Food processing ministry to ask for Rs 250-300 cr more this fiscal

The Ministry of Food Processing Industries (MoFPI) will ask the government for an additional allocation of Rs 250-300 crore during the current fiscal year, said an official at the ministry.

The government has already allocated Rs 660 crore under the 12th Five-year plan, for the current fiscal year, but the ministry needs more funds to execute projects across categories, including setting up cold chains, establishing more food parks, and also to release funds for different states, said the official.

Of this, Rs 250 crore will be allocated to states during the current fiscal year. “We have already completed 75 per cent of the planned allocation to the states. Rest would be released depending on states’ utilisation and availability of funds with the ministry,” said the official.

The group of ministers have recommended a total fund allocation of Rs 14,000 crore for MoFPI in the 12th Five-year plan, starting this fiscal year.

Earlier, MoFPI used to be the only point for fund allocation. But, the ministry has decided to adopt a decentralisation, so that states can utilise and allocate funds depending on the local needs, said the official. “Now, approvals can be given at the district level,” pointed out the official. The decentralisation process was stated on April 1, 2012.

With decentralisation, MoFPI is trying to facilitate entrepreneurs with convenient and quick service to encourage more entrepreneurship at rural and semi-urban level.

The ministry has received proposals for 149 new cold chains this fiscal year. “We hope to approve eligible ones within a couple of months,” said the official. About 50 per cent are expected to be eligible. During the 11th Five-year plan, MoFPI has approved 61 cold chain projects across the country.

The ministry has received Rs 86 crore for establishing cold chains. “The fund is not enough. We will require atleast Rs 25 crore to meet this year’s requirement,” added the official. The ministry provides 20 per cent of the grant in the first phase, and the rest is being disbursed depending on the progress of the project.