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Tags Current Affairs

Government to launch Gram Samridhi Yojana

Date: 05 March 2019 Tags: Agriculture, Society

Union Ministry of Food Processing Industries will soon launch Gram Samridhi Yojana to bolster unorganised food processing sector concentrated in rural areas. The scheme has outlay of Rs 3,000 crore and will be funded by World Bank and Centre. It has been approved by NITI Aayog and now it waiting for clearance of Expenditure Finance Committee, Ministry of Finance.

Gram Samridhi Yojana

  • It aims at development of modern infrastructure to encourage entrepreneurs to set up food processing units, upgrade technology in existing unit, improve management of units and give technical support.
  • Intendent Beneficiaries: Cottage industry, farmer producers’ organisation and individual food processors. They will process local produce, package and market it.
  • Features: Under it, common facility centres and business incubators in rural areas will be set up. The incubator will provide infrastructure and services to support growth of new food businesses.
  • It will provide equipment and programs to help businessmen or entrepreneur launch new product through development, market launch and growth in sales.
  • It will provide subsidy to them (max Rs 10 lakh per unit) apart from interest subsidy, if they avail of loans.
  • It will be implemented at cluster level where food processing units or individual players can apply for the subsidy online.
  • Funding: World Bank will provide Rs 1,500 crore while Rs 1,000 crore will be borne by Centre while state governments will provide reaming Rs 500 crore.
  • Phase implementation: In the initial phase, it will be launched in four states viz. Uttar Pradesh, Andhra Pradesh, Maharashtra and Punjab for five-year period and thereafter replicated in other states.


  • It will help cottage industry, farmer producers’ organisations and individual food processors to increase capacity, upgrade technology besides skill improvement, entrepreneurship development and strengthening farm-tomarket supply chain.
  • It will help to achieve Government’s set goal of doubling of farmers’ income and employment opportunities in rural areas.
  • About 66% of unorganised food processing units are in rural areas and of these, 80% are family run.
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