The Union Cabinet on May 20, 2020 approved to a new Centrally Sponsored Scheme – “Scheme for Formalisation of Micro food processing Enterprises (FME)” for the Unorganized Sector on All India basis with an outlay of Rs.10,000 crore.
Features of FME
Expenditure of the centrally sponsored scheme to be shared by Government of India and States at 60:40. As per the Government, 2,00,000 micro-enterprises are to be assisted with credit linked subsidy. Scheme will be implemented over a 5 year period from 2020-21 to 2024-25 and Cluster approach will be followed with focus on perishables products. Micro enterprises will get credit linked subsidy @ 35% of the eligible project cost with ceiling of Rs.10 lakh. Beneficiary contribution will be minimum 10% and balance from loan. The Scheme would be monitored at Centre by an Inter-Ministerial Empowered Committee (IMEC) under the Chairmanship of Minister, FPI.
Objectives
- Increase in access to finance by micro food processing units.
- Increase in revenues of target enterprises.
- Enhanced compliance with food quality and safety standards.
- Strengthening capacities of support systems.
- Transition from the unorganized sector to the formal sector.
- Special focus on women entrepreneurs and Aspirational districts.
- Encourage Waste to Wealth activities.
- Focus on minor forest produce in Tribal Districts.
Image credit: USDA
