Karnataka to focus on ‘one district, one product’ policy in State Budget

In the 2021-22 Karnataka Budget, the State authorities plans to give a giant push to the “one district, one product” policy for exploiting the potential of unorganised micro-food processing by providing credit score, avenues for the advertising and marketing of merchandise, and technical know-how.

Under this scheme, the State has recognized and permitted 20 districts for horticultural merchandise, six for agricultural merchandise, two for marine merchandise, one for poultry, and one for bakery merchandise. The merchandise in every district had been chosen on the idea of their availability, standing of present processing, and scope of selling.

Under the policy, one product in every district is recognized and entrepreneurs concerned with these merchandise are eligible to avail credit-linked capital subsidy at 35% of the venture price, with a most ceiling of ₹10 lakh per unit. The most credit score can be ₹30 lakh per venture.

Food processing organisations and self-help teams/producer cooperatives are additionally eligible for the subsidy, in accordance to Manoj Rajan, Special Secretary, Food Processing, who’s the general in-charge of the Pradhan Mantri Formalisation of Micro meals processing Enterprises (PM-FME) scheme. A complete of 132 purposes had been obtained underneath the scheme as on February 25, 2021.

The expenditure can be shared 60:40 between the Union and State governments. The State is anticipated to allocate almost ₹500 crore for 5 years from 2020-21 to 2024-25. The 2021-22 Budget is anticipated to put aside greater than ₹100 crore for it, sources mentioned.

A State-level committee headed by the Additional Chief Secretary and the Development Commissioner and district-level committees headed by Deputy Commissioners are monitoring the implementation of the PM-FME scheme, Mr. Rajan mentioned.

Besides the Agriculture Department, Karnataka State Agricultural Produce Processing and Export Corporation Ltd. is the venture nodal company, whereas the Central Food Technological Research Institute, Mysuru, has been roped in for offering technical experience and assist.

In unorganised sector

It is estimated that in the nation, unorganised enterprises contribute to 74% of employment (a 3rd of which matches to girls), 12% of the output, and 27% of the worth addition in the meals processing sector. Nearly 66% of those models are positioned in rural areas, whereas about 80% of them are family-based micro-enterprises.

The unorganised meals processing business has been going through many challenges weakening its efficiency and limiting its growth, together with lack of productiveness and innovation due to restricted talent and entry to fashionable expertise.