Ministry of Food Processing Current Affairs

Government approves operationalisation strategy for Operation Greens

Union Ministry of Food Processing Industries (MoFPI) approved operationalisation strategy for Operation Greens. Operation Greens was announced by Union Government in Budget 2018-19 to stabilise supply of Tomato, Onion and Potato (TOP) crops. It is aimed at ensuring availability of TOP crops throughout the country round the year without price volatility.

Strategy comprises series of measures

Short term Price Stabilisation Measures

National Agricultural Cooperative Marketing Federation of India (NAFED) will be nodal agency to implement price stabilisation measures. MoFPI will provide 50% of subsidy two components of transportation of TOP Crops from production to storage and hiring of appropriate storage facilities for TOP Crops.

Long Term Integrated value chain development projects

  • Capacity Building of FPOs & their consortium
  • Quality production
  • Post-harvest processing facilities
  • Agri-Logistics
  • Marketing / Consumption Points
  • Creation and Management of e-platform for demand and supply management of TOP Crops
  • Assistance and eligibility

The assistance under this strategy will comprise of grants-in-aid at rate of 50% of the eligible project cost in all areas, subject to maximum Rs 50 crores per project. Eligible organisations under it will include State Agriculture and other Marketing Federations, cooperatives, companies, Farmer Producer Organizations (FPO), Self-help groups (SHGs), food processors, logistic operators, supply chain operators, retail and wholesale chains and central and state governments.

Operation Greens

It was announced in Union Budget 2018-19 on line of Operation Flood to promote FPOs, agri-logistics, processing facilities and professional management. It aims to promote farmer producers organisations, processing facilities, agri-logistics and professional management. It also aims to aid farmers and help control and limit erratic fluctuations in the prices of tomatoes, onions and potatoes (TOP). It is essentially price fixation scheme that aims to ensure farmers are given the right price for their produce. The idea behind it is to double the income of farmers by the end of 2022.

Its major objectives are:

  • Price stabilisation for producers and consumers by proper production planning in TOP clusters.
  • Reduction in post-harvest losses by creation of farm gate infrastructure, development of suitable agro-logistics, and creation of appropriate storage capacity linking consumption centres.
  • Enhance value realisation of TOP farmers by targeted interventions to strengthen TOP production clusters and their FPOs,
  • Increase in food processing capacities and value addition in TOP value chain.
  • Set up of market intelligence network to collect and collate real time data on demand and supply and price of TOP crops.

Month: Categories: India Current Affairs 2018

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Fact Box: SAMPADA Scheme

The Cabinet Committee on Economic Affairs has approved re-structuring the schemes of the Ministry of Food Processing Industries (MoFPI) under new Central Sector Scheme called as SAMPADA (Scheme for Agro-Marine Processing and Development of Agro-Processing Clusters) for the time period 2016-20.

Salient Highlights

SAMPADA is an umbrella scheme incorporating ongoing schemes of the Ministry of Food Processing Industries (MoFPI) such as Mega Food Parks, Integrated Cold Chain and Value Addition Infrastructure, Food Safety and Quality Assurance Infrastructure, etc. It will also incorporate the new schemes like Infrastructure for Agro-processing Clusters, Creation of Backward and Forward Linkages, as well as Creation / Expansion of Food Processing & Preservation Capacities.

SAMPADA with an allocation of Rs. 6,000 crore is expected to benefit 20 lakh farmers and generate 5,30,500 direct and indirect employment opportunities in the country by the year 2019-20.

The objective of SAMPADA is to supplement agriculture, modernize processing of agri products and decrease their wastage.

Significance

The new umbrella scheme gives renewed thrust to the food processing sector in the country. It aims to develop modern infrastructure to facilitate entrepreneurs to set up food processing units based on cluster approach and provide effective and seamless backward and forward integration for processed food industry. It proposes to achieve this by plugging gaps in supply chain and development of infrastructure facilities for processing and preservation and modernization of existing food processing units. As a result, SAMAPADA will result in the creation of modern infrastructure coupled with efficient supply chain management from farm gate to a retail outlet. It would provide better prices to farmers and would help in doubling their incomes. Implementation of the scheme will result in creating huge employment opportunities, especially in rural areas. From the perspective of the consumer, it would promote the availability of safe and convenient processed foods at an affordable price.

Other initiatives to boost Food Processing industry

  • The government has allowed 100% FDI in trading including through e-commerce with respect to food products manufactured and produced in India.
  • The Governments has created a Special Fund of Rs. 2000 crore in NABARD to provide credit at the concessional rate of interest to designated food parks and agro-processing units in the designated food parks.
  • Food and agro–based processing units and cold chain infrastructure have been placed under the ambit of Priority Sector Lending (PSL).

Month: Categories: India Current Affairs 2018

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