Press Information Bureau

Government of India

Cabinet Committee on Economic Affairs (CCEA)

23-August-2012 19:15 IST

The Cabinet Committee on Economic Affairs today approved a new Centrally Sponsored Scheme titled "National Mission on Food Processing (NMFP)”. This scheme would start in co-operation with the State Governments in 2012-13.

The NMFP scheme would help the States / UTs in maintaining requisite synergy between agriculture plans of States and Development of food processing sector, which in turn would help in Increase in farm productivity thereby increase in farmers' income also. This would also help in ensuring efficient supply chain by bridging Infrastructural / institutional gaps. A National Food Processing Development Council (NFPDC) has been set up under the Chairmanship of Minister (Agri. & FPI) with representatives of State Governments, Industry associations and related Govt. of India Departments. This will provide guidance to all schemes of Ministry of Food Processing Industries (MOFPI) including the NMFP.

The basic objective of NMFP is decentralization of implementation of Ministry's schemes, which will lead to substantial participation of State Governments / UTs. Beneficiaries of MOFPI schemes will also find it easier to deal with State Governments. This would be a paradigm shift in the Ministry's approach and is driven by the need to make food processing truly a national initiative.

Government has already accorded approval and communicated to all States for taking up preparatory activities / advance action by States / UTs for implementation of NMFP during 12th Plan and released Rs. 29.81 crore (as on 10.7.2012 to states / UTs for taking up preparatory activities / advance action for implementation of NMFP.

The following schemes being implemented by Government of India directly will not be implemented through State Governments under this scheme in 2012-13:

i. Scheme for Technology Up-gradation / Establishment / Modernization of Food Processing Industries.

ii. Scheme for Cold Chain, Value Addition and Preservation Infrastructure for Non- Horticultural Products.

iii. Scheme for Human Resource Development (HRD)

iv. Scheme for Promotional Activities

Subsequently more activity will be added during the 12th Plan. Flexibility will also be given to States to add components and deviate from central guidelines subject to approval from the National Food Processing Development Council (NFPDC).

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SC/SKS/SM

Decentralization of food processing implementation shifts scheme delivery to states under national council guidance and conditional flexibility. The NMFP decentralizes implementation of central food-processing schemes by enhancing State/UT participation, aligning state agriculture plans with food-processing development, and addressing supply-chain infrastructure gaps. A National Food Processing Development Council will guide Ministry schemes; preparatory funds have been released to states. Certain schemes remain centrally implemented in the initial year, and states may add components or deviate from guidelines with NFPDC approval.