Lok Sabha Question No. 3181 (UNSTARRED), answered on 2025-08-07
Subject: Promoting Food Processing Sector to Reduce Wastage
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: Shri Dharambir Singh

## GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA

## UNSTARRED QUESTION NO. 3181 ANSWERED ON 07 th  AUGUST, 2025

## PROMOTING FOOD PROCESSING SECTOR TO REDUCE WASTAGE

## 3181.  SHRI DHARAMBIR SINGH:

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

- (a) whether the Government is promoting the food processing sector to reduce wastage and if so, the details thereof;
- (b) the details of the schemes to support cold chain infrastructure;
- (c) the incentives offered by the Government for setting up processing units in rural areas;
- (d) the  efforts  made  by  the  Government  to  ensure  fair  prices  for  farmers  through processing; and

(e) whether the Government plans to encourage food processing industries in BhiwaniMahendergarh  Lok  Sabha  Constituency,  if  so,  the  details  thereof  and  if  not,  the  reasons therefor?

## ANSWER

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

(a)  to  (d).  The  Ministry  of  Food  processing  Industries  (MoFPI)  supports  the  creation  and expansion of the processing/preservation capacity through implementation of various schemes for  the  overall  development  of  food  processing  sector,  including  creation  of  modern infrastructure with efficient supply chain management from farm gate to retail outlet, to reduce post-harvest losses and to increase the level of processing.  The schemes under MoFPI are as follows:

- i)  MoFPI  implements  Central  Sector  Umbrella  Scheme-Pradhan  Mantri  Kisan Sampada Yojana (PMKSY) since 2016-17 to create post-harvest infrastructure and processing facilities to boost the overall development of the food-processing sector including  reduction  in  post-harvest  losses,  enhancing  value  addition  etc.  The component schemes under PMKSY are (i) Mega Food Parks (the component has been  discontinued  with  effect  from  01.04.2021  with  provision  for  committed liabilities only) (ii) Integrated Cold Chain and Value Addition Infrastructure, (iii) Creation of Infrastructure for Agro-Processing Clusters, (iv) Creation of Backward and Forward Linkages (the component has been discontinued from 1st April 2021) (v)  Creation  /  Expansion  of  Food  Processing  &  Preservation  Capacities  (vi) Operation  Greens  (vii)  Food  Safety  and  Quality     Assurance  -  Food  Testing Laboratories (FTL) and Human Resource & InstitutionsResearch & Development.

MoFPI provides credit linked financial assistance (capital subsidy) in the form of grants-in-aid  to  the  individuals,  farmers,  Farmer  Producer  Organizations  (FPOs), Entrepreneurs, Cooperatives, Societies, Self Help Groups (SHGs), Private Companies and Central/ State PSUs etc. for setting up of food processing/preservation industries across the country.

Financial  assistance  to  the  eligible  applicant  is  provided  as  per  the  scheme guidelines  and  all  eligible  applicants  including  farmers  can  apply  against  the Expression of Interest issued by the Ministry from time to time for enabling them to set up various food processing/preservation infrastructure , which, interalia, includes cold storages to minimize post-harvest losses and increase processing level. As on June  2025,  1601  projects  have  been  approved  under  PMKSY  out  of  which  1133 projects have been completed. The incentives available under different sub-schemes of PMKSY are placed at Annexure-I .

- ii)  MoFPI implements Central Sector Scheme- 'Production Linked Incentive Scheme for  Food  Processing  Industry  (PLISFPI)' to  support  creation  of  global  food manufacturing champions commensurate with India's natural resource endowment and support Indian brands of food products in the international markets. The budget outlay  of  the  scheme  is  Rs.10,900  crore  and  total  170  applications  have  been approved under various categories of the scheme.  The scheme has led to increase in food processing capacity of 35.00 lakh MT in the country. A total number of about 3.39 Lakhs, both direct and indirect employment, has been generated so far under the scheme. The details of pattern of assistance under the scheme are placed at Annexure-II .
- iii)MoFPI is implementing a centrally sponsored "PM Formalisation of Micro food processing Enterprises (PMFME) Scheme" under Aatma Nirbhar Bharat Abhiyaan initiative for providing financial, technical and business support for upgradation of micro food processing enterprises in the country. The scheme is operational from 2020-21 to 2025-26 with an outlay of Rs 10,000 Crore. The scheme aims to enhance the competitiveness of micro-enterprises in the unorganized segment of the food processing industry and promote formalization of the sector. Till 30th June 2025, Centre Share of Rs. 3791.04 Cr. has been released to States/ UTs  for implementation  of  various  components  of  the  scheme.  The  details  of  financial assistance offered to the enterprises under PMFME scheme are as under AnnexureIII .

Further,  for  creation  of  Agricultural  Marketing  infrastructure  including  Scientific Storage  and  to  reduce  post-harvest  and  handling  losses,  the  Ministry  of  Agriculture  & Farmers Welfare, Government of India is implementing sub-scheme 'Agricultural Marketing Infrastructure (AMI)' of Integrated Scheme for Agricultural Marketing (ISAM) across the country. It is an open ended, demand driven and credit linked scheme wherein back ended capital subsidy @ 25% and 33.33% is available based on the eligible category of beneficiary.  Under AMI scheme of ISAM, assistance is available to Individuals, Farmers, Group  of  farmers/growers,  Agri-preneurs,  Registered  Farmer  Produce  Organizations (FPOs), Cooperatives, and state agencies etc. Farmer centric processing is also eligible under the scheme.

With creation of food processing infrastructure under the above schemes, the demand for farm produce, which is raw material for food processing industries, increases leading to better prices to farmers and increasing farm gate profitability. The above scheme has significantly contributed at micro level (farmers and cold chain owners) by increasing income through better price realization, value addition and wastage reduction etc. across the country.

- (e).  The Ministry does not establish food-processing units on its own, including cold storage infrastructure. The above-mentioned schemes are demand driven in nature and the funds are not allocated/sanctioned/released state-wise. The applications are invited through Expression of  Interest  (EoI)  from  across  the  country  including  Bhiwani-Mahendergarh  Lok  Sabha Constituency.

ANNEXURE-I REFERRED TO IN REPLY TO PART (a) TO (d) OF LOK SABHA UNSTARRED  QUESTION  NUMBER  3181  ANSWERED  ON  07 TH   AUGUST,  2025 REGARDING PROMOTING FOOD PROCESSING SECTOR TO REDUCE WASTAGE

Table1: Incentives available under PMKSY

|   S. | No.Component Schem e                                                      | 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 (CC)              | 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/ Expan sion of Food Processing &Preservation Capacities (CEFPPC) | 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 (APC)                         | 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 Green s (OG)                                                    | 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 Assuran ce - Food Testing Laboratories (FTL)      | 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 Resourc e &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.                                                                                                             |

## ANNEXURE-II

## ANNEXURE-II REFERRED TO IN REPLY TO PART (a) TO (d) OF LOK SABHA UNSTARRED QUESTION NUMBER 3181 ANSWERED ON 07 TH  AUGUST, 2025 REGARDING PROMOTING FOOD PROCESSING SECTOR TO REDUCE WASTAGE

## PATTERN OF ASSISTANCE UNDER PLI SCHEME

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, 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.

## ANNEXURE-III REFERRED TO IN REPLY TO PART (a) TO (d) OF LOK SABHA UNSTARRED QUESTION NUMBER 3181 ANSWERED ON 07 TH  AUGUST, 2025 REGARDING PROMOTING FOOD PROCESSING SECTOR TO REDUCE WASTAGE

The Details of Financial Assistance Offered to the Enterprises under PMFME Scheme are as under: (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.

****