MoFPI modifies operational guidelines for the Scheme for Creation or Expansion of Food Processing and Preservation Capacities of PMKSY

Aug 30, 2019 | by Avantis RegTech Legal Research Team


The Ministry of Food Processing Industries (MoFPI) on August 28, 2019, has further modified the operational guidelines for the Scheme for Creation or Expansion of Food Processing and Preservation Capacities (CEFPPC) of Pradhan Mantri Kisan Sampada Yojana (PMKSY) to make the scheme more investor friendly.

Ø  The objectives of the revised operational guidelines are:

The main objective of the scheme is creation of processing and preservation capacities and modernization or expansion of existing food processing units which will help in increasing the level of processing, value addition and thereby lead to reduction of wastage and enhancement of farmers’ income.

Ø  Eligible sectors: Food processing sectors eligible under the scheme includes:

(i)                  Fruits and vegetables processing

(ii)                Milk Processing

(iii)               Meat/ poultry/ fish processing

(iv)               Ready to Eat/ Ready to Cook Food Products/ Breakfast cereals/ Snacks/ bakery and other food products including nutritional health foods.

(v)                Grains/ pulses, oil seed milling and processing based on modern technology.

(vi)               Modern Rice milling

(vii)             Other agri-horti products including spices, coconut, soybean, mushroom processing, honey processing, etc.

(viii)           Fruits/ Honey based wines

(ix)               Natural Food Flavors, food additives/ food extracts and colours, oleoresins, guar gum, cocoa products etc

(x)                 Manufacturing jaggery from sugarcane and value added products from jaggery (as ra material) except sugar mills.

(xi)               Any other sector that makes food products fit for human consumption

(xii)             Animal feed manufacturing unit to be set up in Mega Food Parks and Agro Processing Clusters approved by the Ministry from time to time.

The activities related to manufacture of aerated water, packaged drinking water and carbonated drinks will not be considered for financial assistance under the scheme.

Farming activities such as dairy farming, poultry farming, mushroom farming, hatcheries etc. are not eligible sector under the scheme.


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