In a significant move to strengthen India’s food processing ecosystem and agricultural value chain, the Cabinet Committee on Economic Affairs (CCEA) has approved an additional ₹1,920 crore outlay for the Pradhan Mantri Krishi Sampada Yojana (PMKSY), taking the total allocation to ₹6,520 crore until FY26.
Launched in 2017, PMKSY has now been extended by a year, with the fresh funding aimed at setting up 50 multi-product food irradiation units and 100 food testing laboratories across the country. The initiative is expected to add 20–30 lakh metric tonnes (LMT) of food preservation capacity annually and enhance food safety compliance in the private sector.
According to the official statement, the new irradiation units will help reduce spoilage and improve shelf life, while the NABL-accredited testing labs will ensure higher food safety standards and support industry growth.
In a parallel decision, the Cabinet also approved a ₹2,000 crore grant-in-aid scheme for the National Cooperative Development Corporation (NCDC) for the FY26–FY29 period. This funding will enable NCDC to mobilize ₹20,000 crore from the market, to be deployed as loans for cooperatives engaged in sectors such as dairy, fisheries, textiles, sugar, cold storage, and food processing.
The government estimates that around 2.9 crore members from over 13,000 cooperative societies will benefit from the scheme, which aims to expand manufacturing, modernize plants, and address working capital needs.
India currently has over 8.25 lakh registered cooperatives with a combined membership of 29 crore individuals. Nearly 94% of the country’s farmers are associated with cooperative systems, underlining the potential impact of this policy.
In addition to the food sector announcements, the CCEA also cleared four railway multitracking projects worth ₹11,169 crore across six states, aimed at enhancing freight capacity and infrastructure reliability.