Indian Economy News

PMFME scheme will support setting up of two lakh micro food processing enterprises through credit-linked subsidy

Minister of State for Food Processing Industries, Mr. Prahlad Singh Patel stated that the Ministry of Food Processing Industries (MoFPI) has been implementing the Pradhan Mantri Kisan SAMPADA Yojana (PMKSY) since 2016-17 for overall growth and development of the food processing sector, including processing of agricultural products and increasing the income of farmers nationwide.

MoFPI primarily offers grants-in-aid to entrepreneurs for the establishment of food processing industries that are credit-related financial assistance (capital subsidy). The estimated number of farmers who will profit from projects finished under PMKSY component schemes is 30.67 lakh.

Additionally, as part of the Aatmanirbhar Bharat Initiative, the MoFPI is putting into action a centrally sponsored programme called the PM Formalization of Micro Food Processing Enterprises Scheme (PMFME) to provide financial, technical, and business support for the establishment or upgrade of two lakh micro food processing enterprises through credit-linked subsidies over a five-year period from 2020-21 to 2024-25 with an outlay of US$ 1.21 billion (Rs. 10,000 crores). Out of this, Rajasthan and Maharashtra have each received 7,331 units and 22,234 units, respectively.

In order to promote the development of world-class food manufacturing leaders, MoFPI is also implementing the Central Sector Production Linked Incentive Scheme for Food Processing Industry (PLISFPI) Scheme. With an investment of US$ 1.32 billion (Rs. 10,900 crores), the scheme will be executed over six years, from 2021-22 to 2026-27. All food and agro-processing activities have been made eligible for priority sector lending, and a special fund of US$ 242 million (Rs. 2,000 crores) has been established in the National Bank for Agriculture and Rural Development (NABARD) to facilitate easy and cheap credit to the sector.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.