National Mission on Food Processing

Food Processing Sector is gaining considerable importance with respect to its positive impact on agriculture. It is estimated that Food Processing contributes to over 28% of the share of the Agriculture GDP. Food Processing Sector is a sunrise sector which has a huge untapped potential for employment generation, reduction of wastage, improving value addition, earning foreign exchange, enhancing farmer incomes, and increasing manufacturing competitiveness. Therefore the Ministry has devised a number of Plan Schemes to facilitate overall growth and development of the food processing sector.

The ongoing schemes under 12^th Five-Year-Plan are as given below:

[A] Scheme for technology up-gradation/modernization/expansion of food processing industries:
The objective of the scheme is to promote food processing sector by encouraging more and more food processing units to come up. This is expected to increase the level of processing, value addition, reduce the wastage, enhance the income of farmers and boost exports. The important highlights of the scheme are:

• Assistance to the extent of 25% of cost of plant and machinery and technical civil works (parts of building used for actual production).
• Maximum Limit ₹ 50.00 lakhs.
• Govt. and Private sector can apply.
• Grant-in-aid released as two installments.
• Sanction of Term Loan for the project to the extent of at least 10% of project cost.

[B] Scheme for Cold Chain, Value Addition and Preservation Infrastructure for Non-Horticulture Products:
The objective of the scheme is to provide integrated and complete cold chain and preservation infrastructure facilities from the farm gate to the consumer as well as from the production site to the market. The important highlights of the scheme are:

• Assistance to the extent of 35% of the bank appraised project cost including interest subsidy.
• Maximum limit ₹ 5.00 crores.
• Under the total grant-in-aid, the interest subsidy component will be @ 6% against term loan for a period of 5 years subject to a maximum limit of ₹ 2 crores or actual interest accrued on term loan whichever is less.
• Scheme includes 4 components namely (a) minimum processing center at farm level, (b) mobile pre-cooling and reefer vehicles, (c) distribution hubs i.e. cold storage/packing/freezing facilities and (d) irradiation facilities. Proposals should include at least 2 components under (a), (b) and (c). Component (d) can be a stand alone proposal.
• Govt. and Private sector can apply.
• Grant-in-aid released as three installments.

[C] Scheme for Human Resource Development:
(i) Creation of Infrastructure for running Diploma/Degree courses in food processing technology:
The objective of the scheme is to provide trained manpower including entrepreneurs, managers, technologists, skilled workers for the food processing industry. The important highlights of the scheme are:

• Assistance o the extent of maximum ₹ 100 lakhs for pilot plant, laboratory equipments and library books and publications.
• The beneficiary’s share of expenditure would be in the form of land, building, manpower and other recurring costs.
• Recognized Universities/Institutions/Colleges in Govt. sector and private sector can apply.
• Grant-in-aid released as two installments.

(ii) Entrepreneurship Development Program:
The objective of the scheme is to train prospective entrepreneurs/unemployed youth, and encourage them to establish food processing units. The important highlights of the scheme are:

• Assistance to the extent of ₹ 3.00 lakhs per EDP.
• Each EDP is a 4 week program accompanied with a one year follow up involving at least 25 to 35 participants.
• Govt. sector bodies, reputed institutes/state level consultancy organizations and reputed NGOs can apply.
• Grant-in-aid released as three installments.

(iii) Food Processing Training Center:
The objective of the scheme is to promote processing of locally grown raw material by providing training and hands on experience so as to facilitate the development of rural entrepreneurship. The important highlights of the scheme are:

• Single Product Line: Assistance to the extent of ₹ 6.00 lakhs for fixed capital costs (P&M) and ₹ 3.00 lakhs as revolving seed capital (raw materials, consumables etc).
• Multi Product Line: Assistance to the extent of ₹ 15.00 lakhs for fixed capital costs (P&M) and ₹ 5.00 lakhs as revolving seed capital.
• Training to be imparted to at least 50 trainees/year with minimum two batches. At least 35% of trainees to belong to SC/ST/OBC/women/minorities.
• Govt. sector bodies, educational and training institutions and NGOs/Self Help Groups can apply.
• Grant-in-aid released as two installments.

