Vocal For Local Initiative Taken In Food Processing Sector By Ministry Of Food Processing Industries

The Ministry of Food Processing Industries (MoFPI) is implementing a centrally sponsored "PM Formalization of Micro Food Processing Enterprises (PMFME) Scheme" as part of Atmanirbhar Bharat Abhiyan - Vocal for Local Initiative in the food processing sector to provide financial, technical, and business support for setting up or upgrading micro food processing enterprises in the nation. The scheme will be in operation from 2020–2021 to 2024–2025 and would cost Rs. 10,000 crore. 27,003 loans have been approved nationwide under the credit-linked subsidy component of the PMFME Scheme as of this reporting, 5864 of which were in the State of Maharashtra. The Annexure contains State-by-State information.

The challenges faced by micro enterprises are intended to be addressed by the PMFME scheme. The programme seeks to promote formalisation of the industry and increase the competitiveness of new and existing individual micro-enterprises in the unorganised section of the food processing industry. The specifics of the support provided to micro food processing businesses under the PMFME Scheme:

1. Assistance to Individuals or Groups in the Category of Micro - enterprises credit-linked capital subsidy, up to a maximum of Rs. 10 lakh per unit, at 35% of the approved project cost;

2. Help for SHGs in the form of seed capital is provided up to 40,000 rupees each member of a SHG involved in food processing for operating capital and the purchase of small tools, up to a maximum of 4 lakh rupees per SHG.

3. Assistance for  Common Infrastructure: Capital Subsidy with Credit Links

Support for FPOs, SHGs, cooperatives, and any government agency for the establishment of shared infrastructure would be provided at a rate of 35% up to a maximum of Rs. 3 crore. Other units and the general public will also be able to hire out a significant portion of the common infrastructure.

4. Assistance for branding and marketing is provided to groups of FPOs, SHGs, cooperatives, or an SPV of micro food processing firms up to 50%.

5. Capacity Building: The scheme is employed for training in entrepreneurship development skills (EDP+), which have been modified to fit the needs of the food processing industry and product-specific skilling.

A crucial part of the scheme for the technological advancement and formalisation of micro food processing firms is capacity building and training. The growth of entrepreneurship, adherence to Food Safety and Standards Authority of India (FSSAI) standards, general hygiene, and other regulatory compliances are the areas of focus for capacity building. District Resource Persons (DRPs) have been selected to offer micro food processing enterprises hand-holding support to ensure compliance with the FSSAI and other statutory requirements.