Boosting India’s Food Processing Sector
The Ministry of Food Processing Industries (MOFPI) is making significant strides in enhancing India’s food processing sector through the Pradhan Mantri Kisan Sampada Yojana (PMKSY). This central sector umbrella scheme aims to provide financial assistance and create a robust infrastructure for food processing industries across the country. With a focus on reducing post-harvest losses and improving farmers’ income, PMKSY is a comprehensive initiative that encompasses various component schemes designed to support the agricultural economy.
Overview of Pradhan Mantri Kisan Sampada Yojana
The PMKSY is a pivotal scheme that offers financial support to food processing projects. Under this initiative, the MOFPI provides up to ₹15 crore in financial assistance. The funding is allocated at 35% of the eligible project cost for projects in general areas and 50% for projects in difficult areas, as well as for those initiated by Scheduled Castes (SC), Scheduled Tribes (ST), Farmer Producer Organizations (FPOs), and Self-Help Groups (SHGs). The scheme includes several components, such as the Integrated Cold Chain and Value Addition Infrastructure, Operation Greens, and the Mega Food Park scheme, among others. These components aim to create modern infrastructure that facilitates efficient supply chain management from farm to retail.
The PMKSY not only boosts the food processing sector but also helps farmers secure better prices for their produce. By reducing wastage and increasing processing levels, the scheme enhances the export potential of processed foods. The initiative has been instrumental in creating employment opportunities, particularly in rural areas, thereby contributing to the overall economic development of the country.
Integrated Cold Chain and Value Addition Infrastructure
One of the key components of PMKSY is the Integrated Cold Chain and Value Addition Infrastructure scheme. This initiative aims to minimize post-harvest losses of both horticultural and non-horticultural produce. The scheme provides financial assistance in the form of grant-in-aid, covering 35% of the eligible project cost in general areas and 50% in difficult areas. The maximum grant available per project is ₹10 crore.
This scheme focuses on establishing integrated cold chain projects that ensure a seamless supply chain from the farm gate to the consumer. By facilitating the preservation and transportation of perishable goods, the cold chain infrastructure plays a crucial role in maintaining the quality of agricultural products. The initiative has led to the approval of numerous projects, significantly enhancing the processing capacity and reducing wastage of agricultural produce. The cold chain scheme is demand-driven, with proposals invited from across the country based on available funds, ensuring that the initiative remains responsive to the needs of the agricultural sector.
Impact on Farmers and Employment Generation
The PMKSY has a profound impact on farmers by improving their income and livelihood opportunities. By reducing wastage and ensuring better price realization, the scheme empowers farmers to gain more from their produce. The establishment of food processing units creates a direct link between farmers and markets, enhancing their bargaining power.
Moreover, the initiative generates substantial employment opportunities, particularly in rural areas where agriculture is the primary source of livelihood. The growth of food processing industries leads to the creation of jobs in various sectors, including logistics, marketing, and production. This not only helps in reducing rural unemployment but also contributes to the overall economic development of the region.
The PMKSY’s focus on creating backward and forward linkages further strengthens the agricultural supply chain. By connecting farmers with processors and retailers, the scheme ensures that agricultural products reach consumers efficiently, thereby enhancing the overall productivity of the agricultural sector.
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