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Centre launches PM Formalisation of Micro Food Processing Enterprises scheme

Monday, 29 Jun 2020
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Union Minister for Food Processing Industries Harsimrat Kaur Badal launched the PM Formalisation of Micro Food Processing Enterprises (PM FME) scheme on 29 June 2020 as a part of Atmanirbhar Bharat Abhiyaan.

The scheme will generate total investment of Rs 35,000 crore and generate nine lakh skilled and semi-skilled employment and benefit eight lakh units through access to information, training, better exposure and formalisation. 

The PM FME scheme will be implemented over a period of five years from 2020-21 to 2024-25 with an outlay of Rs 10,000 crore. The expenditure under the scheme will be shared in 60:40 ratio between the Central and state governments, in 90:10 ratio with the North-Eastern and Himalayan states, 60:40 ratio with UTs with legislature and 100 percent by the Centre for other UTs.

The scheme adopts One District One Product (ODODP) approach to reap benefit of scale in terms of procurement of inputs, availing common services and marketing of products.

The states will identify food product for a district keeping in view the existing clusters and availability of raw material. The ODOP product could be a perishable produce-based product or cereal-based products or a food product widely produced in a district and their allied sectors.

Preference will be given to those producing ODOP products. However, units producing other products would also be supported. Support for common infrastructure and branding and marketing will be for ODOP products. The scheme also places focus on waste-to-wealth products, minor forest products and aspirational districts.

The existing Individual micro food processing units desirous of upgradation of their unit can avail credit-linked capital subsidy at 35 percent of the eligible project cost with a maximum ceiling of Rs 10 lakh per unit. Seed capital at Rs 40,000 per SHG member will be provided for working capital and purchase of small tools. 

FPOs/SHGs/producer cooperatives would be provided credit-linked grant of 35 percent for capital investment along the value chain. Support will be provided through credit-linked grant at 35 percent for development of common infrastructure including common processing facility, lab, warehouse, cold storage, packaging and incubation centre through FPOs/SHGs /cooperatives or state owned agencies or private enterprise to use by micro units in the cluster.

Support for marketing and branding will be provided to develop brands for micro units and groups with 50 percent grant at state or regional level which could benefit large number of micro units in clusters.

The scheme places special focus on capacity building and research. NIFTEM and IIFPT, two academic and research institutions under MOFPI along with State Level Technical Institutions selected by the states, will be provided support for training of units, product development, appropriate packaging and machinery for micro units.

All the processes of the Scheme would take place on an MIS including applications by entrepreneurs, their processing, approval of various projects by the states and MoFPI, release of grant and other funds and monitoring of the project.

Operation Greens Scheme, being implemented by MoFPI has been extended from tomato, onion and potato (TOP) crops to other notified horticulture crops for providing subsidy for their transportation and storage from surplus production area to major consumption centres.

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