Scheme For Loans to Small and Cottage Food Processors in Unorganized Sectors
Central government is planning to come up with Scheme for Loans to Small and Cottage Food Processors belonging to the unorganized sectors. The main objective of the scheme is to upgrade technology and skills and work in coordination with the organized sector. By this, it will help India to become a great store of a food factory in the coming few years. To achieve this, it requires better capacities of preserving food and processing the same that will raise the income of the poor farmers.
In this regard, the Ministry of Food Processing has adopted some measure that is sure to last for 6 years. Also, the measures will help to double farmer’s income by the coming years. Food processing is among the important industries that can create employment opportunities. However, 80% of the processing industry is yet to be included under the organized sector.
Therefore, the central government is aiming both the cottage and micro food processors along with rural women who are including in preparing items like chutney, achaar, pappad and the like.
Details of Loan Scheme 2020 for Small and Cottage Food Processors
The Loan Scheme 2020 for Small and Cottage Food Processors will be launched by the Ministry of Food Processing Industry. Despite being among the large food producer of India, it is at a growing stage. It is only able to produce 10% of the total country’s production. As there is a high level of wastage, the price of consumer products is increasing, and the farmers are not getting their due charges. Hence, for better food processing, the Ministry of Food Processing Industries has taken steps to work on the infrastructure.
Also, the successful implementation of the scheme will ensure that the farmers can get a suitable price for their crops. With the help of value addition to the produce of the farmers, the income of the farmers can become higher. This will eventually boost the condition of agriculture produce in the country. Other than this, the farmers will offer better guidance along with the benefits of subsidies to support the farmers and help them connect with the relevant market. Hence, to create better opportunities in the market, the government need to offer 100% FDI in different retain brands for a variety of food that is manufactured in India.
To get in touch with global food companies, the central government is planning to organize World Food India 2017. This can be treated as a turning point that will help to attract the attention of FDI. Also, it is known that the food processing industry has doubled its production to almost 913 million dollars.
Benefits of scheme loan offered to Small and cottage food processors
- Helps in updating the use of technology in the food processing industry
- It helps in enhancing the skills involved in the industry
- It helps to work in coordination with the organized sector to produce better
- It improves the food safety practices of products
Under the PM KisanSampada Yojana, rupees 6000 crores have been sanctioned by the central government. It will help to create better infrastructure option that will boost the agricultural produce in the coming years. Therefore, it has been said that near about 800 units of infrastructure will be set up in the coming years to ensure better capacity to improve food processing industry. This can create a corpus of rupees 2000 crores with help from NABARD. However, the corpus will provide the credit via NABARD at cheap rates to different food processing units in different locations.
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