The Ministry for Food Processing Industries (MoFPI) has launched the P...

  Aug 08, 2020

The Ministry for Food Processing Industries (MoFPI) has launched the PM Formalization of Micro Food Processing Enterprises (PM FME) as a part of “Atmanirbhar Bharat Abhiyan”.

Q. What is the PM FME Scheme? 

A. PM FME Scheme: 

It aims to provide financial, technical and business support for upgradation of existing micro food processing enterprises It is a centrally sponsored scheme to be implemented over a period of five years from 2020-21 to 2024-25 with an outlay of Rs 10,000 crore.

The expenditure under the scheme would to be shared in 60:40 ratios between Central and State Governments, in 90:10 ratios with NE and the Himalayan States, 60:40 ratio with UTs with the legislature and 100% by Centre for other UTs.

Q. What are various features of this scheme? 

Q. Are the Perishables included in this scheme? 

A. The ODOP product could be a perishable produce based product or cereal-based products or a food product widely produced in a district and their allied sectors. An illustrative list of such products includes mango, potato, litchi, tomato, tapioca, kinnu, bhujia, petha, papad, pickle, millet-based products, fisheries, poultry, meat as well as animal feed among others.

The Scheme also place focus on waste to wealth products, minor forest products and Aspirational Districts.

Q. Why need such a scheme?

A. The unorganized food processing sector comprising nearly 25 lakh units contribute to 74% of employment in the food processing sector.

Nearly 66% of these units are located in rural areas and about 80% of them are family-based enterprises supporting livelihood rural household and minimizing their migration to urban areas.

Q. What are various challenges faced in unorganized food processing sector? 

A. The unorganised food processing sector faces a number of challenges which limit their performance and their growth. These challenges include lack of access to modern technology & equipment, training, access institutional credit, lack of basic awareness on quality control of products; and lack of branding & marketing skills etc. Owing to these challenges; the unorganised food processing sector contributes much less in terms of value addition and output despite its huge potential.