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DAILY NEWS ANALYSIS

  • 24 March, 2021

  • 10 Min Read

One District One Product (ODOP) approach under PM FME Scheme

One District One Product (ODOP) approach under PM FME Scheme

  • The Ministry of Food Processing Industries (MoFPI) under Centrally Sponsored Pradhan Mantri Formalisation of Micro Food Processing Enterprises Scheme (PM FME Scheme), provides financial, technical and business support for upgradation of existing micro food processing enterprises.
  • The scheme adopts One District One Product (ODOP) approach to reap the benefits of scale in terms of procurement of inputs, availing common services and marketing of products.
  • The objectives of the scheme are to build capacity of two lakh micro enterprises through increased access to credit, integration with organized supply chain by strengthening branding and marketing, increased access to common services, strengthening of institutions, research & training in the food processing sector.
  • ODOP for the scheme has framework for value chain development and alignment of support infrastructure.
  • This scheme is being implemented for a period of five years from 2020-21 to 2024-25 with an outlay of Rs. 10,000 crores.
  • ODOP for 707 districts of 35 State/UTs have been approved by the MOFPI.
  • The Ministry of Agriculture and Farmers Welfare through One District One Focus Produce (ODOFP) for 728 districts of 36 States/UTs converge resources towards ODOP from ongoing centrally sponsored schemes such as Mission for Integrated Development of Horticulture (MIDH), National Food Security Mission (NFSM), Rashtriya Krishi Vikas Yojana (RKVY), Paramparagat Krishi Vikas Yojana (PKVY), schemes of Ministry of Fisheries, Animal Husbandry and Dairying.
  • State Level Up-gradation Plan (SLUP) by all States/UTs is based on Agriculture production of ODOPs, industrial scenario, market availability etc. It enables the States to identify its product clusters, market linkages, stakeholders, requirement of skill development for beneficiaries, infrastructure support, financial linkages etc.
  • The scheme envisages strengthening backward and forward linkages, provision of common facilities, incubation centres, training, research and development (R&D), marketing and branding.
  • The enhanced capacity of processing and value addition in agriculture and allied sector products will lead to a better price realization for the farmers.
  • The identified products have potential for both domestic demand and export and will be promoted in a cluster approach through the converged resources of the Government of India.

Benefits of District Specific products

Identifying district specific products would lead to the following benefits to the micro food processing entrepreneurs:

  • Increased access to credit by existing Micro Food Processing entrepreneurs, FPOs, Self Help Groups and Co-operatives.
  • Integration with organized supply chain by strengthening branding & marketing;
  • Support for transition of existing 2,00,000 enterprises into formal framework;
  • Increased access to common services like common processing facility, laboratories, storage, packaging, marketing and incubation services;
  • Strengthening of institutions, research and training in the food processing sector; and
  • Empowers SC, ST and Women Entrepreneurs as the scheme lays special focus on SC, ST and women entrepreneurs.
  • Increased access for the enterprises, to professional and technical support.

Salient Features

  1. Support to Individual Micro Enterprises: Credit-linked capital subsidy @35% of the eligible project cost, maximum ceiling Rs.10 lakh per unit;
  2. Support to FPOs/ SHGs/ Producer Cooperatives: Credit linked Grant @35% to support clusters and groups such as FPOs/ SHGs/ Producer Cooperatives along their entire value chain for sorting, grading, storage, common processing, packaging, marketing, testing etc.
  3. Support to SHGs for seed capital: Seed capital @ Rs. 40,000/- per member of SHG engaged in food processing for working capital and purchase of small tools.
  4. Support for Common Infrastructure: Credit linked grant @ 35% to support FPOs, SHGs, Cooperatives, any Government agency or private enterprises for Common infrastructure. The common infrastructure will also be available for other units and public to utilize on hiring basis for substantial part of the capacity.
  5. Branding and Marketing Support: Grant upto 50% for Branding and Marketing to groups of FPOs/ SHGs/ Cooperatives or an SPV of micro food processing enterprises.
  6. Capacity Building: The scheme envisages training for Entrepreneurship Development Skilling (EDP+): program modified to meet the requirement of food processing industry and product specific skilling.

Source: PIB


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