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Union Minister Food Processing Industries Smt. Badal launches PM FME scheme

PM FME (Formalization of Micro Food Processing Enterprises) Scheme will generate a total investment of Rs 35,000 crore and 9 lakh skilled and semi-skilled employment.

29th June 2020, New Delhi: Minister for Food Processing Industries Smt. Harsimrat Kaur Badal launched the PM Formalization of Micro Food Processing Enterprises (PM FME) scheme as a part of “Atmanirbhar Bharat Abhiyan”. Union Minister said that the Scheme would generate total investment of Rs 35,000 crore and generate 9 lakh skilled and semi-skilled employment and benefit 8 lakh units through access to information, training, better exposure and formalization. 

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The scheme will providing financial, technical and business support for upgradation of existing micro food processing enterprises. The “Centrally Sponsored PM Formalisation of Micro food processing Enterprises (PM FME) scheme” is to be implemented over a period of five years from 2020-21 to 2024-25 with 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% by Centre for other UTs. 

Speaking about the challenges faced by food processing sector, Smt. Badal said, “The unorganised food processing sector which comprising of nearly 25 lakh units contributes to 74% of employment in food processing sector. These units face a number of challenges which limits their performance and growth. Nearly 66% of these units are located in rural areas and about 80% of them are family-based enterprises supporting livelihood in rural household”.

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Challenges to these units include lack of access to modern technology & equipment, training, access institutional credit, lack of basic awareness on quality control of products; and lack of branding & marketing skills etc. She shared that owing to these challenges, the unorganised food processing sector contributes much less in terms of value addition and output despite its huge potential.