Centre launches micro food processing scheme, to adopt ‘one district, one product’ approach

Meals Processing Minister Harsimrat Kaur Badal stated a ‘one district, one product’ cluster strategy will probably be adopted whereas offering credit-linked subsidy for establishing 2 lakh micro processing models throughout the nation underneath a ₹10,000 crore central scheme launched on Monday. The ‘PM Formalization of Micro Meals Processing Enterprises (PM-FME)’ scheme goals to take “native model to international” by addressing the challenges of credit score, expertise and retail market entry, she stated. Strengthening of micro meals processing models will result in discount in wastage, creation of off-farm job alternatives and assist in attaining the overarching authorities goal of doubling farmers’ earnings, she added. This was introduced as a part of the ₹20 lakh crore package deal to deal with the financial droop ensuing from COVID-19 pandemic. “It’s a historic day. We have now launched the scheme. We’ll undertake a cluster strategy of ‘one district, one product (ODOP)’ when it comes to procurement of inputs, availing widespread providers and advertising of merchandise. States may have flexibility to determine,” Ms. Badal stated after the launch. The federal government, in a separate assertion, stated the scheme would generate a complete funding of ₹35,000 crore and create 9 lakh expert and semi-skilled employment. It’s going to profit eight lakh models by means of entry to data, coaching, higher publicity and formalization within the subsequent 5 years. Elaborating on the ODOP strategy, the minister stated states would determine meals merchandise for a district conserving in view the prevailing clusters and availability of uncooked supplies. The ODOP product could possibly be a perishable product, cereal-based or a meals product broadly produced in a district and their allied sectors. The merchandise could possibly be mango, potato, litchi, tomato, tapioca, kinnu, bhujia, petha, papad, pickle, millet-based merchandise, fisheries, poultry, meat in addition to animal feed, amongst others. Choice could be given to these producing ODOP merchandise. Nevertheless, models producing different merchandise would even be supported. Assist for widespread infrastructure and branding and advertising could be for ODOP merchandise. The scheme additionally focusses on waste to wealth merchandise, minor forest merchandise and aspirational districts, she added. The expenditure underneath the scheme could be shared by the Centre and states within the ratio of 90:10 in North Japanese and Himalayan states and within the ratio of 60:40 in different states and Union Territories (UTs) with legislature. For different UTs, 100 per cent expenditure could be incurred by the Centre. Below the scheme, the federal government stated current particular person micro meals processing models desirous of upgrading their models can avail credit-linked capital subsidy at 35 per cent of the eligible undertaking value with a most ceiling of ₹10 lakh per unit. A seed capital of ₹40,000- per Self Assist Group (SHG) member could be supplied for working capital and buy of small instruments. Farmer producer organisations (FPOs)/ SHGs/ producer cooperatives could be supplied a credit score linked grant of 35 per cent for capital funding alongside the worth chain. Assist could be supplied by means of credit score linked grant at 35 per cent for growth of widespread infrastructure together with widespread processing facility, lab, warehouse, chilly storage, packaging and incubation middle by means of FPOs/SHGs/cooperatives or state owned companies or non-public enterprise for use by micro models within the cluster. Assist for advertising and branding could be supplied to develop manufacturers for micro models and teams with 50 per cent grant at state or regional stage which may benefit massive numbers of micro models in clusters. The scheme would place particular give attention to capability constructing and analysis. The coaching could be supplied in collaboration with NIFTEM and IIFPT, two educational and analysis establishments underneath the Meals Processing Ministry together with state-level technical establishments. The coaching would come with product growth, acceptable packaging and equipment for micro models, the assertion added.

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