13-Dec-2022: Infrastructure Under PMKSY

The Ministry of Food Processing Industries (MoFPI) has been implementing an umbrella scheme, namely, Pradhan Mantri Kisan Sampada Yojana (PMKSY) since 2017-18 across the country. PMKSY is a comprehensive package of sub-schemes viz. (i)  Mega Food Parks, (ii) Integrated Cold Chain and Value Addition Infrastructure, (iii) Food Safety & Quality Assurance Infrastructure, (iv) Creation/ Expansion of Food Processing and Preservation Capacities, (v) Creation of Infrastructure Development for Agro Processing Cluster, (vi) Creation of Backward and Forward Linkage and (vii) Human Resource and Institutions,  which results in creation of modern infrastructure with efficient supply chain management from farm gate to retail outlet. It provides a big boost to the growth of food processing sector in the country, help in providing better prices to farmers, creating huge employment opportunities especially in the rural areas, reducing wastage of agricultural produce, increasing the processing level and enhancing the export of the processed foods. MoFPI invites online proposals/ applications from the prospective entrepreneurs by issuing Expression of Interest (EoI) time to time under various sub-schemes of PMKSY based on the availability of vacant slots and funds. Under the sub-schemes of PMKSY, financial support is being provided in the form of grants-in-aid against the eligible components as per their extant scheme guidelines. The salient features of the sub-schemes of PMKSY are provided below (detailed guidelines are available on website of the Ministry):

1. Mega Food Parks Scheme: This sub-scheme has been discontinued w.e.f. 01.04.2021 with provision for meeting committed liabilities.
2. Integrated Cold Chain and Value Addition Infrastructure Scheme: The objective is to provide integrated cold chain and preservation infrastructure facilities, without any break, from the farm gate to the consumer. It covers creation of infrastructure facility along the entire supply chain viz. pre-cooling, weighing, sorting, grading, waxing facilities at farm level, multi product/multi temperature cold storage, CA storage, packing facility, IQF, blast freezing in the distribution hub and reefer vans, mobile cooling units for facilitating distribution of non-horticulture, horticulture, fish/ marine (except shrimp), dairy, meat and poultry. The scheme allows flexibility in project planning with special emphasis on creation of cold chain infrastructure at farm level.
3. Creation/ Expansion of Food Processing and Preservation Capacities Scheme: The main objective of the Scheme is creation of processing and preservation capacities and modernisation/ expansion of existing food processing units with a view to increasing the level of processing, value addition leading to reduction of wastage. The processing activities undertaken by the individual unit covers a wide range of post-harvest processes resulting in value addition and/or enhancing shelf life with specialized facilities required for preservation of perishables. While expansion of processing capacity is necessary to increase the level of processing and reduce wastage, the induction of modern technology is intended to make a clear difference in terms of process efficiencies as well as improving the quality of the end product. The setting up of new units and modernization/ expansion of existing units are covered under the scheme.
4. Creation of Infrastructure Development for Agro Processing Cluster Scheme: The scheme aims at development of modern infrastructure and common facilities to encourage group of entrepreneurs to set up food processing units based on cluster approach by linking groups of producers/ farmers to the processors and markets through well-equipped supply chain with modern infrastructure. Each agro processing clusters under the scheme have two basic components i.e. Basic Enabling Infrastructure (roads, water supply, power supply, drainage, ETP etc.), Core Infrastructure/ Common facilities (ware houses, cold storages, IQF, tetra pack, sorting, grading etc.) and at least 5 food processing units with a minimum investment of Rs. 25 crores. The units are set up simultaneously along with creation of common infrastructure. At least 10 acres of land in rural area or 5 acres of land in urban area is required to be arranged either by purchase or on lease for at least 50 years for setting up of Agro Processing Cluster.
5. Creation of Backward and Forward Linkages Scheme: This sub-scheme has been discontinued w.e.f. 01.04.2021 with provision for meeting committed liabilities.
6. Food Safety and Quality Assurance Scheme: The quality and food safety have become competitive edge in the global market for food products. For the all-round development of the food processing sector in the country. Apart from this, in the interest of consumer safety and public health, there is a need to ensure that the quality food products manufactured and sold in the market meet the stringent parameters prescribed by the food safety regulator. Keeping in view the aforesaid objectives, government has been extending financial assistance for setting up/ upgradation of Quality Control/ Food Testing Laboratories.
7. Human Resource and Institutions:
   1. Research & Development: Under the scheme, the Ministry of Food Processing Industries has been extending financial assistance to undertake demand driven R&D work for the benefit of food processing industry in terms of product and process development, efficient technologies, improved packaging, value addition etc. with commercial value along with standardization of various factors viz. additives, colouring agents, preservatives, pesticide residues, chemical contaminants, microbiological contaminants and naturally occurring toxic substances within permissible limits.
   2. Skill Development: The main objective of the scheme is to provide sector specific skilled workforce from floor level workers, operators, packaging and assembly line workers to quality control supervisor etc. in the various segments of food processing industries.
   3. Promotional Activities: To organize, co-sponsor, participate in all India level seminars, workshops, fairs and exhibitions for food processing sector to encourage investment in food processing and to create awareness of the schemes being implemented by the ministry. To commission studies/ surveys to assess, evaluate various aspects of food processing sectors and allied activities. To create awareness about schemes of the ministry through print/ audio-visual media through advertisements and publicity materials. To organize road shows, development of software and investor facilitation activities to promote food processing sector.
   4. Strengthening of Institutions: To develop manpower resources in the field of food processing/ technology by offering B.Tech., MTech. & Ph.D. courses and undertake R&D projects in the area of food technology through the National Institute of Food Technology  Entrepreneurship and Management.
8. Operation Greens Scheme:
   1. Long Term Interventions
      • Enhancing value realisation of farmers by targeted interventions to strengthen production clusters and FPOs, and linking/ connecting the farmers with the market.
      • Reduction in post-harvest losses by creation of farm gate infrastructure, development of suitable Agri-logistics, creation of appropriate storage capacity linking consumption centres.
      • Increase in food processing capacities and value addition in value chain by creating firm linkages with identified production clusters.
   2. Short Term Interventions: The objective of the Scheme is to protect the growers of Eligible Crops from making distress sale and to reduce post-harvest losses. Subsidy is provided for transportation and hiring of storage facilities for fruits and vegetables.
   3. PMKSY provides scope for (i) reducing spoilage of perishables and to offer better price for farmers at farm gate by preventing forced sale of agro-horti produce, (ii) the retailers and food processors may derive benefit of purchasing minimal processed/ preserved food products at affordable cost and (iii) the consumers may obtain safe, nutritive and healthy processed foods for consumption.

