The Indian Cabinet has recently given the green light for the implementation of two major schemes: The Pradhan Mantri Matsya Sampada Yojana (PMMSY) and the Formalisation of Micro Food Processing Enterprises (FME). Both of these initiatives were initially announced as part of the third instalment of India’s Rs. 20 lakh crore economic package under the Atmanirbhar Bharat Abhiyan. A significant portion of the funding for these schemes—around Rs. 30,000 crore—is expected to be provided by state governments.
Pradhan Mantri Matsya Sampada Yojana: Aiming for a Blue Revolution
First mentioned in the 2019-20 Budget, PMMSY aims to instigate a blue revolution through the sustainable and responsible development of the fisheries sector in India. It intends to increase fish production and productivity at an annual growth rate of 9%, with a target of 22 million metric tons by 2024-25. The scheme also plans to provide direct employment to 15 lakh fishers and fish farmers, generating approximately thrice as many indirect employment opportunities.
Funding and Implementation of PMMSY
The PMMSY is slated for implementation over five financial years from 2020-21 to 2024-25, with an estimated total investment of Rs 20,050 crore. This cost will be divided between Central (Rs 9,407 crores), States (Rs 4,880 crores) and Beneficiaries (Rs 5,763 crores).
The scheme will function as an umbrella scheme, segmented into Central Sector Scheme (non-beneficiary oriented and beneficiary oriented) and Centrally Sponsored Scheme (non-beneficiary oriented and beneficiary oriented). Funding assistance levels vary based on category: General, SC/ST/Women, and region (North Eastern & Himalayan States, Other States, Union Territories).
Formalisation of Micro Food Processing Enterprises: Assisting the Under-Serviced
The Scheme for Formalisation of Micro Food Processing Enterprises (FME) has been designed to assist and improve the financial conditions of micro food processing enterprises. The scheme aims to assist 2,00,000 micro-enterprises with credit linked subsidies. It also plans to provide better access to credit for recently established micro food processing entrepreneurs, women entrepreneurs, and entrepreneurs—from Aspirational Districts—thus generating around 9 lakh skilled and semi-skilled jobs.
Funding and Implementation of FME
Slated for implementation over a period of five years from 2020-21 to 2024-25, this Centrally Sponsored Scheme will operate throughout India. The scheme involves an outlay of Rs. 10,000 crore, which will be split between the Centre and States in a 60:40 ratio.
Mainly focusing on perishables, the scheme will be supervised at the Central level by an Inter-Ministerial Empowered Committee (IMEC) led by the Minister of Food Processing Industries. A State/UT Level Committee (SLC) chaired by the Chief Secretary will oversee, sanction, and recommend proposals for the expansion of micro-units and the establishment of new units by Self Help Groups (SHGs), Farmer Producer Organizations (FPOs) and Cooperatives.
To ensure its effectiveness, the Scheme also provides for third party evaluation and mid-term review mechanisms within the program.