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Andhra Pradesh Govt. formulates guidelines for micro food processing enterprises
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Wednesday, 20 January, 2021, 08 : 00 AM [IST]
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Vijetha Iyer, Mumbai
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Andhra Pradesh Government has formulated the guidelines for implementation of the central sector scheme for the formalisation of micro processing enterprises. The Prime Minister had launched the scheme as PM FME (PM Formalisation of Micro Processing Enterprises scheme) dated June 29, 2020.
Under the scheme 200,000 micro food processing units across the country will be directly assisted with credit linked subsidy. The scheme envisages an outlay of Rs 10,000 crore over a period of five years from 2020-21 to 2024-25.
The unorganised food processing sector in the country comprises nearly 25 lakh food processing enterprises which are unregistered and informal. With only 7 per cent of investment in plant and machinery and 3 per cent of outstanding credit, the unorganised enterprises contribute to 74 per cent of employment (a third of which are women), 12 per cent of output and 27 per cent of the value addition in the food processing sector. Nearly 66 per cent of these units are located in rural areas and about 80 per cent of them are family-based enterprises. Most of these units fall under the category of micro manufacturing units in terms of their investment in plant and machinery and turnover.
Speaking to FnB News, Aarti, manager - Food Technology, Andhra Pradesh Food Processing Society said, “This project was launched by the Ministry of Food Processing Industries (MOFPI) in June 2020. This project is focused to make an unorganised food processing sector an organised one. The amount allocated is around 460.1 crore for Andhra Pradesh. We will be supporting both financially and technically. We will be providing 35 per cent subsidy to the maximum amount of Rs 10 lakh. This is for only micro food enterprises.”
While talking about the micro enterprises she said, “We will be teaching them from top to bottom wherein micro enterprises processing like how to select raw materials, which technology to use. There will be units like pickle making, papad making and more. They will be doing it manually since they are micro enterprises, so we will tell them to apply in mechanical means. If they are already doing mechanical ones we will be telling them to go for upgradation.”
She added, "Overall, they will be getting more returns. We will help them in teaching good manufacturing practices, getting bank loans sanctioned. Moreover, we will also help in marketing, branding, packaging and each and every aspect. The foundation process has already started in the project.”
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