Parliament recently informed that the Ministry of Food Processing Industries (MoFPI) has registered 42,801 food processing units across the country under various central government incentive schemes aimed at promoting and enhancing the sector’s growth.
Minister of State for Food Processing Industries, Ravneet Singh, stated in a written reply to the Lok Sabha that these initiatives are part of key schemes like the Pradhan Mantri Kisan Sampada Yojana (PMKSY), the Production Linked Incentive Scheme for Food Processing Industry (PLISFPI), and the Pradhan Mantri Formalization of Micro Food Processing Enterprises (PMFME) Scheme.
These schemes focus on value addition, enhancing farmers’ incomes, and improving the preservation and processing of food products. Financial support is extended to entrepreneurs to establish and expand food processing units.
Under the PMKSY, credit-linked financial assistance in capital subsidies is offered, with a total outlay of Rs. 5,520 crores for the 15th Finance Commission cycle. Meanwhile, the PMFME scheme provides financial, technical, and business support for micro food processing enterprises and is operational until 2025-26 with a budget of Rs. 10,000 crores.
The PLISFPI aims to create global food manufacturing champions and boost Indian food brands in international markets. Operational from 2021-22 to 2026-27, the scheme carries an outlay of Rs. 10,900 crores.
To support branding and marketing, the PMFME scheme offers grants of up to 50% for farmer groups, self-help groups, and cooperatives. Additionally, the One District One Product (ODOP) approach has been adopted to promote local industries by optimizing procurement, common services, and marketing efforts. ODOP products are identified by states and UTs based on agricultural production and raw material availability.
Under the Operation Greens initiative of the PMKSY, MoFPI has identified 40 clusters for 10 fruits in 15 states, 97 clusters for 11 vegetables in 25 states, and one marine produce cluster to ensure consistent raw material supply for food processing industries.