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One District One Product under PMFME Scheme

PMFME Scheme:

The Ministry of Food Processing Industries and NAFED (National Agricultural Cooperative Marketing Federation of India Limited) today launched six, One District One Product (ODOP) brands under the Pradhan Mantri Formalisation of Micro food processing Enterprises (PMFME) Scheme.

  • The Ministry has signed an agreement with NAFED for developing 10 brands of selected ODOPs under the branding and marketing component of the PMFME scheme. Out of these, six brands are Amrit Phal, Cori Gold, Kashmiri Mantra, Madhu Mantra, Somdana, and Whole Wheat Cookies of Dilli Bakes.
  • Launched under Atma Nirbhar Abhiyan, it aims to enhance the competitiveness of existing individual micro-enterprises in the unorganised segment of the food processing industry and to promote formalisation of the sector and provide support to Farmer Producer Organisations, Self Help Groups, and Producers Cooperatives along their entire value chain.
  • The scheme adopts the One District One Product (ODOP) approach to reap the benefit of scale in terms of procurement of inputs, availing common services and marketing of products.
  • It will be implemented over a period of five years from 2020-21 to 2024-25.

One District One Product (ODOP) Approach:

  • ODOP for the scheme will provide the framework for value chain development and alignment of support infrastructure.
  • There may be more than one cluster of ODOP products in one district.
  • There may be a cluster of ODOP products consisting of more than one adjacent district in a State.
  • The States would identify food products for districts keeping in view the existing clusters and availability of raw material.
  • The ODOP could be a perishable produce based or cereal based or a food item widely produced in an area. E.g. mango, potato, pickle, millet based products, fisheries, poultry, etc.

Financial Support:

  • Existing individual micro food processing units desirous of upgrading their units can avail credit-linked capital subsidy at 35% of the eligible project cost with a maximum ceiling of Rs.10 lakh per unit.
  • Support would be provided through credit linked grants at 35% for development of common infrastructure including common processing facility, lab, warehouse, etc. through FPOs/SHGs/cooperatives or state owned agencies or private enterprise.
  • A seed capital (initial funding) of Rs. 40,000- per Self Help Group (SHG) member would be provided for working capital and purchase of small tools.
  • Funding:
    • It is a centrally sponsored scheme with an outlay of Rs. 10,000 crore.
    • The expenditure under the scheme would be shared in 60:40 ratio between Central and State Governments, in 90:10 ratio with North Eastern and Himalayan States, 60:40 ratio with UTs with legislature and 100% by Centre for other UTs.

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