The Ministry of Food Processing Industries have seen its allocations double to Rs 1400 crore in Budget 2018. The ministry has initiated consultations with stakeholders to draw the outlines of 'Operations Greens', which lays special attention to ending distress sale by tomato, onion and potato (TOP) farmers.
"We would be holding a meeting with stakeholders from states that we have identified as the leading producers of the TOP crops," said Harsimrat Kaur Badal, union minister for food processing industries.
"About Rs 500 crore has been specially earmarked in the budget to provide incentives for providing forward and backward linkages and infrastructures for preservation and processing of these crops availed by both the rich and poor," said Badal.
The cornerstone of the scheme for tomato, onion and potato processors announced in this year's budget, lies in the government identifying the right agro zones as clusters for particular crops.
In recent years, price fluctuations in onions have caused distress among farmers and the middle-class consumers. Potato farmers in Agra and other places of Uttar Pradesh have laid to waste their entire crop on highways after a price crash.
Similarly, milk farmers in Maharashtra threw their milk on highways last year, protesting after a crash in winter prices of milk, owing to an over supply in the local market.
"We will give priority to support farmer producer organisations to help them become processors. This will help in doubling farmers income as the PM has targetted," said Badal.
Other than FPOs all existing farmer organisations like cooperatives would also be able to derive benefits from the scheme, J.C. Meena, secretary MoFPI said.
Badal's ministry has also been mandated in the budget this year, to establish specialised Agro Processing Financial Institutions with banks.
The ministry has set itself a target of setting the ball rolling in this direction by at least releasing primary advertisements inviting banks, by April this year, Badal said.
Asked if the government could allocate some funds from the scheme to provide a corpus for food processing industries, the minister said it is being considered.
Badal said that the quantum of loan assistance to be provided to this fund deprived sector would be fixed soon. Banks would be expected to create special lending institutions under the scheme, dedicated for the food processing industry.
Lately, India has seen a renewed FDI interest in the sector. While last year close to $727 million was received as FDI in the sector, this year, investments are likely to cross $1 billion, the union food processing industries minister said.
