Loan for Small and Cottage Food Processors

Loan Scheme 2021 for Small and Cottage Food Processors in Unorganized Sectors

Food is a uniting factor for people from all walks of life. Irrespective of which culture you come from, it is food that brings everyone together. India, with its diverse resources and cultures, has the potential to be the Food Hub of the world in years to come. In order to enable this, the Central government of India has launched the Loan Scheme 2021 for Small and Cottage Food processors in Unorganized sectors to help rural women empower themselves especially in these trying times when getting jobs seems to be a steep task.

Considering how food processing is one of the largest industries at the moment for employment generation, the Central government is really keen on the pursuit of this scheme and to implement its benefits for all to avail.

Target groups of the Loan Scheme 2021

The Central government essentially would be targeting micro and macro cottage food processors and rural women who are processing food products like Pappad, chutney, achaar (pickles), etc.

What is the loan scheme?

The Ministry of Food Processing Industries will launch a loan scheme. At the moment, India is able to process only 10% of its total production. There is a very high level of wastage which leads to consumer prices shooting exponentially on one hand and farmers not getting their due prices. The loan scheme will ensure farmers will get full value for their crops. In order to enable farmers to earn higher incomes through a legitimate process of value-addition to their agri produce.

Along with what the scheme has to offer, the government also looks to offer guidance and subsidies to support farmers and connect them with relevant markets. In order to create markets, the government has gone as far as to allow 100% FDI in multi-brand retail for food that is specifically produced or manufactured in the confines of our country.

Benefits of the Loan Scheme 2021

Here are some of the benefits that come with Small/Cottage food processors:

  1. Up-gradation of technology across the food processing sector.
  2. Development of skills.
  3. Improvements in food and safety standards of edible products.
  4. Integration with the organized sector of the nation, especially from rural areas.

The implementation of this scheme will bring about 66% of the unorganized food processing units under governmental jurisdiction so that they not only get more value for their services, but they also can do away with market exploitation and ills of rampant corruption.

Summing it up

People from the unorganized sector often give their all to the services they partake in, but all their efforts usually go exploited and unnoticed. With the Loan scheme, smaller food processing units will now have governmental backing, so that they can run their business with utmost ease and can therefore perform much better.

Without a lack of capital and exploiters around, these small and often family-run businesses will flourish, enabling our Food processing units not only to outshine at a national level but also internationally. 

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