Scheme for Creation of Backward and Forward Linkages
The objective of the scheme has been to provide effective and seamless backward and forward integration for processed food industry by plugging the gaps in supply chain in terms of availability of raw material and linkages with the market.
Under the scheme, financial assistance is being provided for setting up of primary processing centers/ collection centers at farm gate and modern retail outlets at the front end along with connectivity through insulated/ refrigerated transport.
The Scheme has been applicable to perishable horticulture and non-horticulture produce such as fruits, vegetables, dairy products, meat, poultry, fish, Ready to Cook Food Products, Honey, Coconut, Spices, Mushroom, Retails Shops for Perishable Food Products etc.
The Scheme aimed to enable linking of farmers to processors and the market for ensuring remunerative prices for agri produce. The scheme is implemented by agencies/ organizations such as Govt./ PSUs/ Joint Ventures/ NGOs/ Cooperatives/ SHGs / FPOs / Private Sector / individuals etc.
The Ministry has engaged Technical Agencies(TAs) for assisting farmer/ producer groups including Farmer Producer Companies, Farmer Producer Organization, Self Help Groups to facilitate their participation under the Scheme. The TAs are responsible for preparation of Business Plan, Detail Project Report, Capacity Building, Trainee and other related support services.
The scheme has been under implementation since 2018. The scheme has been discontinued from 1st April 2021.
Pattern of Assistance
The maximum grant extended per project is Rs 5.00 crore @ 35% of the eligible project cost for general areas and @ 50% for North East States, Himalayan States, ITDP Areas and Islands respectively. The grant is provided only in respect of technical civil work and eligible plant & machinery.
Release of Grant
The grant-in-aid under the scheme is released in three installments of 25%, 40% and 35% as per following schedule.
- The first installment of 25% of the approved grant is released after ensuring that 25% of the promoter’s contribution and 25% of the term loan is spent on the eligible project cost;
- The second installment of 40% of grant is released after ensuring utilization of first installment of grant released, 65% of promoter’s contribution and 65% of term loan;
- The third and final installment of remaining 35% of the approved grant under the scheme is released after ensuring utilization of the second installment, 100% of promoter’s contribution and 100% of term loan.