Lok Sabha Question No. 3390 (UNSTARRED), answered on 2025-03-20
Subject: Schemes to Increase Income of Farmers
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: Dr. Lata Wankhede

## GOVERNMENT OF INDIA

## MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA UNSTARRED QUESTION NO. 3390

## ANSWERED ON 20 TH  MARCH, 2025

## SCHEMES TO INCREASE INCOME OF FARMERS

## 3390.   DR. LATA WANKHEDE:

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

- (a) the  significant  schemes  successfully  implemented  by  the  Government  to  increase farmers'  income  and  promote  the  export  of  agricultural  products,  which  have significantly benefitted the farmers;
- (b) the major steps taken so far by the Government in the development of the Mega Food Park Scheme and cold chain infrastructure strengthening the food processing industry;
- (c) the manner in which the expansion of the food processing industry has brought positive changes in agricultural productivity, rural development and employment generation thereby giving new momentum to the rural economy; and
- (d) the future plans to further enhance progress in this sector?

## 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 Food Processing Industries infrastructure through its Central Sector Pradhan Mantri Kisan SAMPADA Yojana (PMKSY) Scheme, Production Linked Incentive Scheme for Food Processing Industry (PLISFPI) and Centrally sponsored PM Formalization of Micro Food  Processing  Enterprises  (PMFME)  scheme  across  the  country  thereby  increasing  the income of the farmers and enhancing the export of the processed foods. These schemes are not region specific but demand driven.

A total of 1141 infrastructure projects are approved under corresponding schemes of PMKSY across the country with estimated benefit to about 5.04 lakh farmers.

Under  PMKSY,  credit  linked  financial  assistance  (capital  subsidy)  is  provided  to entrepreneurs for setting up of food processing industries with total outlay of Rs 5520 Cr for 15th Finance Commission Cycle. So far, 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.

Under PMFME scheme, financial, technical and business support is provided for setting up / upgradation of micro food processing enterprises. The scheme is operational for a period of upto 2025-26 with an outlay of Rs.10,000 Crore. A total of 1,27,758 micro food processing enterprises have been approved for assistance under PMFME in the country

PLISFPI  is,  inter  alia,  intended  to  support  creation  of  global  food  manufacturing champions and support Indian brands of food products in international market. The Scheme is operational for a period from 2021-22 to 2026-27 with an outlay of Rs. 10,900 crores. A total of 171 food processing companies have been approved for assistance under various categories of the PLISFPI scheme in the country.

(b): MoFPI provides grants in the form of capital subsidy to eligible project proposals under its component schemes of PMKSY for setting up of food processing / preservation industries including  Agro  Processing  clusters  (Mini  Food  Parks)  Integrated  Cold  Chain  and  Value Addition Infrastructure.

The Mega Food Park Scheme has been discontinued by the Ministry since 01.04.2021. However, Ministry is implementing a sub-component scheme under PMKSY namely Creation of Infrastructure for Agro Processing Clusters (APC), which is similar to the Mega Food Park scheme but on smaller scale, wherein only 10 acres of the land is required.

So far, MoFPI has approved 41 Mega food Parks with project cost of Rs 4660.33 Cr with  grants  in  aid  of  Rs  1958.53  Cr  and  394  Cold  Chain  projects  with  project  cost  of  Rs 11466.38 Cr with grants in aid of Rs 2970.89 Cr, under corresponding component schemes of PMKSY across the country till 28 th February, 2025.

(c) & (d) : The schemes of MoFPI aim towards creation of modern infrastructure with efficient supply chain management from farm gate to retail outlet which includes storage, transportation, etc.,  thereby  help  in  providing  better  returns  to  farmers  and  creating  huge  employment opportunities, reducing wastage of agricultural produce, enhancing productivity, increasing the processing level, which boosts rural economy and contribute in inclusive growth.

Ministry  provides  financial  assistance  in  the  form  of  grants-in-aid/  subsidy  to entrepreneurs for setting up such industries across the country. The projects are selected for assistance on the basis of Expression of Interest (EoI) issued from time to time.

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