The ministry of food processing industries (MoFPI) is advancing the overall development of the food processing industries through its flagship initiatives, incentivizing the establishment and expansion of essential infrastructure via its two central sector schemes—the Pradhan Mantri Kisan SAMPADA Yojana (PMKSY) and the Production Linked Incentive Scheme for Food Processing Industry (PLISFPI).
In addition, the PM Formalization of Micro Food Processing Enterprises (PMFME) scheme also offers critical financial, technical, and business support crucial for upgrading and establishing micro food processing enterprises. These three schemes are strategically designed to be demand-driven and are implemented nationwide, including in Bihar.
The ministry provides substantial subsidies and incentives to eligible applicants. Entrepreneurs in the Micro, Small, and Medium Enterprises (MSME) sector are benefiting from MoFPI’s initiatives, further empowering this vital segment of the economy. Under the PMFME scheme, individual micro enterprises receive a credit-linked capital subsidy of 35% of the eligible project cost, capped at ₹10 lakhs per unit, minister of state Ravneet Singh said in the Lok Sabha.
As of 30 June 2025, a total of 144,517 micro food processing enterprises were approved for assistance under the PMFME across the country. Additionally, the capacity-building component of the PMFME Scheme offers essential training for trainers, district resource persons, and entrepreneurs, alongside various groups in entrepreneurship development skilling (EDP+) and product-specific skills tailored to meet the industry’s demands.
To date, 116,666 beneficiaries have been effectively trained under the PMFME scheme. The projects approved under PMKSY and PLISFPI also encompass the MSME category, further bolstering the growth of MSMEs within the food processing sector, the minister said.
In Bihar, MoFPI has approved 13 food processing projects under PMKSY, 7 proposals under PLISFPI, and 25349 proposals under PMFME as of June 30, 2025.
₹1,726 crore incentives for food processing
The incentives granted under the PLISFPI scheme are strictly applicable when the entire manufacturing process, including the primary processing of food products, is conducted within India. The total export of agricultural processed products from applicants approved under PLISFPI has surged with a compound annual growth rate (CAGR) of 13.23% from 2019-20 to 2024-25.
This scheme does not include floricultural production. Currently, 278 processing units from 170 applicants have been firmly approved under various categories of the PLISFPI, which is a decisive initiative by the MoFPI.
As of June 2025, an impressive ₹1,726.60 crore has been released as incentives across the nation. State-wise details can be found in the annexure. The implementation of this scheme has resulted in a substantial increase in food processing capacity 35 lakh metric tons per annum.
However, it is important to note that state-wise data is not systematically maintained. To date, approximately 3.39 lakh direct and indirect jobs have been confidently generated under the PLISFPI, reinforcing the scheme’s substantial impact. Again, state-wise data is not maintained.
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Naresh Khanna – 10 February 2025
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