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Major Boost for Food Processing Units: Government Launches New Subsidy Schemes

Government support for rural food processing businesses
Government support for rural food processing businesses

To promote processing and value addition of agricultural produce, the Government of India, through the Ministry of Food Processing Industries (MoFPI), has introduced several key schemes aimed at supporting small, medium, and large-scale food processing units.
Three Key Schemes Powering Food Processing Growth

1.    Pradhan Mantri Kisan SAMPADA Yojana (PMKSY)

  • Implementation Period: 2021 to 2026
  • Approved Outlay: ₹5,520 crore
  • Approved Projects: 1,601

2.    PM Formalization of Micro Food Processing Enterprises (PMFME) Scheme

  • Implementation Period: 2020 to 2026
  • Approved Outlay: ₹10,000 crore
  • Approved Projects: 1,44,517 (under credit-linked subsidy)

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

  • Implementation Period: 2021 to 2027
  • Approved Outlay: ₹10,900 crore
  • Approved Projects: 170

Better Value for Farmers, More Jobs, Less Waste:

These schemes, the government is providing financial support in the form of grants and subsidies to develop state-of-the-art infrastructure for food processing and preservation, including cold chain facilities.
Special focus is also being given to food irradiation units, which help increase the shelf life of perishables and reduce post-harvest losses. These units are being supported under the Cold Chain and Value Addition Infrastructure component of the PMKSY.

Goal: Efficient Farm-to-Market Supply Chains:

The primary objective of these schemes is to create a robust supply chain from farm to market. This includes building infrastructure for storage, transportation, processing, and value addition, enabling farmers to earn better prices while creating large-scale employment opportunities and reducing agricultural wastage.

World Food India (WFI) – A Global Investment Platform:

MoFPI has successfully organized three editions of World Food India in 2017, 2023, and 2024. The fourth edition is scheduled for September 25–28, 2025. WFI serves as a global platform to showcase investment opportunities in India’s food processing ecosystem—including technology, equipment manufacturing, logistics, and cold chain operations. It facilitates networking and business collaborations between Indian and international stakeholders.

Looking Ahead:

MoFPI continues to actively pursue strategies to reduce post-harvest losses, enhance value addition, and raise the level of food processing in the country. The upcoming WFI 2025 is expected to further accelerate India's food processing growth story and foster stronger integration with global markets.

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