29-Jul-2022: Central Sector Umbrella Scheme Sampada

The Ministry has been implementing the Scheme, ‘Pradhan Mantri Kisan Sampada Yojana (PMKSY)’, a comprehensive package for creation of modern infrastructure with efficient supply chain management from farm gate to retail outlet. It not only provides boost to the growth of food processing sector in the country but also helps in providing better returns to farmers, creating employment opportunities, reducing wastage of agricultural produce, increasing the processing level and enhancing the export of the processed foods.

SAMPADA is a digital platform through which various projects sanctioned under different sub-schemes of PMKSY is monitored.

A total of 853 projects for setting up food processing units have been sanctioned so far by the Ministry under different sub-schemes of PMKSY with total project cost of Rs.21058.29 crore and approved grants-in-aid of Rs.6673.74 crore, out of which Rs.4444.25 crore has been released. These projects entail processing and preservation capacity of 216.81 lakh MT per annum and 70.014 lakh MT per annum respectively, benefiting 41,42,917 farmers and generating 10,61,361 employment.

21-Jun-2022: Ministry of Food Processing Industries inviting applications  under sub-schemes of Pradhan Mantri Kisan Sampada Yojana (PMKSY)

Ministry of Food Processing Industries, Government of India is inviting applications under the following sub-schemes of Pradhan Mantri Kisan Sampada Yojana (PMKSY):

• Scheme for Creation of Infrastructure for Agro Processing Clusters(APC)
• Scheme for Creation/Expansion of Food Processing & Preservation Capacities [Unit Scheme] (CEFPPC)
• Scheme for Integrated Cold Chain and Value Addition Infrastructure (Cold Chain)
• Food Safety and Quality Assurance Infrastructure (FTL)
• Operation Greens- long Term Interventions (OG)

Applications may be submitted online at https://sampada-mofpi.gov.in by the prospective promoters/ investors/ entrepreneurs who are eligible and willing to set up food processing related facilities / units w.e.f. 10.00 hrs. of 27th June, 2022.

Applications need to be submitted as per the revised operational guidelines dated 08.06.2022 of the respective sub-scheme available on www.mofpi.gov.in 

Pre-bid meeting will be held on 04th July, 2022 at 11.00 hrs. in Room No. 120, Panchsheel Bhawan, August Kranti Marg, New Delhi.

Applications received under the sub-schemes in response to Expression of Interest (EoI) will be evaluated separately and sanctioned on merit subject to fulfilling eligibility criteria and meeting the minimum qualifying assessment criteria as mentioned in the relevant guidelines of the sub-schemes.

The demand drafts, in original, should reach the Ministry not later than one week after last date of submission of application.

