Lok Sabha Question No. 3237 (UNSTARRED), answered on 2025-03-20
Subject: Allocation of Funds to the Food Processing Sector
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: Dr. Nishikant Dubey

## GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA UNSTARRED QUESTION NO. 3237

TO BE ANSWERED ON 20 TH  MARCH, 2025

## ALLOCATION OF FUNDS TO THE FOOD PROCESSING SECTOR

## 3237. DR. NISHIKANT DUBEY:

Will the Minister of FOOD PROCESSING INDUSTRIES be pleased to state:

- (a) the details of the funds allocated, released and utilized for enhancing the food processing sector during the Fiscal Years from 2019-20 to 2023-24, State and Union Territory-wise;
- (b) the details of credit-linked financial assistance provided to the entrepreneurs for setting up of the food processing and preservation industries during the said period; and
- (c) the number of beneficiaries and the total amount disbursed so far?

## ANSWER

## THE MINISTER OF STATE FOR FOOD PROCESSING INDUSTRIES (SHRI RAVNEET SINGH)

(a): Ministry of Food Processing Industries (MoFPI) has been incentivizing setting up/expansion  of  related  infrastructure  through  its  Central  Sector  Pradhan  Mantri  Kisan SAMPADA  Yojana  (PMKSY)  Scheme,  Production  Linked  Incentive  Scheme  for  Food Processing  Industry  (PLIS-FPI)  and Centrally  sponsored PM Formalization of Micro Food Processing Enterprises (PMFME) scheme across the country. These schemes are not region or state specific but demand driven.

State/UT-wise allocation of funds are not made under PMKSY and PLIS-FPI. Yearwise total allocation & funds utilized under PMKSY & PLISFPI since 2019-20 and details of Centre  share  of  funds  released  to  states/UTs  under  PMFME  schemes  since  2020-21  are  at Annexure-I.

(b) : The details of incentives available under PMKSY, PLISFPI and PMFME schemes of MoFPI are at Annexure-II

(c)  : MoFPI has sanctioned 1608 projects including 41 Mega food Parks, 394 Cold Chain projects,  75  Agro-processing  Clusters  projects,  536  Food  Processing  Units,  61  Creation  of Backward  &  Forward  Linkages  and  44  Operation  Greens  projects  under  corresponding component schemes of PMKSY across the country till 28 th February, 2025. A total sum of ₹ 6198.76  crore  has  been  disbursed  as  grants  in  aid/  subsidy  since  inception  of  component schemes of PMKSY, as on 28.02.2025.

A total of 1,27,758 micro food processing enterprises have been approved for assistance under PMFME in the country and Central Share of  ₹ 2704.61 crore has been released to States/ UTs for implementation of various components of the scheme till 28 th February, 2025.

A total of 171 food processing companies have been approved for assistance under various  categories  of  the  PLISFPI  scheme  in  the  country  and  incentives  to  the  tune  of ₹1155.296 crore has been disbursed, out of which ₹13.266 crore has been disbursed to MSMEs in 20 eligible cases as on 28.02.2025.

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## ANNEXURE  REFERRED  TO  IN  REPLY  TO  PART  (a)  OF  THE  LOK  SABHA UNSTARRED  QUESTION  NO.  3237  FOR  ANSWER  ON  20 TH  MARCH,  2025 REGARDING 'ALLOCATION OF FUNDS TO THE FOOD PROCESSING SECTOR'

## Details of funds allocated and funds utilized in PMKSY & PLISFPI schemes of MoFPI

(Rs in Crores)

|         | 2019-20                   | 2019-20                   | 2020-21                   | 2020-21   | 2021-22   | 2021-22   | 2022-23            | 2023-24   | 2023-24          |
|---------|---------------------------|---------------------------|---------------------------|-----------|-----------|-----------|--------------------|-----------|------------------|
| Scheme  | R.E.                      | A.E.                      | R.E.                      | A.E.      | R.E.      | A.E.      | R.E.               | R.E.      | A.E A.E          |
| PMKSY   | 889.43694.81750.00667.05  |                           |                           |           | 791       |           | 713.49673.00561.92 | 745       | 666.20           |
| PLISFPI | Scheme started in 2021-22 | Scheme started in 2021-22 | Scheme started in 2021-22 |           | 10        | 9.27      | 801                |           | 489.831150590.50 |

