The Ministry of Food Processing Industries (MoFPI) has sanctioned 41 Mega Food Parks, 399 Cold Chain projects, 76 Agro-processing Clusters, and 588 Food Processing Units under the Pradhan Mantri Kisan SAMPADA Yojana (PMKSY).
The food processing sector has become a significant contributor to India’s economy, in terms of Gross Domestic Product (GDP), employment, and exports. Over the last eight years ending 2022-23, the sector has grown at an Average Annual Growth Rate (AAGR) of approximately 5.35 percent. The Gross Value Added (GVA) in the sector rose from Rs1.61 lakh crore in 2015-16 to Rs 1.92 lakh crore in 2022-23, as per the First Revised Estimates by the Ministry of Statistics and Programme Implementation. Employment in the Food Processing Industries increased from 1.773 million in 2014-15 to 2.068 million in 2021-22, according to the latest Annual Survey of Industries (ASI) report. Furthermore, the share of processed food exports in agri-food exports increased to 23.4 percent in 2023-24 from 13.7 percent in 2014-15.
To facilitate the comprehensive development of the food processing sector and address various challenges, the MoFPI is implementing several schemes, including the Pradhan Mantri Kisan SAMPADA Yojana (PMKSY), the Production Linked Incentive Scheme for Food Processing Industry (PLISFPI), and the PM Formalisation of Micro Food Processing Enterprises (PMFME) scheme.
Through the PMKSY, the MoFPI aims to develop modern infrastructure with efficient supply chain management from the farm gate to retail outlets, promoting overall growth in the food processing industry. This includes creating employment opportunities, reducing agricultural produce wastage, increasing processing levels, and boosting processed food exports. The ministry provides financial assistance in the form of capital subsidies through grants-in-aid under various PMKSY components for establishing new food processing industries/units/projects and expanding existing ones. As of 30 June 2024, the ministry had approved 41 Mega Food Parks, 399 Cold Chain projects, 76 Agro-processing Clusters, 588 Food Processing Units, 61 Creation of Backward & Forward Linkages Projects, and 52 Operation Green projects under respective PMKSY component schemes.
Additionally, the MoFPI provides financial, technical, and business support for the establishment or upgradation of micro food processing enterprises under the PMFME scheme. The scheme is active from 2020-21 to 2024-25 with a total budget of Rs 10,000 crore. As of 30 June 2024, 92,549 micro food processing enterprises had been approved for assistance under PMFME.
The PLISFPI aims to support the creation of global food manufacturing champions, branding, and marketing abroad, and to promote Indian food product brands in the international market. This scheme is being implemented over six years, from 2021-22 to 2026-27, with a budget of Rs 10,900 crore, and as of 30 June 2024, 172 food processing companies had been approved for assistance under various scheme categories.
