UP govt. plans to upgrade 38,000 rural food processing units


Uttar Pradesh, as a matter of fact, holds a leading position in the total production of the horticultural crops in the country. In fact, for more than 92% of smallholding farmers, the horticultural crop is the main source of higher income, employment, and nutrition per unit area. But still, employment is still being a challenge in the state, especially in rural areas. Hence for this, the Uttar Pradesh government has fixed a target of upgrading nearly 38,000 small food processing units in the unorganized sector in the next five years.

This will be done under the centrally sponsored PM Formalisation of Micro food processing Enterprises Scheme (PM FME Scheme) envisaging financial, technical, and business support to the existing micro food processing enterprises. Official sources in the horticulture department said that the scheme would have 60% central funding, while 40% would have to be borne by the state government.

The state government does it under the Centre’s ‘Atmanirbhar Abhiyan’ (self-reliant scheme). The scheme envisages a credit-linked subsidy of 35% up to a maximum of Rs 10 lakh of the total project cost. The beneficiary would be required to pay 10% of the project, while the rest of the cost may be pooled in through loans from the bank.Besides, the self-help groups (SHGs) and cooperative societies would be provided Rs. 40,000 as initial working capital. “The food products manufactured under One-District-One-Product (ODOP) or those which have a low shelf life would be given priority.Five agro-processing clusters will be formed in districts like Kanpur (Rural), Mathura, Baghpat, Barabanki, and Rae Bareli and would be assisted by PM Kisan Sampada Scheme. This is a multi-dimensional rural centric approach in providing employee benefits to the rural populace and drives the rural economy.