The Budget for 2021 has clearly spelt out its vision for the future and its objectives to achieve by 2030 by focusing and making an integrated approach towards agriculture, food preservation, food processing, packaging and maintenance of the cold chain industry. Many high farm production of agricultural and food products shall be witnessed in the coming years due to the implementation of the above-mentioned schemes and incentives for the same. Further, greater productivity will be achieved through modern agricultural practices and value addition due to newer technologies being introduced from the 100% FDI which is now permitted within this sector. An integrated approach towards agriculture, and food processing, preservation, packaging and maintenance of the cold chain will be the focus to bring forth the much-anticipate boom within this industry globally.

The schemes for the preservation and growth of the Cold Chain Industry in India have been given below:

The Mission for Integrated Development of Horticulture (MIDH) 

MIDH is a centrally sponsored scheme for the holistic growth of the horticulture sector covering fruits, vegetables, root and tuber crops, mushrooms, spices, flowers, aromatic plants, coconut, cashew, cocoa and bamboo. While the government of India (GoI) contributes 85% of the total fund for developmental programmes in all the states except the states in North East and the Himalayas, 15% share is contributed by State Governments. In the case of the North-Eastern States and the Himalayan States, GoI contribution is 100%. At present, the following sub-schemes and entities are relevant for cold chain and packhouses: National Horticulture Mission (NHM), Horticulture Mission for North East and Himalayan States (HMNEH), and National Horticulture Board (NHB).

In terms of flow of support available for packhouses under MIDH, the financial assistance is first released to the State Horticulture Missions (SHMs)/state level implementing agencies. They, in turn, make the funds available to the district implementing agency. Beneficiaries receive the funds from the district implementing agency at the state level.

Integrated Scheme for Agricultural Marketing (ISAM) 

The Ministry of Agriculture launched this scheme to keep up with the growing production and marketing surplus. It consists of the following sub-schemes:

• Agricultural Marketing Infrastructure (AMI)
• Marketing Research and Information Network (MRIN)
• Strengthening of Agmark Grading Facilities (SAGF)
• Agribusiness Development (ABD) through Venture Capital Assistance (VCA) and Project Development Facility (PDF)

The overall budgetary allocation for ISAM is INR 4,548 crore. The sub-scheme break-up of the budget provision is INR 4,000 crore for AMI, INR 12 crore for MRIN, INR 6 crore for SAGF, INR 500 crore for ABD and INR 30 crore for NIAM. The scheme focuses on the following:

• Enhancing the creation of agricultural marketing infrastructure by providing backend support to State, cooperative and private sector investments.
• Developing storage capacity and promoting pledge financing to boost the farmer’s income.
• Promoting integrated value chains to provide vertical integration of farmers with primary processors.
• Using Information and Communications Technology (ICT) as a vehicle extension to sensitise and orient farmers to respond to new challenges in agricultural marketing.
• Establishing a nation-wide information network system for speedy collection and dissemination of market information and data on arrivals and prices for its efficient and timely utilisation by farmers and other stakeholders.
• Supporting the framing of grade standards and quality certification of agricultural commodities to assist farmers in receiving profitable prices for their graded produce.
• Catalysing private investment to set up agribusiness projects and thereby provide an assured market to producers and strengthen backward linkages of agriculture projects with producers and their groups.
• Undertaking and promoting training, research, education, extension and consultancy in the agricultural marketing sector.

Rashtriya Krishi Vikas Yojana(RKVY)

RKVY scheme was initiated in 2007 for ensuring holistic development of agriculture and allied sectors by allowing states to choose their own agriculture and allied sector development activities as per the district/state agriculture plan. Until 2013-14, the scheme was implemented as Additional Central Assistance (ACA) to the state plan scheme with 100% central assistance. It was converted into a centrally sponsored scheme in 2014-15 with 100% central assistance. Since 2015-16, the funding pattern of the scheme has been altered to the ratio of 60:40 between Central and State governments (90:10 for North Eastern States and Himalayan States). For Union Territories the funding is through 100% central grant. Under RKVY infrastructure & assets stream, projects can be funded for functional infrastructure for collection, sorting, grading,cold storage, pre-cooling, refrigerated vans, ripening chambers and primary processing units.

Pradhan Mantri Kisan SAMPADA Yojana (PMKSY)

PMSKY is a central scheme with an allocation of INR 6,000 crore for the period 2016-20 which will be implemented by MoFPI. It includes the creation of modern infrastructure with efficient supply chain management from farm gate to retail outlet. It is expected to leverage investment of INR 31,400 crore for the handling of 334 lakh MT agro-produce valued at INR 1,04,125 crore, benefiting 20 lakh farmers and generating 5,30,500 direct/indirect employment in the country by the year 2019-20.

Agriculture and processed foods export promotion scheme of APEDA

Key features of APEDA scheme are mentioned below:

• The financial assistance is provided to the exporters for setting up packhouse facilities with packing and grading lines, pre-cooling units with cold storages and refrigerated transportation, cable system for handling crops like banana, pre-shipment treatment facilities such as irradiation, etc.
• For integrated packhouses, the proposals should meet the technical standards notified by the Central Government under the Schemes from time to time
• 75% of the assistance shall be released after submission of final claim documents and the balance 25% of the total eligible assistance shall be released after registration of the packhouse as per APEDA packhouse registration scheme