Pradhan Mantri Kisan Sampada Yojana

Why in News

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.

Key Points

  • 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.
  • Objectives:
    • 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.
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