13-Dec-2022: Development of Dairy Farming

In order to provide assistance to farmers for dairy farming and its development, Department of Animal Husbandry and Dairying is implementing the following schemes: (i) Rashtriya Gokul Mission; (ii) National Programme for Dairy Development; (iii) Dairy Infrastructure Development Fund; (iv) Support to State Dairy Cooperative Societies and Farmers Producers Organisations; (v) Dairy Entrepreneurship Development Scheme (discontinued from 31st March 2020 onwards) and (vi) Animal Husbandry Infrastructure Development Fund. Benefits of these schemes being implemented by the Department of Animal Husbandry and Dairying accrue to more than 8 crore dairy farmers engaged in dairying in the form of enhancement in milk production and productivity, milk procurement, processing and marketing including across to modern technology. Government has also extended Kisan Credit Card (KCC) facility to Animal Husbandry farmers for their working capital requirement wherein farmers either individual or joint borrower, Joint Liability Groups or Self Help Groups including tenant farmers having owned/rented/leased sheds are eligible for getting benefits under the scheme.

Interest subvention provision available under the schemes being implemented by the Department of Animal Husbandry and Dairying is as under:

1. Animal Husbandry Infrastructure Development Fund (AHIDF) – under the scheme 3% interest subvention is made available to the beneficiaries availing credit under the scheme.
2. One of the components of the scheme Rashtriya Gokul Mission is to promote establishment of breed multiplication farm on hub and spoke model. Under the scheme 50% capital subsidy is available for eligible entrepreneurs (individual/ SHGs/FCO/FPO/JLGs and section 8 companies). Entrepreneurs assisted under establishment of breed multiplication farm are also eligible for interest subvention under Animal Husbandry Infrastructure Development Fund.
3. Support to State Dairy Cooperative & Farmers Producers Organization (SDCFPO): under the scheme one time support in the form of Interest subvention on working capital loans has been introduced from the financial year 2020-21.
4. Dairy Processing and Infrastructure Development Fund (DIDF)- This scheme is being implemented with the objective of Creation/ strengthening of Milk Processing, Value addition & chilling facilities. Under the scheme, NABARD raises the fund from market and disburse loan to dairy cooperatives with 2.5% interest subvention through National Dairy Development Board and National Cooperative Development Corporation (NCDC). Department of Animal Husbandry and Dairying provides 2.5% interest subvention to National Bank for Agriculture and Rural Development (NABARD).

1-Apr-2022: Issues associated with Dairy Farming

In order to compliment and supplement the efforts made by the States and Union Territories to make dairy farming sustainable, scientific and profitable, Government of India has been implementing following Central and Centrally sponsored schemes:-

1. Rashtriya Gokul Mission (RGM)
2. National Programme for Dairy Development (NPDD)
3. Dairy Processing and Infrastructure Development Fund (DIDF)
4. Supporting Dairy Cooperatives and Farmer Producer Organizations engaged in dairy activities (SDCFPO)
5. Livestock Health & Disease Control Programme (LHDCP)
6. National Livestock Mission (NLM)
7. Animal Husbandry Infrastructure Development Fund (AHIDF)

Following steps have been undertaken by the Department of Animal Husbandry and Dairying to compensate the dairy farmers for the duress they faced during the lockdowns:

1. A new component to provide one time support in the form of Interest subvention on working capital loans was introduced for the financial year 2020-21 under ongoing scheme Support to State Dairy Cooperative & Farmers Producers Organization scheme (SDCFPO).
2. Department of Animal Husbandry and Dairying has been implementing a Central Sector scheme for dairy development Dairy Processing & Infrastructure Development Fund (DIDF) to modernize the milk and milk products processing plants and machinery.
3. Department of Animal Husbandry and Dairying has been implementing National Programme for Dairy Development with the objective to create dairy infrastructure for procurement, processing and marketing of milk and milk products.
4. Kisan Credit Card- For the first time the KCC Scheme has also been extended for all farmers involved in animal husbandry sector including dairy farming.
5. Department of Animal Husbandry and Dairying has been implementing Rashtriya Gokul Mission (RGM) with the aim of development and conservation of indigenous bovine breeds, genetic upgradation of bovine population and enhancing milk production and productivity of bovines thereby making milk production more remunerative to the farmers.
6. Government of India is also implementing Animal Husbandry Infrastructure Development Fund (AHIDF) worth Rs. 15000 crore to facilitate incentivisation of investments in establishment of dairy processing and value addition infrastructure.

