Food processing schemes for rural areas

• The Ministry of Food Processing Industries (MoFPI) has been implementing Central Sector Umbrella Scheme – Pradhan Mantri Kisan SAMPADA Yojana (PMKSY) since 2016-17.
• It was started for the overall growth and development of food processing sector, including the processing of agro-products and thus increasing the income of the farmers.
• PMKSY is not region or state-specific but demand-driven and is implemented across the country.

Pradhan Mantri Kisan SAMPADA Yojana (PMKSY):

• PM Kisan SAMPADA Yojana is a comprehensive package which will result in creation of modern infrastructure with efficient supply chain management from farm gate to retail outlet.

The following schemes will be implemented under PM KSY:

1. Mega Food Parks:

• The Scheme of Mega Food Park aims at providing a mechanism to link agricultural production to the market by bringing together farmers, processors and retailers.
• The scheme ensure maximizing value addition, minimizing wastage, increasing farmers income and creating employment opportunities particularly in rural sector.
• The Mega Food Park Scheme is based on the “Cluster” approach.
• It envisages the creation of state of art support infrastructure in a well-defined agri / horticultural zone for setting up of modern food processing units in the industrial plots provided in the park with a well-established supply chain.
• The Mega Food Park project is implemented by a Special Purpose Vehicle (SPV) which is a Body Corporate registered under the Companies Act.
• So far 22 Mega Food Parks are operational.

2. Integrated Cold Chain and Value Addition Infrastructure

• The objective of the Scheme of Cold Chain, Value Addition and Preservation Infrastructure is to provide integrated cold chain and preservation infrastructure facilities, without any break, from the farm gate to the consumer.
• It covers creation of infrastructure facility along the entire supply chain viz. pre-cooling, weighing, sorting, grading, waxing facilities at farm level, multi product& multi-temperature cold storage, CA storage, packing facility, IQF, blast freezing in the distribution hub, and reefer vans, mobile cooling units for facilitating distribution of horticulture, organic produce, marine, dairy, meat and poultry etc.
• The scheme allows flexibility in project planning with special emphasis on creation of cold chain infrastructure at the farm level.

3. Creation/ Expansion of Food Processing/ Preservation Capacities (Unit Scheme)

• The main objective of the Scheme is creation of processing and preservation capacities and modernisation/ expansion of existing food processing units with a view to increasing the level of processing, value addition leading to reduction of wastage.

4. Infrastructure for Agro-processing Clusters

• The scheme aims at development of modern infrastructure and common facilities to encourage 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 have two basic components:

• Basic Enabling Infrastructure -roads, water supply, power supply, drainage, ETP etc.
• Core Infrastructure - ware houses, cold storages, IQF, tetra pack, sorting, grading etc.

• And also there should be at least 5 food processing units with a minimum investment of Rs. 25 crore.

5. Creation of Backward and Forward Linkages

• The objective of the scheme is to provide effective and seamless backward and forward integration for processed food industry by plugging the gaps in supply chain in terms of availability of raw material and linkages with the market.

6. Food Safety and Quality Assurance Infrastructure

• Under the scheme there is following components:

• Setting Up/Up-gradation of Quality Control/Food Testing Laboratories
• HACCP/ ISO Standards/Food Safety/Quality Management Systems

7. Operation Greens

• In the budget speech of Union Budget 2018-19, a new Scheme “Operation Greens” was announced on the line of “Operation Flood”, to promote Farmer Producers Organizations (FPOs) , agri-logistics, processing facilities and professional management.
• The Ministry has formulated a scheme for integrated development of Tomato, Onion and Potato (TOP) value chain.

Objectives:

1. Enhancing value realisation of TOP farmers by targeted interventions to strengthen TOP production clusters and their FPOs, and linking/connecting them with the market.
2. Price stabilisation for producers and consumers by proper production planning in the TOP clusters and introduction of dual use varieties.
3. Reduction in post-harvest losses by creation of farm gate infrastructure, development of suitable agro-logistics, creation of appropriate storage capacity linking consumption centres.
4. Increase in food processing capacities and value addition in TOP value chain with firm linkages with production clusters.
5. Setting up of a market intelligence network to collect and collate real time data on demand and supply and price of TOP crops.