How MoFPI Helps the Food Industry with Subsidies: A Guide for Entrepreneurs
The Ministry of Food Processing Industries (MoFPI) in India supports the growth of the food processing sector. This guide explains how new and existing entrepreneurs can benefit from MoFPI’s subsidy schemes.
- About MoFPI
- Goal: Reduce food waste, increase food value, and ensure fair prices for farmers.
- Role: Creates and implements policies for the food processing industry.
- Main Subsidy Schemes by MoFPI
2.1. Pradhan Mantri Kisan SAMPADA Yojana (PMKSY)
- Mega Food Parks:
- Purpose: Build modern food processing infrastructure.
- Subsidy: Up to 50% of project cost (75% for North Eastern States and difficult areas).
- Limit: Maximum INR 50 crore per project.
- Integrated Cold Chain and Value Addition Infrastructure:
- Purpose: Set up cold storage and preservation facilities.
- Subsidy: Up to 35% of project cost (50% for North Eastern States and difficult areas).
- Limit: Maximum INR 10 crore.
- Creation/Expansion of Food Processing & Preservation Capacities:
- Purpose: Set up and expand food processing units.
- Subsidy: Up to 35% of project cost (50% for North Eastern States and difficult areas).
- Limit: Maximum INR 5 crore.
2.2. Scheme for Creation of Infrastructure for Agro-processing Clusters
- Purpose: Build infrastructure for food processing units in agro-processing clusters.
- Subsidy: Up to 35% of project cost (50% for North Eastern States and difficult areas).
- Limit: Maximum INR 10 crore per project.
2.3. Operation Greens
- Purpose: Stabilize supply of Tomato, Onion, and Potato (TOP) crops.
- Subsidy: 50% financial help for transportation and storage.
- Facilities: Cold storage and other preservation methods.
2.4. Scheme for Formalization of Micro Food Processing Enterprises (FME)
- Purpose: Support small, unorganized food processing businesses.
- Subsidy: 35% of project cost.
- Limit: Maximum INR 10 lakh.
2.5. Food Safety and Quality Assurance Infrastructure
- Purpose: Ensure high food safety and quality standards.
- Subsidy: Up to 50% of the cost of laboratory equipment.
- Limit: Maximum INR 5 crore.
- Who Can Apply and How
Eligibility Criteria:
- New Entrepreneurs: Must have a viable food processing project.
- Existing Entrepreneurs: Must want to expand or upgrade their units.
- Entities: Companies, sole proprietorships, partnerships, cooperatives, and self-help groups (SHGs) can apply.
Application Process:
- Plan the Project: Create a detailed project report (DPR) with business plans and financials.
- Apply Online: Submit the application and DPR on the MoFPI online portal.
- Review and Approval: MoFPI officials will review the application. Approved projects will proceed.
- Fund Release: Subsidies are given in phases as the project progresses.
- Benefits for Entrepreneurs
- Financial Support: Subsidies lower financial costs.
- Modern Infrastructure: Access to advanced facilities improves efficiency.
- Market Stability: Schemes like Operation Greens help stabilize prices.
- Quality Assurance: Setting up labs ensures high standards, aiding exports.
- Job Creation: The food processing sector’s growth leads to more jobs.
- Conclusion
MoFPI’s subsidies are vital for the growth of India’s food processing industry. Entrepreneurs can use these schemes to improve their businesses, reduce food waste, and get better returns for farmers. Knowing the eligibility criteria, application process, and benefits of these subsidies can help entrepreneurs succeed in the food processing sector.
For more details and updates, visit the official ; Alliance Food Engineering Consultant Private Limited, We are providing Services for the MoFPI Grant in Aid Consultancy and Setting up of the Food Processing Project from Conceptualization to implementation), our email Id: [email protected], www.aecengg.com, +91 91577 69448, Address: Gandhinagar Gujarat and Sonipat, Haryana, India