Pradhan Mantri Kisan SAMPADA Yojana

PM Kisan SAMPADA (Scheme for Agro-Marine Processing and Development of Agro-Processing Clusters) Yojana is a Central Sector Scheme which is expected to result in creation of modern infrastructure with efficient supply chain management from farm gate to retail outlet.

  • Under the Ministry of Food Processing Industries, this scheme was launched for time period of 2016-20 (scheme renamed in 2017). Under Pradhan Mantri Kisan SAMPADA Yojana, various Central Sector Schemes are being implemented in the food processing sector that includes -
    • Mega Food Parks
    • Integrated Cold Chain and Value Addition Infrastructure
    • Creation / Expansion of Food Processing & Preservation Capacities
    • Infrastructure for Agro-processing Clusters
    • Creation of Backward and Forward Linkages
    • Food Safety and Quality Assurance Infrastructure
    • Human Resources and Institutions

Outcome of the scheme

  • Govt. has allowed 100% FDI in e-commerce of food products manufactured in India, thereby providing impetus for investments in food processing and retail sector.
  • Set up of a Special Fund of Rs. 2000 crore in NABARD to provide affordable credit at concessional rate of interest to designated food parks and agro processing units.
  • Food and agro-based processing units and cold chain infrastructure have been brought under the ambit of ‘Priority Sector Lending (PSL)’ to provide additional credit.
  • Strengthening of institutions like National Institute of Food Technology, Entrepreneurship and Management (NIFTEM), Haryana has been declared a deemed university. Similarly, Indian Institute of Food Processing Technologies (IIFPT), Thanjavur has been upgraded into a National Level Institute.

Challenges

  • Arbitrary policy decisions taken by the ministry under the SAMPADA scheme hurt investor sentiments and shoo away entrepreneurs from the sector. Example- change in capital subsidies being offered to units set up in Mega Food parks.
  • Economies of scale, poor supply chain linkages and a significant number of marginal farmers investing in subsistence farming hinder growth of food processing sector.
  • Despite being an agricultural produce surplus nation, infrastructure bottlenecks especially export related infrastructure for agro-produce is found to be grossly inadequate.
  • Low agricultural productivity due to lack of skilled manpower in agricultural workforce is another impediment.
  • India’s standardization and certification infrastructure especially in food sector is not recognized globally. This hinders our agro-produce from access to global markets.

Ways to Improve

  • Effective enforcement of regulations under Food Safety and Standards Act, 2006 to boost consumer confidence in processed foods.
  • To improve ease of doing business in food processing, practices like declaration of entire State as Single Zone with Single Window Clearance System for project clearances needs to be followed.
  • State governments should focus on commodity based cluster development based on the production strength of localized geographies.
  • Declare food processing industry as essential service under State Essential Services Maintenance Act.
  • Treat food processing industry as seasonal industry and change relevant labour laws to extend the benefits of the seasonal industry to the workers.

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