MoFPI disburses ₹5,620 crore to boost food processing sector and rural economy

The Ministry of Food Processing Industries (MoFPI) has released a total of ₹5,620 crore under its flagship schemes to encourage the setting up and expansion of food processing infrastructure across India. The funding has been provided through two central sector schemes — the Pradhan Mantri Kisan SAMPADA Yojana (PMKSY) and the Production Linked Incentive Scheme for Food Processing Industry (PLISFPI) — as well as the centrally sponsored PM Formalisation of Micro Food Processing Enterprises (PMFME) scheme.

These schemes are demand-driven and open to eligible applicants nationwide, without any state or region-specific restrictions. Financial assistance is available to a wide range of entities, including government bodies, public sector units, joint ventures, NGOs, cooperatives, self-help groups, farmer-producer organisations (FPOs), farmer-producer companies (FPCs), private firms, partnerships, proprietorships, and individuals.

While projects under these schemes can be set up anywhere in the country, most of the approved initiatives are located in rural areas, providing direct benefits to farmers and creating local employment. By supporting agro-based industries, the schemes aim to strengthen the rural economy and increase the value of agricultural produce.

To ensure more entrepreneurs are aware of these opportunities, MoFPI regularly conducts national and state-level outreach activities. These include newspaper advertisements, radio jingles, exhibitions, millet fairs, buyer-seller meets, as well as district and block-level workshops. Such awareness drives are designed to help rural entrepreneurs understand the benefits of these schemes and encourage them to participate.

With continuous financial support and focused outreach, the ministry is working towards expanding India’s food processing capacity, reducing wastage, and improving farmers’ incomes, while making the sector more competitive both domestically and globally.