Lok Sabha Question No. 3124 (UNSTARRED), answered on 2025-12-18
Subject: Implementation of Schemes for Development of FPI
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: Smt. Anita Nagarsingh Chouhan

## GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA UNSTARRED QUESTION NO. 3124

ANSWERED ON 18 TH  DECEMBER, 2025

## IMPLEMENTATION OF SCHEMES FOR DEVELOPMENT OF FPI

## 3124.  SMT. ANITA NAGARSINGH CHOUHAN:

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

- (a) whether the Government is implementing special schemes for development of food processing industries in tribal and rural areas in Parliamentary Constituency no.-24, if so, the details thereof;
- (b) whether  a  brief  description  of  currently  operational  schemes  and  the  number  of beneficiary individuals and institutions under them is available, if so, the details thereof;
- (c) the  financial  assistance,  the  grant  rate  and  eligibility  conditions  being  provided  for establishment of food processing units in these areas; and
- (d) whether the Government is considering to launch new schemes for expansion in this sector in the near future and if so, the details thereof, if not, the reasons therefor?

## ANSWER

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

(a)  to  (d): In  order  to  promote  and  ensure  overall  development  of  food  processing  sector, Ministry of Food Processing Industries (MoFPI) has been incentivizing setting up/expansion of related infrastructure through its two Central Sector Schemes namely Pradhan Mantri Kisan SAMPADA Yojana (PMKSY) and Production Linked Incentive Scheme for Food Processing Industry  (PLISFPI).  Further,  a  Centrally  sponsored  PM  Formalization  of  Micro  Food Processing Enterprises (PMFME) scheme is also being implemented by MoFPI. All these three schemes are demand driven and are implemented across the country including tribal & rural areas and all Parliamentary Constituencies.

Under PMKSY, financial assistance is provided to entrepreneurs for setting up of food processing industries. The scheme is operational for a period upto 2025-26 with total outlay of Rs 6520 Crore for 15 th Finance Commission Cycle. MoFPI has approved 1619 projects across the country till 31.10.2025 under this scheme.

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. MoFPI has approved 170 proposals across the country till 31.10.2025 under this scheme.

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. 162744 micro food processing enterprises have been approved for assistance across the country till 31.10.2025 under this scheme.

The  details  of  incentives  available  under  these  schemes  of  MoFPI  are  given  at Annexure-I and  the  eligibility  conditions  under  these  scheme  of  MoFPI  are  given  at Annexure-II.

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## ANNEXURE REFERRED TO IN REPLY TO PART (a) TO (d) OF THE LOK SABHA UNSTARRED QUESTION NO. †3124  FOR  ANSWER  ON  18 TH  DECEMBER,  2025 REGARDING 'IMPLEMENTATION OF SCHEMES FOR DEVELOPMENT OF FPI'

## Incentives available under Pradhan Mantri Kisan Samapada 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   | For Private organizations/ entities: grant-in-aid of @ 50% of the eligible cost [subject to maximum of Rs. 5 crores per project]                                                                                                                                   | For Private organizations/entities: grant- in-aid of @ 70% of the eligible cost [subject to maximum of Rs. 5 crores per project]                                                                                                                                           |
|        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% of equipment cost.                                                                                                         |

