Scheme for Agro-Processing Cluster

Recently, the Union Minister of Food Processing Industries has attended the Independent Management Advisory Committee (IMAC) meeting to consider the proposals received under the Scheme for Creation of Infrastructure for Agro-Processing Cluster (APC) of Pradhan Mantri Kisan Sampada Yojana (PMKSY).

Key Points

• IMAC approved 7 proposals with a total project cost of Rs. 234.68 crore including grants-in-aid of Rs. 60.87 crore in Meghalaya, Gujarat, Madhya Pradesh, Karnataka and Maharashtra.
• These projects will leverage private investment of Rs. 173.81 crore and are expected to generate employment for 7750 persons.
• Scheme for Creation of Infrastructure for Agro-Processing Cluster:
  • It was approved in May 2017 under the PMKSY, to incentivise the setting up of APCs in the country.
  • Aims: To develop modern infrastructure and common facilities to encourage a group of entrepreneurs to set up food processing units based on cluster approach by linking groups of producers/farmers to the processors and markets.
    • These clusters will help in reducing the wastage of the surplus produce and add value to the horticultural/agricultural produce which will result in an increase of income of the farmers and create employment at the local level.
  • Under the scheme, each APC has two basic components:
    • Basic Enabling Infrastructure like roads, water supply, power supply, drainage, etc.
    • Core Infrastructure/Common Facilities like warehouses, cold storages, tetra pack, sorting, grading, etc.
  • Requirements for Setup:
    • At least 5 food processing units with a minimum investment of Rs. 25 crore and at least 10 acres of land is required for at least 50 years.