Government of India strengthens food processing and storage infrastructure under PMKSY

The Government of India, under the Pradhan Mantri Kisan SAMPADA Yojana (PMKSY), continues its commitment to enhancing food processing infrastructure and supply chain efficiency. This initiative is expected to significantly boost the food processing sector, providing better returns to farmers, reducing agricultural wastage, creating employment in rural areas, and increasing the export potential of processed foods.

The PMKSY scheme is designed to develop modern food processing infrastructure, though standalone cold storage facilities are not covered. Since its inception in 2017, several captive-use storage projects have been approved across different states. Furthermore, under the Integrated Cold Chain & Value Addition Infrastructure sub-scheme, six projects have been approved in Telangana over the past five years to bolster food preservation and value addition.

To modernize storage facilities, the Food Corporation of India (FCI) has implemented an Action Plan for constructing steel silos under the Public-Private Partnership (PPP) model. As of November 30, 2024, silos with a total capacity of 24.25 LMT are under implementation nationwide, of which 17.75 LMT have been completed, while 6.5 LMT are at various stages of development. Additionally, silos with a capacity of 5.5 LMT were completed between 2007-09 under a circuit-based model. Under Phase I of the Hub & Spoke Model, silos with a combined capacity of 10.125 LMT at 14 locations on FCI-owned land and 24.75 LMT at 66 locations on private land have been awarded and are in the development phase.

The Ministry of Food Processing Industries (MoFPI) has been implementing the Central Sector Umbrella Scheme – PMKSY since 2016-17 to establish post-harvest infrastructure and processing facilities. The scheme provides credit-linked financial assistance in the form of capital subsidies to entrepreneurs for setting up food processing and preservation infrastructure, including cold storages and refrigerated transport systems, aimed at minimizing post-harvest losses.

A 2020 evaluation study by NABARD Consultancy Services Pvt. Ltd. (NABCONS) highlighted the positive impact of the Integrated Cold Chain and Value Addition Infrastructure Scheme on reducing wastage across sectors, with significant reductions observed in fruits & vegetables, dairy, and fisheries.

Additionally, the Ministry of Agriculture and Farmers Welfare launched the Agriculture Infrastructure Fund (AIF) Scheme in July 2020 under the Atmanirbhar Bharat package. This initiative supports the development of cold storage facilities, warehouses, and processing units through medium- to long-term loans provided by banks and financial institutions. The scheme aims to minimize crop wastage and enhance value addition in the agricultural sector.

The Government remains committed to enhancing India’s food processing and storage capabilities through strategic infrastructure development, facilitating a more resilient agricultural supply chain.

This information was provided by the minister of state for food processing industries Shri Ravneet Singh in a written reply to Rajya Sabha.