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

CAGR- Compound Annual growth Rate

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| Category/ Segments   | Segment                    | Incentive Disbursement criteria (%)                                                    | Incentive Disbursement criteria (%)                                                    | Upper cap (%& Amount in crore)   | Rate of Incentives (%)   | Rate of Incentives (%)                                                                                                                               | Rate of Incentives (%)                                                                                                                               | Rate of Incentives (%)                                                                                                                               | Rate of Incentives (%)                                                                                                                               | Rate of Incentives (%)                                                                                                                               |
|----------------------|----------------------------|----------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------|----------------------------------|--------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------|
| Category/ Segments   | Segment                    | Min. CAGR                                                                              | Max. CAGR                                                                              |                                  | 2021- 22                 | 2022- 23                                                                                                                                             | 2023- 24                                                                                                                                             | 2024- 25                                                                                                                                             | 2025- 26                                                                                                                                             | 2026-27                                                                                                                                              |
| Cat. 1               |                            |                                                                                        |                                                                                        |                                  |                          |                                                                                                                                                      |                                                                                                                                                      |                                                                                                                                                      |                                                                                                                                                      |                                                                                                                                                      |
| RTE/RTC              | Biscuits                   | 10%                                                                                    | 13%                                                                                    | 8%                               | 5%                       | 5%                                                                                                                                                   | 5%                                                                                                                                                   | 5%                                                                                                                                                   | 4.5%                                                                                                                                                 | 4%                                                                                                                                                   |
| RTE/RTC              | Non- Biscuits              | 10%                                                                                    | 13%                                                                                    | Rs.334.48                        | 7.5%                     | 7.5%                                                                                                                                                 | 7.5%                                                                                                                                                 | 7.5%                                                                                                                                                 | 6.75%                                                                                                                                                | 6%                                                                                                                                                   |
| F&V                  | Spices                     | 10%                                                                                    | 12%                                                                                    | 8% Rs.286.56                     | 5%                       | 5%                                                                                                                                                   | 5%                                                                                                                                                   | 5%                                                                                                                                                   | 4.5%                                                                                                                                                 | 4%                                                                                                                                                   |
| F&V                  | Non- Spices                | 10%                                                                                    | 15%                                                                                    | 8% Rs.286.56                     | 10%                      | 10%                                                                                                                                                  | 10%                                                                                                                                                  | 10%                                                                                                                                                  | 9%                                                                                                                                                   | 8%                                                                                                                                                   |
| Marine               | Marine products            | 5%                                                                                     | 10%                                                                                    | 8% Rs.79.44                      | 6%                       | 6%                                                                                                                                                   | 6%                                                                                                                                                   | 6%                                                                                                                                                   | 5%                                                                                                                                                   | 4%                                                                                                                                                   |
| Marine               | Value added products       | 5%                                                                                     | 10%                                                                                    | 8% Rs.79.44                      | 10%                      | 10%                                                                                                                                                  | 10%                                                                                                                                                  | 10%                                                                                                                                                  | 10%                                                                                                                                                  | 10%                                                                                                                                                  |
| Mozzarella Cheese    |                            | 15%                                                                                    | 16%                                                                                    | 25% Rs.70.75                     | 10%                      | 10%                                                                                                                                                  | 10%                                                                                                                                                  | 8%                                                                                                                                                   | 6%                                                                                                                                                   | 4%                                                                                                                                                   |
| Millet Products      | Large Entity               | 10%                                                                                    | -                                                                                      | Rs.100                           | -                        | 10%                                                                                                                                                  | 10%                                                                                                                                                  | 10%                                                                                                                                                  | 9%                                                                                                                                                   | 8%                                                                                                                                                   |
| Millet Products      | MSME                       | 10%                                                                                    | -                                                                                      | Rs.10.54                         | -                        | 10%                                                                                                                                                  | 10%                                                                                                                                                  | 10%                                                                                                                                                  | 9%                                                                                                                                                   | 8%                                                                                                                                                   |
| Cat. 2               | Organic Products           | 10%                                                                                    | -                                                                                      |                                  | 10%                      | 10%                                                                                                                                                  | 10%                                                                                                                                                  | 10%                                                                                                                                                  | 9%                                                                                                                                                   | 8%                                                                                                                                                   |
| Cat. 2               | Innovative Products        | 10%                                                                                    | -                                                                                      |                                  | 10%                      | 10%                                                                                                                                                  | 10%                                                                                                                                                  | 10%                                                                                                                                                  | 9%                                                                                                                                                   | 8%                                                                                                                                                   |
| Cat. 3               | Branding & Marketing (B&M) | Only Indian brands covered for selling food products completely manufactured in India. | Only Indian brands covered for selling food products completely manufactured in India. | 50% of total expenditure         | -                        | Financial incentive @50% of expenditure on B&Mabroad subject to max. grant of 3% of sales of food products or Rs. 50 Cr per year, whichever is less. | Financial incentive @50% of expenditure on B&Mabroad subject to max. grant of 3% of sales of food products or Rs. 50 Cr per year, whichever is less. | Financial incentive @50% of expenditure on B&Mabroad subject to max. grant of 3% of sales of food products or Rs. 50 Cr per year, whichever is less. | Financial incentive @50% of expenditure on B&Mabroad subject to max. grant of 3% of sales of food products or Rs. 50 Cr per year, whichever is less. | Financial incentive @50% of expenditure on B&Mabroad subject to max. grant of 3% of sales of food products or Rs. 50 Cr per year, whichever is less. |

## 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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## ANNEXURE REFERRED TO IN REPLY TO PART (a) TO (d) OF THE LOK SABHA UNSTARRED QUESTION NO. †3124  FOR  ANSWER  ON  18 TH  DECEMBER,  2025 REGARDING 'IMPLEMENTATION OF SCHEMES FOR DEVELOPMENT OF FPI'

