1.4 lakh food processing projects approved in rural India

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To attract investments and sourcing of Indian food products, the ministry had organized three editions of World Food India (WFI) in 2017, 2023 and 2024, which serve a premier platform to highlight investment opportunities and advancements in food processing by facilitating their integration into domestic and international markets.

More than 1.4 lakh food processing projects have been approved under various central schemes to give a boost to the rural economy, minister of state for food processing industries Ravneet Singh said in a written reply in the Rajya Sabha.

To enhance processing infrastructure, the ministry of food processing industries (MoFPI) has been incentivizing the setting up and expansion of related infrastructure through its two central sector projects – Pradhan Mantri Kisan Sampada Yojana (PMKSY) and Production Linked Incentive Scheme for Food Processing Industry (PLISFPI) – as well as the Pradhan Mantri Formalization of Micro Food Processing Enterprises (PMFME) scheme across the country.

Under PMKSY, MoFPI approved 1,134 food processing projects, including 41 mega parks and 395 cold chain projects across the country till 30 June 2025. Under the PMFME scheme, 144,517 proposals were approved and under PLISFPI, 170 proposals were cleared till 30 June.

These schemes aim at increasing preservation and processing capacities, reducing post-harvest losses, developing value-added products, introducing innovative technologies, enhancing productivity & efficiency in food processing, fostering entrepreneurship, providing job opportunities and skill development, which give a momentum to the economy and contribute to inclusive growth, he said.

As part of these schemes, the ministry provided financial assistance for the setting up of processing-related infrastructure across the country, including Kushinagar in Uttar Pradesh. Most of the approved projects are in rural areas and support local farmers.

Under the PMFME scheme, the ministry approved 261 proposals in Uttar Pradesh’s Kushinagar district till 30 June. Kushinagar has been identified for a banana cluster under PMKSY’s ‘operation greens’ component. Banana has also been identified as a one-district-one-product under the PMFME scheme.

Financial support is given in the form of grants-in-aid or subsidy for setting up of food processing projects, creating both processing and preservation infrastructure facilities. The processing facilities created under PMKSY’s ‘component schemes’ helps add value to raw farm produce, thereby fetching higher prices, the minister said.

Similarly, temperature-controlled transport facilities, cold storage, frozen storage, and controlled atmosphere storage facilities, as well as irradiation, help in the faster movement of raw & finished products – reducing post-harvest losses and increasing shelf life. These measures help in providing better returns to farmers and creating employment opportunities.

The PLISFPI scheme helps support the creation of global food manufacturing champions and supports Indian brands in the international market. The scheme is being implemented over six years from 2021-22 to 2026-27 with an outlay of Rs 10,900 crore.

With the objective to attract investments and sourcing of Indian food products, the ministry had organized three editions of World Food India (WFI) in 2017, 2023 and 2024, which serve a premier platform to highlight investment opportunities and advancements in food processing by facilitating their integration into domestic and international markets.

The event brings global processing companies, innovators, supply chain stakeholders, equipment manufacturers, etc., on a collaborative platform and provides foreign companies with business opportunities with its Indian counterparts, he said.

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Naresh Khanna – 10 February 2025

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