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About A One District One Product

Context:

The Ministry of Food Processing Industries (MoFPI) has approved ODOP for 713 districts of 35 States and UTs under Pradhan Mantri Formalisation of Micro food processing Enterprises (PMFME) Scheme on the recommendations of respective States / UTs.

Relevance:

GS II: Government policies and Interventions

Dimensions of the Article:

  1. About One District, One Product
  2. About PM-FME Scheme

About One District, One Product

  • Nodal: Ministry of Food Processing Industries(MOFPI). 
  • The ODOP initiative is aimed at manifesting the vision of the Hon’ble Prime Minister of India to foster balanced regional development across all districts of the country.
  • The idea is to select, brand, and promote One Product from each District of the country
    • For enabling holistic socioeconomic growth across all regions
    • To attract investment in the District to boost manufacturing and exports
    • To generate employment in the District
    • To provide ecosystem for Innovation/ use of Technology at District level to make them competitive with domestic as well as International market
Objectives of the scheme:
  • Preservation and development of local crafts / skills and promotion of the art.
  • Increase in the incomes and local employment (resulting in decline in migration for employment).
  • Improvement in product quality and skill development.
  • Transforming the products in an artistic way (through packaging, branding)
  • To connect the production with tourism (Live demo and sales outlet – gifts and souvenir)
  • To resolve the issues of economic difference and regional imbalance
  • To take the concept of ODOP to national and international level after successful implementation at State level.

About PM-FME Scheme:

Nodal: Ministry of Food Processing Industries(MOFPI). 

  • It is a centrally sponsored scheme.
  • Aim is to modernize and enhance the competitiveness of the existing individual micro enterprises and ensure their transition to formal sector 
  • To provide support to Farmer Producer Organizations, Self Help Groups, and Producers Cooperatives along their entire value chain. 
  • Duration: The PM-FME scheme will be implemented over a period of five years from 2020-21 to 2024-25 with an outlay of Rs 10,000 crore.  
  • Funding: The expenditure under the PM-FME scheme would be shared in 60:40 ratio between Central and State Governments, in 90:10 ratio with North Eastern and Himalayan States, 60:40 ratio with UTs with legislature and 100% by Centre for other UTs. 
Objectives
  • Increase in access to finance by micro food processing units.
  • Increase in revenues of target enterprises.
  • Enhanced compliance with food quality and safety standards.
  • Strengthening capacities of support systems.
  • Transition from the unorganized sector to the formal sector.
  • Special focus on women entrepreneurs and Aspirational districts.
  • Focus on minor forest produce in Tribal Districts.
Eligibility
  • Scheme is for All India basis.
  • Support to Individual micro units:
  • Micro enterprises will get credit linked subsidy @ 35% of the eligible project cost with ceiling of Rs.10 lakh.
  • Beneficiary contribution will be minimum 10% and balance from loan.
  • On-site skill training & Handholding for DPR and technical upgradation.
Support to FPOs/SHGs/Cooperatives:
  • Seed capital will be given to SHGs (@Rs. 4 lakh per SHG) for loan to members for working capital and small tools.
  • Grant for backward/ forward linkages, common infrastructure, packaging, marketing & branding.
  • Skill training & Handholding support.
  • Credit linked capital subsidy.

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