Karnataka to promote its micro food processing industry

Karnataka sets ball rolling for 'One District, One Product' scheme

The Centre on Wednesday approved Karnataka’s ODOP list under the PM - Formalisation of Micro Food Processing Enterprises (PMFME) scheme

Be it bakery products in Bengaluru, seafood in Udupi or jaggery in Mandya, Karnataka is all set to go big on the ‘One District, One Product’ (ODOP) model to promote the micro food processing industry.

The Centre on Wednesday approved Karnataka’s ODOP list under the PM - Formalisation of Micro Food Processing Enterprises (PMFME) scheme.

As part of this, those running small businesses in unorganised food processing sector will benefit from the government’s support, whether it is for seeking loans or getting trained to market their products better.

Speaking to DH, B Shivaraju, Managing Director of the Karnataka State Agricultural Produce Processing and Export Corporation Ltd (KAPPEC), the nodal agency for the scheme, said the Union Food Processing Ministry had approved Karnataka’s proposal.

“The products in each district were chosen based on what is predominantly cultivated in the region and after carefully considering each district’s unique market potential for a product,” Shivaraju said.  

For instance, in Bengaluru Urban, since there is not much scope for agriculture, bakery products were selected, and likewise with marine products in Udupi, he explained.

The PMFME scheme seeks to promote micro food processing enterprises in unorganised sector. Within each district, selected enterprises will be given subsidies, access to bank loans, and training by the state government to market their products.

Giving a peek into the process, Shivaraju said: “We are at the moment training master trainers. Soon, there will be district-level trainers who will handhold businesses and help them get into the formal sector. There will be a district portal through which an applicant can send his business proposal. The government will help with bank loans, give a 35% subsidy and train the entrepreneurs.”  

Under the scheme, the Centre will invest 60% of the expense while the state will take care of the rest 40%. The project will be implemented at a cost of Rs 493 crore over the next five years, with a target of reaching out to 10,784 enterprises.