Pradhan Mantri Formalisation of Micro food processing Enterprises (PMFME) Scheme

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Context

• Three One District One Product Brands and Five Products launched under the Pradhan Mantri Formalisation of Micro food processing Enterprises (PMFME) Scheme.

 

PMFME

About:

• In 2020, Pradhan Mantri Formalisation of Micro food Processing Enterprises (PMFME) Scheme was launched, under the ‘Aatmanirbhar Bharat Abhiyan’ and ‘Vocal for Local’ campaigns.

Aim:

• To provide technical, financial and business support to micro food processing units in the country. To formalize, upgrade and strengthen them and take them a step closer to Aatmanirbhar Bharat.

Fund:

• The total funds allocated for this scheme were valued at Rs. 10,000 crores (US$ 1.3 billion) and will be disbursed from 2020 to 2025.
• It is a Centrally Sponsored Scheme for the Unorganized Sector on All India basis. The expenditure will be shared by GOI and the States in ratio of 60:40.

Objectives of the PMFME Scheme

The scheme provides:

• Credit access to existing micro food processing businesses, Farmer Producer Organisations (FPOs), co-operatives, and Self-Help Groups (SHGs), for technology upgradation.
• Assistance to 200,000 existing micro food processing units to transform them into organised units, by strengthening their marketing & branding, and integrating the supply chain with formal units.
• Increased access to shared services, such as storage, incubation facilities, and packaging.
• Professional and technical support for food processing entrepreneurs.
• Proper training and research to individual or group owned food processing enterprises.

 

Eligibility

1. Scheme is for All India basis.
2. Support to Individual micro units:
• Micro enterprises will get credit linked subsidy @ 35% of the eligible project cost with ceiling of Rs.10 lakh.
• Beneficiary contribution will be minimum 10% and balance from loan.
• On-site skill training & Handholding for DPR and technical upgradation.
3. Support to FPOs/SHGs/Cooperatives:
• Seed capital will be given to SHGs (@Rs. 4 lakh per SHG) for loan to members for working capital and small tools.
• Grant for backward/ forward linkages, common infrastructure, packaging, marketing & branding.
• Skill training & Handholding support.

• Credit linked capital subsidy.

One District-One Product (ODOP) Approach

• The PMFME Scheme has adopted the ODOP approach from the ODOP programme launched by the Uttar Pradesh (UP) government in 2018.
• Under this approach, a state identifies and selects a food product for the district, that could be a perishable agricultural crop, such as cereals, or a food product that is largely produced in the district.
• Tomato, mango, potato, litchi, millet-based goods, fishery, poultry, meat, and animal feeds are some of the food products covered by the ODOP.
• Traditional and innovative products like honey, minor forest products in tribal areas, and herbal items like turmeric are also supported by the scheme.
• Under the PMFME scheme, assistance in the form of new micro food processing units and marketing & branding support is solely given to micro food processing enterprises (owned individually or collectively) following ODOP approach.
• As of 2021, there were over 707 districts in 35 states and union territories that had selected ODOP, comprising 137 unique products.

 

Products and Brands under the Scheme

• The Ministry of Food Processing Industries has signed an agreement with NAFED for developing 10 brands of selected 20 ODOPs under the branding and marketing component of the PMFME scheme.
• Out of these, 7 ODOP Brands and 9 Products have been successfully launched in collaboration with NAFED, These include –

1. Brand : Cori Gold; District/State: Kota, Rajasthan Product : Coriander Powder,
2. Brand - Makhana King ; District/State: Darbhanga and Muzaffarpur from Bihar, Product: Plain and Chatpata Makhana),
3. Brand - Dilli Bakes ( District/State: Delhi, Product: Cookies and Rusk),
4. Brand - Amrit Phal ( District/State: Gurgaon, Haryana Product: Amla Juice),
5. Brand - Madhumantra ( District/State: Saharanpur, Uttar Pradesh, Product: Multiflora Honey),
6. Brand - Somdana ( District/State: Thane, Maharashtra, Product: Millet Flour) and
7. Brand - Kashmiri Mantra ( District/State: Kulgam, Jammu and Kashmir Product: Red Chilli Powder).

 

Newly Developed products and brands

• 7 ODOP Brands and 9 Products, 3 ODOP Brands and 5 Products namely Madhurmithas, Anaras, Pind Se and two products Masala Paste and Lemon Honey under the newly developed brands Kashmiri Mantra and Madhumantra respectively were successfully launched.
• The Brand Madhurmithas has introduced Jaggery Powder and has been exclusively developed under the ODOP concept for the district Muzaffarnagar, Uttar Pradesh. The product is a sweetener without any chemicals and also healthier and more delicious than sugar.
• Brand Anaras has been developed under the ODOP concept for dried spicy pineapple from the district Ri Bhoi, The product has been made from handpicked pineapples.
• Brand Pind Se for Mango Pickle is developed under the ODOP Concept from the district of Amritsar, Punjab.
• Two new products have also been introduced under the recently launched brands, Kashmiri Mantra and Madhumantra under the ODOP concept from the district Kulgam, Jammu and Kashmir, and the district Saharanpur in Uttar Pradesh respectively.
• In total 10 ODOP brands and 14 products have been launched under the MoU between NAFED and the Ministry of Food Processing Industries under the scheme.

 

Road Ahead

• The food processing industry is one of the largest sectors in India in terms of production, consumption, and exports.
• Key challenges faced by the food processing sector are gaps in supply chain infrastructure, access to modern technology & equipment and the lack of marketing & branding expertise.
• However, the widespread adoption of ongoing reforms and industry-friendly policies from the central and state governments to enhance the country’s unorganized food processing sector is expected to address these challenges in the upcoming years, driving the sector forward.

 

NAFED National Agricultural Cooperative Marketing Federation of India Ltd (NAFED) is an apex organization of agricultural produce marketing cooperatives. National Agricultural Cooperative Marketing Federation of India (NAFED) was established on Gandhi Jayanti on 2 October 1958. NAFED is registered under the Multi State Co-operative Societies Act. It is one of the largest procurers as well as marketing agency of agricultural products in India. The headquarter is in New Delhi and it has 4 regional offices and 28 zonal offices. By extension, NAFED’s network stretched to 4 zones – the North Zone, the East Zone, the South Zone and the West Zone. It was setup to promote co-operative marketing of agricultural produce to benefit the farmers. Agricultural farmers are the main members of NAFED, who have the authority in the form of members of the General Body in the working of the body.   Functions: ·        To facilitate the marketing and trading of agricultural commodities. ·        To facilitate the procurement of inputs for agriculture such as seeds, fertilisers, implements etc. ·        To provide warehousing facilities for the agricultural produce generated. ·        To act as an insurance agent for agricultural produce. ·        To act as an agent to the government in procurement and to collaborate with international agencies for the development of the cooperative market in agricultural produce.   Schemes Implemented by NAFED ·        Honey Farmer Producer Organisation Programme – a central sector scheme to create robust infrastructure for processing honey and allied products, good supply chain for storage and marketing and skill development in holistic beekeeping. ·        Launch of Madhukranti portal. ·        It is also the nodal agency for implementing the price stabilization scheme under Operation Greens. ·        It has also been instrumental in the establishment of the National Spot Exchange, a commodities exchange. ·        Helps in fulfilling the mandate of the Price Support Scheme and Market Intervention Scheme through timely procurements. ·        NAFED has launched nearly 90 new organic products in the name of “Organic Soul” starting from seeds like flax seeds, chia seeds, tea, flour, pulses in the market.

 

 https://www.pib.gov.in/PressReleasePage.aspx?PRID=1822961