Kodagu Deputy Commissioner Dr. Venkat Raja, speaking at an awareness programme on the Prime Minister’s Small Food Processing Enterprises Regulatory Compliance (PMFAAE) Scheme held at the Madikeri Zilla Panchayat Hall, said that the small food processing sector has vast opportunities for growth and can avail subsidies from both the central and state governments. He urged beneficiaries to make use of this opportunity for self-employment.
The DC informed that the government provides 50 percent subsidy under the scheme, which is particularly beneficial for micro and small enterprises. He highlighted that the sector can expand under the Atma Nirbhar Bharat Abhiyan, with entrepreneurs encouraged to take loans and start self-employment ventures.
He stressed the importance of providing market facilities for small food processing industries to ensure wider trade opportunities. Women, in particular, could benefit by becoming self-employed, thereby contributing to economic development and employment generation. Small food processing can be undertaken using locally available products, the DC said, advising beneficiaries to focus on convenience and achievable goals. Exhibitions showcased products such as bakery items, coffee, mushrooms, grains, chapatis, and spices, which the DC noted should be provided with national-level market access.
Shivaprakash, Managing Director of the Karnataka State Agricultural Produce Processing and Export Corporation, said that Kodagu has tremendous potential in food processing sectors such as coffee, pepper, cardamom, cocoa, areca nut, honey, and rice. He emphasized that subsidies are available and should be fully utilized, with more applications submitted under the Prime Minister’s scheme. He also suggested obtaining a GI tag for regional products.
He explained that branding and marketing activities such as packaging and retailing are eligible for 50 percent subsidy, with cooperative societies, self-help groups, and small enterprises able to benefit. Eligible units include flour mills, oil mills, bakeries, banana processing, turmeric, coconut, pickle, spice, chocolate, honey, fruit and vegetable processing, and others.
Dr. B.S. Chandrashekhar, Joint Director of the Agriculture Department, said that 160 applications were received in Kodagu district, of which only seven were rejected. Out of the project target of Rs. 18.13 crore, Rs. 15.20 crore has been sanctioned for loans. He noted that the scheme, implemented since 2020-21, supports procurement of machinery, market access, and customer outreach.
So far, 89 entrepreneurs have benefited from loans under the scheme. The Chief Minister, in his 2025-26 budget, announced the establishment of 5,000 small food processing enterprises with an allocation of Rs. 206 crore. Kodagu district has been set a target of 75 enterprises for this year, which is the final year of the scheme’s implementation.
Lead Bank Manager Gangadhar Nayak encouraged entrepreneurs to collaborate for the growth of the sector. Senior Technical Officer Dr. Raghavendra of CFTRI discussed value addition opportunities, while NABARD AGM Ramesh Babu, Archana K.M., Namita Ayyappa, and Devaiah P.V. shared insights on cereals and related products.
Farmers Kodi Ponnappa and Napanda Rally Madaiah were present. On the occasion, the DC released a poster of the scheme and handed over sanction letters for loans. Deputy Director of Agriculture Dr. D.S. Somashekar welcomed participants, while Meenakshi and her team presented patriotic and farmer songs. Assistant Director of Agriculture D. Paramesh proposed the vote of thanks.
