Union Minister Chirag Paswan acknowledges suggestions from MP Arora to boost food processing industry in Punjab

Ludhiana, October 14, 2024: Union Minister for Food Processing Industries, Chirag Paswan, informed Rajya Sabha MP from Ludhiana, Sanjeev Arora, that he has taken note of his suggestions for promoting the success of the food processing industry in Punjab.

In a communication to Arora, the Union Minister mentioned that his Ministry is implementing a Central Sector umbrella scheme Pradhan Mantra Kisan Sampada Yojana (PMKSY). Under sub-component schemes of PMKSY, Ministry provides financial assistance @35 & 50% of eligible project cost with a ceiling varying from 5 crore to 15 crore for different sub-component schemes, for setting up food processing units and related infrastructure. PMKSY is a demand driven scheme and applications under it are invited through Expression of Interest (EoI) from all over India, including Punjab. Ministry is implementing a sub-component scheme under PMKSY namely Creation of Infrastructure for Agro Processing Clusters (APC), which is like Mega Food Park but on smaller scale, wherein only 10 acres of the land is required. The Mega Food Park Scheme has been discontinued by the Ministry since April 1, 2021.

Further, the Minister stated that the Ministry is also implementing Pradhan Mantri Formalisation of Micro Food Processing Enterprises Scheme for setting up of Food Processing units at micro level. In addition, the Production Linked Incentive Scheme is also being implemented by the Ministry wherein incentives are provided for achieving incremental sales and for promotion of exports through branding and marketing support.

The Minister further wrote to Arora that with this, he requested him that at the time of next EOI, individuals/institutions interested in setting up food processing facilities in the state may be encouraged to apply under the relevant scheme implemented by the Ministry and avail the benefits of the same. 

Arora, in his communication to the Minister, had sought his urgent attention for food processing industries in Punjab. He had mentioned industry's suggestions to make Food Processing Industry successful in Punjab. While giving suggestions Arora had stated that for Mega Food Processing Parks 50 Acres is too huge of a land parcel in Punjab. Land is costlier and scarcely available in Punjab. He, therefore, suggested to giving incentives at par of Mega Food Processing Parks to single unit Food Processing projects. Recognising Punjab's strong agricultural base, he had urged upon the Minister to consider introducing special incentives for the export of processed food products originating from Punjab. He had opined that this would function as a significant boost to the state's food processing industry.

Talking about Punjab's potential, Arora reiterated that Punjab has immense potential to become a leader in the food processing sector. By addressing the concerns and implementing the certain measures, a thriving ecosystem can be created which will generate jobs, empower farmers, and unlock new opportunities for the state's economic growth.