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32 projects have been sanctioned under the Pradhan Mantri Kisan Sampada Yojana (PMKSY) of the Ministry of Food Processing Industries (MoFPI).
- The projects are spread across almost 17 States, leveraging an investment worth ₹406 crores.
- These projects envisage the creation of direct and indirect employment, especially in rural areas.
- The Union Government has approved 32 projects in the food processing sector under Pradhan Mantri Kisan Sampada Yojana (PMKSY). The projects will be spread across 17 states.
- The government has earmarked funds worth Rs 406 crores for the projects. They were approved during the meeting of the Inter-Ministerial Approval Committee, chaired by Food Processing Minister Harsimrat Kaur Badal in New Delhi on February 26, 2020.
- The main focus area of the projects is to boost employment opportunities in rural areas and create direct and indirect employment for about 15000 people.
- Food processing plays an important role in connecting Indian farmers to domestic and international consumers and markets.
- The introduction of modern processing techniques for food results in improved shelf-life of the agricultural produce and ensures steady revenue to farmers.
- The processed food market is expected to grow to $543 billion by 2020 from $322 billion in 2016, at a Compound Annual Growth Rate (CAGR) of 14.6%.
Compound Annual Growth Rate
- CAGR is the mean annual growth rate of an investment over a specified period of time longer than one year.
Pradhan Mantri Kisan SAMPADA Yojana
- In 2016, MoFPI introduced an umbrella Scheme for Agro-Marine Processing and Development of Agro-Processing Clusters or SAMPADA, which was proposed to be implemented with an allocation of ₹6,000 crores for the period of 2016-20.
- In 2017, SAMPADA was renamed as the Pradhan Mantri Kisan Sampada Yojana (PMKSY).
- It is a Central Sector Scheme.
- To supplement agriculture.
- To create processing and preservation capacities.
- To modernise and expand existing food processing units with a view to increasing the level of processing.
- To add value leading to the reduction of wastage.
- Seven component schemes under PMKSY:
- Mega Food Parks.
- Integrated Cold Chain and Value Addition Infrastructure.
- Infrastructure for Agro-Processing Clusters.
- Creation of Backward and Forward Linkages.
- Creation/Expansion of Food Processing & Preservation Capacities.
- Food Safety and Quality Assurance Infrastructure.
- Human Resources and Institutions.
- Under PMKSY, capital subsidy in the form of grants-in-aid ranging from 35% to 75% of the eligible project cost subject to a maximum specified limit is provided to investors under the various schemes for undertaking infrastructure, logistic projects and setting up of food processing units in the country.