(iv) Training at recognized institutes such as CFTRI/DFRL/IICPT/NIFTEM or any other State/National level training institute of GOI/State Govt.
The objective of the scheme is to impart specialized training to EDP trainees who are in advanced stage of setting up projects and also to upgrade the skill level of entrepreneurs who are already running food processing enterprises. The important highlights of the scheme are:

• Assistance to the extent of ₹ 1,00,000.00 for a training program for at least 20 trainees for a period of 10 working days OR a maximum of ₹ 5,000.00 per trainee.
• State or National level recognized training institutions can apply.
• Grant-in-aid released as two installments.

[D] Scheme for Promotional Activities:
(i) Seminars/Workshops:
The objective of the scheme is to promote the development of the food processing sector through awareness creation and dissemination of information as well as to attract investments into the sector. The important highlights of the scheme are:

• Assistance to the extent of 50% of the cost subject to a maximum of ₹ 4.00 lakhs.
• Govt. sector bodies, academic institutions, industry associations, cooperative societies, SHGs, NGOs and private bodies can apply.
• Grant-in-aid released as two installments.

(ii) Studies/Surveys/Feasibility Reports:
The objective of the scheme is to support initiatives for assessment of food processing potential in the State, evaluation of the impact of schemes/policies in the State as well as for assessment of losses/wastage of various crops. The important highlights of the scheme are:

• Assistance to the extent of 50% of the cost subject to a maximum of ₹ 4.00 lakhs.
• Govt. sector bodies, academic institutions, industry associations, cooperative societies, SHGs, NGOs and private bodies can apply.
• Grant-in-aid released as three installments.

(iii) Exhibitions/Fairs:
The objective of the scheme is facilitate familiarization with modern techniques in food processing and packaging, development of markets and popularization of processed foods as well as to attract investments into the sector. The important highlights of the scheme are:

• Quantum of assistance would be decided on the merits of the proposal.
• Govt. sector bodies, academic institutions, industry associations, cooperative societies, SHGs, NGOs and private bodies can apply.
• Grant-in-aid released as two installments.

(iv) Study Tours:
The objective of the scheme is to provide exposure to various aspects of food processing. The important highlights of the scheme are:

• Maximum assistance to the extent of ₹ 4.00 lakhs per batch.
• The study tour group may consist of up to 25 members; eligible members may be representatives from Govt. food processing association/organizations/entrepreneurs.

Three new schemes have been introduced by MOFPI under NMFP for implementation through State Food Processing Missions for the period 2013-17. Guidelines for the schemes have been issued by the Ministry. The new schemes are:

[E] Scheme for setting up of Primary Processing Centers/Collection Centers in rural areas:
The objective of the scheme is to establish an effective backward linkage for the food processing industry so as to empower the farming community through creation of processing and preservation facilities at village level for enhancing shelf life of perishable produce and ensuring better remunerative prices for agricultural produces. The important highlights of the scheme are:

• Assistance to the extent of 50% of eligible project cost up to a maximum limit of ₹ 2.50 crores.
• Processing and preservation facilities may include equipments for weighing, cleaning, sorting, grading, packing, pre-cooling, CA/MA storage, cold storage, dry warehouses, mobile pre-cooling trucks and reefer trucks.
• Entrepreneurs, farmer, farmer/entrepreneur groups, farmer associations, cooperatives, self help groups, NGOs can apply.
• Grant-in-aid released as two installments.

[F] Scheme for Modernization of Meat Shops:
The objective of the scheme is to improve the overall hygiene in the meat shops and ensure compliance with food safety rules and regulations as per Food Safety and Standards Act. The important highlights of the scheme are:

• Assistance to the extent of 50% of cost of machinery/equipment and technical civil works (eligible components) up to a maximum limit of ₹ 5.00 lakhs.
• Eligible components for improving hygiene levels have been specified in the guidelines.
• All implementing agencies (Govt./private) engaged in operations of meat shops can apply.
• Grant-in-aid released in one installment after commissioning.

[G] Scheme for Reefer Vehicles:
The objective is to provide financial support for standalone reefer vehicle/s and mobile pre-cooling vehicle/s (with permanently mounted reefer units) for transportation of horticultural and non-horticultural produce. The important highlights of the scheme are:

• Assistance in the form of credit linked back ended grant-in-aid to the extent of 50% of cost of reefer vehicles up to a maximum limit of ₹ 50.00 lakhs.
• Individual entrepreneurs, partnership firms, registered societies, cooperatives, self-help groups, NGOs, companies, corporations can apply.
• Grant-in-aid released in one installment after vehicles are procured.

