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MoAFW & MoFPI Launch a Convergence Portal to Facilitate Food Processing Enterprises

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Agriculture, Food Processing Ministries Launch Convergence Portal For 3 Major Schemes

The Ministry of Agriculture & Farmers Welfare (MoAFW) and the Ministry of Food Processing Industries (MoFPI) together unveiled a Convergence Portal’ for three flagship schemes at Krishi Bhawan in New Delhi, Delhi.

It was launched between the

  • Agriculture Infrastructure Fund (AIF), 
  • the Pradhan Mantri Formalization of Micro Food Processing Enterprises (PMFME) scheme, and 
  • the Pradhan Mantri Kisan Sampada Yojana (PMKSY).


Narendra Singh Tomar, Minister of Agriculture & Farmers Welfare; Pashupati Kumar Paras, Minister of Food Processing Industries & Kailash Choudhary, Minister of State (MoS), MoAFW.

Significance of the Convergence Portal

i.Through this convergence, eligible beneficiaries of the PMFME and PMKSY credit-linked subsidies can get avail an additional benefit of Interest Subvention @3% on the interest rate being charged by the banks over and above the 35% of subsidy being provided under the PMFME Scheme.

ii.To facilitate project approval under both schemes, the AIF Management Information System (MIS) portal has been modified to accept applications from PMFME and PMKSY beneficiaries.

iii.The ultimate objective is the sustained economic growth of farmers and food processing entrepreneurs in rural areas and increasing their income.

  • It also seeks to ensure that all beneficiaries receive the benefits of the schemes and give them financial, technical, and professional empowerment.
  • To ensure that the beneficiaries of AIF, PMFME, and PMKSY received the maximum benefits, a Standard Operating Procedure (SOP) was also issued.
  • The initiative will contribute to Aatma Nirbhar Bharat by promoting the concept of “Vocal For Local.”

Agriculture Infrastructure Fund (AIF)

i.The AIF is a medium-to-long-term debt financing facility that commenced on July 8, 2020, for the development of post-harvest management infrastructure and community farming assets.

  • Implementing Agency – Ministry of Agriculture & Farmers Welfare (MoAFW)
  • Benefits – A 3% interest subvention and credit guarantee support till 2032-33.

iii.A provision of Rs. 1 lakh crore has been made under this scheme from 2020-21 to 2025-26.

iv.It has the facility of convergence with any other State or Central Government scheme.

  • The National Horticulture Board’s commercial horticulture development and cold storage development schemes have already undergone AIF convergence under the Integrated Nutrient Management (INM) Division of MoAFW.

Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme

i.The PMFME scheme, a centrally sponsored scheme, was introduced on June 29, 2020, in order to increase the competitiveness of individual microenterprises in the unorganized segment and encourage the formalisation of this sector.

  • Implementing Agency – Ministry of Food Processing Industries (MoFPI)
  • The scheme offers financial, business, and technical support for upgrading micro food processing enterprises in India.

ii.The PMFME scheme will give a 35% credit linked subsidy for the establishment of micro food processing units with a maximum subsidy limit of Rs 10 lakh and common infrastructure with a maximum subsidy limit of Rs. 3 crore.

Pradhan Mantri Kisan Sampada Yojana (PMKSY)

The PMKSY, a Central Sector Scheme, is envisioned as a holistic framework that will develop modern infrastructure with effective supply chain management from the farm to the retail outlet.

  • Implementing Agency – Ministry of Food Processing Industries (MoFPI)

It is an umbrella scheme with sub-schemes such as

  • Infrastructure for Agro-Processing Clusters (APC)
  • Creation/Expansion of Food Processing & Preservation Capacities (CEFPPC or UNIT)
  • Integrated Cold Chain and Value Addition Infrastructure (CCI)
  • Food Testing Lab (FTL)
  • Operation Greens (OG)
  • Research & Development Scheme (R&D)

In accordance with the requirements for each sub-scheme, the scheme provides for a 35% grant of Eligible Project Cost for General and 50% for SC/ST/Difficult Areas, up to a maximum of Rs.5 crores to Rs.15 crores.

Recent Related News:

In July 2022, under the PMFME scheme, MoFPI signed a MoU with National Agricultural Cooperative Marketing Federation of India (NAFED) & Tribal Co-operative Marketing Development Federation of India (TRIFED) to boost marketing and branding activities of beneficiaries. Two State-level brands including “AASNAA ” brand from Punjab and the “BHIMTHADI” brand from Maharashtra also launched.

About Ministry of Food Processing Industries (MoFPI):

Union Minister – Pashupati Kumar Paras (Hajipur Constituency, Bihar)
Minister of State (MoS) – Prahlad Singh Patel