In a significant move aimed at enhancing India's rural economy and modernising the agri-food sector, the Ministry of Food Processing Industries (MoFPI) has announced the approval of over 1.44 lakh food processing projects under its various schemes. This ambitious initiative seeks to transform the food processing landscape in the country by addressing post-harvest losses, increasing farmers’ income, and creating sustainable rural employment.

Key Schemes Underpinning the Approvals

The major schemes driving this transformation include:

1. Pradhan Mantri Kisan SAMPADA Yojana (PMKSY)

2. Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME)

3. Production Linked Incentive Scheme for Food Processing Industry (PLISFPI)

Together, these schemes have laid the foundation for an ecosystem that supports farmers, entrepreneurs, and food manufacturers with targeted infrastructure and financial support.

PMKSY: Revitalising the Food Ecosystem

Under PMKSY, as of June 30, 2025, the government has approved 1,134 projects, including:

• 41 Mega Food Parks

• 395 Cold Chain Projects

• Projects for Agro-Processing Clusters, Creation/Expansion of Food Processing Units, and more.

These facilities are designed to minimise post-harvest losses, promote value addition, and increase the shelf life of agricultural produce. By fostering an integrated supply chain model, the PMKSY aims to ensure that the benefits reach small and marginal farmers.

PMFME: Empowering Micro Enterprises

The PMFME scheme, launched as part of the Atmanirbhar Bharat Abhiyan, has approved 1.44 lakh proposals to formalise micro food processing units across the country. This initiative is crucial for:

• Empowering small-scale entrepreneurs

• Creating job opportunities in rural and semi-urban areas

• Enhancing access to credit and modern technologies

The scheme also follows the One District One Product (ODOP) approach to promote regional food specialities.

An excellent example of this is the Kushinagar district in Uttar Pradesh, which has been:

• Identified as a Banana Cluster under Operation Greens

• Recognised as an ODOP region for bananas under PMFME

• Sanctioned 261 projects under PMFME to strengthen banana processing

PLISFPI: Creating Global Food Champions

With an outlay of Rs. 10,900 crore (US$ 1.25 billion), the Production Linked Incentive Scheme for Food Processing Industry (PLISFPI) is set to run from 2021-22 to 2026-27. Its objective is to:

• Incentivise large-scale investments in the food processing sector

• Encourage global sourcing from India

• Create globally competitive food processing brands

So far, 170 proposals have been approved under PLISFPI, with emphasis on segments like Ready-to-Eat/Ready-to-Cook foods, marine products, fruits and vegetables, and dairy.

Strategic Infrastructure Development

The approved projects focus on developing infrastructure such as:

• Cold chains

• Temperature-controlled transportation

• Integrated food parks

• Modern processing units

These developments are crucial for reducing wastage, enhancing value chains, and creating rural jobs, thereby aligning with the government’s vision of doubling farmers' income and making India a global hub for food processing.

Operation Greens and Regional Development

Operation Greens, a sub-scheme under PMKSY, focuses on stabilising the supply of TOP crops—Tomato, Onion, and Potato—and has been extended to other perishables. Under this initiative:

• MoFPI supports infrastructure in perishables-heavy regions

• Projects like the Banana Cluster in Kushinagar aim to boost exports and local employment

• It enhances farmers' linkages with retail and global markets

This cluster-based approach ensures region-specific support, helping areas tap into their agricultural strengths while reducing logistic inefficiencies.

Global Outreach Through Food Summits

In an effort to globalise India’s food processing industry, MoFPI has organised three editions of World Food India in:

• 2017

• 2023

• 2024

These events brought together key international stakeholders, global food brands, investors, and policy makers. The summits have been instrumental in:

• Attracting FDI in food processing

• Showcasing Indian food heritage and technology

• Promoting Make in India in the food sector

These interactions have helped position India as a preferred sourcing hub for processed food and agro-products.

Financial Assistance and Job Creation

The government is providing grants-in-aid and financial support through:

• Capital subsidies

• Credit-linked incentives

• Backward and forward linkages

Such assistance facilitates the creation of infrastructure and encourages local entrepreneurs to invest in processing, packaging, and storage. The schemes have already:

• Created thousands of direct and indirect jobs

• Strengthened agribusiness supply chains

• Supported Indian food brands in global markets

This aligns with the government's broader Atmanirbhar Bharat agenda to promote self-reliance across critical sectors.

Alignment with Sustainable and Inclusive Growth

These schemes also address environmental and social goals, such as:

• Reducing food wastage

• Promoting sustainable processing technologies

• Enabling women and marginal farmers to access new opportunities

By ensuring inclusive participation, the MoFPI has widened access to formal systems and financial support, especially for entrepreneurs from Tier 2 and Tier 3 towns.

Future Outlook

With more than 1.44 lakh food processing projects already approved, the ministry is poised to:

• Enhance India's food security

• Strengthen rural economies

• Boost exports and FDI inflow

• Create a globally competitive food ecosystem

The success of these initiatives will play a pivotal role in India’s journey towards becoming a US$ 5 trillion economy, particularly by elevating the contribution of agriculture and allied sectors.

The emphasis on cold chains, formalisation of micro enterprises, and production incentives is expected to transform India into a leading player in global food processing, empowering farmers, uplifting rural livelihoods, and making India a global food powerhouse.

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