Union Minister Prahlad Singh recently informed that the government has approved private food processing projects and that it looks forward to further involving the private sector
792 out of 818 projects have been approved with a grant worth Rs. 57.92 billion, for setting up food processing industries by the private sector. The government recently informed the same to Parliament.
Minister of the State for Food Processing Industries, Prahlad Singh Patel said, “Government has been consistently encouraging and incentivising increased private sector investment for the overall development of the food processing sector of the country to promote value addition in agricultural and allied sectors and reduce wastage.” The Minister also stated in a written response that the government has recently taken three major initiatives to further increase private sector involvement in the food processing sector.
Firstly, the government approved a Rs 10.9 billion Production Linked Incentive (PLI) program. It is for the food processing sector to aid in creating world champions in food production and support Indian food brands in international markets.
Secondly, the government is implementing Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme. This scheme aims to provide technical, financial and business support for the upgrade / establishment of two lakh micro-food processing units. This will be based on the One District One Product (ODOP) approach over a five-year period from the year 2020-21 to the year 2024-25 at a cost of Rs 10,000 crore.
And thirdly, the Government in the budget speech for the year 2021-22 had announced that it would expand the scope of the ‘Operation Greens’ scheme from tomato, onion and potato (TOP) to 22 perishable products. This decision was made to boost value addition in agriculture and allied products and their exports.
In addition to the above initiatives, the Minister added that the Government has been implementing a central scheme. The scheme is known as Pradhan Mantri Kisan Sampada Yojana (PMKSY) and has been operational since 2016-17. It was launched for the overall growth and development of the food processing sector, mostly through private sector participation.