Schemes under Ministry of Food Processing

Pradhan Mantri Kisan Sampada Yojana

Pradhan Mantri Kisan Sampada Yojana

  1. Introduction
  2. Objective
  3. Schemes to be implemented
  4. Financial Allocation
  5. Impact

Introduction

  • The Central Sector Scheme – SAMPADA (Scheme for Agro-Marine Processing and Development of Agro-Processing Clusters) was approved by the cabinet in May 2017 for the period of 2016-20 coterminous with the 14th Finance Commission cycle.
  • The scheme has now been renamed as the “Pradhan Mantri Kisan Sampada Yojana (PMKSY)“.
  • It is an umbrella scheme incorporating ongoing schemes of the Ministry like Mega Food Parks, Integrated Cold Chain and Value Addition Infrastructure, Food Safety and Quality Assurance Infrastructure, etc. and also new schemes like Infrastructure for Agro-processing Clusters, Creation of Backward and Forward Linkages, Creation / Expansion of Food Processing & Preservation Capacities.

Objective

The objective of PMKSY is to supplement agriculture, modernize processing and decrease Agri-Waste.

Schemes to be implemented

Under PMKSY the following schemes are to be implemented:

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

Mega Food Parks

  1. To provide modern infrastructure for food processing units in the country.
  2. To ensure value addition of agricultural produce including dairy, fisheries etc.
  3. To establish a sustainable raw material supply chain for each cluster.
  4. To facilitate induction of the latest technology.
  5. To address the need of small and micro food processing enterprises by providing plug & play facilities.
  6. To provide an institutional mechanism for producers, processors, and retailers to work together to build the supply chain.

Integrated Cold Chain and Value Addition Infrastructure

To arrest post-harvest losses of horticulture & non-horticulture produce by providing financial assistance in setting up integrated cold chain, preservation and value addition infrastructure facilities without any break from the farm gate to the consumer.

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

  1. Creation/ expansion and / or modernization of processing / preservation capacities which will help in increasing the level of processing, value addition and thereby reduction of wastage.
  2. The setting up of new units and modernization/ expansion of existing unit will be covered under the scheme. The processing units undertake a wide range of processing activities depending on the processing sectors which results in value addition and/or enhancing shelf life of the processed products.

Infrastructure for Agro-processing Clusters

  1. To create modern infrastructure for food processing closer to production areas.
  2. To provide integrated and complete preservation infrastructure facilities from the farm gate to the consumer.
  3. To create effective backward and forward linkages by linking groups of producers / farmers to the processors and markets through well-equipped supply chain.

Creation of Backward and Forward Linkages

  1. To create effective backward & forward linkages for perishable agri-horti produce through setting up of primary processing centres / collection centres at farm gate, distribution hub and retail outlets at the front end.
  2. To provide preservation facilities for enhancing shelf life of perishable agricultural produce resulting in better remunerative prices to farmers.

Food Safety and Quality Assurance Infrastructure

  1. To establish a surveillance system for monitoring the quality and composition of food.
  2. To analyse the samples received from processing industry and other stakeholders.
  3. To reduce the time for analysis of samples by reducing transportation time of samples.
  4. To ensure compliance of international and domestic standards on food in case of exports as well as imports.

Human Resources and Institutions

The objective of the scheme is that end product/outcome/findings of R&D work should benefit food processing industry in terms of product and process development, efficient technologies, improved packaging, value addition etc. with commercial value along with standardization of various factors viz., additives, colouring agents, preservatives, pesticide residues, chemical contaminants, microbiological contaminants and naturally occurring toxic substances within permissible limits.

Financial Allocation

PMKSY with an allocation of Rs. 6,000 crore is expected to leverage investment of Rs. 31,400 crore, handling of 334 lakh MT agro-produce valuing Rs. 1,04,125 crore, benefit 20 lakh farmers and generate 5,30,500 direct/ indirect employment in the country by the year 2019-20.