Last date for submission of online application is 17.00 hrs. of 10th August, 2022.

15-Mar-2022: Concessions for Setting -Up of FPIS & Mega Food Parks in Hilly Areas

Ministry of Food Processing industries (MoFPI) has been implementing Central Sector Umbrella Scheme - Pradhan Mantri Kisan SAMPADA Yojana (PMKSY) since 2016-17 for overall growth and development of food processing sector including setting up of Food Processing Industries. Under the component schemes of PMKSY, special concessions are provided for setting up of such industries and Mega Food Parks in North Eastern States (including Sikkim) and difficult areas like Himalayan States/UTs, State notified Integrated Tribal Development Project (ITDP) areas and Islands. These concessions include lower eligibility threshold during evaluation and higher rate of grants for selected projects.

Grants admissible under relevant component schemes of PMKSY

30-Jul-2021: Investment in Food Processing Sector

Ministry of Food Processing Industries (MoFPI) is implementing a Central Sector scheme- Pradhan Mantri Kisan Sampada Yojana (PMKSY) for overall growth and development of food processing sector including augmenting the preservation and processing capacity in the sector with off farm employment generation across the country. Total investment leveraged through implementation of the component schemes of PMKSY over the past three years was Rs.7185.48 crore. Minister of State for Food Processing Industries, Shri Prahlad Singh Patel gave this information in a written reply in Rajya Sabha today.

Ministry of Food Processing Industries do not compile or maintain data on FDI in Food processing sector. FDI Policy and data is looked after by Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce & Industry. The details of FDI equity inflow in the food processing sector reported over the past three years was USD 1926.35 million. As informed by DPIIT, the state wise information on FDI equity inflows is being compiled only since October 2019.

9-Feb-2021: Assistance under component schemes of PMKSY

A total of 3323 application were received for assistance under component schemes of Pradhan Mantri Kisan SAMPADA Yojana(PMKSY) of Ministry of Food Processing Industries. The component schemes of PMKSY include- (i) Mega Food Parks, (ii) Integrated Cold Chain and Value Addition Infrastructure, (iii) Infrastructure for Agro processing Clusters, (iv) Creation of Backward and Forward Linkages (v) Creation / Expansion of Food Processing & Preservation Capacities, (vi) Food Safety and Quality Assurance Infrastructure(FTL), (vii) Human Resources and Institutions- Research & Development and Skill Development and (viii) Operation Greens.

Officers of the level of Joint Secretary do coordination and monitoring of the projects assisted under each component scheme of PMKSY. The Ministry has also engaged professional agencies as Program Management Agencies for assistance in implementation of the schemes.

27-Feb-2020: 32 projects sanctioned under Pradhan Mantri Kisan Sampada Yojana (PMKSY)

Meetings of the Inter-Ministerial Approval Committee (IMAC) were held under the Chairpersonship of Union Minister of Food Processing Industries Smt. Harsimrat Kaur Badal at New Delhi. Total of 32 projects were sanctioned in these meetings under the ‘Unit’ scheme of PMKSY of Ministry of Food Processing Industries. The projects are spread across almost 17 States, leveraging an investment worth 406 Crore rupees.

These projects envisage the creation of direct and indirect employment for approximately fifteen thousand persons along with employment opportunities in rural areas to be the focus area. The introduction of modern processing techniques for food results in improved shelf-life of the agricultural produce and ensure steady revenue to farmers. Food processing has an important role to play in linking Indian farmers to consumers in the domestic and international markets. The Food processing industry can work as link between Farmers, Government and unemployed youth for better contribution towards economy. The Government of India through the Ministry of Food Processing Industries (MoFPI) is making all efforts to encourage investments in the business. It has approved proposals for joint ventures (JV), foreign collaborations, industrial licenses, and 100 per cent export oriented units.

The main objective of this Scheme is creation of processing and preservation capacities and modernisation/ expansion of existing food processing units with a view to increasing the level of processing, value addition leading to reduction of wastage. The processing activities undertaken by the individual units covers a wide range of post-harvest processes resulting in value addition and/or enhancing shelf life with specialized facilities required for preservation of perishables.  

The food sector has emerged as a high-growth and high-profit sector due to its immense potential for value addition, particularly within the food processing industry as it is said to have Compound Annual Growth Rate(CAGR) of approximately 8 percent over the last five years. The projects approved are running across quadrilaterals of the country covering over 100 agro-climatic zones.  The Processed food market is expected to grow to $ 543 bn by 2020 from $ 322 bn in 2016, at a CAGR of 14.6%.