Following steps have been undertaken by the Department of Animal Husbandry & Dairying for installation of breeding infrastructure in rural areas and genetic upgradation of bovine population:-

1. Nationwide Artificial Insemination Programme (NAIP) has been initiated for delivery of free of cost quality artificial insemination services at farmers doorstep in 604 districts with less than 50% AI coverage. Under the programme, as against a target for coverage of 6.04 crore animals, as on date 2.96 Crore animals have been inseminated and 1.94 crore farmers have been benefitted.
2. Induction of Multi-Purpose Artificial Insemination Technicians in Rural India (MAITRI) to make available trained manpower for conducting artificial insemination services at the farmers doorstep in rural areas covering all States and Union Territories.   As on date 12196 MAITRIs have been trained and equipped to deliver breeding inputs at farmers’ doorstep.

A sum of Rs. 2316.14 crore has been released to all the States/UTs under Rashtriya Gokul Mission during the last 5 years and current financial year till date.

Following steps have been undertaken by Government of India to make institutional credit available to dairy farmers:-

1. Kisan Credit Card (KCC) - Government has extended KCC facility to Animal Husbandry farmers including farmers for their working capital requirements wherein farmers either individual or joint borrower, Joint Liability Groups or Self Help Groups including tenant farmers having owned/rented/leased sheds are eligible for getting benefits under the scheme.
2. Animal Husbandry Infrastructure Development Fund (AHIDF) – under the scheme 3% interest subvention is made available to the beneficiaries availing credit under AHIDF.
3. One of the components of the sub scheme Rashtriya Gokul Mission is to promote establishment of breed multiplication farm on hub and spoke model. Under the scheme 50% capital subsidy is available for eligible entrepreneurs (Individual/SHGs/ FCO/ FPO/JLGs and section 8 companies.
4. Support to State Dairy Cooperative & Farmers Producers Organization (SDCFPO): under the scheme one time support in the form of Interest subvention on working capital loans has been introduced from the financial year 2020-21.
5. Dairy Processing and Infrastructure Development Fund (DIDF)- This scheme is being implemented with the objective of Creation/ strengthening of Milk Processing, Value addition & chilling facilities. Under the scheme, NABARD raises the fund   from market and disburse loan to dairy cooperatives with 2.5% interest subvention through National Dairy Development Board and National Cooperative Development Corporation (NCDC). Department of Animal Husbandry and Dairying provides 2.5% interest subvention to National Bank for Agriculture and Rural Development (NABARD).

Benefits of the schemes being implemented by the Department of Animal Husbandry and dairying have been accruing to more than 8 crore dairy farmers engaged in dairying in terms of enhancement in milk production and productivity, milk procurement, processing and marketing including modern technology. There is no reported information available with the Department of Animal Husbandry and Dairying regarding unavailability of power in many rural areas resulting in dairy farmers not having access to modern technology.

21-Jun-2019: Assistance to farmers for Dairy Development Programme

Dairy Division has been supplementing efforts of the State Governments to develop dairy infrastructure across the country by providing financial support through following Dairy Development Schemes to increase the income of farmers:

1. National Programme for Dairy Development (NPDD).
2. Dairy Entrepreneurship Development Scheme (DEDS).
3. National Dairy Plan-I (NDP-I).
4. Dairy Processing and Infrastructure Development Fund (DIDF).
5. Supporting Dairy Cooperatives and Farmer Producer Organizations engaged in dairy activities(SDCFPO).

