PM Formalization of Micro Food Processing Enterprises (PM FME) Scheme | UPSC

HEADLINES:

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

MINISTRY? :-Ministry of Food Processing Industries

SYLLABUS COVERED: GS 3:Scheme

LEARNING:

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 !

ISSUE:

Smt. Harsimrat Kaur Badal launches the “PM Formalization of Micro Food Processing Enterprises (PM FME) scheme”

BACKGROUND

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.

The unorganized food processing sector comprising nearly 25 lakh units contribute to 74% of employment in food processing sector.

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 29^th June 2020 as a part of “Atmanirbhar Bharat Abhiyan”.

AIM

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”.

TIMELINE

The scheme will be implemented over a period of five years from 2020-21 to 2024-25.

FOCUS

The scheme places special focus on capacity building and research.

The Scheme also place focus on waste to wealth products, minor forest products and Aspirational Districts.

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.

APPROACH

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 .

ILLUSTRATIVE LIST

Mango, potato, litchi, tomato, tapioca, kinnu, bhujia, petha, papad, pickle, millet based products, fisheries, poultry, meat as well as animal feed among others.

PREFERENCE : Preference would be given to those producing ODOP products.

FUNDING

The scheme has an outlay of Rs 10,000 crore.

The expenditure under the scheme would to be shared in 60:40 ratio between Central and state governments.

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.

FEATURES

Scheme would generate total investment of Rs 35,000 crore and generate 9 lakh skilled and semi-skilled employment.

This will benefit 8 lakh units through access to information, training, better exposure and formalization.

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.

SHG MEMBERS : Seed capital @ Rs. 40,000/- per SHG member would be provided for working capital and purchase of small tools.

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.

Support for marketing & branding would be provided to develop brands for micro units and groups with 50% grant at State or regional level which could benefit large number of micro units in clusters.

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.

The objective of intervention is to protect the growers of fruits and vegetables from making distress sale due to lockdown and reduce the post -harvest losses.

ELIGIBLE CROPS:

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.

Any other fruit/vegetable can be added in future on the basis of recommendation by Ministry of Agriculture or State Government

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.

IASbhai WINDUP:

FREE ON-LINE SKILLING PROGRAMME FOR THE SC/ST FOOD PROCESSORS

MoFPI is planning to start free on-line skilling classes for SC and ST entrepreneurs, in collaboration with NIFTEM and FICSI, for providing e-learning.

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.

SUGGESTED READING : https://www.sampada-mofpi.gov.in/Login.aspx

SOURCES:THE HINDU & PIB | (PM FME) Scheme | UPSC

DISCOVER MORE : Important Schemes

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