To strengthen India’s food processing ecosystem, the Ministry of food processing industries (MoFPI) has launched multiple initiatives aimed at promoting small-scale and micro food processing enterprises across the country, Ravneet Singh, Minister of state for food processing Industries, said in a written reply to the Lok Sabha.
While specific data on the decline of local small-scale food processing units following the entry of multinational companies is unavailable, the Ministry says it supports entrepreneurship through financial incentives and enabling schemes rather than directly setting up industries.
MoFPI, the minister said, encourages the establishment of food processing units—particularly in the small-scale sector—through two central sector Schemes: the Pradhan Mantri Kisan SAMPADA Yojana (PMKSY) and the Production Linked Incentive Scheme for Food Processing Industry (PLISFPI).
Additionally, the Pradhan Mantri Formalization of Micro Food Processing Enterprises (PMFME) scheme, a centrally sponsored program, supports micro-level units.
These schemes are demand-driven and implemented nationwide, including in Uttar Pradesh, without regional or state-specific limitations. Details of projects sanctioned under these schemes across India are provided in the official annexure.
To further encourage growth in the organized food processing sector, the government of India established the Food Processing Fund (FPF) in 2014-15, with a corpus of ₹2,000 crore managed by NABARD. This fund provides affordable credit to promote the setup of food processing industries within designated food parks notified by MoFPI.
In accordance with these initiatives, the Ministry extends financial assistance to entrepreneurs establishing food processing industries, as outlined in the respective scheme guidelines. For instance, under the PMFME Scheme, 551 micro food processing enterprises have been approved in Ambedkar Nagar district, Uttar Pradesh, with a credit-linked subsidy of ₹45.49 crore sanctioned up to 31 October 2025, Singh said.
Bihar leads nationally with over 27,700 projects, driven largely by the PMFME scheme. Maharashtra follows closely, combining strong participation in all three initiatives. Tamil Nadu ranks third, reflecting a robust ecosystem for micro and small-scale food processing.
(This information has been processed from a PIB press release).
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Naresh Khanna – 10 February 2025
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