PM Formalization of Micro Food Processing Enterprises (PM FME) Scheme | UPSC
PM FME Scheme to generate total investment of Rs 35,000 crore and 9 lakh skilled and semi-skilled employment: Harsimrat Kaur Badal
WHY IN NEWS:
Scheme to benefit 8 lakh units through access to information, training, better exposure and formalization
SYLLABUS COVERED: GS 3:Scheme
For PRELIMS you have to concentrate on aim , funding pattern , employment opportunities and the approach the scheme is formulating ! Well quite bulky to remember . Make a note in your Prelims book.
For MAINS go through existing challenges . Let us dive in !
CHALLENGES FACED BY UNORGANISED FOOD PROCESSING SECTOR
- Lack of access to modern technology & equipment, training.
- Access institutional credit.
- Lack of basic awareness on quality control of products.
- Lack of branding & marketing skills etc.
- These units largely fall within the category of micro enterprises.
PM FME GUIDELINES
Minister for Food Processing Industries launched PM Formalization of Micro Food Processing Enterprises (PM FME) scheme on 29th June 2020 as a part of “Atmanirbhar Bharat Abhiyan”.
With a view to providing financial, technical and business support for upgradation of existing micro food processing enterprises, the Ministry of Food Processing Industries (MoFPI) has launched an all India “Centrally Sponsored PM Formalisation of Micro food processing Enterprises (PM FME) scheme”.
The scheme will be implemented over a period of five years from 2020-21 to 2024-25.
The scheme places special focus on capacity building and research.
SUPPORT AND TRAINING
- National Institute of Food Technology Entrepreneurship and Management (NIFTEM)
- Indian Institute of Food Processing Technology (IIFPT)
- Two academic and research institutions under MoFPI along with state level technical institutions selected by the states would be provided support for training of units, product development, appropriate packaging and machinery for micro units.
- ODODP APPROACH : The Scheme adopts One District One Product (ODODP) approach to reap benefit of scale in terms of procurement of inputs, availing common services and marketing of products.
- IDENTIFICATION OF PRODUCT : The States would identify food product for a district keeping in view the existing clusters and availability of raw material.
- ODOP PRODUCT : The ODOP product could be a perishable produce based product or cereal based products or a food product widely produced in a district .
- PREFERENCE : Preference would be given to those producing ODOP products.
- The scheme has an outlay of Rs 10,000 crore.
- In 90:10 ratio with North Eastern and Himalayan states.
- 60:40 ratio with UTs with legislature and 100 percent by Centre for other UTs.
- Scheme would generate total investment of Rs 35,000 crore and generate 9 lakh skilled and semi-skilled employment.
DETAILS OF THE PM FME SCHEME
CREDIT-LINKED CAPITAL SUBSIDY
- INDIVIDUAL MICRO FOOD PROCESSING UNITS : Existing Individual micro food processing units desirous of upgradation of their unit can avail credit-linked capital subsidy @35% of the eligible project cost with a maximum ceiling of Rs.10 lakh per unit.
- COOPERATIVES : FPOs/ SHGs/ producer cooperatives would be provided credit linked grant of 35% for capital investment along the value chain.
- STATE OWNED AGENCIES OR PRIVATE ENTERPRISES : Support would be provided through credit linked grant @ 35% for development of common infrastructure.
- INDIVIDUAL ENTREPRENEURS : Individual entrepreneurs and other stake holders desirous of availing assistance under the scheme may contact the State/UT Nodal Agencies.
OPERATION GREENS SCHEME
- Operation Greens Scheme, being implemented by MoFPI has been extended from tomato, onion and potato (TOP) crops to other notified horticulture crops for providing subsidy for their transportation and storage from surplus production area to major consumption centres.
- FRUITS– Mango, Banana, Guava, Kiwi, Lichi, Papaya, Citrus, Pineapple, Pomegranate, Jackfruit;
- VEGETABLES– French beans, Bitter Gourd, Brinjal, Capsicum, Carrot, Cauliflower, Chillies (Green), Okra, Onion, Potato and Tomato.
- DURATION OF SCHEME– for the period of six months from the date of notification i.e., 11/06/2020.
- ELIGIBLE ENTITIES– Food Processors, FPO/FPC, Co-operative Societies, Individual farmers, Licensed Commission Agent, Exporters, State Marketing/Co-operative Federation, Retailers etc. engaged in processing/ marketing of fruits and vegetables.
FREE ON-LINE SKILLING PROGRAMME FOR THE SC/ST FOOD PROCESSORS
- MoFPI has identified 41 courses and job roles like on baking, making jam, pickles, etc for which access to digital content would be made available.
- Once certified, these entrepreneurs would have better employment potential, or they can start their own venture.
SOURCES:THE HINDU & PIB | (PM FME) Scheme | UPSC