Mega Food Park:

The Scheme of Mega Food Park aims at providing a mechanism to link agricultural production to the market by bringing together farmers, processors and retailers so as to ensure maximizing value addition, minimizing wastage, increasing farmers income and creating employment opportunities particularly in rural sector. The Mega Food Park Scheme is based on “Cluster” approach and envisages creation of state of art support infrastructure in a well-defined agri / horticultural zone for setting up of modern food processing units in the industrial plots provided in the park with well-established supply chain. Mega food park typically consist of supply chain infrastructure including collection centers, primary processing centers, central processing centers, cold chain and around 30-35 fully developed plots for entrepreneurs to set up food processing units.\

The Mega Food Park project is implemented by a Special Purpose Vehicle (SPV) which is a Body Corporate registered under the Companies Act. State Government, State Government entities and Cooperatives are not required to form a separate SPV for implementation of Mega Food Park project. Subject to fulfillment of the conditions of the Scheme Guidelines, the funds are released to the SPVs. To view status of 42 Mega Food Parks funded under the scheme (Click Here).

So far Twelve Mega Food Parks have been given clearance. 

How it Works?

• Mega Food Parks Scheme launched by the government in 2008 provides financial assistance upto 50 crores to setup modern infrastructure facilities for food processing called Mega Food Parks. It establishes a mechanism to bring together farmers, processors and retailers and link agriculture production to the market so as to ensure maximization of value addition, minimization of wastage and improving farmers’ income.
• The primary objective of the Scheme is to provide modern infrastructure facilities for the food processing along the value chain from the farm to the market with a cluster based approach based on a hub and spokes model. It includes the creation of infrastructure for primary processing and storage near the farm in the form of Primary Processing Centres (PPCs) and Collection Centres (CCs) and common facilities and enabling infrastructure like roads, electricity, water, ETP facilities etc. at Central Processing Centre (CPC). These PPCs and CCs act as aggregation and storage points to feed raw material to the food processing units located in the CPC.

Collection Centres:

• The CCs work as a point of aggregation of the produce from individual farmers, farmer groups and Self Help Groups (SHGs).
• They feed the raw materials to PCCs.
• They are mostly managed by local entrepreneurs. They serve as farm level aggregation points for adjoining areas.

Primary Collection Centres:

• The PCCs work as primary handling centres which use the raw materials to be processed further in the CPC.
• A PCC serves a number of CCs in the proximity.
• they provide primary processing facilities such as weighing, sorting, grading, washing, crating and storage of the produce.

Central Processing Centre:

• CPC is an industrial park in a large area and houses a number of processing units owned by different business houses.
• The park shall provide common facilities such as electricity, water and effluent treatment besides specialised services such as warehousing, cold storage, logistics and backward integration through the network of primary processing centres and collection centres.

Impact of the scheme:

• Impact assessment of the Mega Food Park projects is undertaken by the Ministry from time to time through Professional Agencies.
• Each Mega Food Park, on completion, is likely to have a cluster of 30-35 units leveraging an investment of about Rs.250 Crore and expected annual turnover of about Rs. 500 Crore. Development of such processing clusters will help in induction of latest technology in the production systems in the catchment area and enhancing the income of farmers. The project help in creating opportunities for direct and indirect employment especially in rural areas, reduction in wastage of agricultural produce and creating linkage between farmers and processors for value addition.