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Pradhan Mantri Formalisation of Micro food processing Enterprises

Pradhan Mantri Formalisation of Micro food processing Enterprises

Context:

Ministry of Food Processing Industries inaugurated the capacity building component of the Pradhan Mantri Formalisation of Micro food processing Enterprises (PM-FME Scheme).

Background:

  • The unorganized food processing sector comprising nearly 25 lakh units which contribute to 74% of employment in the food processing sector.
  • Nearly 66% of these units are located in rural areas and about 80% of them are family-based enterprises supporting livelihood in rural households and minimizing their migration to urban areas.
  • The units face a number of challenges such as lack of access to modern technology & equipment, training, access to institutional credit, lack of basic awareness on quality control of products, and lack of branding & marketing skills which limit their performance and growth.

PM-FME Scheme:

  • It is an all India Centrally Sponsored Scheme under the Aatmanirbhar Bharat Abhiyan, for providing financial, technical, and business support for up-gradation of existing micro food processing enterprises.
  • The Scheme adopts the One District One Product (ODOP) approach to reap the benefit of scale in terms of procurement of inputs, availing common services and marketing of products.
  • The scheme would provide support to FPOs/SHGs/Producer Cooperatives for capital investment along the entire value chain with credit linked grant at 35%.
  • Under the capacity building component of the PM-FME scheme, training of the Master Trainers would be delivered through online mode, classroom lecture and demonstration, and self-paced online learning material.
  • The scheme envisions to directly assist the 2 Lakh micro food processing units over a period of five years from 2020-21 to 2024-25.

Objectives:

  • Support for capital investment for up-gradation and formalization with registration for GST, FSSAI hygiene standards, and Udyog Aadhaar.
  • Capacity building through skill training, imparting technical knowledge on food safety, standards & hygiene, and quality improvement.
  • Handholding support for the preparation of DPR, availing bank loans, and up-gradation.
  • Support to Farmer Producer Organizations (FPOs), Self Help Groups (SHGs), producers cooperatives for capital investment, common infrastructure, and support branding and marketing.

Significance:

  • The scheme would support the strengthening of backward and forward linkages, provision of common facilities, incubation centers, training, R&D, marketing & branding, provision of which would primarily be for ODOP products.
  • All individuals & institutions members receiving grants would undergo training for up-gradation of their skills.
  • The scheme lays special focus on SCs/STs, women and aspirational districts and FPOs, SHGs, and producer cooperatives.

Source: PIB