Nodal Ministry- Ministry of Food Processing Industries (MoFPI).
- The Atmanirbhar Bharat Abhiyaan to promote the "Vocal for Local" campaign in the food processing domain. A Centrally Sponsored Scheme (CSS) designed to address structural challenges faced by unorganized micro food processing units.
- Financial Outlay - Total outlay of ₹10,000 crore.
Objectives
- Formalization- Transition existing informal micro food processing enterprises into the formal economy through mandatory registrations (Udyam, FSSAI, and GST).
- Credit Access- Expand access to formal bank credit for individual micro-entrepreneurs, Farmer Producer Organizations (FPOs), Self-Help Groups (SHGs), and Producer Cooperatives.
- Quality & Modernization- Facilitate technology upgrades, improved packaging, and adherence to food safety and export standards.
- Cluster Development- Implement the One District One Product (ODOP) approach to leverage regional agricultural advantages and economies of scale.
|
Support Category |
Financial Assistance / Grant Mechanism |
Target Beneficiary |
|
Individual / Group Micro Units |
Credit-linked capital subsidy @35% of eligible project cost (Max ceiling- ₹10 lakh per unit). Beneficiary contributes min 10%; balance via bank loan. |
Existing & new micro food units. |
|
Seed Capital for SHG Members |
Seed capital of ₹40,000 per member for working capital and small equipment (Capped at ₹4 lakh per SHG Federation). |
SHG members engaged in food processing. |
|
Common Infrastructure |
Credit-linked capital subsidy @35% (Max ceiling- ₹3 crore) for common facility centers (CFCs), cold chains, and sorting/grading labs. |
FPOs, SHGs, Cooperatives, State Agencies. |
|
Branding & Marketing |
Grant up to 50% of eligible project cost for developing common regional/national brands, packaging, and quality testing. |
Groups of FPOs/SHGs/Cooperatives or SPVs. |
|
Incubation Facilities |
Shared processing, training, and testing infrastructure to reduce capital barriers for early-stage entrepreneurs. |
Micro-enterprises & Startups. |
Implementation Interventions
A. One District One Product (ODOP) Framework
- The Strategy- Encourages districts to focus specialization on a single identified agricultural or food product (e.g., Makhana in Darbhanga, Mango in Malda, Spices in Kerala).
- Benefits- Streamlines raw material procurement, enables common processing and packaging infrastructure, and strengthens retail marketing tie-ups.
B. Ground-Level Handholding- District Resource Persons (DRPs)
- Role- DRPs provide personalized support to micro-entrepreneurs at the district level.
- Key Tasks- Assisting in the preparation of Detailed Project Reports (DPRs), navigating bank loan approvals, securing FSSAI food safety licenses, and ensuring compliance with hygiene standards.