Government has been consistently encouraging and incentivizing increased private sector investment for the overall development of the Food Processing sector of the country to promote value addition in the agricultural and allied sector and reduce wastage.

The Ministry of Food Processing Industries (MoFPI) is implementing a Central Sector umbrella scheme – Pradhan Mantri Kisan Sampada Yojana (PMKSY) since 2016-17 for overall growth and development of food processing sector, mostly through private sector participation. Under the component schemes, MoFPI provides credit-linked financial assistance (capital subsidy) in the form of grants-in-aid to entrepreneurs for setting up of food processing or preservation industries with farm-level infrastructure like primary processing facilities, collection centres, etc. Until now 792 projects out of a total of 818 projects have been approved for setting up food processing Industries by the private sector with approved Grants in Aid of Rs 5791.71 crores, the Union Minister of State for Food Processing Industries Prahlad Singh Patel said in a written reply in Lok Sabha today.

To further increase private sector participation in the sector, the minister informed that the government has taken three major initiatives this year. Firstly, the government has approved the introduction of ‘Production Linked Incentive scheme’ for Food Processing sector with an outlay of Rs 10,900 Crore to support the creation of global food manufacturing champions and support Indian brands of food products in the international market.

Secondly, with a view to extending incentives to the private micro food enterprises, Self Help Groups (SHGs), Farmer Producer Organizations (FPOs) and Cooperatives, spread all over the country, MoFPI is implementing centrally sponsored ‘PM Formalisation of Micro food processing Enterprises Scheme’. The scheme aims to provide financial, technical and business support for up-gradation or setting up of two lakh micro food processing units based on One District One Product (ODOP) approach in a period of five years from 2020-21 to 2024-25 with an outlay of Rs 10,000 crores.

Thirdly, in the budget speech for 2021-2022, the government has announced the expansion of scope of ‘Operation Greens scheme’ from Tomato, Onion & Potato (TOP) to 22 perishable products to boost value addition in agriculture and allied products and their exports.

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