Model Answer
0 min readIntroduction
The food processing sector is a critical pillar of the Indian economy, acting as a vital link between agriculture and manufacturing. It plays a significant role in reducing post-harvest losses, enhancing farmers' income, generating employment, and boosting exports. Recognizing its immense potential, the Government of India has launched several schemes aimed at modernizing infrastructure, improving supply chain management from farm to retail, and creating a robust ecosystem for the food processing industry. These initiatives are crucial for achieving food security, rural development, and overall economic growth.
Components of Food Processing Schemes by the Government of India
The Government of India's efforts to bolster the food processing sector are primarily channeled through key schemes implemented by the Ministry of Food Processing Industries (MoFPI). The flagship initiative is the Pradhan Mantri Kisan SAMPADA Yojana (PMKSY), an umbrella scheme launched in 2017, which integrates various ongoing and new programs. Other significant schemes include the PM Formalisation of Micro Food Processing Enterprises (PMFME) Scheme and the Production Linked Incentive (PLI) Scheme for the Food Processing Industry.Pradhan Mantri Kisan SAMPADA Yojana (PMKSY) components include:
- Mega Food Parks: These provide a cluster-based approach, creating state-of-the-art support infrastructure like collection centers, primary processing units, central processing centers, cold chain facilities, and developed industrial plots for food processing units. As of June 2024, MoFPI has approved 41 mega food parks.
- Integrated Cold Chain and Value Addition Infrastructure: Aims to establish a seamless cold chain network, including pre-cooling units, reefer vans, and cold storage, to prevent spoilage of perishable goods and enhance value addition.
- Creation/Expansion of Food Processing and Preservation Capacities (Unit Scheme): Supports individual food processing units by providing financial assistance for setting up new units or modernizing existing ones, thereby increasing processing levels.
- Infrastructure for Agro-Processing Clusters: Focuses on developing basic infrastructure in identified clusters to connect farmers with processors, fostering rural agro-industries. As of December 2025, 40 agro-processing clusters have been approved since 2020.
- Creation of Backward and Forward Linkages: Strengthens the supply chain by establishing robust connections between producers and markets, ensuring better returns for farmers and efficient raw material sourcing for processors.
- Food Safety and Quality Assurance Infrastructure: Enhances food testing laboratories and certification facilities to ensure high standards of food safety and quality, crucial for domestic consumption and exports.
- Human Resources and Institutions: This component focuses on skill development, research and development (R&D), and institutional capacity building in the food processing sector.
- Operation Greens: Initially launched in 2018 for integrated development of Tomato, Onion, and Potato (TOP) value chains, its scope has been expanded to 22 perishable products in the Budget 2021-22 to boost value addition.
Other significant schemes:
- PM Formalisation of Micro Food Processing Enterprises (PMFME) Scheme (launched 2020): Aims to formalize and upgrade micro food processing units, particularly in the unorganized sector, by providing financial, technical, and business support. It adopts a 'One District One Product' (ODOP) approach. As of October 2025, over 1.61 lakh micro food processing enterprises have received credit-linked subsidies.
- Production Linked Incentive (PLI) Scheme for Food Processing Industry (launched 2021): With an outlay of Rs. 10,900 crore, this scheme aims to support the creation of global food manufacturing champions, boost Indian food brands internationally, and generate employment. It targets specific food product segments like ready-to-cook/eat foods, processed fruits and vegetables, marine products, and mozzarella cheese.
Conclusion
The comprehensive suite of food processing schemes introduced by the Government of India, particularly PMKSY, PMFME, and PLISFPI, addresses various aspects of the sector, from infrastructure development and cold chain management to capacity building, quality assurance, and formalization of micro-enterprises. These initiatives are pivotal in reducing post-harvest losses, enhancing agricultural value addition, generating significant employment opportunities, and ultimately improving farmers' incomes. By fostering a modern and competitive food processing industry, India is poised to emerge as a major global player in processed food products, contributing significantly to its economic growth and nutritional security.
Answer Length
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