Ministry of Food Processing Industries

 

About Ministry

• The Ministry of Food Processing Industries (MOFPI) is a ministry of the Government of India responsible for formulation and administration of the rules and regulations and laws relating to food processing in India.
• The ministry was set up in the year 1988, with a view to develop a strong and vibrant food processing industry, to create increased employment in rural sector and enable farmers to reap the benefits of modern technology and to create a surplus for exports and stimulating demand for processed food.
• The Ministry of Food Processing Industries has a clear goal of attaining these objectives by facilitating and acting as a catalyst to attract quality investments from within India and abroad into this sector with the aim of making food processing a national initiative.
• With this overall objective, the Ministry aims to –
  1. Enhance farmer’s income by better utilization and value addition of agricultural produce
  2. Minimize wastage at all stages in the food processing chain by the development of infrastructure for storage, transportation and processing of agro-food produce;
  3. Introduce of modern technology into the food processing industries from both domestic and external sources;
  4. Encourage R&D in food processing for product and process development and improved packaging;
  5. Provide policy support, and support for creation of Infrastructure, capacity expansion/ Upgradation and other supportive measures form the growth of this sectors;
  6. Promote export of processed food products.

 

PRADHAN MANTRI KISAN SAMPADA YOJANA (PMKSY)

• Scheme for Agro-Marine Processing and Development of Agro-Processing Clusters Central Sector Scheme

Objectives

• • To supplement agriculture, modernize processing and decrease agri-waste.
  • To provide a comprehensive package which will result in creation of modern infrastructure with efficient supply chain management from farm gate to retail outlet
  • To provide a big boost to the growth of food processing sector in the country.
  • To provide better prices to farmers, create huge employment opportunities (esp. in rural areas), enhance exports of processed food, and provide safe and convenient processed foods at affordable price to consumers

Salient Features

• • Earlier named as SAMPADA (Scheme for Agro-Marine Processing and Development of Agro Processing Clusters), this central sector scheme has been approved for the period of 2016-20 coterminous with the 14th Finance Commission cycle.
  • It is an umbrella scheme incorporating ongoing schemes of the Ministry of Food Processing which will result in creation of modern infrastructure with efficient supply chain management from farm gate to retail outlet.
  • Schemes under PMKSY –
    1. 1. Mega Food Parks
       2. Integrated Cold Chain and Value Addition Infrastructure
       3. Food Safety and Quality Assurance Infrastructure
       4. Creation/Expansion of Food Processing & Preservation Capacities
       5. Infrastructure for Agro-processing Clusters
       6. Creation of Backward and Forward Linkages
       7. Human Resources and Institutions.
  • Last three schemes are new initiatives launched under the scheme while first 4 were the ongoing schemes.

 

MEGA FOOD PARK

• Started in 2008 

Objectives

• • To provide modern infrastructure for food processing units in the country and ensure value addition of agricultural produce including dairy, fisheries etc on hub and spokes model.
  • Establish sustainable raw material supply chain in a cluster.
  • Address needs of small and micro food processing enterprising by providing plug and play facilities.

Funding

• • Grant in aid of 50% of eligible cost in general and 75% in northeast and difficult areas subject to a maximum of 50 crore per project.

Implementing Agency

• • A Special Purpose Vehicle which is a Body Corporate under the Indian Companies Act.

Salient Features

• • It is based on ‘Cluster’ approach and envisages creation of state of art support infrastructure in a well-defined agri/horticulture zone for setting modern food processing units along with well-established supply chain.
  • The supply chain consists of collection centres, primary centres, central processing centres, cold chain and around 30- 35 fully developed plots for entrepreneurs to set up food processing units.
  • The minimum land required for a Central Processing Centre in Mega Food Park is 50 acre and implementation period is 30 months.

 

OPERATION GREENS

• Central Sector Scheme – “for integrated development of Tomato, Onion, & Potato (TOP) value chain”.
• Announced in 2018-19 Budget, on the line of “Operation Flood” with a total outlay of 500 cr under Ministry of Food Processing Industries.

Objectives

• • Enhancing value realisation of TOP farmers by targeted interventions to strengthen Tomato, Onion and Potato (TOP) production clusters and their Farmer Producers Organizations (FPOs), and linking/connecting them with the market.
  • Price stabilisation for producers and consumers by proper production planning in the TOP clusters and introduction of dual use varieties.
  • Reduction in post-harvest losses by creation of farm gate infrastructure, development of suitable agro-logistics, and creation of appropriate storage capacity linking consumption centres to increase shell life.
  • Increase in food processing capacities and value addition in TOP value chain with firm linkages with production clusters.
  • Setting up of a market intelligence network to collect and collate real time data on demand and supply and price of TOP crops.

