Government Grants for Food Processing Industries: Boosting Growth with Incentives and Support
23 December 2024, New Delhi: The Ministry of Food Processing Industries (MoFPI) is driving transformative growth in the food processing sector by offering substantial grants and incentives through its central schemes. These initiatives, including the Pradhan Mantri Kisan Sampada Yojana (PMKSY), the Production Linked Incentive Scheme for Food Processing Industry (PLISFPI), and the Pradhan Mantri Formalization of Micro Food Processing Enterprises (PMFME) Scheme, aim to support businesses, promote entrepreneurship, and strengthen infrastructure in the sector.
Expanding Opportunities Across the Nation
These schemes are demand-driven and available nationwide, allowing a wide range of stakeholders to benefit. Eligible entities include Government bodies, Public Sector Undertakings (PSUs), Joint Ventures, Non-Governmental Organizations (NGOs), Cooperatives, Self-Help Groups (SHGs), Farmer Producer Organizations (FPOs), private companies, partnership firms, and individuals.
The Union Minister of State for Food Processing Industries, Shri Ravneet Singh Bhittu, shared these details in a written reply to the Lok Sabha, emphasizing the government’s commitment to bolstering the food processing industry.
Key Grants and Incentives Under PMKSY
- Integrated Cold Chain and Value Addition Infrastructure
- General Areas: Grant-in-aid of 35% of eligible project costs, up to ₹10 crore per project.
- Difficult Areas, SC/ST, FPOs, SHGs: Grant-in-aid of 50%, up to ₹10 crore per project.
- Creation/Expansion of Food Processing & Preservation Capacities
- General Areas: 35% grant, up to ₹5 crore per project.
- Difficult Areas, SC/ST, FPOs, SHGs: 50% grant, up to ₹5 crore per project.
- Infrastructure for Agro-Processing Clusters
- General Areas: 35% grant, up to ₹10 crore per project.
- Difficult Areas, SC/ST, FPOs, SHGs: 50% grant, up to ₹10 crore per project.
- Operation Greens
- Integrated Value Chain Development Projects: 35%-50% grant, up to ₹15 crore per project.
- Standalone Post-Harvest Infrastructure Projects: 35%-50% grant, up to ₹10 crore per project.
- Food Safety and Quality Assurance
- Government Organizations: 100% grant-in-aid for food testing laboratories.
- Private Entities: 50%-70% grant of eligible costs.
- Human Resource & Institutions – Research & Development
- Government Organizations: 100% grant for equipment and consumables.
- Private Institutions: 50%-70% grant for equipment costs.
Incentives Under PMFME Scheme
This centrally sponsored scheme supports micro food processing enterprises, offering:
- Individual/Group Enterprises: Credit-linked capital subsidy of 35%, up to ₹10 lakh per unit.
- SHG Seed Capital: ₹40,000 per SHG member engaged in food processing, up to ₹4 lakh per SHG Federation.
- Common Infrastructure: Credit-linked capital subsidy of 35%, up to ₹3 crore.
- Branding and Marketing: Up to 50% grant for FPOs, SHGs, and Cooperatives.
- Capacity Building: Customized Entrepreneurship Development Programs and product-specific skilling.
Empowering Stakeholders and Strengthening the Sector
MoFPI’s grant programs are designed to address the diverse needs of the food processing sector, promoting innovation, capacity building, and market expansion. They are not limited to any region, making them accessible to stakeholders across the country.
By providing financial assistance for infrastructure development, branding, marketing, and skill-building, these schemes aim to enhance the productivity and competitiveness of India’s food processing industry, contributing to economic growth and rural development.
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