Page 619 - ES 2020-21_Volume-1-2 [28-01-21]

246 Economic Survey 2020-21 Volume 2

New Initiatives in Food Processing Sector

Formalization of Micro Food Processing Enterprises

7.39 Under the Atma Nirbhar Bharat Abhiyan, Ministry of Food Processing Industries (MoFPI)
has launched a new Centrally Sponsored Scheme, Prime Minister-Formalisation of Micro Food
Processing Enterprises (PM-FME) with a total outlay of ` 10,000 crores over the period 2020-
2025. The scheme is expected to benefit 2 lakh micro food processing units through credit
linked subsidy. The Scheme adopts One District One Product (ODOP) approach to reap benefit
of scale in terms of procurement of inputs, availing common services and marketing of products.
The States need to identify one food product per district keeping in view the existing clusters
and availability of raw material. Support for common infrastructure and branding & marketing
would be for that product. The Scheme also places focus on waste to wealth products, minor
forest products and Aspirational Districts .
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7.40 Existing individual micro food processing units desirous of upgradation of their unit can
avail credit-linked capital subsidy @35 per cent of the eligible project cost with a maximum
ceiling of ` 10 lakh per unit. Seed capital @ ` 40,000 per SHG member would be provided
for working capital and purchase of small tools. FPOs/ SHGs/ producer cooperatives would be
provided credit linked grant of 35 per cent of the eligible project cost for capital investment along
the value chain. Support would be provided through credit linked grant @ 35 per cent of the
eligible project cost for development of common infrastructure including common processing
facility, lab, warehouse, cold storage, packaging and incubation center through FPOs/SHGs/
cooperatives or state owned agencies or private enterprise for use by micro units in the cluster.
Support for marketing and branding would be provided to micro units and groups with 50 per
cent grant at the state or regional level which could benefit large number of micro units in the
clusters. 35 States/UTs recommended ODOPs for 137 unique products in 703 districts. ODOPs
of 650 districts in 34 States/UTs have already been approved.

Operation Greens

7.41 MoFPI is implementing a central sector scheme “Operation Greens – A scheme for
integrated development of Tomato, Onion and Potato (TOP) value chain” to provide support
to farmers when prices of agri produce is low. This scheme is not meant for intervention in
the market during price rise. Under the short term- price stabilization measures of the scheme,
there is a provision for 50 per cent subsidy on cost of transportation and storage for evacuation
of surplus production from producing area to the consumption center during the glut situation.
By November, 2020, 5 approved projects (2 for tomato in AP & Gujarat, 2 for onion in Gujarat
& Maharashtra and 1 for Potato in Gujarat) are under implementation for long-term integrated
value chain creation.

7.42 Under Atma Nirbhar Bharat Abhiyan, this scheme has been extended from tomato, onion
and potato (TOP) crops to the other notified horticulture crops (Total) for a period of six months.
Transport subsidy has been allowed on any fruit & vegetable through any rail service provided
by Indian Railways.

1 NITI Aayog has identified 112 most backward districts of the country as Aspirational Districts.