1. Introduction 2. Objective 3. Schemes to be implemented 4. Financial Allocation 5. Impact Introduction ● The Central Sector Scheme - SAMPADA (Scheme for Agro-Marine Processing and Development of Agro-Processing Clusters) was approved by the cabinet in May 2017 for the period of 2016-20 coterminous with the 14th Finance Commission cycle. ● The scheme has now been renamed as the "Pradhan Mantri Kisan Sampada Yojana (PMKSY)". ● It is an umbrella scheme incorporating ongoing schemes of the Ministry like Mega Food Parks, Integrated Cold Chain and Value Addition Infrastructure, Food Safety and Quality Assurance Infrastructure, etc. and also new schemes like Infrastructure for Agro-processing Clusters, Creation of Backward and Forward Linkages, Creation / Expansion of Food Processing & Preservation Capacities. Objective The objective of PMKSY is to supplement agriculture, modernize processing and decrease Agri-Waste. Schemes to be implemented Under PMKSY the following schemes are to be implemented: 1. Mega Food Parks 2. Integrated Cold Chain, Value Addition and Preservation Infrastructure 3. Creation/Expansion of Food Processing/Preservation Capacities 4. Infrastructure for Agro Processing Clusters 5. Scheme for Creation of Backward and Forward Linkages 6. Food Safety & Quality Assurance Infrastructure 7. Human Resources and Institutions Mega Food Parks 1. To provide modern infrastructure for food processing units in the country. 2. To ensure value addition of agricultural produce including dairy, fisheries etc. 3. To establish a sustainable raw material supply chain for each cluster. 4. To facilitate induction of the latest technology. 5. To address the need of small and micro food processing enterprises by providing plug & play facilities. 6. To provide an institutional mechanism for producers, processors, and retailers to work together to build the supply chain. Integrated Cold Chain and Value Addition Infrastructure To arrest post-harvest losses of horticulture & non-horticulture produce by providing financial assistance in setting up integrated cold chain, preservation and value addition infrastructure facilities without any break from the farm gate to the consumer. Creation/ Expansion of Food Processing/ Preservation Capacities (Unit Scheme) 1. Creation/ expansion and / or modernization of processing / preservation capacities which will help in increasing the level of processing, value addition and thereby reduction of wastage. 2. The setting up of new units and modernization/ expansion of existing unit will be covered under the scheme. The processing units undertake a wide range of processing activities depending on the processing sectors which results in value addition and/or enhancing shelf life of the processed products. Infrastructure for Agro-processing Clusters 1. To create modern infrastructure for food processing closer to production areas. 2. To provide integrated and complete preservation infrastructure facilities from the farm gate to the consumer. 3. To create effective backward and forward linkages by linking groups of producers / farmers to the processors and markets through well-equipped supply chain. Creation of Backward and Forward Linkages 1. To create effective backward & forward linkages for perishable agri-horti produce through setting up of primary processing centres / collection centres at farm gate, distribution hub and retail outlets at the front end. 2. To provide preservation facilities for enhancing shelf life of perishable agricultural produce resulting in better remunerative prices to farmers. Food Safety and Quality Assurance Infrastructure 1. To establish a surveillance system for monitoring the quality and composition of food. 2. To analyse the samples received from processing industry and other stakeholders. 3. To reduce the time for analysis of samples by reducing transportation time of samples. 4. To ensure compliance of international and domestic standards on food in case of exports as well as imports. Human Resources and Institutions The objective of the scheme is that end product/outcome/findings of R&D work should benefit food processing industry in terms of product and process development, efficient technologies, improved packaging, value addition etc. with commercial value along with standardization of various factors viz., additives, colouring agents, preservatives, pesticide residues, chemical contaminants, microbiological contaminants and naturally occurring toxic substances within permissible limits. Financial Allocation PMKSY with an allocation of Rs. 6,000 crore is expected to leverage investment of Rs. 31,400 crore, handling of 334 lakh MT agro-produce valuing Rs. 1,04,125 crore, benefit 20 lakh farmers and generate 5,30,500 direct/ indirect employment in the country by the year 2019-20

Issues food processing industry is facing:Pradhan Mantri Kisan Sampada Yojana

Impact

  1. The implementation of PMKSY will result in creation of modern infrastructure with efficient supply chain management from farm gate to retail outlet.
  2. It will provide a big boost to the growth of food processing sector in the country.
  3. It will help in providing better prices to farmers and is a big step towards doubling of farmers’ income.
  4. It will create huge employment opportunities especially in the rural areas.
  5. It will also help in reducing wastage of agricultural produce, increasing the processing level, availability of safe and convenient processed foods at affordable price to consumers and enhancing the export of the processed foods.

