Scheme for Loans to Small and Cottage Food Processors in Unorganized Areas – Central Government. Launch of scheme to provide loans to small and cottage food processors and rural women in unorganized sectors, credit for generating employment and doubling farmer’s income
The central government is going to introduce a new scheme for loans for small and cottage food processors in unorganized sectors. This scheme will enable them to upgrade their technology and skills and integrate them with the organized sector. India has the potential to become a food factory for the world in the next few years. This can be achieved by increasing the capacity of food preservation and processing which will also increase the income of the farmer.
The Ministry of Food Processing has taken several measures in the last 6 years to understand PM Modi’s vision of farmers’ income by 2023. Food processing is one of the largest industries for employment generation and about 80% of the processing industry is still unorganized.
Government. Micro and cottage targets food processors and rural women who are processing products such as papad, chutney, pickles etc. through small operations from their homes.
Loan Scheme 2020 for Small and Cottage Food Processors
Ministry of Food Processing Industries will introduce a loan scheme for small and cottage food processors in the unorganized sector. India is the largest producer of food in the world. However, at present, India’s food processing industry is in a nascent stage. India is capable of processing only 10% of its total production. Accordingly, there is a very high level of wastage that leads to the shooting of consumer prices on the one hand and farmers on the other. Subsequently, the Ministry of Food Processing Industries is working on creating infrastructure for food processing and preservation.
The loan scheme 2020 for small and cottage food processors will ensure that farmers get full value of their crops. To enable farmers to earn higher incomes through value addition of their agricultural produce. With this plan, Govt. Will provide guidance and subsidies to support farmers and connect them to relevant markets. To create a market, Govt. 100% FDI is allowed in multi-brand retail for food produced or manufactured in India.
India, to attract global food giants to look at sourcing from the central government. Organized World Food India 2017. This has become a critical point for attracting FDI in the food processing sector and FDI in the food processing sector has almost doubled to $ 913 million.
Small / cottage food processor loan scheme benefits
Following are the benefits of the loan scheme for small and cottage food processors in unorganized sectors: –
- Technology upgrade
- Skill enhancement
- Improvement in food safety standards of products
- Integration with organized sector
In another major PM Kisan Sampark Yojana, about Rs. 6,000 crore has been sanctioned to build infrastructure to improve agricultural productivity. In addition, 800 infrastructure is being established over the next 2-3 years to create adequate capacity for food processing and preservation. Central government. Other measures have been taken to boost the food processing sector, including creating a corpus of Rs. 2,000 crores under NABARD. It will provide credit at affordable rates to food processing units in designated food parks through Corpus NABARD.