Thursday, June 25, 2015

National Mission of Food Processing

National Mission of Food Processing (NMFP) was a centrally sponsored scheme (CSS) introduced in 2012. The mission was to promote food processing industries in India by providing infrastructural support and 75% financial cost to the state governments.
-The objective of the NMFP is-
1. to assist state governments in setting up infrastructure for food processing industries.
2. to spread the message about food processing and thus help in enhancing agricultural productivity.
3. to promote skill development for post-harvest and food processing industries.
4. to assist MSME in setting up Food processing units in terms of capital/technology/skill etc
5. to ensure and enhance food safety laws.
-NMFP has performed very well within the last few years. This is evident from the fact that investors are still ready to invest in food processing units.
-Currently, the central government has decided to de-link the project and let the state government run it on its own. This led the central government to stop giving existing 75% fund to the state government.
-The state government should now focus to use the 10% extra revenue sharing given by the central government, as per the fourteenth Finance commission recommendations in funding the NMFP.
-the food processing industry in India is a rising and promising industry with investors ready to pump in money. This project should not be affected by the withdrawal of central government’s share in it. Instead state government should use this opportunity to mould the project according to its own needs and help increase farmers productivity.

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