India, Feb. 15 -- To promote the overall development of food processing industries across India, including rural and backward regions, the Ministry of Food Processing Industries (MoFPI) has been implementing various schemes. These include the Pradhan Mantri Kisan SAMPADA Yojana (PMKSY), Production Linked Incentive Scheme for Food Processing Industry (PLISFPI), and PM Formalization of Micro Food Processing Enterprises (PMFME) Scheme. These schemes are demand-driven and not restricted to any specific region or state.

Financial Assistance and Scheme Implementation

PMKSY provides credit-linked financial assistance (capital subsidy) for setting up food processing industries, with a total outlay of Rs 5,520 crore for the 15th Finance Commission Cycle.

PMFME Scheme supports financial, technical, and business assistance for micro food processing enterprises. This scheme is operational until 2025-26 with a budget allocation of Rs 10,000 crore.

PLISFPI is designed to establish global food manufacturing champions and promote Indian food brands in international markets. The scheme runs from 2021-22 to 2026-27 with an outlay of Rs 10,900 crore.

Infrastructure Development and Cold Chain Support

While MoFPI does not provide financial aid for standalone cold storage facilities, it encourages the creation of cold chain infrastructure, preservation, and value addition as part of food processing projects under PMKSY component schemes. These efforts aim to develop modern infrastructure with efficient supply chain management, including storage, transportation, and value addition, leading to higher returns for farmers, employment generation, reduction of agricultural wastage, and increased processing levels.

Support for Entrepreneurs and Horticulture Development

MoFPI extends financial support to entrepreneurs setting up food processing industries, including banana processing and other agro-based ventures, per the respective scheme guidelines.

Additionally, the Department of Agriculture & Farmers Welfare is implementing the Mission for Integrated Development of Horticulture (MIDH) to support the construction, expansion, and modernization of cold storage facilities up to 5,000 MT capacity. Government assistance is provided in the form of credit-linked back-ended subsidies at 35% of project cost in general areas and 50% in hilly and scheduled areas through State Horticulture Missions. Eligible beneficiaries include farmers, SHGs, FPOs, cooperatives, marketing federations, local bodies, and agricultural market committees.

Special Provisions for North Eastern and Himalayan States

For food processing units in North Eastern and Himalayan States, financial assistance of 50% of eligible project costs is available, with a maximum project cost limit of Rs.800 lakh per unit.

The government remains committed to strengthening India's food processing sector and ensuring that farmers, entrepreneurs, and agro-based industries benefit from modernized infrastructure and value addition opportunities.

This information was given by the Minister of State forFood Processing Industries Shri Ravneet Singh in a writtenreply in Lok Sabhaon 13 February.

Published by HT Digital Content Services with permission from FoodTechBiz.