Kodagu has immense potential in food processing sector: KAPPEC MD

Kodagu Deputy Commissioner Venkat Raja has urged the people to make use of the support being extended by the Central and State governments for establishing small-scale food processing industries, after inaugurating an awareness programme on the Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) scheme in Madikeri on Thursday.

Elaborating on the opportunities available under the Atmanirbhar Bharat Abhiyan, the Deputy Commissioner said that a 50% subsidy would help individuals start ventures even at their homes, and stressed the importance of branding and market linkages to ensure a wider reach for food products. Special emphasis was laid on encouraging women entrepreneurs, which he said, would boost the district’s economic growth and generate employment opportunities.

The Deputy Commissioner appreciated the exhibition of food-processing products like bakery items, coffee, mushrooms, spices, millet-based products, and chapatis at the event.

Shivaprakash, Managing Director of the Karnataka State Agricultural Produce Processing and Export Corporation (KAPPEC), said Kodagu district has immense potential in food processing industries such as coffee, pepper, cardamom, cocoa, arecanut, honey, and paddy.

Mr. Shivaprakash urged entrepreneurs to file more applications under the scheme, pointing out that the district could even secure GI tags for its unique products. Up to ₹15 lakh subsidy (50% of the project cost) is available for setting up new units or expanding existing ones, he said, adding that flour mills, oil mills, bakeries, banana-based products, turmeric and coconut processing, snacks, pickles, chapati making, coffee powder, masalas, chocolates, honey, fruits, and vegetable processing are among the units that can be established.

B.S. Chandrashekar, Joint Director of Agriculture, said that 160 applications had been filed from the district, of which only seven were rejected. Loans worth ₹15.2 crore have been sanctioned against a target of ₹18.13 crore, benefitting 89 entrepreneurs since the launch of the scheme in 2020-21.

In the 2025-26 State budget, Chief Minister Siddaramaiah announced the establishment of 5,000 small food processing units with an allocation of ₹206 crore. Kodagu has been given a target of 75 units.

Lead Bank manager Gangadhara Nayak, CFTRI Senior Technical Officer Raghavendra, NABARD representatives, and other resource persons spoke on the opportunities in value addition and market expansion at the event. On the occasion, the PM-FME scheme brochure was released by the Deputy Commissioner, and cheques were handed over to beneficiaries.