Kerala’s rich and diverse micro-enterprises in the food processing sector have received a boost by adopting the One District One Product (ODOP) approach. It will help promote a wide range of ventures by facilitating credit with a subsidy component for scaling up production and marketing under the Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PM FME) Scheme.
As per the scheme, micro-entrepreneurs starting ventures in the food sector can avail 35 per cent of the available project cost as a subsidy, with a maximum of ₹10 lakh. So far, the subsidy has been sanctioned to 1,233 enterprises, and of them, a total of 581 entrepreneurs have received a subsidy totalling ₹15.09 crore in the individual category in the State, a press statement issued by the Kerala State Industrial Development Corporation (KSIDC) said.
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Moreover, the PM FME scheme envisages a seed capital assistance of ₹40,000 for working capital and the purchase of small tools for each member of Self-Help Groups (SHGs) engaged in food processing activities through the Kudumbashree Mission. The Mission promotes community networks, empowers women, and supports economic and social programs. It offers policy support, fosters partnerships, and ensures collaboration with local government institutions.
The component under PM FME for providing seed capital to SHGs is implemented with the support of the National Rural Livelihood Mission (NRLM) National Urban Livelihoods Mission (NULM) and its network of the State Rural Livelihood Mission (SRLM) and State Urban Livelihood Mission (SULM).
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The scheme was launched by the Union Ministry of Food Processing Industries (MoFPI) in June 2020 under the ‘Aatmanirbhar Bharat Abhiyan’ with the aim of enhancing the competitiveness of existing individual micro-enterprises in the unorganised segment of the food processing industry and promoting formalisation of the sector.
The scheme is to be implemented over a period of five years from 2020-21 with a total outlay of ₹10,000 crore. With a ₹10,000 crore outlay, it supports agri-food processing groups like FPOs (farmer-producer organisations), and cooperatives along their value chain for five years from 2020-21.
The Department of Industries and Commerce, and the State Nodal Department for implementing the scheme, have provided substantial assistance to micro-enterprises in the food processing sector across the state by facilitating credit with subsidies, besides seed funds to SHG members of micro food processing units promoted by Kudumbashree. The Kerala Bureau of Industrial Promotion (KBIP) is the State Nodal Agency for implementing the scheme.