Press Information Bureau

Government of India

Ministry of Agriculture

07-December-2012 15:38 IST

The Ministry of Food Processing Industries in coordination with Small Farmers' Agri-Business Consortium (SFAC) under Ministry of Agriculture is implementing Mini Mission-IV under Horticulture Mission for North-East & Himalayan States. Under the Mini Mission-IV component of this scheme, assistance at higher rates i.e. @ 50% upto Rs. 4 crore for setting up of new food processing units and upto Rs. 1 crore for Upgradation/modernization of existing units is available to industries involved in processing of horticultural produce in the above States. Further, this scheme is operational during 2012-13 also. Funds under the scheme are disbursed through SFAC to the beneficiaries.

Small Farmers' Agri-Business Consortium (SFAC) provides soft loan under Venture Capital Assistance Scheme in the country including North-Eastern Region. Under this scheme, venture capital for agri-projects upto 10% of the total project cost or 26% of the total project equity or Rs. 75 lakhs, whichever is lower is provided.

Under the Centrally Sponsored Scheme – National Mission on Food Processing (NMFP), the Ministry of Food Processing Industries extends financial assistance to food processing units including fruits & vegetables units in the form of grants-in-aid to the implementing agencies / entrepreneurs @25% of the cost of plant and machinery and technical civil works subject to a maximum of Rs. 50.00 lakhs in general areas, or @33.33% subject to maximum of Rs. 75.00 lakhs in difficult areas such as Jammu & Kashmir, Himachal Pradesh, Uttarakhand, Sikkim and North-Eastern States, A&N Islands, Lakshadweep and ITDP areas in the country. The same pattern of assistance is available under NMFP through States / UT Governments.

This information was given by Dr. Charan Das Mahanta, Minister of State for Agriculture and Food Processing Industries in written reply to a question in the Lok Sabha today.

MP: DS: CP: small farmers(07.12.2012)

Financial assistance for food processing units in the North East encourages new establishments and modernization through targeted grants. The Centre supports food processing in the North East through Mini Mission IV, providing enhanced capital assistance for new units and for upgradation of existing units with funds disbursed via SFAC; SFAC also offers soft loans under a Venture Capital Assistance scheme to agri projects. Under the National Mission on Food Processing, the Ministry grants aid for plant, machinery and technical civil works at a standard rate in general areas and at a higher rate with larger ceilings in designated difficult areas, including the North Eastern States, with implementation possible through State/UT agencies.