Food Processing The economy booster

In order to streamline the food processing industry, the Ministry of Food Processing, Government of India has been running various schemes. R&M brings a review of them.
Food Processing The economy booster

In order to support the Mega Food Parks and the food processing units to be set up in such food parks by making available affordable credit, a special fund of Rs 2000 crore has been set up in National Bank for Agriculture and Rural Development (NABARD) in 2014-15. This fund called ‘Food Processing Fund’ was operationalised with effect from 11.11.2014. Loan at concessional rate of interest may be availed from this fund for establishing food parks and food processing units in the designated food parks.

So far, the ministry has notified 148 food parks in which concessional credit can be availed by food processing units. A loan of Rs. 519.20 crore has been sanctioned to 12 Mega Food Projects.

The cold chain scheme was launched to provide integrated cold chain and preservation infrastructure facilities without any break, from the farm-gate to the consumer.

The scheme envisages financial assistance in the form of grant-in-aid at 50 percent of the total cost of plant and machinery and technical civil works in general areas and 75 percent for difficult areas subject to a maximum of Rs.10 crore.

The Government has approved 138 cold chain projects during 2009-2015 which will create a capacity of 118 lakh LPD of milk processing, 4.76 lakh MT of cold storage, 119 MT/ hour of IQF and 810 number of reefer van. These include 30 new cold chain projects approved by the Ministry of Food Processing Industries in May, 2015.

There are 70 projects have become operational till December, 2015 and 68 projects are under implementation. The capacity created by 70 completed projects is 93.8395 lakh LPD of milk processing, 2.96 lakh MT of cold storage, 75.038 MT/ hour of IQF and 440 number of reefer vans.

Of this, 19 cold chain projects have been completed during 2015 creating capacity of 10 lakh LPD of milk processing, 55,820 MT of cold storage, 9.25 MT/ hour of IQF and 80 number of reefer vans.

The food processing sector has emerged as an important segment of the Indian economy in terms of its contribution to GDP, employment and investment. During 2014-15, the sector constituted as much as 9 percent and 10.1 percent of GDP in manufacturing and agriculture sectors respectively. The food processing industries sector has grown at 7.1 percent during this period.  

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