The government of India has highlighted significant progress in strengthening the country’s food processing sector through key schemes such as the Pradhan Mantri Kisan SAMPADA Yojana (PMKSY), the Production Linked Incentive Scheme for Food Processing Industry (PLISFPI), and the Prime Minister Formalisation of Micro Food Processing Enterprises (PMFME) Scheme. These initiatives aim to enhance infrastructure, boost value addition, reduce post-harvest losses, increase farmers’ income, and generate employment.
Under PMKSY, implemented since 2017-18, the government focuses on developing modern food processing and preservation infrastructure across the value chain, from farm gate to retail. As of June 30, 2026, a total of 1,735 projects have been approved, of which 1,256 are operational.
These projects have created a processing and preservation capacity of 294.21 lakh metric tons per annum and generated approximately 9.16 lakh jobs, benefiting around 37.76 lakh farmers. The scheme is demand-driven, with project approvals based on merit through Expressions of Interest rather than state-wise allocation of funds. It also promotes farmer-producer linkages by offering enhanced financial support and relaxed eligibility norms for Farmer Producer Organizations (FPOs).
Complementing PMKSY, the PLISFPI scheme, with an outlay of ₹10,900 crore for 2021-27, incentivizes incremental sales and encourages investment in food processing. So far, 163 applications from 127 companies, including 69 MSMEs, have been approved across 22 states. The scheme has led to investments of ₹9,207 crore—exceeding initial commitments—and generated around 3.35 lakh jobs, surpassing its employment target.
Food processing capacity has expanded by 34 lakh metric tonnes annually, while sales of supported products nearly doubled from ₹58,758 crore in 2019-20 to ₹1,08,854 crore in 2025-26. Incentives worth ₹3,271.44 crore have already been disbursed. The scheme also promotes global branding of Indian food products, offering up to 50% financial support for international marketing efforts.
The PMFME scheme further strengthens the sector by supporting micro food processing enterprises with financial, technical, and business assistance. It provides a 35% credit-linked subsidy of up to ₹10 lakh per unit, grants for common infrastructure, and branding and marketing support. The scheme also focuses on skill development and technology adoption through training programs and institutional support, improving the competitiveness and export readiness of small enterprises.
Earlier initiatives like the Mega Food Park Scheme, though discontinued in 2021, have contributed to the sector by establishing 41 parks across 25 states, with 25 currently operational. These parks are expected to significantly enhance processing and storage capacity while benefiting farmers and generating employment.
Overall, these integrated efforts have strengthened India’s food processing ecosystem by improving supply chain efficiency, encouraging private investment, promoting exports, and creating rural employment opportunities. The government continues to monitor implementation closely, ensuring that these schemes contribute effectively to economic growth and farmer welfare.
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An English-language food and beverage processing and packaging industry B2B platform in print and web, IndiFoodBev is in its third year of publication. It is said that the Indian food and beverage industries represent approximately US$ 900 billion in revenues which implies more than 20% of the country’s GDP. Eliminating the wastage on the farmside can help to deliver more protein to a higher number of the population apart from generating sizable exports. The savings in soil, seeds, water, fertilizer, energy and ultimately food and nutrition could be the most immense contribution that country is poised to make to the moderation of climate change.
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Naresh Khanna – 10 February 2025
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