PM Kisan Sampada Yojana aims at boosting the food processing sector in India by creating modern infrastructure with efficient supply chain management from farm gate to retail outlet. PMKSY scheme’s primary objective is to double the farmer’s income by encouraging the processing of agricultural produce. It also helps in creating employment opportunities and reducing the wastage of agricultural produce. Pradhan Mantri Kisan Sampada Yojana was implemented with an outlay of INR 6,000 Crore for the period 2016-20 but now the scheme has been extended till March 2026 with an allocation of INR 4,600 Crore. MOFPI has invited applications under the PMKSY scheme as per the revised operational guidelines dated 08.06.2022. The announcement was made on 21st June 2022 and the applicants need to submit their online application by 10th August 2022. Read on this blog to know the PM Kisan Sampada Yojana scheme details and its benefits.
Schemes implemented under PM Kisan Sampada Yojana are:
Mega Food Parks
Infrastructure For Agro-Processing Clusters (APC)
Integrated Cold Chain and Value Addition Infrastructure
Creation/Expansion of Food Processing And Preservation Capacities
Creation of Backward and Forward Linkages
Human Resources and Institutions
Food Safety and Quality Assurance Infrastructure
(1). Mega Food Park:
The objectives of the Mega Food Park Scheme are to provide an excellent infrastructure for food processing industries and also to facilitate the induction of the latest technology. 50% of the total project cost is provided as a grant-in-aid and in the North-Eastern region 75% of the project cost is provided as a grant-in-aid. Mega Food Park scheme will be implemented by Special Purpose Vehicle (SPV) and it needs to bring 20% of the project cost as equity in general areas and 10% in Hill and Island areas. An anchor investor in the special purpose vehicle should set up a food industry with an investment of at least INR 10 crore and the combined net worth of SPV promoters should not be less than INR 50 crore.
(2). Integrated Cold Chain and Value Addition Infrastructure:
Financial assistance will be provided in setting up an integrated cold chain, preservation, and value addition infrastructure facilities to prevent post-harvest losses of horticulture and non-horticulture produce. For ripening chamber, pre-cooling units, transport infrastructure, and pack houses grant-in-aid at 35% for general areas and 50% for the North-Eastern states of the total cost of the machinery and plant will be provided. The combined net worth of proposed shareholders should not be less than 1.5 times the grant and the term loan should be more than 20% of the project cost.
(3). Creation/Expansion of Food Processing And Preservation Capacities:
The objective of this scheme is to create/modernize/expand processing and preservation capacities to increase the level of processing and value addition. 35% of the cost of the plant, machinery, and civil work will be provided to general areas and 50% to the North-Eastern states. Food processing units should be set up only in Agro Clusters and Mega Food Parks and the promoter’s equity should not be less than 20% of the project cost.
(4). Infrastructure For Agro-Processing Clusters:
The 2 main objectives of this scheme are to create sophisticated infrastructure for food processing industries and to provide preservation infrastructure facilities from the farm gate to the consumer. The scheme has 2 basic components i.e basic enabling infrastructure such as water supply, ETP, roads, drainage, etc, and common facilities such as cold storage, sorting, grading, warehouses, IQF, etc. Under this scheme with a minimum investment of INR 25 crore, 5 food processing units should be set up in the cluster. The grant-in-aid will be credit-linked but not back-ended and the grant for each project would be 35% of the eligible project cost in general areas and 50% in the Northeastern states.
(5). Creation Of Backward and Forward Linkages:
The objective of this scheme is to create an effective backward and forward linkage for perishable Agri-Horti produce and to provide preservation facilities for enhancing the shelf life of perishable agricultural produce resulting in better remunerative prices for farmers. The scheme will have distribution hubs, mobile pre-cooling trucks, cold storage, IQF, dry warehouses, reefer trucks, and facilities for weighing, cleaning, sorting, grading, and packing. Promoters of existing food processing industries, Farmer Producer Organizations (FPOs), and Retailers of processed food having linkage at the farm level can apply for this scheme.
(6). Food Safety and Quality Assurance Infrastructure:
This scheme has 2 sub-schemes under it: Setting up and Upgradation Of Quality Control And Food Testing Laboratories: Establishing a surveillance system for monitoring the quality and composition of food and analyzing the samples received from food processing industries are the 2 major objectives of this scheme. Giant-in-aid @100% of the cost of equipment and will be provided to central/state governments and other organizations.
Hazard Analysis & Critical Control Points and Quality Management Systems: Encouraging food processing industries to adopt quality assurance and food safety mechanisms such as Total Quality Management including ISO 22,000, GHP, GMP, and HACCP to protect consumer health is the objective of this scheme. Hence this scheme motivates industries to adhere to stringent quality and hygiene norms to enhance product acceptance by overseas buyers and keep the Indian industry technologically abreast of international standards.
(7). Scheme For Human Resources and Institutions:
This scheme has 4 sub-schemes under it:
Research and development in the food processing sector: Food processing industries should benefit from R&D work in terms of value addition, efficient technologies, product development, packaging, etc. along with standardization of additives, preservatives, and coloring agents
Scheme for promotional activities, advertisements, and surveys: The objective of this scheme is to organize and participate in all India-level exhibitions, workshops, seminars, and fairs for food processing industries and also to create awareness of various schemes and initiatives announced by the ministry.
Skill development: It aims to provide a skilled workforce from operators, assembly line, and packaging workers to quality control supervisors and contribute towards achieving the projected skilled human resources requirement envisaged by the NSDC.
Strengthening of Institutions: Under this scheme, funds will be provided to 2 institutions: NIFTEM and IIFPT to create infrastructures such as student hostel, sports facilities, auditorium, incubation centers, research activities, machine fabrication, testing center, etc.