Agro Processing Clusters and Infrastructure

**Executive Summary** The Ministry of Food Processing Industries (MoFPI) is implementing a Scheme for Creation of Infrastructure for Agro Processing Clusters (APC) to encourage entrepreneurs to set up food processing units based on a cluster approach. The scheme provides preference to proposals that align with agri-horti clusters. A third-party impact evaluation study of the APC scheme was conducted recently at the end of the 15th Finance Commission Cycle. **Key Points / Main Content** * **APC Scheme Overview:** * MoFPI is implementing the APC scheme under Pradhan Mantri Kisan Sampada Yojana (PMKSY). * The scheme aims to develop modern infrastructure for food processing units based on a cluster approach. * The scheme is demand-driven. * **Eligibility and Preferences:** * The Ministry prioritizes proposals under the APC scheme that are set up in agri-horti clusters. * These clusters are identified by the Department of Agriculture, Co-operation and Farmers Welfare (DAC&FW) under Mission for Integrated Development of Horticulture (MIDH), APEDA etc. * Additional 5 marks are awarded during the assessment/evaluation criteria. * **Monitoring and Evaluation:** * The APC scheme projects are regularly reviewed and monitored by the Ministry through Project Management Agencies (PMAs). * A third-party impact evaluation study of the scheme was recently conducted by M/s Quality Council of India. * **Collaboration:** * The National Institute of Food Technology, Entrepreneurship and Management (NIFTEM) at Kundli and Thanjavur, in collaboration with other institutions, strengthen academic, technical, research and capacity-building initiatives in the food processing sector. * NIFTEM-Thanjavur has conducted short-term courses on Cold Chain Management. **Impact Analysis** **Entrepreneurs** * **Impact:** Encouraged to establish food processing units based on a cluster approach, potentially leading to business growth and access to modern infrastructure. * **Action Required:** Consider setting up units within identified agri-horti clusters to improve chances of proposal acceptance under the APC scheme. **Project Management Agencies (PMAs)** * **Impact:** Responsible for the regular review and monitoring of projects approved under the APC scheme. * **Action Required:** Continue to review and monitor APC scheme projects effectively. **M/s Quality Council of India** * **Impact:** Conducted a third party impact evaluation study of the scheme. * **Action Required:** Further analysis of the impact evaluation study for improvements.

Key Entities Referenced