One District One Product
Under the Pradhan Mantri Formalisation of Micro Food Processing Enterprise (PMFME) Scheme, the Food Processing Ministry signed an agreement with NAFED to develop ten brands as One District One Product branding. Six of these brands have recently launched.
About ODOP (One District One Product)
ODOP is a Japanese company development idea that first gained popularity in 1979. Its goal is to promote a competitive and staple product from a certain region in order to increase sales and raise the local population’s standard of living. It has also been imitated in other Asian countries throughout time. It was first started by the Uttar Pradesh Government in India. One District One Product (ODOP) is an initiative which is seen as a transformational step forward towards realizing the true potential of a district, fueling economic growth and generating employment and rural entrepreneurship. This initiative is operationally merged with “Districts as Export Hub” initiative being implemented by DGFT with Department for Promotion of Industry and Internal Trade (DPIIT) as a major stakeholder.
Six brands included recently are:
- Cori gold
- Amrit Phal
- Kashmiri Mantra
- Madhu Mantra
- Whole Wheat cookies of Dilli Bakes
About PMFME Scheme
The project, which began in 2020 and will last for five years until 2024-25, was launched in 2020. It is for the Unorganized Sector throughout India.
What is the objective of PMFME scheme?
- To make easier access to credit for Micro food processing units.
- Increase in revenues of target enterprises.
- To follow Food quality and safety requirements closely.
- Encourage waste to wealth activities.
- Focus on minor forest produce in tribal areas.
Salient features of the scheme
- The Government of India and States will split Centrally Sponsored Expenditure 60:40.
- Beneficiary contribution will be minimum 10 per cent and balance from loan.
- A credit-linked subsidy would be provided to 2,00,000 micro-enterprises. Micro companies will be eligible for a credit-linked subsidy of 35% of the qualified project cost, up to a maximum of Rs. 10 lakh.
- The scheme focuses on perishable items.
- It follows a cluster approach.
How the One District One Product scheme will be implemented?
- The scheme would be overseen at the national level by an Inter-Ministerial Empowered Committee (IMEC) chaired by Minister FPI.
- SHGs/ FPOs/ Cooperatives will be monitored by a State/ UT Level Committee (SLC) led by the Chief Secretary, which will sanction/ suggest proposals for the growth of micro units and the establishment of new units by SHGs/ FPOs/ Cooperatives.
- The states/UTs will develop Annual Action Plans outlining various initiatives for the scheme’s implementation, which will be authorised by the Indian government.
- A third party evaluation and mid-term review mechanism would be built in the programme.
- The applicants/individual enterprises would be able to apply to participate in the Scheme using a national level portal. The National Portal would be used for all scheme activities.
Benefits of the scheme One District One Product
- Nearly eight lakh micro- enterprises will benefit through access to information, better exposure and formalization.
- Nine lakh skilled and semi-skilled employment are expected to be created as a result of the project.
- Better integration with organized markets.
- Existing micro food processing entrepreneurs, women entrepreneurs, and entrepreneurs in the Aspirational Districts will have easier access to loans under the scheme.
- They will be able to formalise, grow, and compete as a result of it.