Encouraging processing & value addition of agricultural and horticultural produce

Ministry of food Processing Industries-indianbureaucracy
Ministry of food Processing Industries-indianbureaucracy

For encouraging processing and value addition of agricultural and horticultural produce including Jack-Fruit in the country, Ministry of Food Processing Industries had been implementing a Scheme namely Scheme for Technology Upgradation/ Establishment/ Modernization of Food Processing Industries up to 31.03.2012.  Under this scheme, financial assistance in the form of grant-in-aid had been provided for Setting up/Technology Upgradation/Modernization of all food processing units in the country, which includes industries involved in value addition of Jack-Fruit also.

The quantum of financial assistance admissible for eligible entrepreneurs under the above scheme was at the rate of 25% of the cost of Plant & Machinery and Technical Civil Works subject to a maximum of Rs. 50 lakhs in case of General areas and for difficult areas, the same was at rate of 33.33% of the cost of Plant & Machinery and Technical Civil Works subject to a maximum of Rs. 75 lakhs.  The aforesaid scheme was subsequently subsumed in the Centrally Sponsored (CSS)-National Mission on Food Processing (NMFP) with effect from 01.04.2012 till 31.03.2015.  Thereafter, the said scheme got delinked from Government of India’s assistance and it was left to the State Governments to decide on its continuance from their increased resource as per recommendation of 14th Finance Commission.

As a part of the Committed / Spillover liabilities of 11th Plan period during the 12th Plan period also, Ministry of Food Processing Industries has been releasing grant-in-aid to eligible entrepreneurs under the Scheme for Technology Upgradation/ Establishment/ Modernization of Food Processing Industries, which includes entrepreneurs involved in value addition of Jack-Fruit also.

The year-wise and state-wise details regarding financial assistance released by the Ministry of Food Processing Industries under the Scheme for Technology Upgradation/ Establishment/ Modernization of Food Processing Industries during last three years, are given in Annexure.

In addition, the Government has also created a special fund of Rs. 2000 crore with National Bank for Agriculture and Rural Development (NABARD) for providing affordable credit to entrepreneurs for setting up of food processing units in designated Food Parks notified by the Ministry of Food Processing Industries.  The entrepreneurs involved in value addition of Jack Fruit can also avail the affordable credit under this fund for setting up of their units.

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