How to Start or Expand Your Food Processing Business with Pradhan Mantri Kisan Sampada Yojana in 2023 -

Are you a food processing entrepreneur or a farmer who wants to start or expand your food processing business in 2023? Do you want to know about the government schemes and incentives that can help you achieve your goals? If yes, then you might want to know about the Pradhan Mantri Kisan Sampada Yojana (PMKSY), a flagship scheme of the Ministry of Food Processing Industries (MoFPI) that provides financial assistance and support to food processing units and enterprises.

The PMKSY was launched in 2016 with the aim of creating and expanding food processing and preservation capacities, reducing food wastage, increasing farmers’ income, creating employment opportunities and enhancing the export potential of the food processing sector. The scheme covers various sub-schemes and components, such as Mega Food Parks, Integrated Cold Chain and Value Addition Infrastructure, Creation/Expansion of Food Processing and Preservation Capacities (CEFPPC), Infrastructure for Agro-Processing Clusters, Creation of Backward and Forward Linkages, Food Safety and Quality Assurance Infrastructure, Human Resources and Institutions, etc.

The PMKSY has been a huge success in boosting the growth and development of the food processing sector in India. In the financial year 2022-23, the MoFPI has approved four food processing units in Odisha under the CEFPPC scheme. These units include a fish and marine processing unit, a milk processing unit, a fruit and vegetable processing unit and another fish processing unit. These units have received a grant-in-aid of Rs 10 crore from the MoFPI and have created employment for over 1400 people. They have also increased the processing capacity of various food products and supported hundreds of farmers.

In this blog, we will tell you how you can benefit from the PMKSY in 2023 and what are the eligibility criteria, documents required, application process and selection process for availing the grant-in-aid under the CEFPPC scheme. We will also provide you with some useful links to download the official notification and application form.

Benefits of Pradhan Mantri Kisan Sampada Yojana (PMKSY)

The PMKSY has several benefits for food processing entrepreneurs and farmers who want to start or expand their food processing business in 2023. Some of the benefits are:

Access to grant-in-aid: The PMKSY provides grant-in-aid to eligible food processing units and enterprises under various sub-schemes and components. The grant-in-aid ranges from 25% to 50% of the project cost depending on the category of applicant, location of project, type of product, etc. The maximum grant-in-aid is Rs 10 crore per project.
Access to credit: The PMKSY also facilitates access to credit for food processing units and enterprises through various banks and financial institutions. The scheme provides interest subsidy, credit guarantee, collateral-free loans, etc. to eligible borrowers. The maximum loan amount is Rs 10 crore per project.
Access to infrastructure: The PMKSY also provides access to infrastructure for food processing units and enterprises through various sub-schemes and components. The scheme supports the creation and expansion of infrastructure such as mega food parks, cold chains, agro-processing clusters, backward and forward linkages, food safety and quality assurance infrastructure, etc.
Access to market: The PMKSY also provides access to market for food processing units and enterprises through various sub-schemes and components. The scheme supports the creation of market linkages, branding, promotion, packaging, etc. for food products. The scheme also enhances the export potential of food products by complying with international standards and regulations.
Boosts income and employment: The PMKSY boosts income and employment opportunities for food processing entrepreneurs and farmers. The scheme helps them to start or expand their food processing business, generate more revenue, create more jobs and contribute to the economic growth of the country.

Eligibility Criteria

To be eligible for the grant-in-aid under the CEFPPC scheme of PMKSY in 2023, you need to meet the following criteria:

You should be an Indian citizen or an entity registered in India.
You should have a business plan or project report for your food processing unit or enterprise.
You should have a minimum net worth equal to 1.5 times of the grant amount applied for.
You should have a minimum bank appraisal rating as per RBI guidelines.
You should not have any default or bad credit history with any bank or financial institution.
You should not have availed any grant-in-aid under any other government scheme for the same purpose.
You should have a valid GST registration certificate, FSSAI license
Food processing and preservation license, etc.

Documents Required

To apply for the grant-in-aid under the CEFPPC scheme of PMKSY in 2023, you need to submit the following documents along with your application form:

Self-attested copy of GST registration certificate
Self-attested copy of FSSAI license
Self-attested copy of proof of address (such as ration card, voter ID card, electricity bill, etc.)
Self-attested copy of proof of identity (such as passport, driving license, etc.)
Self-attested copy of proof of business existence (such as trade license, partnership deed, memorandum of association, etc.)
Self-attested copy of proof of income (such as income tax return, bank statement, audited balance sheet, etc.)
Business plan or project report
Detailed project cost and means of finance
Bank appraisal report and sanction letter
Passport size photograph
Any other document as required by the MoFPI or the lending institution

Application Process

To apply for the grant-in-aid under the CEFPPC scheme of PMKSY in 2023, you need to follow these steps:

Visit the official website of MoFPI at [https://mofpi.nic.in/] and download the application form for the CEFPPC scheme.
Fill up the application form with all the required details and attach all the necessary documents.
Submit your application form and documents online through the MoFPI portal or offline through the nearest branch office of MoFPI or any designated agency.
Wait for your application to be processed and approved by the MoFPI or the lending institution. This may take up to 60 days depending on your project proposal and verification process.
Once your application is approved, you will receive a sanction letter from the MoFPI or the lending institution stating the grant amount, project cost, tenure and terms and conditions.
Sign the grant agreement and other documents as required by the MoFPI or the lending institution and collect your grant amount.

Selection Process

The selection process for the grant-in-aid under the CEFPPC scheme of PMKSY in 2023 is as follows:

The applications received by the MoFPI or the lending institution are screened and evaluated based on the eligibility criteria, project feasibility, financial viability, social impact, etc.
The applications that meet the minimum qualifying marks are shortlisted and recommended for approval by a committee constituted by the MoFPI or the lending institution.
The applications that are approved by the committee are sanctioned by the competent authority of the MoFPI or the lending institution.
The applications that are rejected by the committee are communicated to the applicants with reasons for rejection.

We hope this blog has helped you to understand how to start or expand your food processing business with Pradhan Mantri Kisan Sampada Yojana in 2023 and what are the eligibility criteria, documents required, application process and selection process for availing the grant-in-aid under the CEFPPC scheme. If you have any queries or doubts, you can refer to the official website of MoFPI at [https://mofpi.nic.in/].

You can also comment below and we will try to answer your questions as soon as possible. We wish you all the best for your application and food processing venture. Thank you for reading this blog.