Lok Sabha Question No. 1958 (UNSTARRED), answered on 2025-07-31
Subject: Support to Farmers for Adopting Quality Standards
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: Shri Anup Sanjay Dhotre

## GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA UNSTARRED QUESTION NO. 1958

ANSWERED ON 31 ST  JULY, 2025

## SUPPORT TO FARMERS FOR ADOPTING QUALITY STANDARDS

## 1958. SHRI ANUP SANJAY DHOTRE:

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

- (a) the manner in which the Government is facilitating direct linkages between farmers and food processors to ensure fair prices;
- (b) the details of the existing initiatives to promote contract farming and aggregators for supply chain efficiency;
- (c) the  manner  in  which  the  farmers  are  supported  in  adopting  quality  standards  and certifications; and
- (d) the details of the training and capacity-building programmes available to farmers for value addition?

## ANSWER

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

(a) & (b): Ministry of Food Processing Industries (MoFPI) is implementing two Central Sector Schemes namely Pradhan Mantri Kisan SAMPADA Yojana (PMKSY) and Production Linked Incentive  Scheme  for  Food  Processing  Industry  (PLISFPI).  Further,  a  Centrally  sponsored scheme namely PM Formalization of Micro Food Processing Enterprises (PMFME) scheme is also being implemented.

Farmer producer organization (FPO) are eligible to apply under these schemes. Under PMKSY,  the  following  preferential  provisions  have  been  made  in  component  scheme guidelines of PMKSY for FPOs:

- i. Net Worth requirement reduced to amount equal to grant sought, in comparison to 1.5 times for proposals from general areas;
- ii. Term Loan requirement reduced to 10% of eligible project cost, in comparison to 20% for proposals from general areas;
- iii. Equity requirement reduced to 10% of eligible project cost, in comparison to 20% for proposals from general areas;
- iv. Quantum of grant at enhanced level of 50% of eligible project cost, in comparison to 35% for proposals from general areas (Subject to the maximum ceiling under respective subschemes);
- v. Requirement of minimum project cost reduced to Rupees One Crore, in comparison to rupees Three Crores in respect of  Creation / Expansion of Food Processing & Preservation Capacities Scheme projects [for other component schemes, no such criteria is fixed]

Under Integrated Cold Chain and Value Addition Infrastructure component scheme of PMKSY, creation of farm level infrastructure in the catchment area of the targeted produce is mandatory.  Similarly,  under  Integrated  Value  Chain  Development  Projects  of  Operation Greens  component  scheme  of  PMKSY,  formation  of  new  FPOs,  Controlled  temperature/ ventilated vehicle and Marketing Infrastructure (Retail chain of outlets for perishable products with  facilities  such  as  frozen  storage/  cold  room/  cold  storage/  deep  freezers/  refrigerated display cabinets/ chillers/ packing/ packaging/ ripening chamber etc.) are mandatory.

All these help in creation of linkage between farmers & food processors and thereby increasing the income of the farmers.

(c) &  (d): PMFME  scheme  provides for handhold support for formalization and operationalization of the micro food processing enterprises including FSSAI registration/licensing,  as  applicable.  Under  Capacity  building  component  of  the  PMFME scheme,  trainings  in  FSSAI  regulations,  safety  and  hygiene  practices,  food  quality  testing norms etc. is provided to ensure the outreach of food safety and hygiene practices to all micro food enterprises.

MoFPI also provide Grants for training of Trainers (Master Trainers, District Level Trainers), District Resource Persons, Food Processing Entrepreneurs and various other groups (SHGs/ FPOs/ Cooperatives). Grants upto 50% for branding and marketing support to groups of  FPOs/  SHGs/  Cooperatives  or  a  Special  Purpose  Vehicle  of  Micro  Food  Processing Enterprises is available under related component of PMFME Scheme.

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