Government of India is accelerating the development of modern food processing infrastructure through the Pradhan Mantri Kisan SAMPADA Yojana (PMKSY), a flagship initiative aimed at strengthening the country's agricultural value chain. The scheme focuses on expanding food processing and preservation capacity, reducing post-harvest losses, improving price realization for farmers, and generating employment across the food processing sector.
As of June 30, 2026, a total of 1,735 projects had been approved under various components of PMKSY, of which 1,256 projects have been completed. These projects have created an annual food processing and preservation capacity of 294.21 lakh metric tonnes (29.42 million metric tonnes) and generated approximately 9.16 lakh employment opportunities nationwide.
According to official data, nearly 37.76 lakh (3.78 million) farmers have benefited from completed PMKSY projects. The expansion of modern food processing facilities has increased demand for agricultural produce, enabling farmers to secure better market prices and improve their incomes. The scheme has also promoted value addition to agricultural commodities, strengthened the food processing ecosystem, and enhanced the competitiveness of India's food exports.
PMKSY provides financial assistance in the form of grants for establishing modern food processing and preservation infrastructure. Improved storage, processing, and value-addition facilities help reduce post-harvest losses, extend the shelf life of agricultural produce, and improve market access for farmers. By creating efficient supply chains, the scheme supports higher returns for producers while ensuring better utilization of agricultural output.
To encourage greater participation of Farmer Producer Organizations (FPOs), PMKSY offers enhanced financial support along with relaxed eligibility norms. Compared with general applicants, FPOs benefit from lower equity contribution requirements, reduced minimum bank loan criteria, and simplified net-worth conditions, making it easier for farmer collectives to invest in food processing ventures.
Additional Support Available Under PMFME Scheme:
Farmer Producer Organizations are also eligible for financial assistance under the Pradhan Mantri Formalization of Micro Food Processing Enterprises (PMFME) Scheme implemented by the Ministry of Food Processing Industries.
The scheme offers a 35% credit-linked subsidy of up to ₹10 lakh for setting up or upgrading micro food processing enterprises. In addition, FPOs can receive a 35% grant of up to ₹3 crore for developing common infrastructure, along with branding and marketing assistance of up to 50% for FPO groups operating at the state or regional level.
Food Processing Sector Gains Fresh Momentum:
Industry experts believe that the continued expansion of food processing infrastructure under PMKSY will significantly strengthen India's agricultural value chain. Increased processing capacity, improved storage facilities, higher value addition, and stronger export competitiveness are expected to enhance farmers' incomes while creating new business and employment opportunities across rural India.
FAQs:
1. What is the Pradhan Mantri Kisan SAMPADA Yojana?
It is a central government scheme that promotes modern food processing and preservation infrastructure to reduce post-harvest losses and improve farmers' incomes.
2. How many farmers have benefited from PMKSY?
Around 37.76 lakh farmers have benefited from completed projects under the scheme.
3. How many PMKSY projects have been completed?
Out of 1,735 approved projects, 1,256 projects have been completed as of June 30, 2026.
4. What financial support is available for FPOs?
FPOs receive relaxed eligibility norms under PMKSY and can also get a 35% subsidy up to ₹10 lakh and infrastructure grants up to ₹3 crore under the PMFME Scheme.
5. How does PMKSY help farmers?
The scheme improves food processing, storage, and market access, reduces post-harvest losses, increases value addition, and helps farmers secure better prices for their produce.
