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Government Schemes implemented to overcome Pandemic


The Ministry of Food Processing Industries (MOFPI) is a ministry of the Government of India responsible for formulation and administration of the rules and regulations and laws relating to Food Processing in India. Union Food Processing Industries Minister  Smt. Harsimrat Kaur Badal assured industry representative that a dedicated Task Force had been established to resolve all the problems being faced by industry during the current Covid-19 lockdown. In #AatmaNirbharBharat, government create robust food processing facilities; 82 food processing and food testing laboratory projects are completed. Additional processing and preservation capacity of 9.63 lakh MT of agricultural produce per annum. Leveraged private investment of Rs. 1,570 crore is done. Generated direct and indirect employment for 40,600 persons. 45 cold chain infrastructure projects created for additional milk processing and storage capacity of 22.8 lakh litre/day and 85.15 MT/hr of Instant Quick Freezing of fruits &vegetables.


The scheme aims at the development of modern infrastructure and common facilities to encourage the group of entrepreneurs to set up food processing units based on cluster approach by linking groups of producers/farmers to the processors and markets through well-equipped supply chain with modern infrastructure. Each agro-processing clusters under the scheme have two basic components i.e. Basic Enabling Infrastructure (roads, water supply, power supply, drainage, etc.), Core Infrastructure and common facilities (warehouses, cold storages, IQF, tetra pack, sorting, grading, etc) and at least 5 processing units with a minimum investment of Rs. 25crore.                    


The scheme aims to increase in access to finance by micro food processing units, to increase in revenues of target enterprises, enhanced compliance with food quality and safety standards, strengthening capacities of support systems, the transition from the unorganized sector to the formal sector. It lays special focus on woman entrepreneurs and Aspirational districts. Micro-enterprises to get Credit- Linked Subsidy @35% of the total project cost with a ceiling of Rs. 10 lakh for up-gradation of infrastructure and capacity addition. SHGs to get Seed Capital for giving loans to members for working capital and small tools. On-site Skill training and Handholding is also provided.


On the lines of “Operation Flood” to address price volatility of perishable commodities like potato, tomato and onion. It will promote Farmer Producers Organizations (FPOs), Agri- logistics, processing facilities and professional management. In this scheme, Rs. 500 crore is allocated.  It will be extended from Tomatoes, Onion and Potatoes (TOP) to ALL fruits and vegetables (TOTAL). The scheme features a 50% subsidy on transportation from surplus to deficient markets. 50% subsidy on storage including cold storages. The expected outcomes are better price realisation to farmers, reduced wastages, affordability of products for consumers.


The main objective of the scheme is the creation of processing and preservation capacities and modernization/ expansion of existing food processing, value addition leading to reduction of wastage.  The processing activities undertaken by an individual covers a wide range of post-harvest processes resulting in value addition and/ or enhancing shelf life with specialized facilities required for the preservation of perishables. The setting up of new units and modernization/ expansion of existing units are covered under the scheme. Till now, 11 projects of approximately  90 crores are approved. Employment generation for nearly 3000 people, 1.2 lakh MT per annum processing capacity to be created.

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