Operationalisation strategy for Operation Greens

• • 2 pronged strategy –
    1. Short term Price Stabilisation Measures – National Agricultural Cooperative Marketing Federation of India Ltd (NAFED) will be the Nodal Agency to implement price stabilisation measures. MoFPI will provide 50% of the subsidy on the following two components –
       • • Transportation of Tomato Onion Potato(TOP) Crops from production to storage;
         • Hiring of appropriate storage facilities for TOP Crops;
    2. Long Term Integrated value chain development projects such as Capacity Building of FPOs & their consortium, Quality production, Post-harvest processing facilities, Agri-Logistics, Marketing Consumption Points, and Creation and Management of e-platform for demand and supply management of TOP Crops.

Salient Features

• • Operation Greens was announced in the Budget speech of 2018-19 with an outlay of Rs 500 crores to stabilize the supply of Tomato, Onion and Potato (TOP) crops and to ensure availability of TOP crops throughout the country round the year without price volatility.
  • The Centre has identified 17 top producing clusters across 8 states
  • (Maharashtra, Bihar, Gujarat, Andhra Pradesh, Uttar Pradesh, Karnataka, Odisha and West Bengal) for the first phases of this initiative.
  • The government also intends to utilize the 28 centres of excellence under Indo-Israel Cooperation for the demonstration of new technologies in production and the supply of quality planting material and capacity building to farmers under the scheme.
  • Government has laid down special strategy and grants-in-aid under the scheme to ensure enhanced production of TOP crops and to augment value chain.
  • Grants-in-Aid
    • 1. The pattern of assistance will comprise of grants-in-aid at the rate of 50% of the eligible project cost in all areas, subject to maximum Rs. 50 crores per project (For FPOs the grant-in-aid will be at rate of 70%).
      2. Eligible Organisation would include State Agriculture and other Marketing Federations, Farmer Producer Organizations (FPO), cooperatives, companies, Self-help groups, food processors, logistic operators, service providers, supply chain operators, retail and wholesale chains and central and state governments and their entities/ organizations which will be eligible to participate in the programme and to avail financial assistance.

 

National Agricultural Cooperative Marketing Federation of India Ltd (NAFED)

• Established in 1958 and registered under the Multi State Co-operative Societies Act, 2002

Objectives

• • To promote Co-operative marketing of Agricultural Produce to benefit the farmers.
  • To organize, promote and develop marketing, processing and storage of agricultural, horticultural and forest produce
  • To distribute agricultural machinery, implements and other inputs,
  • To undertake inter-state trade, import and export trade, wholesale or retail trade
  • To act and assist and provide technical advice to its members, partners, associates and cooperative marketing, processing and supply societies in India.

Salient Features

• • Members – Agricultural farmers are the main members of NAFED who have the say, as members of the General Body, in the working of NAFED.
  • NAFED is one of the central Nodal Agencies for procurement of 16 notified agricultural commodities of Oilseeds, Pulses and Cotton under Price Support Scheme (PSS).
  • It is the sole central Nodal Agency for procurement of Milling, Ball Copra and De-husk Copra under Price Support Scheme.

 

AGRO PROCESSING CLUSTERS

Objective

• • development of modern infrastructure and common facilities to encourage group of entrepreneurs to set up food processing units based on cluster approach by linking groups of producers/ farmers to the processors and markets through well-equipped supply chain with modern infrastructure.

Salient Features

• • Each agro processing clusters under the scheme have two basic components i.e. Basic Enabling Infrastructure (roads, water supply, power supply, drainage, ETP etc.), Core Infrastructure/ Common facilities (ware houses, cold storages, IQF, tetra pack, sorting, grading etc) and at least 5 food processing units with a minimum investment of Rs. 25 crore.
  • Agro processing clusters set up by Project Execution Agency (PEA)/ Organisation such as Govt./ PSUs/ Joint Ventures/ NGOs/ Cooperatives/ SHGs/ FPOs/ Private Sector/ individuals etc. and are eligible for financial assistance subject to terms and conditions under the scheme guidelines.
  • The Project Execution Agency (PEA) which is responsible for overall implementation of the projects undertakes various activities including formulation of the Detailed Project Report (DPR), procurement/ purchase of land, arranging finance, creating infrastructure, ensuring external infrastructure linkages for the project etc. 

 

OTHER SCHEMES OF MINISTRY OF FOOD PROCESSING INDUSTRIES