Empowering Food Entrepreneurs: Government’s Incentives for Food Processing Units
21 December 2024, New Delhi: The Ministry of Food Processing Industries (MoFPI) is actively promoting the establishment and expansion of food processing industries through schemes like Pradhan Mantri Kisan SAMPADA Yojana (PMKSY), Production Linked Incentive Scheme for Food Processing Industry (PLISFPI), and the Pradhan Mantri Formalization of Micro Food Processing Enterprises (PMFME). These demand-driven schemes aim to bolster food processing infrastructure across India.
Eligible entities such as Government organizations, Public Sector Undertakings (PSUs), NGOs, Self-Help Groups (SHGs), Farmer Producer Organizations (FPOs), private companies, and individuals can avail grants. These incentives focus on areas like cold chain infrastructure, food processing capacity expansion, and common infrastructure development. Higher benefits are provided to projects in difficult areas or those involving marginalized groups, including SC/ST and women-led SHGs.
Below are the benefits under PMKSY:
| Component Scheme | Benefits (General Areas) | Benefits (Difficult Areas/SC/ST/FPOs/SHGs) |
|---|---|---|
| Integrated Cold Chain and Value Addition | Grant @ 35% of project cost (Max. ₹10 crore) | Grant @ 50% of project cost (Max. ₹10 crore) |
| Creation/Expansion of Food Processing Units | Grant @ 35% of project cost (Max. ₹5 crore) | Grant @ 50% of project cost (Max. ₹5 crore) |
| Agro-Processing Clusters Infrastructure | Grant @ 35% of project cost (Max. ₹10 crore) | Grant @ 50% of project cost (Max. ₹10 crore) |
| Operation Greens | Grant @ 35% of project cost (Max. ₹15 crore for value chains) | Grant @ 50% of project cost (Max. ₹15 crore for value chains) |
| Food Safety and Testing Labs | 100% grant for Govt. Organizations | 50%-70% grant for Private Organizations |
| Human Resource Development (R&D) | 100% grant for Govt. Organizations | 50%-70% grant for Private Institutions |
Under the PMFME Scheme, incentives include:
- Individual/Group Micro Enterprises: Capital subsidy @ 35% of project cost (Max. ₹10 lakh per unit).
- SHGs Seed Capital: ₹40,000 per SHG member (Max. ₹4 lakh per SHG Federation).
- Common Infrastructure Support: Subsidy @ 35% (Max. ₹3 crore).
- Branding & Marketing: Grant up to 50%.
- Capacity Building: Skilling programs tailored to food processing industry needs.
This information was provided by the Union Minister of State for Food Processing Industries, Ravneet Singh Bhittu, in Lok Sabha.
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