The credit linked grant would be provided to the bank account of the beneficiary. Being a Centrally Sponsored Scheme, the sharing pattern of funds between the Centre and the States is as under:

- i. Centre-State share at 60:40;
- ii. 90:10 sharing between Center and Himalayan & North Eastern States;
- iii. UTs with Legislature -  sharing would be 60:40 between the Centre and the UTs;
- iv. UTs without Legislature - 100% funds would be provided by the Central Government.

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