Syllabus Section: Agriculture ( Food Processing Industries)
WHY IN NEWS?
Ministry of Food Processing Industries signs a Joint Communique and 5 MoUs with Ministry of Tribal Affairs, TRIFED, ICAR, NSFDC, NAFED and NCDCdefining convergence mechanism in implementation of PM FME scheme.
- To support the food processing industries in the country, the PM FME scheme was launched on 29th June 2020. The scheme is a part of the Atmanirbhar Bharat Abhiyan and the “Vocal for Local” campaign initiated by the Hon’ble Prime Minister Shri Narendra Modi.
ABOUT THE SCHEME
- PM FME is a centrally funded sector scheme with an aim to provide financial, technical and business support to micro food processing units in the country. The total outlay of the scheme is $ 1.3 Bn spread over a span of 5 years from 2020-21 to 2024-25. The funding under the scheme will be shared by the Centre and State governments in the following ratios:
- For States and UTs with legislature: 60% by Centre and 40% by State/ UT
- Himalayan and North Eastern States: 90% by Centre and 10% by State
- UTs without legislature: 100% by the Centre
- About 2 lakh micro food processing units will be given direct financial assistance in the form of credit linked subsidy under the scheme. Moreover, institutional architecture and common infrastructure facilities in the sector will also be given adequate support.
OBJECTIVES OF THE SCHEME
The main objectives of the scheme include:
- Formalization of micro units by means of GST, Udyog Aadhar and FSSAI registrations
- Financial assistance to individual units for upgradation of food processing facilities
- Quality improvement and skill development through trainings and technical knowledge
- Financial assistance to Farmer Producer Organizations (FPOs), Self Help Groups (SHGs), producer’s cooperatives for setting up common infrastructure facilities
- Branding and marketing support to FPOs, SHGs and producer cooperatives
- Support and assistance in availing bank loans and preparation of detailed project reports (DPR)
The PM FME scheme will provide financial assistance in capital investment activities under the following broad categories:
- For Upgradation of Individual Micro Food Processing Units, 35% credit-linked capital subsidy of the eligible project cost can be availed with a maximum ceiling of INR 10 lakh per unit.
- For capital investment along the value chain, a 30% credit linked grant will be made available to FPOs, SHGs and cooperatives.
- For SHGs engaged in food processing, INR 40,000 seed capital per SHG member would be provided in the form of grant for working capital and purchase of small tools.
- For development of common infrastructure facilities such as warehouse, cold storage and processing facility, a 35% credit linked grant would be made available to SHGs, FPOs, cooperatives, state owned agencies and private entrepreneurs.
The PM FME scheme derives inspiration from the One District One Product (ODOP) Programme of the Uttar Pradesh (UP) government which aims to create product-specific traditional industrial hubs across 75 districts of UP.