Government boosts small-scale food processing units through PMKSY and PMFME schemes

The Government of India continues to promote the growth of micro and small food processing enterprises across the country through a range of incentive-driven schemes implemented by the Ministry of Food Processing Industries (MoFPI).

Responding to a query in the Lok Sabha, the Minister of State for Food Processing Industries, Shri Ravneet Singh, stated that specific data on any reduction in the number of local small-scale food processing units following the entry of multinational food processing companies is not available with the Ministry.

The Minister clarified that MoFPI does not directly set up food processing industries. Instead, it plays a facilitative role by incentivising the establishment and expansion of food processing units—including small and micro enterprises—through its flagship schemes. These include the Pradhan Mantri Kisan SAMPADA Yojana (PMKSY), the Production Linked Incentive Scheme for Food Processing Industry (PLISFPI), and the Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) scheme.

These schemes are demand-driven and are being implemented nationwide, without being limited to any specific region or state, including Uttar Pradesh. Details of food processing projects sanctioned under these schemes across the country have been provided in the annexure.

To further strengthen the organised food processing sector, the Government of India instituted the Food Processing Fund (FPF) with a corpus of ₹2,000 crore during 2014–15, housed with NABARD. The fund aims to provide affordable credit for the establishment of food processing industries in designated food parks notified by MoFPI from time to time.

The Ministry also extends financial assistance to prospective entrepreneurs for setting up various types of food processing units in line with scheme guidelines. In Ambedkar Nagar district of Uttar Pradesh, significant progress has been recorded under the PMFME scheme. As of October 31, 2025, a total of 551 micro food processing enterprises have been approved in the district, with credit-linked subsidies amounting to ₹45.49 crore.

This information was provided by Shri Ravneet Singh in a written reply to the Lok Sabha.