R.E.-Revised Estimates, A.E.- Actual Expenditure

## Funds released to State/UT under PMFME Scheme since 2020-21

(Rs in Crores)

|   Sl. No. | State                    | 2020-21                               | 2021-22                     | 2022-23             | 2023-24             |
|-----------|--------------------------|---------------------------------------|-----------------------------|---------------------|---------------------|
|         1 | Andaman &Nicobar Islands | 1.8167                                | 1.9223                      | 0.3443395           | 0.382               |
|         2 | Andhra Pradesh           | 34.983925.123601918.567803546.2527129 |                             |                     |                     |
|         3 | Arunachal Pradesh        | 0.1534                                | 7.343582                    | 0.0315              | 11.0937             |
|         4 | Assam                    |                                       | 16.705215.955250418.1232185 |                     | 43.876              |
|         5 | Bihar                    | 9.0452                                | 13.5909                     |                     | 1.610044788.6468639 |
|         6 | Chandigarh               | 0.4                                   | 1.0635333                   | 0.4387319           | 0.305               |
|         7 | Chhattisgarh             | 7.0353                                | 8.8811021                   | 1.4381086           | 7.6869              |
|         8 | D&NH and Daman &Diu      | 0.4                                   | 0.8903333                   | 0.1402415           | 0                   |
|         9 | Delhi                    | 0.5                                   | 0.3182674                   | 1.146245            | 0.495               |
|        10 | Goa                      | 0.41                                  | 3.1397534                   | 1.8128615           | 2.0803              |
|        11 | Gujarat                  | 16.5543                               | 8.5287925                   | 1.9823712           | 7.0151              |
|        12 | Haryana                  | 3.2294                                | 3.9843577                   | 5.4616785           | 11.2543             |
|        13 | Himachal Pradesh         | 5.1881                                |                             | 7.638310113.7492661 | 57.1199             |
|        14 | Jammu &Kashmir           | 8.18638                               | 1.5023337                   | 2.1553652           | 2.68                |
|        15 | Jharkhand                | 2.6887                                | 1.7394                      | 0                   | 9.7945              |
|        16 | Karnataka                | 32.467551421.475647731.0661658        |                             |                     | 27.756              |
|        17 | Kerala                   | 10.1336                               | 3.4605699                   | 3.9854033           | 29.5236             |
|        18 | Ladakh                   | 0.45                                  | 0.933                       | 2.3229815           | 0.3575              |
|        19 | Lakshadweep              | 0.4                                   | 0.61                        | 0                   | 0                   |
|        20 | Madhya Pradesh           | 20.6226                               | 9.9314872                   | 9.9754218           | 44.965              |
|        21 | Maharashtra              |                                       | 27.577826.601930776.8663281 |                     | 120                 |
|        22 | Manipur                  | 3.1401                                | 9.0926476                   | 0                   | 0                   |
|        23 | Meghalaya                | 2.693                                 | 3.0418                      | 0.3877631           | 1                   |

|   24 | Mizoram       | 7.7313   | 2.9383            | 0                           |        0 |
|------|---------------|----------|-------------------|-----------------------------|----------|
|   25 | Nagaland      | 6.6436   | 5.90348           | 0.4087638                   |  3.9681  |
|   26 | Odisha        |          | 30.365529.9321587 | 2.9691806                   | 15.458   |
|   27 | Puducherry    | 1.16     | 0.7919            | 0.6834633                   |  2.46472 |
|   28 | Punjab        | 5.7624   |                   | 9.357886816.3136399         | 30.65    |
|   29 | Rajasthan     |          | 14.510313.4363093 | 4.7943201                   | 16.9836  |
|   30 | Sikkim        | 5.1247   | 1.508465          | 1.7535566                   |  0.9053  |
|   31 | Tamil Nadu    | 12.947   |                   | 3.230423724.0154968         | 71.9978  |
|   32 | Telangana     |          | 33.159916.8771322 | 2.3078128                   | 15.4023  |
|   33 | Tripura       |          | 3.105410.3507875  | 0.1542544                   |  1.125   |
|   34 | Uttar Pradesh |          |                   | 36.288524.080409821.0627429 | 79.5463  |
|   35 | Uttarakhand   | 6.0296   | 2.2596526         | 2.4465795                   |  8.2376  |
|   36 | West Bengal   | 0        | 0                 | 0                           |  6.2799  |

## ANNEXURE  REFERRED  TO  IN  REPLY  TO  PART  (b)  OF  THE  LOK  SABHA UNSTARRED  QUESTION  NO.  3237  FOR  ANSWER  ON  20 TH  MARCH,  2025 REGARDING 'ALLOCATION OF FUNDS TO THE FOOD PROCESSING SECTOR'

