Food Processing Govt Schemes

Food Processing Government Schemes :-

1. Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme

This is a centrally sponsored scheme that provides financial, technical, and business support for the upgradation or setting up of micro food processing enterprises. Bihar has been a top-performing state under this scheme.

  • Details of the Scheme:

    • Objective: To formalize the unorganized micro food processing sector.
    • Beneficiaries: Individual micro-enterprises, Self-Help Groups (SHGs), Farmer Producer Organizations (FPOs), and cooperatives.
    • Financial Assistance:
      • Credit-linked capital subsidy: 35% of the eligible project cost, with a maximum limit of ₹10 lakh per unit for individual or group enterprises.
      • Seed capital: Up to ₹40,000 per member of SHGs engaged in food processing, with a maximum of ₹4 lakh per SHG for working capital and equipment.
    • Focus: The scheme follows a “One District One Product” (ODOP) approach to leverage local produce and specialties.
  • Link to Apply: The official portal for the PMFME scheme is managed by the Ministry of Food Processing Industries, Government of India. The application process is online.

2. Bihar Agri Investment Promotion Policy (BAIPP)

This is a state-level policy aimed at promoting investment in the agribusiness sector in Bihar. It provides capital subsidies to eligible investors for setting up, modernizing, or expanding agro-processing units.

  • Details of the Scheme:

    • Objective: To facilitate investment, reduce wastage, and promote value addition in the state’s agriculture sector.
    • Focus Sectors: The policy identifies specific sectors for promotion, including Makhana, Honey, Fruits & Vegetables, Maize, Seeds, Medicinal & Aromatic Plants, and Tea.
    • Financial Assistance:
      • Capital Subsidy:
        • Individual Investors/Companies: 15% of the eligible project cost.
        • Farmer Producer Companies (FPCs): 25% of the eligible project cost.
      • Additional Subsidy:
        • SC/ST and EBC investors: An additional 5% capital subsidy.
        • Women entrepreneurs, differently-abled persons, and others: An additional 2% capital subsidy.
    • Eligibility Criteria:
      • The project cost must be between ₹0.25 crore and ₹5 crore.
      • The subsidy is credit-linked, and a minimum term loan from a bank is required (not less than 20% of the project cost).
  • Link to Apply: The scheme is managed by the Department of Horticulture, Government of Bihar.

3. Pradhan Mantri Kisan SAMPADA Yojana (PMKSY)

This is a central sector umbrella scheme that encompasses various programs for the development of the food processing sector, including creation of modern infrastructure and a robust supply chain from farm to retail.

  • Details of the Scheme:

    • Objective: To leverage private investment, reduce post-harvest losses, and create off-farm employment opportunities.
    • Components: PMKSY includes schemes for Mega Food Parks, Cold Chain and Value Addition Infrastructure, Creation of Infrastructure for Agro-processing Clusters, and more.
    • Financial Assistance: The scheme provides credit-linked financial assistance (capital subsidy) for setting up food processing industries. The subsidy amount can go up to 35% of the eligible project cost for general areas and 50% for difficult areas and for projects by SC/ST, FPOs, and SHGs.
  • Link to Apply:  Application for schemes under PMKSY is done through the official MoFPI portal, often via Expression of Interest (EOI) announcements.

4. Production Linked Incentive Scheme for Food Processing Industry (PLISFPI)

This scheme is a part of the “Aatmanirbhar Bharat Abhiyaan” and focuses on creating global food manufacturing champions. It aims to support large-scale players and promote Indian brands in international markets.
  • Objective: To incentivize domestic manufacturing and attract large investments in the food processing sector.
  • Key Features:
    • Incentives on Sales: Provides incentives on incremental sales of manufactured food products over a base year.
    • Focus Segments: The scheme covers four food product segments: Ready to Cook/Ready to Eat (RTC/RTE) foods, Processed Fruits & Vegetables, Marine Products, and Mozzarella Cheese. It also covers innovative/organic products of SMEs in these segments.
    • Support for Branding & Marketing: Financial assistance is provided for branding and marketing activities abroad to promote Indian food brands globally.
  • Link to Apply: The scheme is implemented through a Project Management Agency (PMA). Applications are invited for specific periods, and the process is online.