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.

Funding Pattern:

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

STATE- Maharashtra

District                                                                              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.