Context

The Government has launched the ‘PM Formalization of Micro Food Processing Enterprises (PM FME) scheme’ as a part of “Atmanirbhar Bharat Abhiyan” to provide financial, technical and business support for upgradation of existing micro food processing enterprises.

About

Details of the PM FME scheme

• The Centrally Sponsored PM Formalisation of Micro Food Processing Enterprises (PM FME) scheme will be implemented over a period of five years from 2020-21 to 2024-25 with an outlay of Rs 10,000 crore.
• The scheme aims to bring in new technology, apart from affordable credit to help small entrepreneurs penetrate new markets.
• It will generate investment of Rs 35,000 core, generate 900,000 jobs and help 800,000 units.
• The expenditure under the scheme would to be shared
  • in 60:40 ratio between Central and state governments
  • in 90:10 ratio with North Eastern and Himalayan states
  • in 60:40 ratio with UTs with legislature and 100% by Centre for other UTs.
• The scheme would directly benefit farmers and micro-entrepreneurs who contribute significantly to the Indian economy.

One District One Product (ODOP)

• The scheme adopts ODOP approach to reap benefit of scale in terms of procurement of inputs, availing common services and marketing of products.
• The states would identify food product for a district keeping in view the existing clusters and availability of raw material.
• The ODOP product could be a perishable produce based product or cereal based products or a food product widely produced in a district and their allied sectors.
• Illustrative list of such products includes mango, potato, litchi, tomato, tapioca, kinnu, bhujia, petha, papad, pickle, millet based products, fisheries, poultry, meat as well as animal feed among others. Preference would be given to those producing ODOP products. However, units producing other products would also be supported.

‘Extended Operation Greens’

• The government has also extended Operation Green from tomatoes, onions, and potatoes (TOP) to all fruits and vegetables (TOTAL).
• Under the ‘Extended Operation Greens’ scheme, all varieties of fruits and vegetables have been included now.
• This scheme would help in price stability and fair returns to the farmers.
• 50% subsidy for transportation of fruits and vegetables would be provided under this scheme.