MoFPI is implementing PMKSY and the period of implementation is 2016-20 with a total outlay of Rs 6,000 crore. The PMKSY has seven component schemes viz; Mega Food Parks, Integrated Cold Chain and Value Addition Infrastructure, Infrastructure for Agro-Processing Clusters, Creation of Backward and Forward Linkages, Creation/Expansion of Food Processing and Preservation Capacities, Food Safety and Quality Assurance Infrastructure, and Human Resources and Institutions.

Meetings of the Inter-Ministerial Approval Committee (IMAC) to sanction above projects were held on 21.02.2020 and 26.02.2020.

4-Feb-2020: 39 Mega Food Parks and 298 Integrated Cold Chain Projects sanctioned under Pradhan Mantri Kisan Sampada Yojana (PMKSY)

The Ministry of Food Processing Industries (MoFPI) has sanctioned 39 Mega Food Parks and 298 Integrated Cold Chain Projects throughout the country to fill in the gaps across the value chain and establishing the Cold Chain Grid.

The MoFPI is focusing on building cold chain infrastructure across the country, for seamless transfer of perishables from production to consumption areas, through the Pradhan Mantri Kisan Sampada Yojana (PMKSY), which comprises of component schemes namely (i) Integrated Cold Chain and Value Addition Infrastructure, (ii) Mega Food Park, (iii) Creation of Backward & Forward Linkages, (iv) Creation/ Expansion of Food Processing and Preservation Capacities (v) Agro Processing Clusters and (vi) Operation Greens.  These schemes aim at arresting post-harvest losses of horticulture and non-horticulture produce by encouraging the creation of cold storages/ primary processing/ and transportation facilities across the country.

23-Aug-2017: Cabinet approves New Central Sector Scheme - "Pradhan Mantri Kisan Sampada Yojana"

The Cabinet Committee on Economic Affairs, has approved the renaming of the new Central Sector Scheme - SAMPADA (Scheme for Agro-Marine Processing and Development of Agro-Processing Clusters) as "Pradhan Mantri Kisan Sampada Yojana (PMKSY) " for the period of 2016-20 coterminous with the 14th Finance Commission cycle. Earlier, CCEA in its meeting held in May, 2017 approved the new Central Sector Scheme - SAMPADA (Scheme for Agro-Marine Processing and Development of Agro-Processing Clusters) with same allocation and period .

Objective:

The objective of PMKSY is to supplement agriculture, modernize processing and decrease Agri-Waste.

Financial Allocation:

PMKSY with an allocation of Rs. 6,000 crore is expected to leverage investment of Rs. 31,400 crore, handling of 334 lakh MT Agro-produce valuing Rs. 1,04,125 crore, benefit 20 lakh farmers and generate 5,30,500 direct/ indirect employment in the country by the year 2019-20.

Impact:

The implementation of PMKSY will result in creation of modern infrastructure with efficient supply chain management from farm gate to retail outlet.

It will provide a big boost to the growth of food processing sector in the country.

It will help in providing better prices to farmers and is a big step towards doubling of farmers’ income.

It will create huge employment opportunities especially in the rural areas.

It will also help in reducing wastage of agricultural produce, increasing the processing level, availability of safe and convenient processed foods at affordable price to consumers and enhancing the export of the processed foods.

Measures to give a boost to Food Processing Sector:

Food Processing Sector has emerged as an important segment of the Indian economy in terms of its contribution to GDP, employment and investment. During 2015-16, the sector constituted as much as 9.1 and 8.6 per cent of GVA in Manufacturing and Agriculture sector respectively.

The manifesto of NDA Government stresses upon incentivizing the setting up of food processing industry for providing better income for the farmers and creating jobs.

Government has taken various other measures to boost food processing sector as follows:

(a) To provide impetus to investment in food processing and retail sector, govt. has allowed 100% FDI in trading including through e-commerce, in respect of food products manufactured and / or produced in India. This will benefit farmers immensely and will create back - end infrastructure and significant employment opportunities.

(b) The govt. has also set up a Special Fund of Rs. 2000 crore in NABARD to make available affordable credit at concessional rate of interest to designated food parks and Agro processing units in the designated food parks.

(c) Food and Agro-based processing units and cold chain infrastructure have been brought under the ambit of Priority Sector Lending (PSL) to provide additional credit for food processing activities and infrastructure thereby, boosting food processing, reducing wastage, create employment and increasing farmers' income.

Background:

PMKSY is an umbrella scheme incorporating ongoing schemes of the Ministry like Mega Food Parks, Integrated Cold Chain and Value Addition Infrastructure, Food Safety and Quality Assurance Infrastructure, etc. and also new schemes like Infrastructure for Agro-processing Clusters, Creation of Backward and Forward Linkages, Creation / Expansion of Food Processing & Preservation Capacities.