Food Processing Sector During the last 5 years ending 201 | Agriculture Exams Library

Food Processing Sector
During the last 5 years ending 2018-19, food processing industries (FPI) has been growing at an average annual growth rate of around 9.99% as compared to around 3.12% in agriculture and 8.25% in manufacturing at
2011-12 prices.

The sector constitutes as much as 8.98% of Gross Value Added (GVA) in manufacturing in 2018-19 at 2011-12 prices.

New Initiatives in Food Processing Sector
1. Prime Minister- Formalization of Micro Food Processing Enterprises (PM- FME)
- Launched by Ministry of Food Processing Industries (MoFPI) with a total outlay of Rs. 10,000 crores over the period 2020- 2025.

The scheme is expected to benefit 2 lakh micro food processing units through credit linked subsidy.

The Scheme adopts One District One Product (ODOP) approach.

The States need to identify one food product per district.
- Existing individual micro food processing units desirous of upgradation of their unit can avail credit-linked capital subsidy@35% of the eligible project cost with a maximum ceiling of Rs. 10 lakh per unit.

- Seed capital @ Rs. 40,000 per SHG member would be provided for
working capital and purchase of small tools.

- Support for marketing and branding would be provided to micro units and groups with 50% grant at the state or regional level

2. Operation Greens
- MoFPI is implementing a central sector scheme “Operation Greens – A scheme for integrated development of Tomato, Onion and Potato (TOP) value chain” to provide support to farmers when prices of agri produce is low.

- This scheme is not meant for intervention in the market during price rise.

- Under the short term- price stabilization measures of the scheme, there is a provision for 50% subsidy on cost of transportation and storage for evacuation of surplus production from producing area to the consumption center during the glut situation

Under Atma Nirbhar Bharat Abhiyan, this scheme has been extended from tomato, onion and potato (TOP) crops to the other notified horticulture crops (Total) for a period of six months.

3. Production-Linked Incentive (PLI) Scheme
- Government gave its approval in November 2020 to introduce the
Production-Linked Incentive (PLI) Scheme in 10 key sectors, including food processing sector (approved financial outlay for this sector is Rs. 10,900 crores.)

4. Pradhan Mantri Kisan SAMPADA Yojana (PMKSY)
- Under this the Ministry is implementing various component schemes which, inter-alia, includes
i. Mega Food Parks,
ii. Integrated Cold Chain and Value Addition Infrastructure,
iii. Infrastructure for Agro-processing Clusters,
iv. Creation of Backward and Forward Linkages
v. Creation/ Expansion of Food Processing & Preservation Capacities, and
vi. Operation Greens.
- As 0n 31.12.2020, Number of sanctioned Projects were 773 and
Number of completed/ operational projects were 296.**

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