What is PM FME Scheme?

 What is PM FME - Formalization of Micro Food Processing Enterprises Scheme?

The Ministry of Food Processing Industries (MoFPI) has sent off the PM Formalization of Micro Food Processing Scheme on 29th June 2020. The PM FME conspire means to give monetary, specialized and business backing to redesign existing miniature food handling endeavors.

It is a piece of India's independent plan called Atmanirbhar Bharat Abhiyan; and 'Vocal for Local' Campaign.

Formalization of Micro Food Processing Enterprises Scheme

PM FME – Why in News?

MoFPI has sent off the limit building part of the PM FME in November 2020. Current realities of the PM FME plan will be valuable for every one of the cutthroat assessments including the IAS Exam. This article will discuss the targets of the plan, its importance, and brief with regards to miniature food handling undertakings in India.

The subject, 'PM FME' goes under significant government plans for UPSC. Applicants can learn about some connected themes from beneath:

• PM Matsya Sampada Yojana
• RSTV: Big Picture – Food Processing in India 
• Mega Food Parks Scheme
• Operations Greens
• Agricultural Revolutions in India
• Green Revolution in India
• Golden Revolution in India
• Food Security of India

Outline of PM FME Scheme

The thought behind PM FME conspire is to bring disorderly miniature food endeavors into a coordinated system given:

1. There are roughly 25 lakhs sloppy food handling units.
2. These units add to 74 percent of work in the food handling area.
3. 66% of such units are situated in rustic regions.

The public authority has reserved Rs. 10000 crores to help two lakh miniature food handling undertakings. The plan expects to help:

1. Miniature Food Entrepreneurs
2. FPOs
3. SHGs
4. Co-agents

Dive more deeply into FPOs, SHGs, and MSMEs from the connected articles underneath:

• Rancher Producer Organizations
• Self improvement Gatherings (SHGs)
• Micro, Small and Medium Enterprises (MSMEs)

The notable realities about the PM FME for UPSC Prelims are:

1. It was sent off on 29th June 2020.
2. It is a piece of Atmanirbhar Bharat Abhiyan.
3. It is a midway supported plan. The portion of consumption under the PM FME conspire is as per the following:
• 60:40 between the focal government and state run administrations and UTS with the assembly
• 90:10 among focal and North Eastern and Himalayan states
• 100% focal help for UTs without lawmaking bodies.
4. It will run for a very long time – 2020-21 to 2024-25. The focal government will bear the consumption for the principal year regardless of who causes it; later will be changed in the proportion referenced above; in the following four years.
5. The focal government will give assets to the state dependent on the endorsed Project Implementation Plan (PIP).
6. One-District One-Product Approach (ODOP) plan to be carried out to incorporate info acquisition, normal administrations accessibility, and item showcasing.
7. The Inter-Ministerial Empowered Committee (IMEC) is set up at the public level. The construction of IMEC under PM FME is:
1. Executive – Minister of Food Processing Industries
2. Vice Chairman – Minister of State of Food Processing Industries
3. Members Secretary
4. Members

Targets of PM FME Scheme

The PM Formalization of Micro Food Processing Enterprises Scheme has the accompanying targets:

1. Limit Building of Micro Food business visionaries
• They will be furnished with specialized information
• Ability preparing is another part
• Hand holding support administrations to be given
2. Innovation up-degree of the current Micro Food Processing Enterprises by expanding admittance to credit to the business visionaries.
3. Empower microenterprises to profit normal administrations through supporting Farmer Producer Organizations (FPOs), Self Help Groups (SHGs), Producers Cooperatives and Cooperative Societies along their whole worth chain
4. An administrative structure to envelop existing disorderly miniature food handling ventures to bring them into an officially consistent system.
5. Marking and advertising to be reinforced to help the incorporation of existing endeavors with coordinated stock chains.

Four Main Components of PM FME

To address the need of the miniature food handling area, the accompanying four parts have been enveloped in the plan:

• Backing to individual and gatherings of miniature ventures
• Marking and Marketing support
• Support for reinforcing of organizations
• Setting up a hearty undertaking the board system

What is One-District One-Product (ODOP) Approach?

Under the ODOP approach, item explicit customary modern centers to be set up under PM FME Scheme. It is enlivened by Uttar Pradesh's ODOP program sent off across its 75 regions to empower native and particular items.

What is One-District One-Product?

Coming up next are considered as ODOP under PM FME:

• Transient agri-produce
• Oat based item
• Food item broadly delivered in a locale and unified areas

The significant focuses to recall about ODOP for UPSC Prelims are:

1. It will give a system to esteem chain advancement and arrangement of help framework.
2. Each state will recognize one item for every area which will be founded on the unrefined components' accessibility and existing bunches.
3. One group can have a place with one and more regions.
4. Those current ventures to deliver items under the ODOP approach are to be given inclination.
5. Help for normal framework and advertising and marking will be just accessible for such food varieties that are accessible under the ODOP program. (Exemption gave)
6. The ODOP approach supplements the current limited time endeavors of the public authority:
• Farming Export Policy
• Public Rurban Mission

Need of FPU under PM – FME

1. The chaotic food handling area involving almost 25 lakh units adds to 74% of work in the food handling area.
2. The chaotic food handling area faces various difficulties that limit their exhibition and their development. The difficulties incorporate absence of admittance to present day innovation and gear, preparing, admittance to institutional credit, absence of essential mindfulness on quality control of items; and absence of marking and promoting abilities, and so on
3. Inferable from these difficulties; the sloppy food handling area contributes substantially less as far as worth expansion and result regardless of its enormous potential.
4. Almost 66% of these units are situated in rustic regions and around 80% of them are family-based undertakings supporting the work of country families and limiting their movement to metropolitan regions. These units to a great extent fall inside the class of miniature ventures.

Advantages to Food Processing Units under PM-FME

Recipients/Components under PM-FME Benefits

Existing Unorganized Food Processing Units A most extreme award of up to Rs.10 lakhs

SHGs/FPOs/Cooperatives Credit connected award at 35% of the undertaking cost for capital consumption with greatest cutoff as endorsed

Individual occupied with Food Processing Rs.40000 as seed capital gave as working capital

Normal Infrastructure Credit connected award at 35% of the task cost with a recommended most extreme breaking point

Showcasing and Branding Upto 50% of use with an endorsed greatest breaking point

Building and Research Component of PM FME

1. At the public level, the National Institute for Food Technology Entrepreneurship and Management (NIFTEM) and the Indian Institute of Food Processing Technology (IIFPT) will lead the limit building part of the plan.
2. At the state level, NIFTEM and IIFPT will be upheld by the state innovation establishments present in the food handling innovation area.
3. Preparing and limit building will envelop:
• Business improvement
• Fundamental elements of big business activities
• Accounting
• Enlistment
• FSSAI guidelines
• Udyog Aadhar
• GST Registration
• General cleanliness
• Bundling, and
• Advertising
4. At the region level, Rural Self Employment Training Institutes (RSETI) alongside different foundations will be utilized to give preparing.
5. PM-FME: Formalization of Micro-handling Food Enterprises

Accomplice Institutions of PM-FME

The PM Formalization of Micro-Food Processing Enterprises Scheme will be helped by the accompanying establishments:

1. TRIFED
2. Public Scheduled Caste Development Finance Corporation
3. Public Cooperative Development Corporation (NCDC)
4. Little Farmers Agri-Business Consortium
5. Public Rural Livelihood Mission (Read with regards to NRLM in the connected article)