The Ministry of Food Processing Industries (MOFPI) is actively supporting farmers by implementing the Pradhan Mantri Kisan Sampada Yojana (PMKSY), a central sector umbrella scheme aimed at enhancing food processing infrastructure, reducing post-harvest losses, and ensuring better price realization for farmers.

Under PMKSY, financial assistance of up to ₹15 crore is provided at a rate of 35% of the eligible project cost in general areas and 50% in difficult areas. This support extends to projects undertaken by SC/ST entrepreneurs, Farmer Producer Organizations (FPOs), and Self-Help Groups (SHGs). The scheme comprises various component programs, including:

• Integrated Cold Chain and Value Addition Infrastructure

• Operation Greens (Long-term Intervention)

• Creation of Infrastructure for Agro Processing Clusters

• Creation/Expansion of Food Processing & Preservation Capacities

• Mega Food Park Scheme (discontinued from April 1, 2021)

• Creation of Backward and Forward Linkages (discontinued from April 1, 2021)

PMKSY aims to modernize infrastructure, improve supply chain efficiency from farm to retail, and bolster India's food processing sector. The initiative contributes to increased employment opportunities, particularly in rural areas, minimizes agricultural produce wastage, enhances processing levels, and promotes exports of processed foods.

Strengthening the Cold Chain Infrastructure

The Ministry is also implementing the Integrated Cold Chain and Value Addition Infrastructure scheme under PMKSY to minimize post-harvest losses and ensure remunerative pricing for farmers. Financial assistance is provided in the form of grant-in-aid at 35% of the eligible project cost for general areas and 50% for difficult areas, SC/ST entrepreneurs, FPOs, and SHGs. Each project can receive a maximum grant of ₹10 crore for establishing integrated cold chain facilities, including irradiation facilities, ensuring seamless connectivity from farm gate to consumers.

As of now, 397 projects have been approved under this scheme, out of which 286 have been successfully completed, creating a processing capacity of 112.35 lakh metric tonnes per annum and a preservation capacity of 25.39 lakh metric tonnes per annum. The scheme is demand-driven, with project proposals invited through Expressions of Interest (EoIs) based on fund availability.

Impact and Future Prospects

The food processing infrastructure established under PMKSY significantly enhances farmers’ incomes by reducing wastage, improving price realization, and strengthening forward and backward linkages. The Ministry remains committed to expanding cold chain infrastructure and food processing capabilities, ensuring long-term benefits for India’s agricultural and food sectors.

This information was given by the Minister of State for Food Processing Industries Shri Ravneet Singh in a written reply in Lok Sabha