## Eligibility criteria under PMKSY

-  The combined net worth of the applicant should be at least 1.5 times of the grants-in-aid sought in respect of proposals from General Areas and at least equal to the grants-in-aid sought for, in case of proposals from Difficult Areas or proposals from SC/ST promoters or FPOs or SHGs. In case of Food Testing Labs, component scheme of PMKSY, net worth of the applicant should be at least equal to the grants-in-aid sought in case of General Areas also.
- In-principle /final term loan sanction letter specific to the proposal from a bank.
- Detailed bank appraisal note from a Scheduled Commercial Bank.
- Term loan from the Bank for an amount not less than 20% of the total project cost in respect of proposals from General Areas and 10% of the total project cost in case of proposals from Difficult Areas or proposals from SC/ST promoters or FPOs or SHGs.
- Infusion of promoter's equity of at least 20% of the total project cost in respect of proposals from General Areas and 10% of the total project cost in case of proposals from Difficult Areas or proposals from SC/ST or FPOs or SHGs.
- Only one application will be accepted from an entity against an Expression of Interest under the scheme.
- Expansion/Upgradation of existing facility(ies) will not be allowed except for Food Safety & Quality  Assurance  Infrastructure  (FTL)  and  Creation/Expansion  of  Food  Processing  & Preservation Capacities (CEFPPC) schemes..
- Entities or promoter(s) of entities who have availed financial assistance under another scheme (any scheme other than the CEFPPC scheme) of the Ministry will be eligible for Grants-in-aid only after two years from the date of commercial operation of the previous project. Provided that an entity or promoter(s) of an entity shall not be eligible for financial assistance for more than two projects during a period of 10 years.

## Eligibility criteria under PLISFPI

| Category    | Segment                                                | Minimum Sale (Rs. in Crore)                                                                             | Minimum Investment (Rs in Crore)                                                                        | MinCAGR% for Sales Incentives                                                                           |
|-------------|--------------------------------------------------------|---------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------|
| Category-I  | Ready to Eat /Ready to Cook                            | 500                                                                                                     | 100                                                                                                     | 10                                                                                                      |
| Category-I  | Processed Fruits & Vegetables                          | 250                                                                                                     | 50                                                                                                      | 10                                                                                                      |
| Category-I  | Marine Products                                        | 600                                                                                                     | 75                                                                                                      | 5                                                                                                       |
| Category-I  | Mozzarella Cheese                                      | 150                                                                                                     | 23 Crore-10 MTPD                                                                                        | 15                                                                                                      |
| Category-II | Innovative/Organic Products including Free range eggs, | a. Udyami Registered b. Achieved Minimum sale of Rs. 1 Crore during 2019-20 for each of the Innovative/ | a. Udyami Registered b. Achieved Minimum sale of Rs. 1 Crore during 2019-20 for each of the Innovative/ | a. Udyami Registered b. Achieved Minimum sale of Rs. 1 Crore during 2019-20 for each of the Innovative/ |

|                                                                                                                                                                                                                                                                                                                                                                      | Egg Products, Poultry Products                                                                                                                                                                                                                                                                                                                                       | organic product proposed to be incentivized. c. Applicant for Organic Product shall be registered with APEDA (NPOP Certification)                                                                                                                                                                                                                                    |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Category- III                                                                                                                                                                                                                                                                                                                                                        |  Only Indian Brands are covered for branding &Marketing abroad having products manufactured in India;  Branding &Marketing shall be undertaken either by the Applicant directly or through its subsidiary or any other agency India/Abroad                                                                                                                         |  Only Indian Brands are covered for branding &Marketing abroad having products manufactured in India;  Branding &Marketing shall be undertaken either by the Applicant directly or through its subsidiary or any other agency India/Abroad                                                                                                                         |
| Millets based products                                                                                                                                                                                                                                                                                                                                               | Large Entity - 250 Crore                                                                                                                                                                                                                                                                                                                                             | MSME - 2 Crore                                                                                                                                                                                                                                                                                                                                                       |
| The scheme is applicable only for the sale of products whose entire chain of manufacturing process (including primary processing) takes place in India . This condition does not apply for additives, flavours and edible oils used in the manufacturing process. The incentives under the scheme varies from 5%-10% in first 4 years and 4%-9% in subsequent years. | The scheme is applicable only for the sale of products whose entire chain of manufacturing process (including primary processing) takes place in India . This condition does not apply for additives, flavours and edible oils used in the manufacturing process. The incentives under the scheme varies from 5%-10% in first 4 years and 4%-9% in subsequent years. | The scheme is applicable only for the sale of products whose entire chain of manufacturing process (including primary processing) takes place in India . This condition does not apply for additives, flavours and edible oils used in the manufacturing process. The incentives under the scheme varies from 5%-10% in first 4 years and 4%-9% in subsequent years. |

## Eligibility criteria under PMFME to Support to Individual Micro Enterprises

- Beneficiary contribution should be minimum of 10% of the project cost with balance being loan from Bank.
-  The  individual  applicant  should  be  above  18  years  of  age  irrespective  of  educational qualification.
- Applicant/enterprise is eligible for bank loan under the Scheme, even if he has availed bank loan in other Subsidy Linked Schemes of Government. Applicant is also eligible for Interest Subvention and Top Up convergence with other Government Sponsored Schemes. Lending Banks  may  consider  sanctioning  need  based  working  capital  limit  to  the  beneficiaries,  as admissible. However, no subsidy would be provided on the working capital.
- The applicants/Entrepreneurs of existing units under stress and qualifying for restructuring by the Banks are eligible for upgradation/expansion of the Unit under the scheme .

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