Year-End Review 2024: Achievements and initiatives of the Ministry of Food Processing Industries

The Ministry of Food Processing Industries (MoFPI) has made significant strides in fostering the growth of the food processing sector, a critical domain that enhances farm income, generates off-farm employment, and reduces post-harvest losses in agricultural and allied production. Through strategic initiatives and impactful schemes, the Ministry has delivered substantial achievements in 2024, strengthening the sector's contribution to India's economy.

Key Achievements in 2024:

1. Rising Share of Processed Food Exports:

   • Processed food exports as a share of agri-food exports increased significantly, from 13.7% in 2014-15 to 23.4% in 2023-24.

2. Employment Generation:

   • The food processing sector emerged as one of the largest employment providers in the organized manufacturing sector, accounting for 12.41% of total employment, as reported in the Annual Survey of Industries (ASI) 2022-23.

3. Loan Sanctions Under PMFME Scheme:

   • Since January 2024, 46,643 loans have been sanctioned under the credit-linked subsidy component of the Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme.

Enhanced Budget Allocation:

• The Government of India allocated a Budget Estimate (B.E.) of ₹3290 crore to the Ministry for 2024-25, marking a 30.19% increase from the Revised Estimate (R.E.) of ₹2527.06 crore in 2023-24.

Sectoral Achievements:

• Gross Value Added (GVA) in the food processing sector rose from ₹1.34 lakh crore in 2014-15 to ₹1.92 lakh crore in 2022-23.

• Foreign Direct Investment (FDI) equity inflows in the sector totaled USD 6.793 billion between April 2014 and March 2024.

Achievements Under Key Schemes:

1. Pradhan Mantri Kisan Sampada Yojana (PMKSY):

• Since January 2024, 143 projects have been approved, with 69 projects operational, resulting in processing and preservation capacities of 14.41 lakh MT. These projects are expected to leverage ₹2303.24 crore in investments and benefit 3.53 lakh farmers.

• Overall, 1646 projects have been approved under PMKSY since inception, creating a processing capacity of 241.94 lakh MT, benefiting 51 lakh farmers and generating over 7.46 lakh direct and indirect employment opportunities.

2. Pradhan Mantri Formalisation of Micro Food Processing Enterprises Scheme (PMFME):

• The first-ever scheme targeting micro food processing enterprises aims to benefit 2 lakh enterprises through credit-linked subsidies and the “One District One Product” (ODOP) approach.

• Since inception, 1,14,388 loans have been sanctioned, with ₹1032.31 crore disbursed as seed capital assistance to 3.10 lakh Self Help Group (SHG) members. Additionally, 76 incubation centers have been approved, with 15 already operational.

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

• Approved with an outlay of ₹10,900 crore, the scheme has so far reported investments worth ₹8910 crore, generating 2.89 lakh employment opportunities.

• Total incentives of ₹1084.01 crore have been disbursed to 85 eligible beneficiaries under the scheme.

World Food India 2024:

• Held from September 19-22, 2024, at Bharat Mandapam, Pragati Maidan, New Delhi, the event showcased India as a premier investment destination for food processing.

• Spanning 70,000 square meters, the event attracted 1557 exhibitors, 20 country pavilions, and 809 buyers from 108 countries.

• Highlights included 18,000 B2B and B2G meetings, 40 conferences, and the launch of innovative initiatives like the QR-coded display of 1100 pickle varieties and over 750 ODOP and non-ODOP products.

Impact on Farmers and Enterprises:

• Schemes such as PMKSY and PMFME have significantly improved farm gate prices and reduced agricultural waste. Notably, cold chain projects have reduced post-harvest losses by up to 70% for fisheries and 85% for dairy products.

The Ministry remains committed to fostering growth and innovation in the food processing sector, ensuring a sustainable and inclusive future for all stakeholders.