Government Boosts Food Processing Sector with Innovative Schemes
The Ministry of Food Processing Industries (MoFPI) is making significant strides in promoting the food processing sector by launching several initiatives aimed at enhancing infrastructure and adopting high-tech solutions. Through two primary schemes—the Pradhan Mantri Kisan SAMPADA Yojana (PMKSY) and the Production Linked Incentive Scheme for Food Processing Industry (PLISFPI), along with the Centrally Sponsored PM Formalization of Micro Food Processing Enterprises (PMFME)—the government is fostering a progressive environment for modern food processing.
These initiatives focus on creating cutting-edge infrastructure that streamlines supply chains from farms to retail outlets. This encompasses critical areas such as storage, transportation, and value addition, all designed to boost farmers’ profits, increase productivity, minimize food waste, and provide off-farm job opportunities.
Encouraging Technological Innovation
To facilitate the adoption of advanced technologies like Artificial Intelligence and the Internet of Things in the food processing industry, MoFPI offers Grant-in-Aid to educational and research institutions. This includes support for demand-driven research and development (R&D) projects through its scheme linked to PMKSY.
The R&D arm of PMKSY provides financial assistance covering up to 50% of equipment costs for private organizations, universities, and R&D labs in general areas, which rises to 70% in more challenging locations. Additionally, universities and government institutions can access a 100% grant-in-aid for essential R&D expenses, including equipment, consumables, and research personnel costs.
Support for Startups and MSMEs
MoFPI is also dedicated to supporting startups and Micro, Small, and Medium Enterprises (MSMEs) as part of its schemes. Despite the momentum, some approved projects have encountered delays due to bureaucratic hurdles, such as obtaining necessary clearances from state governments for operational permits and infrastructure approvals.
To address these delays, the Ministry has implemented several measures. A monitoring dashboard has been introduced to track project progress, along with regular consultations with project promoters to identify and resolve any implementation challenges. Additionally, site visits are conducted to assess the status of projects, and the Ministry is actively engaging with banks and financial institutions to expedite loan processing.
R&D Projects Making an Impact
Since 2016-17, MoFPI has approved various high-tech R&D projects under PMKSY aimed at revolutionizing the food processing sector. Noteworthy initiatives include the development of personalized nutrition solutions using 3-D printed foods and innovative packaging systems to enhance the shelf-life of fruits and vegetables.
Organizations like the National Institute of Food Technology, Entrepreneurship & Management (NIFTEM) in Haryana and Tamil Nadu are at the forefront of this research, pushing the boundaries of what’s possible in food technology.
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