PM Kisan SAMPADA Yojana - Introduction
PM Kisan SAMPADA Yojana offers a comprehensive strategy for developing modern food processing infrastructure with effective supply chain management from agricultural lands to retail establishments. The establishment of agro-processing clusters and agro-marine processing are the goals of this plan. This programme helps farmers generate money while also advancing the development of the nation’s food processing industry. It is a significant step toward doubling farmers’ income, generating rural employment opportunities, lowering agricultural produce waste, and advancing the food processing business. In India, the market for food processing was valued at 26 billion in FY 2018 and is anticipated to rise to 53 billion by FY 2024, with a CAGR of 12.09 percent between FY 2020 and FY 2024.
The Ministry has so far approved 853 projects under various sub-schemes, given a corpus fund of Rs. 21058 CR, and awarded grants in aid of Rs. 6673 CR. The scheme will help 41,42,917 farmers and will generate 10,61,361 jobs as a result.
Food processing units will benefit from increased international exposure thanks to a well-established and planned infrastructure ecosystem. Exports of processed and agricultural goods increased by 14% from FY 2021. The program is in operation from 2019–20 to 2024–2025.
Features of PM Kisan Sampada Yojana
- The scheme began in 2019 and has now expanded to 17 Indian states. It has a 6673.74 CR outlay, of which 4444.25 CR have been made available thus far. The program’s goals include doubling farmers’ income, reducing food waste, improving food quality for consumers at affordable prices, and integrating new and current schemes.
- PM Kisan SAMPADA Yojana is a digital platform that allows for the approval of numerous projects under multiple sub-schemes. The agro-processing cluster scheme, CEFPPC scheme, cold chain scheme, food testing laboratory scheme, operation greens scheme, and R&D scheme are some of these sub-schemes.
- Promoters of existing food processing industries, Farmer Producer Organizations (FPOs), and Retailers of processed food having linkage at the farm level can apply for this scheme.
- The Ministry of Food Processing industries sanctioned 32 projects under the PM Kisan Sampada Yojana. This will create a direct impact on employment opportunities in rural areas and will improve the shelf life and quality of agricultural produce.
- The scheme primarily focuses on the creation of integrated cold chain and preservation infrastructure facilities through an efficient supply chain cycle. It is mainly accomplished through the Mega food park scheme, which consists of processing centers’, cold chains, and 30 fully developed plots for businesses to set up food processing units.
Eligible sectors under the PM Kisan SAMPADA Yojana
Fruit and vegetable processing, Milk processing, Meat poultry and fish processing, Ready to eat/ready to cook/food products/breakfast cereals/snacks and other food products, Flour/ pulse/oilseeds milling, Rice milling, Other Horti-Agri sectors like spices, coconuts, mushrooms, soybean, Honey/fruits-based wines, Natural food flavours’/extracts, food additives, and colors, and Animal feed.
- Combined net worth of promoters should not be less than 1.5 times the grant sought
- Promoter’s equity should not be less than 20% of project cost, 10% in the case of the northeast region.
- Term loan should be at least 20% of the project cost.
- Minimum land area – 10 acres.
- Minimum number of units to be set up – 5
- Minimum investment- 25 CR
Implementation of SAMPADA Yojana and sub-schemes
- Mega Food Park: The objective of the mega food park is to provide excellent infrastructure to food processing units in India and to facilitate the introduction of updated technology. 50% of the total cost is provided for settling units as a grant and 75% in the case of the north-eastern region. This scheme will be implemented by a special purpose vehicle (SPV) and 20% will be invested as equity and 10% in the case of hill and island areas.
2. Integrated cold chain and value additional infrastructure: Financial assistance will be provided in setting up of plants in order to prevent post-harvest losses of horticulture and non-horticulture produce. For ripening chambers, pre-cooling units, transport infrastructure, and pack houses, grant-in-aid at 35% for general areas and 50% for the North-Eastern states of the total cost of the machinery and plant will be provided.
3. The scheme has two basic components. A) enabling infrastructures like water supply, ETP, roads, drainage, etc, and B) common facilities like cold storage, sorting, grading, warehousing, etc. With an investment of 25CR, 5 food processing units can be set up in the cluster.
How can you apply for the PM Kisan Sampada Yojana?
Visit the PM Kisan Sampada Yojana website first, check that you meet all the requirements, and then click the apply button on the homepage. The application form will then be shown; complete it and upload any necessary supporting documentation.
How can Egniol help you?
Egniol services (The best Startup Consultants In India) will assist you in determining your eligibility, creating documents and certifications, applying for the programme, and receiving post-application support at every point of contact. Additionally, we offer consultancy services for similar plans and assist you in expanding your business by creating an online and offline presence. We can assist you in obtaining cash up to 10 CR if you need other government financing support.