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Harsimrat Kaur Badal virtually launched Rs 10,000 cr PM-FME Scheme; Operation Greens scheme extended to 18 more fruits, vegetables

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Harsimrat Kaur Badal launches the PM FMEAs a part of Rs 20 Lakh crore “Atmanirbhar Bharat Abhiyan” to tackle the COVID-19 impact, Minister for Food Processing Industries (FPI) Harsimrat Kaur Badal launched Centrally Sponsored Prime Minister Formalisation of Micro food processing Enterprises (PM FME) scheme named “Sapno ki Udaan” to be implemented over a period of five years from 2020-21 to 2024-25. It was launched virtually from the village Badal, Bathinda in Punjab in the presence of Minister of State (MoS), FPI Rameswar Teli.

  • With an outlay of Rs 10,000 crore, this scheme for the unorganized food processing sector would generate total investment of Rs 35,000 crore and 9 lakh skilled and semi-skilled employment and benefit 8 lakh units through access to information, training, better exposure and formalization.
  • Notably, all the processes of the Scheme would take place on the management information system (MIS).

About PM FME scheme:

Aim To take “local brand to global”

Objective– To provide financial, technical and business support for up gradation of existing micro food processing enterprises.

Sharing of expenditure– The expenditure under the scheme would be shared in 60:40 ratio between Central and State Governments, in 90:10 ratio with North Eastern and Himalayan States, 60:40 ratio with Union Territories (UTs) with legislature and 100% by Centre for other UTs.

Approach to be used- One District One Product (ODOP)

ODOP will be adopted for this scheme under which the states will identify food product (specialized or perishable or cereal) for a district on the basis of availability of raw material. 

  • Preference would be given to those enterprises which produce ODOP products and will also get support for common infrastructure, branding & marketing. 
  • The Scheme also places focus on waste to wealth products, minor forest products and Aspirational Districts.

35% Credit-linked capital subsidy for upgradation of micro food processing units

Support to Individuals– Existing individual micro food processing units desirous of upgradation of their units could avail credit-linked capital subsidy of 35% of the eligible project cost with a maximum ceiling of Rs.10 lakh per unit.

Support to FPOs/SHGs/Cooperatives– Seed capital of Rs. 40,000/– per Self Help Group (SHG) member would be provided for working capital and purchase of small tools.  

  • Farmer producer organisations (FPOs) / SHGs/ producer cooperatives would be provided a credit linked grant of 35% for capital investment along the value chain. 

Infrastructure and branding support– Support would be provided through credit linked grant @ 35% for development of common infrastructure. Support for marketing & branding would be provided to develop brands for micro units and groups with 50% grant at State or regional level which could benefit large number of micro units in clusters.

NIFTEM & IIFPT will be supported by MoFPI for training of units

National Institute of Food Technology Entrepreneurship and Management (NIFTEM) in Sonipat, Haryana and Indian Institute of Food Processing Technology (IIFPT) in Tamil Nadu, two academic and research institutions under Ministry of Food Processing Industries (MoFPI) along with State Level Technical Institutions would be supported by ministry for training of units, product development, appropriate packaging and machinery for micro units.

  • Apart from above, a free skill training programme will be launched in the next two months for scheduled castes (SC) and scheduled tribes (ST) food processors. A three-month certificate course will provide training in 41 identified food processing topics.The training will be conducted in collaboration with NIFTEM and Food Industry Capacity & Skill Initiative (FICSI).
  • The participant handbooks and the facilitator’s guide created by the ministry through NIFTEM will be converted into e-learning format with suitable digital content.

Operation Greens scheme extended to 18 more fruits, vegetables

The ministry also extended the operation greens from TOP (Tomato-Onion-Potato) crops to all perishable fruits and vegetables with an objective to protect the growers of fruits and vegetables from making distress sale due to lockdown and reduce post-harvest losses. 

  • The duration of the scheme will be for the period of six months from the date of notification on June 11, 2020. 
  • The benefit has been extended to additional 10 fruits (Mango, Banana, Guava, Kiwi, Lichi, Papaya, Citrus, Pineapple, Pomegranate, Jackfruit) and 8 vegetables (French beans, Bitter Gourd, Brinjal, Capsicum, Carrot, Cauliflower, Chillies (Green) and Okra).
  • With this farmers and processors can now get the benefit of 50% subsidy on storage and transportation of 18 more fruits and vegetables from surplus production areas to major consumption centres.

About Ministry of Food Processing Industries (MoFPI):
Harsimrat Kaur Badal constituency– Bathinda, Punjab
MoFPI Scheme– Pradhan Mantri Kisan SAMPADA Yojana (Scheme for Agro-Marine Processing and Development of Agro-Processing Clusters).