FPI Schemes for Rural Areas

The Ministry of Food Processing industries (MoFPI) has been implementing Central Sector Umbrella Scheme – Pradhan Mantri Kisan SAMPADA Yojana (PMKSY) since 2016-17 for overall growth and development of food processing sector, including processing of agro- products and thus increasing the income of the farmers. The component schemes of PMKSY are – (i) Mega Food Park, (ii) Integrated Cold Chain and Value Addition Infrastructure, (iii) Creation /Expansion of Food Processing & Preservation Capacities, (iv) Infrastructure for Agro-Processing Clusters, (v) Creation of Backward & Forward linkages, (vi) Food Safety and Quality Assurance Infrastructure, (vii) Human Resource and Institutions, (viii) Operation Greens. Under component schemes of PMKSY, MoFPI provides mostly credit linked financial assistance (capital subsidy) in the form of grants-in-aid to entrepreneurs for setting up of food processing / preservation industries. PMKSY is not region or state specific but demand driven and is implemented across the country including the rural areas of Tamil Nadu. So far, Ministry has approved 41 Mega food Parks, 353 Cold Chain projects, 63 AgroProcessing Clusters, 292 Food Processing Units, 63 Creation of Backward & Forward Linkages Projects & 6 Operation Green projects across the country under corresponding component schemes of PMKSY. Out of these, Ministry has approved 1 Mega Food Park project, 17 Cold Chain projects, 10 Agro Processing Clusters, 22Food Processing Units, 9 Creation of Backward & Forward Linkages Projects & 20 Food Test Laboratory projects in Tamil Nadu under corresponding component schemes of PMKSY.

The sanctioned projects across the country under component schemes of PMKSY are estimated to benefit about 34 lakh famers on completion. In the evaluation study of Integrated Cold Chain and Value Addition Infrastructure Scheme conducted by M/s NABARD Consultancy Limited (NABCONS) in Year 2020, it has been estimated that captive projects under the scheme have resulted in increase in farm-gate prices by 12.38 % and each project is estimated to benefit more than 9500 farmers.

Also, as part of the Aatmanirbhar Bharat Initiative, MoFPI is implementing a Centrally Sponsored Scheme-PM Formalisation of Micro Food Processing Enterprises Scheme (PMFME) for providing financial, technical and business support for setting up/upgradation of 2 lakh micro food processing enterprises through credit linked subsidy during five years from 2020-21 to 2024-25 with an outlay of Rs.10,000 crore. Out of this, a total of 12128 units have been allocated to Tamil Nadu with tentative outlay of Rs 572.71 cr. for five years.

This information was given by Minister of State, M/o Food Processing Industries, Shri Prahlad Singh Patel in a written reply in Lok Sabha today.