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A total of 110 food processing projects were completed / operationalized viz; Mega Food Park:1, Cold Chain:37, Unit:68, Food Testing Labs:4.
Jan 03, 2022

A.Creation of Infrastructure Facilities

A total of 110 food processing projects were completed/operationalized viz; Mega Food Park:1, Cold Chain:37, Unit:68, Food Testing Laboratories:4

The 110 completed projects havecreated additional processing and preservation capacity of agricultural produce of 14.84 lakh MT per annum. 37 cold chain infrastructure projects created additional milk processing and storage capacity of 16.58 lakh litre per day and 40.10 MT/hour of IQF (Instant Quick Freezing) of fruits and vegetables.

The 110 completed projects leveraged private investment of Rs. 1441.32 crore and generated direct and indirect employment for 17398 persons.

B.Approval of New Infrastructure Facilities

A total of 94 food processing projects were sanctioned viz; Agro Processing Clusters:19, Cold Chain:39, Unit:18, Operation Greens:1, Food Testing Laboratories:15 and Mega Food Park:2.

The 94 new food processing projects sanctioned will create additional processing and preservation capacity of agricultural produce of 8.70 lakh MT per annum. The 39 cold chain infrastructure projects will create additional milk processing and storage capacity of 6.90 lakh litre per day and 40.05 MT/hour of IQF of fruits and vegetables.

The new 94 sanctioned projects are expected to leverage private investment of Rs. 1286.42 crore and generate direct and indirect employment for 30766 persons.

C. Notification of NIFTEM Act 2021

National Institute of Food Technology Entrepreneurship and Management (NIFTEM) Act 2021 was passed by Parliament in year 2021 to declare NIFTEM and IIFPT as Institutions of National Importance (INI). The NIFTEM Act 2021 came in force on 01.10.2021 The INI status will enable the institutes to have functional autonomy,premium branding of the institution,start new innovative courses,attract best faculties / students,adopt global standards in academics and R&D,have flexibility to have foreign collaborations, andopen new centers.

D.Atmanirbhar Bharat Abhiyan

1. Production Linked Incentive Scheme for the Food Processing Industries

As part of Hon’ble Prime Minister’s announcement of Aatmanirbhar Bharat Abhiyan, the Government, on 31st March, 2021, approved a Central Sector Scheme, namely “Production Linked Incentive Scheme for Food Processing Industry” with an outlay of INR 10,900 crores to be implemented for a period of seven years from 2021-2022 to 2026-27.

The primary objectives of this scheme are to support creation of global food manufacturing champions; support Indian brands of food products in the international markets; increase employment opportunities of off-farm jobs; and ensure remunerative prices of farm produce and higher income to farmers.

Specific food product segments having high growth potential have been identified for providing support under the scheme. These include ready to cook/ready to eat (RTC/ RTE) foods including millet based products, processed fruits & vegetables, marine products and mozzarella cheese. Support to innovative and organic products of SMEsfor these product segments and overseas marketing &branding are also covered under the scheme.

The guidelines were issued on 2nd May, 2021 and evoked a good response from the industry. A total of 274 applications were received, out of which 129 applicants have been selected. Out of this, 60 applicants were selected under Category-I, 12 applicants under Category-II and 57 applicants under Category-III. Out of the 60 applicants selected under Category-I, 14 applicants were also given approval of incentives under Category-III.

The implementation of PLI scheme is likely to facilitate expansion of food processing capacity by nearly Rs. 30,000 crore and create additional direct and indirect employment opportunities for about 2.5 lakh persons by the year 2026-27. The proposed investments of nearly INR 9,000 crore are likely to result in increase in sales of food products from INR 62,621 crore in FY 2019-20 (base year) to INR 1,80,276 crore in FY 2026-27. A positive stimulus to domestic industry is expected as the scheme stipulates that in order to get incentive, the entire chain of manufacturing processes, including primary processing of the food products shall take place in India. A positive impact on export sales will also be witnessed, with increase likely from about INR 13,500 crore in 2019-20 (base year) to about INR 57,000 crore in FY 2026-27.

2. PM Formalisation of Micro food processing Enterprises (PMFME)

The Prime Minister- Formalisation of Micro Food Processing Enterprises (PM-FME) scheme, aimed at promoting ‘vocal for local’ in the sector, under the Atmanirbhar Bharat Abhiyan, was launched in June 2020 to support 2 lakh micro food processing units with credit linked subsidy with a total outlay of Rs.10,000 crore over the period 2020-2025.

The Scheme adopts One District One Product (ODOP) approach to reap the benefit of scale in terms of procurement of inputs, availing common services and marketing of products.ODOP has been approved for 710 districts of 35 States/ UTs with 137 unique products.

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