Impact 1. The implementation of PMKSY will result in creation of modern infrastructure with efficient supply chain management from farm gate to retail outlet. 2. It will provide a big boost to the growth of food processing sector in the country. 3. It will help in providing better prices to farmers and is a big step towards doubling of farmers’ income. 4. It will create huge employment opportunities especially in the rural areas. 5. It will also help in reducing wastage of agricultural produce, increasing the processing level, availability of safe and convenient processed foods at affordable price to consumers and enhancing the export of the processed foods.

Operation Greens

Operation Greens

  1. Introduction
  2. Objectives
  3. Strategy
  4. Significance
  5. Pattern of Assistance
  6. Way ahead

Introduction

  • In the budget speech of 2018-19, a new Scheme “Operation Greens” was announced on the line of “Operation Flood”, with an outlay of Rs. 500 crore to promote Farmer Producers Organizations, agri-logistics, processing facilities and professional management.
  • Operation Greens seeks to stabilize the supply of Tomato, Onion and Potato (TOP) crops and to ensure availability of TOP crops throughout the country round the year without price volatility.
  • The scheme was extended during June 2020 to cover all fruits & vegetables (TOTAL) for a period of six months on pilot basis as part of Aatmanirbhar Bharat Abhiyan.
  • The Ministry of Food Processing Industries has launched the scheme.
  • NAFED will be the Nodal Agency to implement price stabilisation measures.

Aim

  • Operation Greens aims to promote farmer producers organisations, agri-logistics, processing facilities and professional management.
  • The operation aims to aid farmers and help control and limit the erratic fluctuations in the prices of onions, potatoes and tomatoes.
  • It was announced by Finance Minister Arun Jaitley in his budget speech.

Operation Greens

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.

Strategy

The strategy will comprise of a series of measures as decided by the Ministry which include:

Short term Price Stabilisation Measures :

  • MoFPI will provide 50% of the subsidy on the following two components:
  • Transportation of Tomato Onion Potato(TOP) Crops from production to storage;
  • Hiring of appropriate storage facilities for TOP Crops;

Long Term Integrated value chain development projects

  • Capacity Building of FPOs & their consortium
  • Quality production
  • Post-harvest processing facilities
  • Agri-Logistics
  • Marketing / Consumption Points
  • Creation and Management of e-platform for demand and supply management of TOP Crops.

Significance of Operation greens:

  • Operation Green (OG) wants to replicate the success story of Operation Flood, in fruits and vegetables, starting with three basic vegetables—tomatoes, onions and potatoes (TOP).
  • The main objective of OG is to reduce price volatility in these commodities, and thereby helping farmers augment incomes on a sustainable basis, as also provide these basic vegetables to consumers at affordable prices.

Operation Greens

Pattern of Assistance

  • The pattern of assistance will comprise of grants-in-aid at the rate of 50% of the eligible project cost in all areas, subject to maximum Rs. 50 crores per project.
  • However, in case where PIA is/are FPO(s), the grant-in-aid will be at the rate of 70% of the eligible project cost in all areas, subject to maximum Rs. 50 crores per project.
  • Eligible Organisation would include State Agriculture and other Marketing Federations, Farmer Producer Organizations (FPO), cooperatives, companies, Self-help groups, food processors, logistic operators, service providers, supply chain operators, retail and wholesale chains and central and state governments and their entities/organizations will be eligible to participate in the programme and to avail financial assistance.

Way ahead:

  • The litmus test of the success of this OG would be if it can contain roller-coaster rides of booms and busts in prices, and avert scenes of farmers dumping potatoes and tomatoes on roads, as is happening in several parts of India today.
  • Also, containing prices going through the roof compelling the government to put bans on exports, de-stocking or even having income-tax raids on traders.

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