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Linking the Farmers to Food Market- What is the Emerging Picture?

One of the major thrusts of this government is fulfilling PM Modi’s goal of doubling farmers’ income by 2022. In this regard, a number of steps have taken by the government since 2014 to boost farmers’ income. Among the initiatives, providing a value-add opportunity to farm produce and linking it effectively with the food industry play an important role.

While one method of boosting farmers income is by minimizing the loss incurred by the farmers, another is to enable them to earn more by encouraging and facilitating them to take up allied as well as food processing. It is in this light that PM-Kisan Sampada Yojana was launched by the Union Government.

An Effective Linkage Framework

PM-SAMPADA scheme is an umbrella scheme for development of Agro-Marine Produce Processing and Agro-Processing Clusters in India. It aims at supplementing agricultural income, modernizing processing of agricultural produce, enhancing export potential, and decreasing agri-waste. The scheme has 5 components namely-

  • Creation of Integrated Cold Chains and Value Addition Infrastructure
  • Building Mega Food Parks
  • Creation of Backward & Forward Linkages
  • Creation / Expansion of Food Processing and Preservation Capacities
  • Opening Agro processing Cluster
  • Operation Greens
Creation of Cold chains

Cold-chains are important components of SAMPADA scheme which will reduce Agri waste and ensure higher longevity of farmer produce. Union Government led by PM Modi has till now operationalized 1303 cold storage units with an operational capacity of over 45.62 lakh Metric tonnes since 2015. This will immensely help in reducing harvest as well as post-harvest losses. CRISIL also expects another Rs 21,000-crore investment in the cold storage sector in the next 5 years.

Building Mega-Food Parks

Union Government has built and operationalized 15 Mega Food Parks in 5 years and plans to build a total of 42 in the country. Mega food parks bringing together farmers, processors and retailers so as to ensure maximizing value addition, minimal wastage and is based on “cluster” approach and envisages creation of state of art support infrastructure for setting up of modern food processing units in the industrial plots provided in the park with well-established supply chain. This will create thousands of direct as well as indirect jobs for farmers throughout the country.

Creation of Farmer Produce Organisation

In the Union Budget of 2019-2020, Government proposed to create 10,000 Farmer Produce organisation which will enable them to pool their resources together and raise capital much more easily. This will ensure economies of scale for farmers and allow them to adopt newer technologies and boost their income.

SFURTI and ASPIRE

The cluster-based development under SFURTI scheme is expected to boost agro-rural industries in specific bamboo, honey and khadi clusters. APIRE is expected to open 100 business incubators to enable 75,000 entrepreneurs to be trained as agri–preneurs in the value chain.

Operation Greens

To ensure more production, better processing and stability in prices of Tomato Onion and Potato (TOP), TOP scheme was launched. This will through market intervention will ensure that short-term price stability as well as long-term integrated value-chain processes to be developed.

These measures on top of multiple schemes like PM-KISAN, PM Fasal Bhima Yojana, Rashtriya Gokul Mission and Paramparagat Krishi Vikas Yojana will ensure that farmers income will get doubled by 2022. As the Finance Minister said during her 2019 budget speech, Modi’s government is committed to enabling ease of life and ease of doing business for farmers also.

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