Lok Sabha Question No. 3219 (UNSTARRED), answered on 2025-12-18
Subject: New Food Processing Units
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: Smt. Malvika Devi

## GOVERNMENT OF INDIA

## MINISTRY OF FOOD PROCESSING INDUSTRIES LOK SABHA UNSTARRED QUESTION NO. 3219 ANSWERED ON 18 TH  DECEMBER, 2025

## NEW FOOD PROCESSING UNITS

## 3219.  SMT. MALVIKA DEVI:

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

- (a) whether  the  Government  has  taken  any  measures  to  ensure  strict  monitoring, identification and disposal of expired food products and if so, the steps being taken to prevent such expired items from being recycled, repackaged and re-introduced into the market including details of any enforcement mechanism or inspections conducted in this regard;
- (b) the number of new food-processing units that have been established across the country during the last financial year;
- (c) whether the Government has proposed any new food-processing plants for the State of Odisha including the districts of Kalahandi and Nuapada and if so, the details thereof;
- (d) the subsidies, incentives or support schemes currently available for micro and small enterprises for setting up food-processing units; and
- (e) whether additional subsidies or schemes  exist for entrepreneurs belonging to aspirational districts like Kalahandi and Nuapada and if so, the details thereof?

## ANSWER

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

(a): As  per  the  information  provided  by Food  Safety  and  Standards  Authority  of  India (FSSAI), FSSAI is mandated to lay down science based standards for articles of food and to regulate their manufacture, storage, distribution, sale and import to ensure availability of safe and wholesome food for human consumption.

FSSAI  has  issued  an  advisory  dated  03.11.2025  reiterating  strict  compliance  with environmentally sound procedures for disposal of seized, rejected, and expired food items, in line with earlier guidelines dated 21.12.2020 issued under Sections 38(4) and 47(4) of the Act. The  advisory  directs  enforcement  authorities  to  adopt  only  approved  disposal  methods,  in coordination with local authorities.

Further, FSSAI through its regional offices and also through the State/UT Food Safety Departments, carry out regular inspections & audits of all food business operators of all food products to ensure compliance with the standards & statutory requirements established under the FSS Act, 2006 and the Regulations made thereunder.

(b) & (c): In  order  to  promote and  ensure overall development of food processing sector, Ministry of Food Processing Industries (MoFPI) has been incentivizing for setting up of related industries  through  its  two  Central  Sector  Scheme  viz.  Pradhan  Mantri  Kisan  SAMPADA Yojana  (PMKSY),  Production  Linked  Incentive  Scheme  for  Food  Processing  Industry (PLISFPI) and a Centrally sponsored PM Formalization of Micro Food Processing Enterprises

(PMFME).  These  schemes  are  not  region  or  state  specific  but  demand  driven  and  being implemented across the country including Kalahandi and Nuapada districts of Odisha.

Under PMKSY Scheme, 8 projects have been approved for assistance in the country during last financial year (2024-25), out of which 2 projects located in the state of Odisha.

Under  PMFME  Scheme,  45713  new  micro  food  processing  enterprises  have  been approved for assistance in the country during last financial year (2024-25), out of which 484 micro food processing enterprises have been approved in the State of Odisha including 3 in Kalahandi and 3 in Nuapada.

(d)  &  (e): The  details  of  incentives  available  under  these  schemes  of  MoFPI  are  given  at Annexure. MoFPI provides subsidy/incentives to the eligible entities, as per scheme guidelines across  the  country  including  aspirational  districts  like  Kalahandi  and  Nuapada  districts  of Odisha. Under PMKSY, for difficult areas, subsidy @50% of eligible project cost is provided against @35% in general areas.

*****

## ANNEXURE REFERRED TO IN REPLY TO PART (d) & (e) OF THE LOK SABHA UNSTARRED  QUESTION  NO.  3219  FOR  ANSWER  ON  18 TH  DECEMBER,  2025 REGARDING 'NEW FOOD PROCESSING UNITS'

## 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

| 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- 2022- 2023- 2024- 2025- 2026- | 2021- 2022- 2023- 2024- 2025- 2026-                                                                                                                  | 2021- 2022- 2023- 2024- 2025- 2026-                                                                                                                  | 2021- 2022- 2023- 2024- 2025- 2026-                                                                                                                  | 2021- 2022- 2023- 2024- 2025- 2026-                                                                                                                  | 2021- 2022- 2023- 2024- 2025- 2026-                                                                                                                  |
| Category/ Segments   | Segment                    | Min. CAGR                                                                       | Max. CAGR                                                                       |                                  | 22                                  | 23                                                                                                                                                   | 24                                                                                                                                                   | 25                                                                                                                                                   | 26                                                                                                                                                   | 27                                                                                                                                                   |
| Cat. 1               |                            |                                                                                 |                                                                                 |                                  |                                     |                                                                                                                                                      |                                                                                                                                                      |                                                                                                                                                      |                                                                                                                                                      |                                                                                                                                                      |
| RTE/RTC              | Biscuits                   | 10%                                                                             | 13%                                                                             | 8% Rs.334.48                     | 5%                                  | 5%                                                                                                                                                   | 5%                                                                                                                                                   | 5%                                                                                                                                                   | 4.5%                                                                                                                                                 | 4%                                                                                                                                                   |
| RTE/RTC              | Non- Biscuits              | 10%                                                                             | 13%                                                                             | 8% 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%                                                                                                                                                   |
| Cat. 2               | MSME                       | 10%                                                                             | -                                                                               | Rs.10.54                         | -                                   | 10%                                                                                                                                                  | 10%                                                                                                                                                  | 10%                                                                                                                                                  | 9%                                                                                                                                                   | 8%                                                                                                                                                   |
|                      | Organic Products           | 10%                                                                             | -                                                                               |                                  | 10%                                 | 10%                                                                                                                                                  | 10%                                                                                                                                                  | 10%                                                                                                                                                  | 9%                                                                                                                                                   | 8%                                                                                                                                                   |
|                      | 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 | Only Indian brands covered for selling food products completely manufactured in | 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.