## Incentives available under Pradhan Mantri Kisan Sampada Yojana (PMKSY)

|   S. No. | Component Scheme                                                | Scheme Benefits (Grant-in- aid) for projects in General Area                                                                                                                                                                                                      | Scheme Benefits (Grant-in-aid) for projects in Difficult Areas as well as SC/ST, FPOs, SHGs                                                                                                                                                                                |
|----------|-----------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|        1 | Integrated Cold Chain and Value Addition Infrastructure         | Grant-in-aid @ 35% of eligible project cost [subject to maximum of Rs.10 crores per project]                                                                                                                                                                      | Grant-in-aid @ 50% of eligible project cost [subject to maximum of Rs. 10 crores per project]                                                                                                                                                                              |
|        2 | Creation/ Expansion of Food Processing &Preservation Capacities | Grants-in-Aid @35% of eligible project cost [subject to maximum of Rs. 5 crores per project]                                                                                                                                                                      | Grants-in-Aid @50% of eligible project cost [subject to maximum of Rs.5 crores per project]                                                                                                                                                                                |
|        3 | Infrastructure for Agro-Processing Clusters                     | Grants-in-aid @35% of eligible project cost in General Area [subject to maximum of Rs. 10 crores per project]                                                                                                                                                     | Grants-in-aid @50% of eligible project [subject to max. of Rs. 10 crore per project]                                                                                                                                                                                       |
|        4 | Operation Greens                                                | Grants-in-Aid @35% of eligible project cost for Integrated Value Chain Development Projects, maximum grants-in-aid would be ₹15 crore per project; and for Standalone Post-Harvest Infrastructure Projects, maximum grants-in-aid would be ₹10 crore per project. | Grants-in-Aid maximum @50% of eligible project cost for Integrated Value Chain Development Projects, maximum grants- in-aid would be ₹15 crore per project; and for Standalone Post-Harvest Infrastructure Projects, maximum grants-in-aid would be ₹10 crore per project. |
|        5 | Food Safety and Quality Assurance - Food Testing Laboratories   | 100% grants-in-aid for Govt. organizations For Private organizations/ entities: grant-in-aid of @ 50% of the eligible cost                                                                                                                                        | For Private organizations/ entities: grant-in-aid of @ 70% of the eligible cost                                                                                                                                                                                            |
|        6 | Human Resource & Institutions- Research &Development            | For Government Organizations - Grants @ 100% of equipment cost, consumables, For private organizations /universities/institutions, grant @50 %of equipment cost.                                                                                                  | For Government Organizations - Grants @ 100% of equipment cost, consumables For Private Organizations /Universities/ Institutions, Grants @70%ofequipment cost.                                                                                                            |

## Incentives available under Production Linked Incentive Scheme for Food Processing Industry (PLIS-FPI)

- i. The  beneficiary  should  achieve  minimum  year  on  year  sales  growth  of  10%  for claiming incentive under Category-I, Category-II and Millet-Based Products components of the Scheme. Under Category -I component, the companies have to make committed investments to increase their production capacities.  If a company does not make  the  committed  investment  upto  end  of  2023-24,  it  is  not  eligible  to  receive incentives under the Scheme.
- ii. Under Category-III, i.e., Branding and Marketing component, a company is eligible for financial incentives @ 50% of expenditure incurred on Branding & Marketing abroad subject  to  a  maximum  of  3%  of  Sales  of  food  products  or  Rs  50  crore  per  year, whichever is less.  The minimum expenditure should be Rs. 5 crore over a period of five years.

## The details of assistance available to Micro Food Processing Enterprises under PMFME Scheme

- (i). Support to Individual / Group Category Micro Enterprises: Credit-linked capital subsidy @35% of the eligible project cost, maximum ceiling Rs.10 lakh per unit;
- (ii). Support to SHGs for seed capital: Seed  capital  @  Rs.  40,000/-  per  member  of  SHG engaged  in  food  processing  for  working  capital  and  purchase  of  small  tools  subject  to maximum of Rs. 4 lakh per SHG Federation.
- (iii). Support  for  Common  Infrastructure: Credit  linked  capital  subsidy  @35%  subject  to maximum of Rs. 3 crore to support FPOs, SHGs, Cooperatives and any Government agency for setting up of common infrastructure. The common infrastructure will also be available for other units and public to utilize on hiring basis for substantial part of the capacity.
- (iv). Branding and Marketing Support: Grant upto 50% for Branding and Marketing to groups of FPOs/ SHGs/ Cooperatives or an SPV of micro food processing enterprises.
- (v). Capacity Building: The scheme envisages training for Entrepreneurship Development Skilling (EDP+): program modified to meet the requirement of food processing industry and product specific skilling.

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