Govt allocates Rs 6000 crore to promote FPI in XII plan year


A sum of Rs. 5,990 crore has been allocated under various schemes of the Food Processing Industries (FPI) ministry for promotion and development of the food processing sector in XIIth Five Year plan. The sector has high potential for employment generation and optimal utilisation of perishable farm produce such as vegetables and fruits.

Infrastructure development activities, including setting up of mega food parks, integrated cold chains and abattoirs, gets Rs 2,800 crore. The National Mission on Food Procession, launched in this Plan itself, gets Rs 1,850 crore. The rest, Rs 1,340 crore, will be spent on other activities such as strengthening of institutions, quality assurance and standardisation, technology upgradation and human resource development in the sector. In the current year (2013-14), Rs 708 crore has been allocated, out of which Rs 247 crore will go towards infrastructure development.

The Minister of State for Agriculture and Food Processing Industries, Dr Charan Das Mahant in a written reply said in Rajya Sabha on Feb 7, 2014 that a sum of Rs 204.85 crore has been released to States/UTs under the National Mission of Food Processing (NMFP) during 2012-13 and 2013-14 (upto 31.1.2014).

Ministry of Food Processing Industries (MoFPI) had launched a Centrally Sponsored Scheme – National Mission on Food Processing (NMFP) during XIIth Five Year Plan. Under the Mission, State Governments are empowered to receive the applications, sanction and release the grants-in-aid to the eligible beneficiaries. Mission also provides flexibility to States / UTs in the selection of beneficiaries and location of projects etc. for the development of food processing sector.

The Schemes covered under the Mission during 12th Plan are:

(i) Scheme for Technology Up-gradation/ Establishment/ Modernisation of Food Processing Industries.
(ii) Scheme for Cold Chain, Value Addition and Preservation Infrastructure for Non-Horticultural Products.
(iii) Setting up/modernization/expansion of Abattoirs (to be implemented w.e.f.2014-17).
(iv)Scheme for Human Resource Development (HRD) – Creation of Infrastructure Facilities for Running Degree/ Diploma/ Certificate Courses in Food Processing Technology; Entrepreneurship Development Program (EDP); Food Processing Training Centre (FPTC); Training at recognized Institutes and sensitization cum awareness programme.
(v)Scheme for Promotional Activities – Organizing Seminar/Workshops; Conducting Studies/Surveys; Support to Exhibitions/Fairs; Advertisement& Publicity
(vi) Scheme for Creating Primary Processing Centres/ Collection Centres in Rural Areas.
(vii) Modernisation of Meat Shops.
(viii) Reefer Vehicles.

The minister further said that Scheme of Technology Up-gradation/Establishment/Modernisation of Food Processing Industries, interalia, is one of the Schemes of the National Mission on Food Processing. Under the above Scheme all the eligible Food Processing Units including Pulse Processing Units are provided Financial assistance as per Scheme guidelines. The grants-in-aid is provided to the implementing agencies/ entrepreneurs @25% of the cost of plant and machinery and technical civil works subject to a maximum of Rs 50.00 lakhs for general areas, @33.33% subject to maximum of Rs 75.00 lakhs in difficult areas including Hilly areas like Jammu & Kashmir, Himachal Pradesh, Uttarakhand and ITDP areas in the country and @ 50% subject to maximum of Rs100 lakhs for North-Eastern States including Sikkim. The above said scheme has been covered under the NMFP.

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