PM Formalisation Of Micro Food Processing Enterprises Scheme

Ministry of Food Processing Industries (MoFPI) launched a pan India scheme called ‘Pradhan Mantri Formalisation of Micro Food Processing Enterprises’, in partnership with the State/ UT Governments under Aatmanirbhar Bharat Abhiyan which aims to enhance the competitiveness of existing individual micro-enterprises in the unorganized segment of the food processing industry and promote formalization of the sector and support Farmer Producer Organizations (FPOs), Self Help Groups (SHGs) and Producers Cooperatives along their entire value chain.

Under the scheme, 2,00,000 micro food processing units will be directly assisted with credit-linked subsidies. Adequate supportive common infrastructure and institutional architecture will be supported to accelerate the growth of the sector.

The objectives of the scheme are to build the capability of microenterprises to enable

1. Increased access to credit by existing micro food processing entrepreneurs, FPOs , Self Help Groups and Co-operatives;
2. Integration with an organized supply chain by strengthening branding & marketing;
3. Support for the transition of existing 5000 enterprises into the formal framework;
4. Increased access to common services like common processing facilities, laboratories, storage, packaging, marketing and incubation services;
5. Strengthening of institutions, research and training in the food processing sector; and
6. Increased access for the enterprises, to professional and technical support

The scheme is a centrally sponsored scheme that is designed to address the challenges faced by the micro-enterprises and to tap the potential of groups and cooperatives in supporting the upgradation and formalization of these enterprises.

 

Benefits

Subsidy: -

Individual micro food processing units desirous of upgradation of their unit can avail of credit-linked capital subsidy @35% of the eligible project cost with a maximum ceiling of Rs.10 lakh per unit. The beneficiary contribution should be a minimum of 10% and the balance should be a loan from a Bank.

The scheme would provide support to FPOs/ SHGs/ Producer Cooperatives for capital investment along the entire value chain with credit linked grants @ 35%.

Seed capital @ Rs. 40,000/- per SHG member would be provided to those engaged in food processing for working capital and purchase of small tools. Seed capital as a grant would be provided to the SHG federation which, in turn, would be extended to members as a loan through the SHGs.

Credit linked grant @35% would be provided to FPOs, SHGs, cooperatives, State-owned agencies and private entrepreneurs for the development of common infrastructure including common processing facility, lab, warehouse, cold storage, packaging and incubation centre.

1. Upgradation of Individual Micro Food Processing Units :
2. Support to FPOs / SHGs / Cooperatives
3. Seed Capital to SHG
4. Common Infrastructure

Branding and Marketing Support

Marketing and branding support would be provided at all over Rajasthan State & regional levels to FPOs/ SHGs/ Cooperatives or an SPV of micro food processing enterprises under the scheme following the ODOP approach for developing common packaging & branding with provision for quality control, standardization and adhering to food safety parameters for consumer retail sale. These organizations would be supported based on DPR prepared by them and recommended by the Rajasthan State Nodal Agency. Support for branding and marketing would be limited to 50% of the total expenditure.



Research

Research, development, extension, post-harvest management and marketing are addressed in a focused manner for successful implementation under Rajasthan Micro Food Processing Enterprises Scheme (RMFPE).



Training

Training Support will be provided for common infrastructure and marketing & branding for ODOP.



Eligibility

1. Eligibility Criteria for Co-operatives/Farmer Producer Organizations (FPOs)/ Self Help Groups (SHGs):
2. It should preferably be engaged in the processing of One District One Product (ODOP) produce;
3. It should have a minimum turnover of Rs.1 crore;
4. The cost of the project proposed should not be larger than the present turnover;
5. The members should have sufficient knowledge and experience in dealing with the product for a minimum period of 3 years.
6. The cooperative should have sufficient internal resources or sanction from the State Government to meet 10% of the project cost and margin money for working capital

Application Process

Online

(i). Select the type of Beneficiary.

(ii). Applicant Details.





1. Applicants have to visit the official portal.
2. Click on Sign-up.
3. "New User Registration" page will open.
4. Provide the following details.
5. Click on Register.
6. Now login with registered details.
7. Complete the profile details.

Documents Required

1. Aadhar Card Copy.
2. PAN Card Copy.
3. Address Proof Copy.
4. Bank Passbook Copy.