Detailed guidelines have been issued for the above schemes. Separate guidelines have been issued for the first year of implementation (2012-13) and for the remainder period of 12th Five-Year-Plan (2013-14 to 2016-17). The applicants have to ensure that their application conforms to all requirements specified in the scheme guidelines. The formats for application form as well as for other documents under each scheme has been specified by the Ministry and have been included in the above guidelines. The current guideline (2013-14 to 2016-17) is attached below. The detailed guidelines for NMFP schemes are also available in www.mofpi.nic.in).

Guidelines – NMFP Schemes – 2013-14 to 2016-17

Interested persons/organizations are required to download the applications/formats from the website and submit to the State Food Processing Mission Kerala the duly filled up application form along with all documents after ensuring that they comply with the requirements as given in the guidelines.

For certain schemes appraisal reports of projects from Banks/Financial Institutions are mandatory and in such cases the concerned banks are required to forward appraisal reports to the State Food Processing Mission Kerala.

List of Beneficiaries under State Food Processing Mission Kerala

STATE NODAL AGENCY
KINFRA has been nominated as the Nodal Agency at State level for State Food Processing Mission. The contact details are as given below:

Mission Director
State Food Processing Mission Kerala
State Nodal Agency – Kerala Industrial Infrastructure Development Corporation (KINFRA),
Annexe, TC 9/2585, Elankom Gardens, Vellayambalam,Trivandrum – 695 010.
Tel:0471 272 7281, 4033823  Fax : 0471 272 7241
Email: kinfrafpd@gmail.com

The District Industries Center (DIC) of each district has been nominated as the Nodal Body for the District Food Processing Mission in each district. The contact details are as given below:

1. General Manager
District Industries Centre,
Water Works Compound,
Vellayambalam
Thiruvananthapuram
Ph: 04712326756
Email: tvmdic@gmail.com

2. General Manager
District Industries Centre
Ashramam, Kollam – 002
Ph:0474-2748395
Fax: 0474-2747261
Email: dickollam@gmail.com

3. General Manager
District Industries Centre
Kozhenchery
Pathanamthitta
Ph: 0468-2214639
Fax: 0468-2214639
Email: dicpta@dataone.in

4. General Manager
District Industries Centre
Vellakinar, Alappuzha
Ph: 0477-2251272
Fax: 0477-2253798
Email: gmdicalp@gmail.com

5. General Manager
District Industries Centre
Dist.Co-operative Bank Buildings
Thirunakkara,
Kottayam – 686001
Ph: 0481-2570042
Fax: 0481-2570042
Email: dicktm@bsnl.in, dickotm@gmail.com

6. General Manager
District Industries Centre
Cheruthoni, Idukki
Ph: 0486-2235507
Fax: 0486-2235507
Email: dicidk@creditmail.com

7. General Manager
District Industries Centre
Kunnumpuram, Civil Station
Kakkanadu
Ernakulam-682 021
Ph: 0484-2206022/ 21
Fax: 0484-2206022
Email: dicekm123@yahoo.com

8. General Manager
District Industries Centre
Ayyanthol, Trichur – 680003
Ph: 0487-2360847
Fax: 0487-2360847
Email: gmdictsr@dataone.in

9. General Manager
District Industries Centre
Behind Civil Station
Palakkad – 678001
Ph: 04917-2505385
Fax: 0491-2505385
Email: dicpkd@gmail.com

10. General Manager
District Industries Centre
Civil station Compound
Malappuram – 676121
Ph: 0483-2734812
Fax: 0483-2734812
Email: dicmlp@yahoo.in

11. General Manager
District Industries Centre
Vellayil, Kozhikode – 673011
Ph: 0495-2766035
Fax: 0495-2766035
Email: diccalicut@gmail.com

12. General Manager
District Industries Centre
Muttil P.O., Kalpetta
Wayanad – 673122
Ph: 04936-202485
Fax: 04936-202485
Email: dic_wyd@bsnl.in

13. General Manager
District Industries Centre
Civil station, Kannur – 670011
Ph: 0497-2700928
Fax: 0497-2700928
Email: dickannur@ymail.com

14. General Manager
District Industries Centre
Vidyanagar, Kasargode – 671123
Ph: 04994-255749
Fax: 04994-255749
Email: gmdicksd@gmail.com