The Centre is stepping up efforts to modernise India’s food processing ecosystem, positioning advanced processing technologies and R&D-led innovation as key levers to improve productivity, quality, and global competitiveness of Indian food products.
The Ministry of Food Processing Industries (MoFPI) said it is actively promoting the adoption of modern processing solutions across the value chain—ranging from primary processing to packaging and branding—under flagship schemes such as the Pradhan Mantri Kisan SAMPADA Yojana (PMKSY) and the PM Formalisation of Micro Food Processing Enterprises (PMFME).
Under PMKSY, MoFPI has extended grant-in-aid support to educational institutions, CSIR-recognized laboratories, and private sector R&D units for demand-driven research in food processing technologies. As of December 31, 2025, a total of 257 research projects have been approved with subsidies amounting to ₹102.47 crore, reflecting a sharper policy focus on science-backed solutions and industry-relevant innovation.
Premier institutions such as the National Institute of Food Technology, Entrepreneurship & Management (NIFTEM) at Kundli and Thanjavur are playing a central role in this push, working on areas including shelf-life extension, minimal processing, food safety, and sustainable packaging. According to MoFPI officials, the intent is to bridge the gap between lab-scale research and commercial adoption, especially for MSMEs.
Parallelly, capacity-building initiatives under the PMFME scheme are being scaled up to strengthen grassroots capabilities. Grants are being provided for training Master Trainers, district resource persons, entrepreneurs, and collectives such as Self-Help Groups (SHGs), Farmer Producer Organisations (FPOs), and cooperatives. Training modules cover compliance with Food Safety and Standards Authority of India (FSSAI) norms, hygiene practices, quality assurance, and basic processing technologies—areas repeatedly flagged by FSSAI and industry bodies as critical for improving food safety outcomes.
MoFPI is also intensifying its focus on market access. Eligible groups can avail up to 50% grant support for branding and marketing, including common packaging facilities, quality control systems, and brand development. This aligns with observations from industry associations such as CII and FICCI, which have consistently highlighted branding and packaging gaps as a key constraint for India’s micro and small food enterprises.
At the global level, export-oriented support under the Production Linked Incentive Scheme for the Food Processing Industry (PLISFPI) is encouraging Indian companies to invest in overseas branding and international market development. According to APEDA and MoFPI data cited in recent policy reviews, value-added food exports remain underpenetrated despite India’s strong agri-base, making technology-led processing and branding a strategic priority.
Government officials said these interventions are expected to expand processing capacity, boost value addition, improve farmgate realization,s and enhance income opportunities for micro-entrepreneurs. The approach also aligns with broader policy signals from the Economic Survey and NITI Aayog, which have identified food processing as a sunrise sector with significant potential for employment generation, export growth, and reduction of post-harvest losses.
With India currently processing an estimated 10–12% of its agricultural output—well below global benchmarks—the Centre’s renewed emphasis on modern technology adoption is seen as a crucial step towards unlocking the sector’s long-term growth potential.