Set up food-processing industries: Rameswar Teli to North East entrepreneurs

Union Minister of State for Food Processing Industries Rameswar Teli has requested all entrepreneurs/investors
Set up food-processing industries: Rameswar Teli to North East entrepreneurs

NEW DELHI: Union Minister of State for Food Processing Industries Rameswar Teli has requested all entrepreneurs/investors in the North East Region (NER) to visit the website of the Ministry (www.mofpi.nic.in) for further details and apply for assistance to set up food processing/preservation industries for benefit of the people in the region as well as a vibrant food eco-system in the region.

The Ministry has so far sanctioned 53 food processing/preservation projects in the different States of the North East region in various supply chain component in the food processing sector with a total project cost of Rs. 980 crore and total subsidy commitment of Rs.480 crore. These projects will benefit about 3 lakh farmers in disposing of their surplus agri-produce and create direct and indirect employment opportunities for about 50,000 persons.

So far, 16 projects have been completed and operationalized, benefiting about 70,000 farmers and creating direct and indirect employment for 6,500 persons.

Hence food processing industries is being seen as a sector with great potential in the North East which can provide immense employment opportunities also. The Government of India has been according top-most priority to north-eastern region (NER) for its overall socio-economic development.

The Ministry of Food Processing Industries as per the policy of the Government and in tune with the overall priorities to the region, has also been earmarking 10% of its budget for the implementation of its schemes and programmes in the region for the development of food processing sector.

The funds earmarked for the NER States under schemes of MoFPI, however, is not fully spent for want of suitable proposals from the region restricting thus the Ministry to not increase the allocation beyond the mandatory minimum 10% allocation.

The MoFPI has sanctioned 16 new food processing /preservation and infrastructure projects with a total cost of Rs.230 crore with subsidy commitment of Rs.85 crore for Assam in the last one year. It includes three agro-processing clusters or 'Mini Food Parks' with the objective to create common modern food processing/preservation infrastructure facilities for the processing/preservation units, 12 food processing/preservation units and one backward and forward linkage infrastructure.

During the last one year, 177 food processing/preservation projects have been sanctioned in the country with a total project cost of Rs 2,800 crore and subsidy commitment of Rs 940 crore consisting of two 'Mega Food Parks', 19 'Agro Processing Clusters', 22 'Cold Chains', 127 'Processing Units', three 'Backward and Forward Linkages' and four 'Operation Greens' for exclusive value chain development of tomato, onion and potato crops.

The Ministry has been implementing its flagship scheme 'Pradhan Mantri Kisan Sampada Yojana' (PMKSY) in the region. Under the scheme, credit-linked financial assistance as capital subsidy in the range of 35% to 75% of the eligible project cost (subject to a ceiling) is provided to support creation of modern infrastructure projects, food manufacturing units, value chain development, backward and forward linkages and food testing laboratories.

Under the PMKSY, the north-eastern States enjoy special dispensation not only in terms of higher rate of subsidy but also other relaxations to attract the investors to take up suitable food processing/preservation projects to exploit the myriad opportunities associated with it. Whereas the rate of subsidy in general areas varies from 35% to 50% depending on the nature of projects, in the NER, the rate varies from 50% to 75%.

Similarly, the minimum eligible project cost has been allowed at Rs.1 crore for setting up of Food Processing Units (FPUs) as against Rs.3 crore in general areas. Also, more time period for execution of projects is allowed in the region.

Ministry of Food Processing Industries has recently launched the "Centrally Sponsored Scheme 'Prime Minister — Formalisation of Micro Food Processing Enterprises' (PM-FME)" under the ambitious 'Atma Nirbhar Bharat' (ANB) Abhiyan which is to be implemented over a period of five years from 2020-21 to 2024-25 with total outlay Rs 10,000 crore.

The NER States over the next five years will get Rs 1,000 crore to directly assist 20,000 micro food- processing enterprises; of which, Assam alone will get Rs 640 crore to cover about 13, 000 micro enterprises of the total 20,000 enterprises for the NER.

The scheme adopts the approach of 'One District One Product' (ODOP) to reap benefit of scale in terms of procurement of inputs, availing common services and marketing of products. The States would identify food product for a district keeping in view the existing clusters and availability of raw material.

Keeping in view the suitability of small investors, the PM-FME scheme will be a game changer in the food processing sector in the region, the PIB release added.

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