National Program for Dairy Development (NPDD): A restructured scheme titled “National Programme for Bovine Breeding and Dairy Development” (NPBB&DD) was launched in Feb-2014 with budgetary provision of 1800 Crore for implementation during 12th Plan, by merging of four ongoing schemes namely Integrated Dairy Development Programme (IDDP), Strengthening Infrastructure for Quality & Clean Milk Production (SIQ-CMP), Assistance to Cooperatives (A to C) and National Project for Cattle & Buffalo Breeding (NPCBB). NPBB&DD have two components (a) National Programme for Bovine Breeding (NPBB) and (b) National Programme for Dairy Development (NPDD). The IDDP, CMP and A to C has been discontinued from April, 2017. The NPDD focuses on creating/strengthening of infrastructure for Production of quality milk, Procurement, Processing and Marketing of Milk & Milk Products by the State Implementing Agency (SIA) i.e. State Cooperative Dairy Federations/ District Cooperative Milk Producers’ Union.

The budget estimate (BE) under National Programme for Dairy Development (NPDD) for the FY 2019-20 is Rs. 325.00 Crore.

Dairy Entrepreneurship Development Scheme (DEDS): The Department is implementing DEDS since September, 2010 through NABARD with the objective of providing self-employment opportunities and promoting entrepreneurship in dairy sector, especially in rural areas. Under the programme, back ended capital subsidy is provided to eligible end borrowers under bankable projects as per norms of the scheme. Subsidy to the tune of 25% of the project cost is provided to general category beneficiaries & 33.33% to SC/ST category beneficiaries. The budget estimate (BE) under Dairy Entrepreneurship Development Scheme (DEDS) for the FY 2019-20 is Rs. 325.00 Crore.

National Dairy Plan-I (NDP-I): The National Dairy Plan-I started in March, 2012 at the total cost of Rs.2242 Crore World Bank Assistance, is being implemented by National Dairy Development Board with the aim to increase productivity of milch animals and thereby increase milk production to meet the rapidly growing demand for milk and to help to provide rural milk producers with greater access to the organized milk processing sector. Initially, 14 major milk producing States were identified in 2012; further 4 new States namely Telangana, Jharkhand Chhattisgarh & Uttarakhand were added in 2015-16. The financial assistance is provided to State Dairy Federations/District Milk Unions as per the norms of the scheme. NDP Phase – I is going to close in November, 2019. NDP-I scheme has been discontinued w.r.t. release of fund during 2019-20.

Dairy Processing and Infrastructure Development Fund (DIDF): In order to accelerate Dairy Development in the country, in 2017, a new scheme Dairy Processing and Infrastructure Development Fund (DIDF) has been launched in December, 2017 by this Department. The scheme aims to benefit 95 lakh milk producers in 50000 villages. Further, it will create employment directly or indirectly for skilled, semi-skilled and unskilled workers. This scheme will have total corpus of Rs. 10,881 Crore under which milk cooperatives will be provided financial assistance at the interest rate of 6.5% in the form of financial assistance loan of Rs. 8004 Crore, to be returned over a period of 10 years. Government of India has also provided the provision of interest subsidy on loan. The budget estimate (BE) under DIDF for the FY 2019-20 is Rs. 60.87 Crore.

Supporting Dairy Cooperatives and Farmer Producer Organizations engaged in dairy activities: Department has approved a new Central Sector Scheme “Supporting Dairy Cooperatives and Farmer Producer Organizations engaged in dairy activities” from 2016-17 with a corpus fund of Rs. 300 Crore to be kept in perpetuity with National Dairy Development Board (NDDB) to be used for providing soft loan for working capital to enable State Dairy Cooperative Federations to provide a stable market access to farmers. The scheme is being implemented by NDDB with the objectives: i) To assist the State Dairy Cooperative Federations by providing soft working capital loan to tide over the crisis on account of severely adverse market conditions or natural calamities, ii) To provide stable market access to the dairy farmers, iii) To enable State Cooperative Dairy Federations to continue to make timely payment of dues to the farmers, iv) To enable the cooperatives to procure milk at a remunerative price from the farmers, even during the flush season. The corpus was created for implementation during 3 years i.e. 2017-18 to 2019-20. During 2017-18 no fund was allocated. An amount of Rs. 3 Crore was released during 2018-19 & a budgetary provision of Rs.100 Crore has already been made during 2019-20.

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.