Cold Chain and Value Addition Infrastructure

The Ministry of Food Processing Industries (MoFPI) has introduced a scheme focused on the creation of integrated cold chain and value-addition infrastructure. This scheme aims to develop a comprehensive supply chain from the farm level to the distribution level, emphasizing the creation of cold chain infrastructure at the farm level. It allows flexibility in project planning to address the various needs of the stakeholders.

Objectives

1. Develop Cold Chain Infrastructure: Establish robust cold chain facilities to minimize post-harvest losses and maintain the quality of perishable products.
2. Enhance Value Addition: Promote processing and packaging to increase the market value of agricultural products.
3. Support Supply Chain Integration: Strengthen the entire supply chain from farm to distribution to ensure efficient market access.

Components of the Scheme

1. Farm Level Infrastructure:

   • Cold Storage
   • Pre-cooling Units
   • Packhouses
   • Sorting and Grading Units

2. Post-Harvest Processing:

   • Value Addition Facilities (e.g., IQF, Blast Freezing)
   • Packaging Units
   • Quality Testing Equipment

3. Distribution and Marketing:

   • Refrigerated Vehicles
   • Retail Chain Outlets for Perishables

Financial Assistance

• Grant-in-aid:
  • General Areas: 35% of the project cost.
  • Difficult Areas (North East States, Himalayan States, ITDP Areas, SC/ST Candidates, FPOs, SHGs): 50% of the project cost.
• Maximum Grant Ceiling: ₹10 Crores.

Eligibility Criteria

1. Integrated Projects:
   • Must include components across the supply chain from farm level to distribution.
   • Open to individual entrepreneurs, companies, cooperatives, FPOs, SHGs, and government agencies.

Application Process

1. Submission of Proposal:
   • Detailed project report outlining the components, cost estimates, and expected outcomes.
   • Documentation of eligibility, including area classification and organizational status (e.g., FPO, SHG).
2. Approval Process:
   • Proposals reviewed by an expert committee for technical and financial feasibility.
   • Sanctioning of grants based on merit, compliance with guidelines, and availability of funds.

Detailed Cost Breakdown

1. Example Calculation (Calculate as a Eligible Basic Cost):
   • Project Cost: ₹20 Crores.
   • General Area Grant: ₹7 Crores (35% of ₹20 Crores).
   • Difficult Area Grant: ₹10 Crores (50% of ₹20 Crores).
   • Note: Maximum grant is capped at ₹10 Crores.

Implementation Plan

1. Project Initiation:

   • Preliminary assessment and proposal submission.
   • Approval and sanction of grants.

2. Infrastructure Development:

   • Establishment of cold chain facilities at the farm level.
   • Setting up of post-harvest processing units.
   • Development of distribution and marketing infrastructure.

3. Operational Phase:

   • Commencement of cold storage operations and processing activities.
   • Transportation and marketing of processed products.

4. Monitoring & Evaluation:

   • Regular review of project progress.
   • Ensuring adherence to the grant utilization guidelines.
   • Periodic auditing and inspection by MoFPI.

Conclusion

The MoFPI scheme for Integrated Cold Chain and Value Addition Infrastructure aims to strengthen the entire supply chain from farm to distribution level. By providing financial assistance for both integrated and standalone projects, the scheme ensures a comprehensive approach to maintaining the quality and enhancing the value of agricultural products.

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