PM Kisan SAMPADA (Scheme For Agro-Marine Processing And Development Of Agro-Processing Clusters)

Updated on:  

08 min read

The Union Cabinet approved SAMPADA (Scheme For Agro-Marine Processing And Development Of Agro-Processing Clusters), a Central Sector Scheme, in May 2017. The SAMPADA scheme is renamed as the ‘Pradhan Mantri Kisan SAMPADA Yojana’ (PM Kisan SAMPADA Yojana).

The government approved the PM Kisan SAMPADA Yojana with an allocation of Rs.6,000 crore for the period of 2016-20, implemented by the Ministry of Food Processing Industries (MoFPI). The PM Kisan SAMPADA Yojana is a comprehensive scheme that provides for creating modern infrastructure with robust supply chain management from farm gate to retail outlet. It will result in a significant boost to the growth of the food processing sector in India. 

The PM Kisan SAMPADA Yojana helps in getting better returns to the farmers. It aims at identifying agro clusters and giving them subsidies to achieve seamless transfer of food products from the producing centres to the market. It is an umbrella scheme that encompasses various schemes within its scope.

The PM Kisan SAMPADA Yojana aims to integrate the new and existing schemes that target reducing wastage, double farmer’s income and providing quality food to consumers at reasonable prices. It is an all-inclusive package to provide a renewed thrust to the food processing sector and plunge the gaps in the supply chain. 

Objective of PM Kisan SAMPADA Yojana

  • To provide a supplement to agriculture.
  • To create preservation and processing capacities.
  • To expand and modernise the existing food processing units for increasing the level of processing.
  • To add value resulting in the reduction of the agricultural produce wastage.

Schemes Implemented Under PM Kisan SAMPADA Yojana

The following schemes are implemented under the PM Kisan SAMPADA Yojana:

Mega Food Parks 

The scheme of ‘Mega Food Parks’ provides a mechanism to link market and agricultural production by bringing retailers, processors and farmers together to ensure maximum value addition, minimum wastage, increase in farmers income and create employment opportunities, especially in the rural sector.

Integrated Cold Chain and Value Addition Infrastructure 

The scheme of ‘Cold Chain, Value Addition and Preservation Infrastructure’ provides integrated preservation infrastructure and cold chain facilities from the farm gate to the consumers. It creates infrastructure facilities for the entire supply chain, namely, weighing, pre-cooling, grading, sorting, multi-product/multi-temperature cold storage, waxing facilities at farm level, portable cooling units for facilitating distribution of horticulture, meat and poultry etc. 

Creation/ Expansion of Food Processing/ Preservation Capacities (Unit Scheme)

This scheme creates processing and preservation capacities and modernisation/expansion of existing food processing units to increase processing and add value resulting in the reduction of wastage. The individual units undertake processing activities that cover a wide range of post-harvest processes resulting in value addition and enhance shelf life with specialised facilities required to preserve perishables.

Infrastructure for Agro-processing Clusters

This scheme develops common facilities and modern infrastructure to encourage entrepreneurs to set up food processing units. It encourages entrepreneurs to set up food processing units based on a cluster approach by linking groups of farmers/producers to the markets and processors through a well-equipped supply chain with modern infrastructure. Every agro-processing cluster under this scheme has two basic components, i.e. Basic Enabling Infrastructure and Core Infrastructure/Common Facilities. 

Creation of Backward and Forward Linkages

This scheme provides seamless and effective forward and backward integration for the processed food industry by reducing the gaps in the supply chain in terms of linkages with the market and the availability of raw materials. Financial assistance is provided for setting up collection centers/primary processing centers at farm gate and modern retail outlets and connectivity through refrigerated/insulated transport.

Food Safety and Quality Assurance Infrastructure

Food safety and quality have become a competitive edge for food products in the global market. To achieve the objectives of food safety and quality, the government has extended financial assistance under this scheme under the following two components:

  • HACCP/ISO standards/food safety/quality management system.
  • Setting up/upgrading of quality control/food testing laboratories.

Human Resources and Institutions

  • Research and Development – The government provides financial assistance to undertake demand-driven R&D work to benefit the food processing industry in terms of process and product development, improved packaging, efficient technologies, value addition, etc. 
  • Promotional Activities – Organise, co-sponsor and participate in all India level seminars, fairs, workshops and exhibitions for the food processing sector to encourage investments in food processing and create awareness of the schemes implemented by the MoFPI.
  • Skill Development – Providing sector-specific skilled workforce from floor level workers, packaging, assembly line workers and operators to quality control supervisor, etc., in different segments of food processing industries.
  • Strengthening of Institutions – The MoFPI has established the National Institute of Food Technology, Entrepreneurship and Management (NIFTEM) and Indian Institute of Food Processing Technology (IIFPT). These institutions are running the B. Tech., M. Tech. & PhD courses and undertake R&D projects in the field of food technology and food processing, respectively.

Benefits of PM Kisan SAMPADA Yojana

The PM Kisan SAMPADA Yojana will leverage investment of Rs.31,400 crore for the handling of 334 lakh MT agro-produce valued at Rs.1,04,125 crore, which benefits 20 lakh farmers and generates 5,30,500 indirect/direct employment in the country by 2019-20. 

Under the PM Kisan SAMPADA Yojana, a capital subsidy in the manner of grants-in-aid ranging from 35% to 75% of the eligible project cost up to the maximum specified limit is provided under the various schemes to investors for undertaking logistic projects, infrastructure and setting up of food processing units in India. The benefits of the PM Kisan SAMPADA Yojana scheme are as follows:

  • It will result in creating modern infrastructure with effective supply chain management from farm gate to retail outlet.
  • It provides an effective boost in the growth of the food processing sector in India.
  • It helps to get better prices to the farmers and doubling of farmers’ income.
  • It creates extensive employment opportunities, especially in rural areas.
  • It helps reduce agricultural produce wastage, increases processing level, makes available convenient and safe processed foods at an affordable price to consumers and enhances the export of processed foods.
inline CTA
Get an expert at affordable price
For ITR, GST returns, Company Registration, Trademark Registration, GST Registration