The Ministry of Food Processing Industries (MoFPI) recently launched a Convergence Portal, designed to integrate the Agriculture Infrastructure Fund (AIF) scheme, Pradhan Mantri Micro Food Enterprises Upgradation Scheme (PMFME), and Pradhan Mantri Kisan Sampada Yojana (PMKSY). Aimed at maximizing benefits for beneficiaries across these initiatives, this platform represents a significant step towards ‘Aatma Nirbhar Bharat’ and empowering local industries.
The Convergence Portal: Bridging Gaps in Agriculture and Food Processing
Operated jointly by the MoFPI and the Ministry of Agriculture and Farmers Welfare, the portal is based on the notion that government departments should work in harmony for effective public service. It promises significant advantages for food processing enterprises across the country, benefiting farmers and small-scale industry entrepreneurs. This collaboration is an effort towards aligning different agricultural schemes to provide optimized benefits to the beneficiaries.
Empowering Micro Food Enterprises: PMFME Scheme
Launched in June 2020 under the Atma Nirbhar Bharat Campaign, the PMFME scheme aims to bolster the competitiveness of individual micro food enterprises. It provides financial, technical and commercial aid for upgrading these enterprises. The scheme utilizes a One District One Product (ODOP) approach to capitalize on scale economies, common services, and product marketing. Over five years (2020-21 to 2024-25), the scheme anticipates an outlay of Rs.10,000 crore, shared between the Central and State Governments.
Agriculture Infra Fund (AIF): Financing Facility for Community Farm Assets
Introduced in July 2020, AIF is a funding mechanism designed to develop post-harvest management infrastructure and community farm assets. A sum of Rs 1 lakh crore has been allocated for the period 2020-21 to 2025-26, with interest subvention and credit guarantee assistance extending till 2032-33. AIF provides an opportunity for convergence with other state or central government schemes, optimizing the benefits of multiple initiatives for specific projects.
Comprehensive Infrastructure Development: Pradhan Mantri Kisan Sampada Yojana (PMKSY)
PMKSY is a comprehensive package aimed at creating modern infrastructure with efficient supply chain management, from farm gate to retail outlet. The scheme encompasses seven components, such as mega food parks, integrated cold chain and value addition infrastructure, and food safety and quality assurance infrastructure.
Other Related Initiatives
Several other initiatives have been introduced to bolster the agricultural and food processing sectors. Examples include the Agricultural and Processed Food Products Export Development Authority (APEDA), Minimum Support Prices (MSP), Commission for Agricultural Costs and Prices (CACP), National Skill Development Corporation (NSDC), and the Codex Alimentarius Commission Draft Food Safety And Standards (Labelling And Display) Regulation.
The Opportunities and Challenges of the Food Processing Sector
The largely unorganized food processing sector constitutes nearly 25 lakh units, contributing to 74% of employment in this sector. Despite its significant role in supporting rural livelihoods and curbing urban migration, the sector faces challenges such as limited access to modern technology, institutional credit, and branding & marketing skills. However, steps like the PMFME scheme have already benefited about 62,000 beneficiaries engaged in food processing activities, and around 7,300 loans have been sanctioned under this scheme for the establishment or upgrading of micro food enterprises.
Preparing for the Future: Government Examinations on Food Processing Sector
For individuals preparing for government examinations, understanding the policies and practices of the food processing sector is of paramount importance. Questions related to the concept of “Mega Food Parks”, factors influencing the localization of agro-based food processing industries, and policies adopted by the Indian government to address challenges in the food processing sector have been included in previous examinations. Understanding these policies and their implications can provide a significant edge to aspirants.
