Lok Sabha Question No. 599 (UNSTARRED), answered on 2024-11-28
Subject: Financial Assistance to Micro Food Processing Enterprises
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: Smt. Poonamben Hematbhai Maadam

## GOVERNMENT OF INDIA

## MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA

## UNSTARRED QUESTION No. 599 ANSWERED ON 28 TH  NOVEMBER, 2024

## FINANCIAL ASSISTANCE TO MICRO FOOD PROCESSING ENTERPRISES

## 599. SMT. POONAMBEN HEMATBHAI MAADAM:

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

- (a) whether the Government has provided any financial assistance to the Micro Food Processing Enterprises under the Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFMEs) Scheme;
- (b) if so, the details thereof;
- (c) whether  the  Government  provides  financial  assistance  for  research  and  development  in  food  processing Sector;
- (d) if so, the details thereof; and
- (e) whether  the  Government  has  partnered  with  educational  and  research  institutions  for  food  processing Research and Development (R&D) and if so, the details thereof?

## ANSWER

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

(a) & (b).  Ministry of Food Processing Industries (MoFPI) is implementing a Centrally Sponsored- "Pradhan Mantri Formalisation  of  Micro  Food  Processing  Enterprises  (PMFME)  Scheme"  for  providing  financial,  technical  and business support for upgradation of micro food processing enterprises in the country. The scheme is operational for a period of five years from 2020-21 to 2025-26 with an outlay of Rs. 10,000 Crore.  The scheme aims to enhance the  competitiveness  of  existing  individual  micro-enterprises  in  the  unorganized  segment  of  the  food  processing industry and promote formalization of the sector. The Scheme primarily adopts One District One Product (ODOP) approach to reap the benefit of scale in terms of procurement of inputs, availing common services and marketing of products. It provides the framework for value chain development and alignment of support infrastructure.  The ODOP are identified by States / UTs based on the agriculture production, raw material availability, perishability of the product etc. The details of financial assistance offered to the prospective entrepreneurs under PMFME Scheme to promote ODOP are at Annexure .

(c) to (e).  Ministry of Food Processing Industries (MoFPI) extends financial assistance as grant-in-aid to various institutions/ universities, Public funded organizations and recognized R&D laboratories both in public and private sector, to promote and undertake demand driven R&D work in the Food Processing Sector for product and process development, design and development of equipment, improved storage, shelf-life, packaging etc.

Under the scheme, financial assistance as grant-in-aid is given to Private organizations/ Universities/institutions/R&D laboratories and Council of Scientific & Industrial Research (CSIR) recognized R&D units in private sector to the tune of 50% of equipment cost in general areas and 70% in difficult areas and to various Universities,  Indian  Institute  of  Technology (IITs),  Central/  State  Government  Institutions,  Government  funded organizations to promote and undertake demand driven R&D work in food processing sector for product & process development, design and development of equipment, improved storage, shelf-life, packaging etc. R&D projects of Government organizations/ Institutions are eligible for 100% grant-in-aid for the cost of equipment, consumables and expenditure related to Research Fellows, etc. R&D portal had been developed through the National Institute of Food  Technology,  Entrepreneurship  &  Management  (NIFTEM),  Kundli,  Sonepat,  Haryana  to  disseminate information  relating  to  research  &  development  work  supported  by  MoFPI  scheme,  including  outcomes, technologies developed, etc. The portal will also be a repository of R&D work by other Ministries/Institutions in the food processing sector.

## ANNEXURE REFERRED IN REPLY TO PART (a) & (b) OF THE LOK SABHA UNSTARRED QUESTION NO. 599 FOR ANSWER ON 28.11.2024 REGARDING 'FINANCIAL ASSISTANCE TO MICRO FOOD PROCESSING ENTERPRISES'

The details of financial assistance offered to the enterprises under Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme are as under:

- (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  @  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 Federation.
- (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.

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