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बेसिक इंग्लिश का दूसरा सत्र (कक्षा प्रारंभ : 22 अक्तूबर, शाम 3:30 से 5:30)
Pradhan Mantri Kisan Sampada Yojana
Aug 26, 2017

[GS Paper III: (Food processing and related industries in India - scope and significance, location, upstream and downstream requirements and supply chain management)]

Why in News?

The Cabinet Committee on Economic Affairs (CCEA) has approved the renaming of the new Central Sector Scheme - SAMPADA (Scheme for Agro-Marine Processing and Development of Agro-Processing Clusters) as "Pradhan Mantri Kisan Sampada Yojana (PMKSY)” for the period of 2016-20 co-terminus with the 14th Finance Commission cycle. This scheme has an allocation of Rs 6000 crore for the period 2016-20.

What is PMKSY?

PMKSY is an umbrella scheme incorporating ongoing schemes of the Ministry of Food Processing Industries like Mega Food Parks, Integrated Cold Chain and Value Addition Infrastructure, Food Safety and Quality Assurance Infrastructure, etc. 

  • It also incorporates new schemes like Infrastructure for Agro-processing Clusters, Creation of Backward and Forward Linkages, Creation / Expansion of Food Processing & Preservation Capacities.
  • The objective of PMKSY is to supplement agriculture, modernize processing and decrease Agro-Waste.

Significance 

  • Implementation of PMKSY will result in creation of modern infrastructure with efficient supply chain management from farm gate to retail outlet of farm produce.
  • PMKSY will provide a big boost to the growth of food processing sector in the country. 
  • PMKSY will help in providing better prices to farmers and is a big step towards the vision of doubling of farmers’ income. 
  • PMKSY will create huge employment opportunities especially in the rural areas. 
  • PMKSY will also help in reducing wastage of agricultural produce, increasing the processing level, availability of safe and convenient processed foods at affordable price to consumers and enhancing the export of the processed foods. 

Food Processing Sector in India  

Food processing, a sunrise industry, has emerged as an important segment of the Indian economy in terms of its contribution to GDP, employment and investment. During 2015-16, the sector constituted as much as 9.1 and 8.6 per cent of GVA (Gross Value Added) in Manufacturing and Agriculture sector respectively. The government is focusing upon incentivizing the setting up of food processing industry for providing better income for the farmers and creating jobs. 

Measures taken to boost food-processing sector in the country

  • The government has allowed 100% FDI in trading including e-commerce channels with  respect to food products manufactured and /or produced in India. This will help in creating back-end infrastructure and generate significant employment opportunities.
  • Special Fund of Rs. 2000 crore has been set up in NABARD (National Bank for Agriculture and Rural Development) to make available affordable credit at concessional rate of interest to designated food parks and agro processing units in such designated food parks.
  • Food and agro-based processing units and cold chain infrastructure have been brought under the ambit of Priority Sector Lending (PSL) to provide additional credit for food processing activities and infrastructure thereby, boosting food processing, reducing wastage, create employment and increasing farmers' income. 

PT Facts

  • Gross Value Added (GVA) is a measure of total output and income in the economy. It provides the rupee value for the amount of goods and services produced in an economy after deducting the cost of inputs and raw materials gone into the production of those goods and services. 
  • Priority Sector Lending (PSL): Reserve Bank of India has prescribed that a portion of bank lending should be used for developmental activities, which it calls the priority sector. Both the public and private sector banks have to lend 40 % of their net bank credit (NBC) to the priority sector and foreign banks have to lend 32% of their NBC. 

Categories under Priority Sector

I. Agriculture
II. Micro, Small and Medium Enterprises
III. Export Credit
IV. Education
V. Housing
VI. Social Infrastructure
VII. Renewable Energy
VIII. Others

  • Sunrise Industry: A sunrise industry is a new industry that is expanding rapidly and expected to be rise further in the future. It is characterised by high growth, number of startups, increased investment especially through venture capital funding.


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