The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi has given its approval for re-structuring the schemes of the Ministry of Food Processing Industries (MoFPI) under new Central Sector Scheme – SAMPADA (Scheme for Agro-Marine Processing and Development of Agro-Processing Clusters) for the period 2016-20 coterminous with the 14th Finance Commission cycle.
SAMPADA with an allocation of Rs. 6,000 crore is expected to leverage investment of Rs. 31,400 crore, handling of 334 lakh MT agro-produce valuing Rs. 104,125 crore, benefit 20 lakh farmers and generate 530,500 direct and indirect employment in the country by the year 2019-20.
The objective of SAMPADA is to supplement agriculture, modernise processing and decrease agri-waste. SAMPADA is an umbrella scheme incorporating ongoing schemes of the Ministry like Mega Food Parks, Integrated Cold Chain and Value Addition Infrastructure, Food Safety and Quality Assurance Infrastructure among others and also new schemes like Infrastructure for Agro-processing Clusters, Creation of Backward and Forward Linkages, Creation and Expansion of Food Processing and Preservation Capacities.
The SAMPADA will be aiming at development of modern infrastructure to encourage entrepreneurs to set up food processing units based on cluster approach, provide effective and seamless backward and forward integration for processed food industry by plugging gaps in supply chain and creation of processing and preservation capacities and modernisation and expansion of existing food processing units.
SAMPADA will focus on creation of modern infrastructure with efficient supply chain management from farm gate to retail outlet, providing a boost to the growth of food processing sector in the country and helping in providing better prices to farmers. It will aim on generating employment opportunities especially in the rural areas. Besides, it would also help in reducing wastage of agricultural produce, increasing the processing level, availability of safe and convenient processed foods at affordable price to consumers and enhancing the export of the processed foods.
Food Processing Sector has emerged as an important segment of the Indian economy in terms of its contribution to GDP, employment and investment. During 2015-16, the sector constituted as much as 9.1 and 8.6 per cent of GVA in Manufacturing and Agriculture sector respectively.