Priority Sector Lending in FPIs
- As per RBI’s Master Directions, all food & agro- processing activities have been included as eligible under Priority Sector Lending (PSL).
Food Processing Sector
- The Ministry of Food Processing Industries is implementing the Pradhan Mantri Kisan Sampada Yojana (PMKSY) for-
- Augmenting processing/preservation capacity,
- Creating off-farm employment,
- Leveraging domestic investment and increasing value addition to the economy.
- Food processing sector is a labor intensive sector.
- As per the Annual Survey of Industries (ASI) 2018-19, food processing was ranked 1st in total persons engaged in the manufacturing sector.
Special Fund for FPIs
- A special fund of Rs.2000 crore has been set up in NABARD to provide credit at affordable rates to boost the food processing sector.
- The loan is extended to:
- Individual entrepreneurs,
- Farmers producer organizations,
- Joint ventures,
- Special Purpose Vehicle and entities promoted by the Government
- Objectives: Setting up of modernization, expansion of food processing units and development of infrastructure in designated food parks.
Investments in FPIs
- PLI Scheme has been launched for creating global food champions through incentivizing investment in the food processing sector and creating employment.
- Pradhan Mantri-Formalisation of Micro Enterprises (PM-FME) scheme is also being implemented since 2020-21 which aims at upgrading/formalizing 2 lakh micro informal units and creation of 9 lakh employment.
- The government has permitted 100% FDI under the automatic route.
- The total FDI received in the food processing sector since April 2014 till December 2021 is US$ 5.15 billion.
- Through 582 completed projects under various component schemes of PMKSY, Rs. 8562.92 crore of investment has been leveraged.
Production Linked Incentive Scheme of Food Processing Industry (PLISFPI)
- Formulated by the Ministry as part of “Atma Nirbhar Bharat Abhiyan” for enhancing India's manufacturing capabilities and enhancing exports.
- The scheme has three broad components.
The 1st component relates to incentivizing manufacturing of four major food product segments viz. Ready to Cook/ Ready to Eat (RTC/ RTE) including: a. Millet-based foods, b. Processed Fruits & Vegetables, c. Marine Products, d. Mozzarella Cheese.
The 2nd component is intended for incentivizing innovative/ organic products of SMEs across all the above four food product segments including: a. Free Range - Eggs, b. Poultry Meat, c. Egg Products.
The 3rd component relates to support for branding and marketing abroad to incentivize the emergence of strong Indian brands.