Lok Sabha Question No. 4572 (UNSTARRED), answered on 2023-03-28
Subject: Vocal for Local in Food Processing Sector
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: Manoj Kishorbhai Kotak

## GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA UNSTARRED QUESTION No. 4572

ANSWERED ON 28 TH  MARCH, 2023

## VOCAL FOR LOCAL IN FOOD PROCESSING SECTOR

## 4572. SHRI MANOJ KOTAK:

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

- (a) whether the Government has taken any initiative for Atmanirbhar Bharat Abhiyan-Vocal for Local in Food Processing Sector;
- (b) if so, the details thereof, State-wise especially in Maharashtra;
- (c) whether the Government is helping the micro enterprises in view of challenges faced by them;
- (d) if so, the details thereof;
- (e) whether the Government has any proposal for capacity building entrepreneurship development for micro enterprises working in the field of Food Processing Industries; and
- (f) if so, the details thereof?

## ANSWER

## THE MINISTER OF STATE FOR FOOD PROCESSING INDUSTRIES (SHRI PRAHLAD SINGH PATEL)

(a) & (b). As part of Atmanirbhar Bharat Abhiyan - Vocal for Local Initiative in food processing sector, 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 / upgradation 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. Till date, 27,003 Loans have been sanctioned in the country under credit linked subsidy  component  of  PMFME  Scheme,  out  of  which  5864  loans  sanctioned  in  the  State  of Maharashtra. The State-wise details are at Annexure .

(c) & (d). The PMFME scheme is designed to address the challenges faced by the micro 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 formalization of the sector. The details of assistance available to Micro Food Processing Enterprises under PMFME Scheme:

(i). Support to Individual / Group Category Micro Enterprises: Credit-linked capital subsidy @35% of the eligible project cost, maximum ceiling Rs.10 lakh per unit;

(ii). Support to SHGs for seed capital: Seed capital upto Rs. 40,000/- per member of SHG engaged in food processing for working capital and purchase of small tools subject to maximum of Rs. 4 lakh per SHG.

- (iii). Support for Common Infrastructure: Credit linked capital subsidy

@35% subject to maximum of Rs. 3 crore 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 public to utilize on hiring basis for substantial part of the capacity.

(iv). Branding and Marketing Support: Grant  upto  50% for Branding and Marketing to groups of FPOs/ SHGs/ Cooperatives or an SPV of micro food processing enterprises.

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

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

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## ANNEXURE  REFERRED  IN  REPLY  TO  PART  (a)  &  (b)  OF  THE  LOK  SABHA UNSTARRED QUESTION NO. 4572 FOR ANSWER ON 28.03.2023 REGARDING 'VOCAL FOR LOCAL IN FOOD PROCESSING SECTOR'

## State-wise number of loans sanctioned under credit linked subsidy component of PMFME Scheme

| Sl. No.   | State/UT                                 |   No. of Loans Sanctioned |
|-----------|------------------------------------------|---------------------------|
| 1         | Andaman And Nicobar Islands              |                        11 |
| 2         | Andhra Pradesh                           |                      1937 |
| 3         | Arunachal Pradesh                        |                        22 |
| 4         | Assam                                    |                       583 |
| 5         | Bihar                                    |                      2345 |
| 6         | Chandigarh                               |                         5 |
| 7         | Chhattisgarh                             |                       210 |
| 8         | Dadra And Nagar Haveli And Daman And Diu |                         2 |
| 9         | Delhi                                    |                        94 |
| 10        | Goa                                      |                        41 |
| 11        | Gujarat                                  |                       100 |
| 12        | Haryana                                  |                       384 |
| 13        | Himachal Pradesh                         |                       753 |
| 14        | Jammu And Kashmir                        |                       212 |
| 15        | Jharkhand                                |                       146 |
| 16        | Karnataka                                |                      1922 |
| 17        | Kerala                                   |                       611 |
| 18        | Ladakh                                   |                        22 |
| 19        | Madhya Pradesh                           |                      1468 |
| 20        | Maharashtra                              |                      5864 |
| 21        | Manipur                                  |                       245 |
| 22        | Meghalaya                                |                        30 |
| 23        | Mizoram                                  |                         5 |
| 24        | Nagaland                                 |                        24 |
| 25        | Odisha                                   |                       733 |
| 26        | Puducherry                               |                        47 |
| 27        | Punjab                                   |                       935 |
| 28        | Rajasthan                                |                       273 |
| 29        | Sikkim                                   |                        31 |
| 30        | Tamil Nadu                               |                      3552 |
| 31        | Telangana                                |                      1956 |
| 32        | Tripura                                  |                        46 |
| 33        | Uttar Pradesh                            |                      2182 |
| 34        | Uttarakhand                              |                       212 |
| Total     | Total                                    |                     27003 |