Government initiatives will promote the food processing Industries growth and brand development.
The Ministry of Food Processing Industries (MoFPI) recognizes the essential role that entrepreneurs play in the growth of the food processing industries and supports them through its Central Sector Umbrella Scheme.
Pradhan Mantri Kisan SAMPADA Yojana (PMKSY) has been in place since 2016–17 for the purpose of fostering the entire expansion and development of the food processing industry, including the processing of agricultural goods and raising farmer’s incomes throughout the nation, notably in the states of Maharashtra and Rajasthan.
Under the component schemes of PMKSY, MoFPI primarily offers grants-in-aid to entrepreneurs for the establishment of food processing companies that are credit-linked financial assistance (capital subsidy). The expected number of farmers who will benefit from projects finished under PMKSY component schemes is 30.67 lakh.
Additionally, as part of the Aatmanirbhar Bharat Initiative, MoFPI is putting into action a Centrally Sponsored Scheme called the PM Formalisation of Micro Food Processing Enterprises Scheme (PMFME) to provide financial, technical, and business support for the establishment or upgrade of 2 lakh micro food processing enterprises through credit linked subsidy over five years from 2020–21 to 2024–25 with an outlay of Rs. 10,000 crores. Out of this, Maharashtra and Rajasthan have each received a total of 22234 units and 7331 units, respectively.
The Central Sector Production Linked Incentive Scheme for the Food Processing Industry (PLISFPI) Scheme is another initiative being carried out by MoFPI with the goal of fostering the development of world leaders in the food manufacturing industry. A total of Rs. 10,900 crores would be spent on the Scheme’s implementation during a six-year span from 2021–2022 to 2026–2027.
All food and agro-processing industries are now eligible for Priority industry Lending, and the National Bank for Agriculture and Rural Development has established a special fund of Rs. 2000 crore to facilitate easy and affordable lending to the industry. (NABARD).
PMKSY (Pradhan Mantri Kisan SAMPADA Yojana), PLISFPI (Production Linked Incentive Scheme for Food Processing Industry), and PMFME (PM Formalization of Micro Food Processing Enterprises) scheme, all of which are centrally supported.
With a total investment of Rs 4600 Cr for the 15th Finance Commission Cycle, MoFPI offers grants-in-aid under component programs of PMKSY that are mostly credit-linked financial assistance (capital subsidy).
In contrast, PLISFPI aims to facilitate the expansion of food processing capacity by creating champion brands in the food processing sector with a total outlay of Rs 10,900 Cr for a period of 6 years. The Ministry offers financial, technical, and business support to micro food processing enterprises through the PMFME scheme with an expenditure of Rs 10,000 Cr for a period of 5 Years (2020-21 to 2024-25). (2021-22 to 2026-27).
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