PRADHAN MANTRI FORMALISATION OF MICRO FOOD PROCESSING ENTERPRISES (PM FME) SCHEME

  • Recently, the Ministry of Food Processing industries (MoFPI) has shared some information regarding Pradhan Mantri Kisan SAMPADA Yojana (PMKSY).
  • Earlier, MoFPI had launched the Pradhan Mantri Formalisation of Micro food processing Enterprises (PM FME) Scheme, under the Atmanirbhar Bharat Abhiyan.
  • The key sub-segments of the Food Processing industry in India are Dairy, Fruits & Vegetables, Poultry & Meat processing, Fisheries, Food retail, etc.

Important points:

  • In the year 2016, MoFPI had introduced an umbrella Scheme Called “Agro-Marine Processing and Development of Agro-Processing Clusters” or SAMPADA, which was proposed to be implemented with an allocation of Rs 6,000 crore for the period of 2016-20.
  • In the year 2017, the government renamed the SAMPADA scheme as Pradhan Mantri Kisan Sampada Yojana (PMKSY).
  • It is a Central Sector Umbrella Scheme.

Objective:

  1. To supplement agriculture.
  2. To create processing and preservation capacities.
  3. To modernise and expand existing food processing units with a view to increasing the level of processing.
  4. To add value leading to the reduction of wastage.

Components:

  1. Mega Food Parks,
  2. Integrated Cold Chain and Value Addition Infrastructure,
  3. Infrastructure for Agro-Processing Clusters,
  4. Creation of Backward and Forward Linkages,
  5. Creation/Expansion of Food Processing & Preservation Capacities,
  6. Food Safety and Quality Assurance Infrastructure, and
  7. Human Resources Institutions.
  8. Operation Greens.

Initiatives

  • 100% Foreign Direct Investment (FDI) through automatic route in the food processing sector and 100% FDI under Government approval route for retail trading, including through e-commerce, in respect of food products produced and/or manufactured in India has been permitted.
  • A special fund of Rs. 2000 crore has been created with the NABARD to provide affordable credit to food processing projects/units.
  • Food & agro-based processing units and cold chain infrastructure has been classified as agriculture activity for Priority Sector Lending (PSL)
  • Fiscal measures like 100% exemption of Income Tax on profit for new food processing units, 100 % income tax exemption from profit derived by Farmers Producers Organizations (FPOs) having annual turnover of Rs.100 crore have been allowed for activities such as post-harvest value addition to agriculture.

SOURCE: THE HINDU,THE ECONOMIC TIMES,MINT

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