Parliamentary committee submits Report on “Scheme for Creation/Expansion of Food Processing and Preservation Capacities (CEFPPC)"

Posted 14 Feb 2024

Updated 22 Mar 2024

2 min read

CEFPPC scheme launched in 2017-18 is one of the components of Pradhan Mantri Kisan Sampada Yojana (PMKSY).
- PMKSY is an Umbrella Scheme comprising eight Scheme-Components to give a boost to the growth of Food Processing Sector of the country

Key features of CEFPPC scheme
- Ministry: Ministry of Food Processing Industries
- Objective: Creation, expansion and modernization of Food Processing Units, to increase level of processing, and value addition and reduce wastage.
- Assistance: Grants-in-aid (subject to a maximum of Rs. 5 crore) is at,
  - 35% of project cost in General Areas.
  - 50% of project cost in Difficult Areas and for projects of SC/ST, FPOs and SHGs.
- Fund utilisation: 60% for units inside Mega Food Parks (MFPs)/Agro-processing Clusters (APCs) & 40% to units outside MFPs/APCs.
- Implementation: Through organizations like Central & State PSUs, Farmer Producers Organization (FPOs), SHGs, Cooperatives etc.

Issues with CEFPPC Scheme
- Delay in obtaining clearances from the State Governments.
- Receipt of a large number of ineligible proposals due to lack of knowledge about the scheme.
- Pending eligible proposals due to non-availability of funds.
- Under-utilization of funds allocated for Scheduled Caste Sub Plan (SCSP), Tribal Sub Plan (TSP) and North Eastern Region.

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