Prime Minister Micro Food Industry Upgradation Scheme
WHAT IS PM-FME OR ODOP
Ministry of Food Processing Industries (MoFPI), in partnership with the State/ UT Governments, has launched an all India Centrally Sponsored PM Formalization of Micro food processing Enterprises Scheme (PM FME Scheme) for providing financial, technical and business support for upgradation of existing micro food processing enterprises.
PM FME scheme is designed to address the challenges faced by the micro enterprises. It aims to enhance the competitiveness of existing individual micro-enterprises in the unorganized segment of the food processing industry. Farmer Producer Organizations (FPOs), Self Help Groups (SHGs) and Producers Cooperatives can also take benefit from the scheme.
The Scheme will adopt a One District One Product (ODOP) approach to reap benefit of scale in terms of procurement of inputs, availing common services and marketing of products. One District One Product approach would provide framework for value chain development and alignment of support infrastructure. There may be more than one cluster for one product in one district. A cluster may also extend beyond one district. The States would identify food product for a district, keeping in perspective the focus of the scheme on perishables.
The products selected under the ODOP category are traditionally famous for the production and manufacturing from that particular district. The ODOP could be a perishable Agri-produce, cereal based product or a food product widely produced in a district and their allied sectors, such as mango, potato, litchi, tomato, tapioca, kinnu, bhujia, petha, papad, pickle, millet based products, fisheries, poultry, meat as well as animal feed among others. Besides, certain other traditional and innovative products including waste to wealth products could be supported under the Scheme. For example, honey, minor forest products in tribal areas, traditional Indian herbal edible items like turmeric, amla, haldi, etc.
Support for agricultural products would be for their processing along with efforts to reduce wastage, proper assaying, and storage and marketing.
With respect to support to existing individual micro units, preference would be given to those producing under ODOP approach. However, units producing other products would also be supported.
In case of groups, predominately, those involved in products under ODOP approach would be supported. Support to groups processing other products in such districts would only be for those already processing those products and with adequate technical, financial and entrepreneurial strength.
Support for common infrastructure and marketing & branding would only be for products under ODOP approach. In case of support for marketing & branding at State or regional level, same product of districts not having that product as ODOP could also be included.
The scheme would also support strengthening of backward and forward linkages, provision of common facilities, incubation centers, training, R&D, marketing & branding of ODOP products.
It is an All India Centrally Sponsored Scheme with an outlay of Rs. 10,000 crore for coverage of 2,00,000 enterprises over 5 years from 2020-21 to 2024-25. The expenditure under the scheme would 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 Center for other UTs.
Support to food processing units would be provided for the following:
- Credit linked grant at 35% of the project cost with maximum grant up to Rs 10.0 lakh to existing unorganized food processing units for upgradation;
- Credit linked grant at 35% of the project cost to SHGs/FPOs/cooperatives for capital expenditure with maximum limit as prescribed;
- Seed capital @ Rs. 40,000/- per member to those engaged in food processing as a working capital;
- Credit linked grant at 35% of the project cost for common infrastructure with maximum limit as prescribed;
- Support for marketing & branding up to 50% of the expenditure with maximum limit as prescribed.
List of States and Districts and identified food product under ODOP
- Ahmednagar Milk based products
- Akola Pulse based product (Pigeon pea, gram- Flour etc.)
- Amravati Mandarin Orange
- Aurangabad Maize based products (Sweet Corn/ Pop corn/ Cattle feed/Silage)
- Beed Custard Apple
- Bhandara Rice based products (Poha, Murmure etc.)
- Buldhana Guava
- Chandrapur Rice based products (Poha, Murmure etc.)
- Dhule Banana
- Gadchiroli Minor Forest Produce (Mahua/ Honey/ Hirda/ Behda etc.)
- Gondia Rice Based Products ( Poha, Murmura etc. )
- Hingoli Spice based products (Turmeric etc.)
- Jalgaon Banana
- Jalna Sweet Orange
- Kolhapur Sugarcane Products (Jaggery etc.)
- Latur Tomato
- Mumbai Marine Products (Fish, Shrimp etc.)
- Mumbai- Suburban Marine Products (Fish, Shrimp etc.)
- Nagpur Mandarin Orange
- Nanded Spice based products (Turmeric, Chilly- Powder etc.)
- Nandurbar Millet based products (Hill Millet, Finger Millet etc.- Flour/Papad/ Satva)
- Nashik Onion
- Osmanabad Pulse based Products (Gram, Moong, Tur- Dal, Flour etc.)
- Palghar Sapota
- Parbhani Sugarcane Products, Jaggery
- Pune Tomato
- Raigad Marine Products (Fish, Shrimp etc.)
- Ratnagiri Mango
- Sangli Grapes
- Satara Sugarcane Products (Jaggery etc.)
- Sindhudurg Mango
- Solapur Millet based products (Jowar, Wheat)
- Thane Millet based products (Hill Millet/ ragi etc.)
- Wardha Spices (Turmeric etc.)
- Washim Oil seed based products (Soyabean, Flax Seed, Sesamum etc.)
- Yavatmal Spices (Turmeric etc.)
Amol Chidrawar, Deputy Vice President at ITCOT Consultancy and Services Ltd
Amol Chidrawar, Currently working on projects of cold storage , pack houses and Onion storage infrastructure in different states on PPP model. Amol Chidrawar is a food technologist with 17 years of experience in sector. Where, he worked for 8 years on shop-floor of food industry and rest in the service industry. During course of professional experience in industry he worked on wide range of profiles from production, quality and supply chain, while in service industry it is consulting and advisory firms.
In consulting Industry he has played an important role in project designing for different project allied with post harvest and food processing sectors for private as well as different state and Central Government agencies. Also, he is actively working on projects like cold chain infrastructure, warehouses, mega food park etc. He believes his professional education and practical experience in the sector helped a lot to design the accurate projects. Similarly, he closely worked with central and state Government schemes related to Agro processing sector towards monitoring , evaluation and implementation node.
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