Lok Sabha Question No. 4395 (UNSTARRED), answered on 2026-03-19
Subject: Target to Expand Food Processing Capacity
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: Shri K E Prakash

## GOVERNMENT OF INDIA

## MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA

## UNSTARRED QUESTION NO. 4395

ANSWERED ON 19 TH  MARCH, 2026

## TARGET TO EXPAND FOOD PROCESSING CAPACITY

## 4395. SHRI K E PRAKASH:

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

- (a) whether  the  Government  has  set  any  target  to  significantly  expand  India's  food processing capacity, aiming to double it from the current level of around 12-13 per cent over the next six to seven years and if so, the details thereof;
- (b) whether any specific  schemes,  infrastructure  investments  or  policy  measures  have been planned to achieve this expansion and if so, the details thereof; and
- (c) the  timeline  and  key  performance  indicators  the  Government  has  set  to  monitor progress towards this target?

## ANSWER

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

(a): The capacity of the food processing industry in terms of Gross Value Added (GVA) data released by the Ministry of Statistics and Programme Implementation is ₹ 2.24 lakh crore in the year 2023-24(as per 1 st Revised Estimates). Based on the previous data on the GVA of the Food Processing Industries (FPI) Sector, the GVA FPI Sector is projected to reach ₹2.87 lakh crore over the next six years considering CAGR of last 8 years. The growth is expected to be driven by interventions such as the Production Linked Incentive Scheme for Food Processing Industries  (PLISFPI),  Pradhan  Mantri  Kisan  SAMPADA  Yojana  (PMKSY)  and    Prime Minister Formalization of Micro Food Processing Enterprises (PMFME) and Agri-Infra Fund of  Ministry  of  Agriculture  and  Farmers  Welfare,  increased  demand  for  value-added  and processed  food  products,  improvement  in  supply-chain  and  cold-chain  infrastructure,  and growing focus on exports and food safety standards.

(b): MoFPI is implementing a Central Sector Umbrella Scheme- PMKSY since 2016-17 to create post-harvest infrastructure and processing capacity. The component schemes under PMKSY are (i) Integrated Cold Chain and Value Addition Infrastructure, (ii) Creation of Infrastructure for Agro-Processing Clusters, (iii) Creation / Expansion of Food Processing & Preservation Capacities (iv) Operation Greens (v) Food Safety and Quality   Assurance Food  Testing  Laboratories  (FTL)  (vi)  Human     Resource  &  Institutions-  Research  & Development  (vii) Mega Food Parks (the component has been discontinued with effect from 01.04.2021 with provision for committed liabilities only) and (viii) Creation of Backward and Forward Linkages (the component has been discontinued from 1st April 2021). MoFPI provides credit linked financial assistance (capital subsidy) in the form of grants-in-aid to the eligible applicants as per the scheme guidelines and  as on December 2025, 1607 projects have been approved under PMKSY out of which 1196 projects have been completed.

MoFPI is implementing the PLISFPI for the period FY 2021-22 to FY 2026-27 with an approved outlay of ₹10,900 crore, to support the creation of global food manufacturing champions, commensurate with India's natural resource endowment, and to support Indian brands of food products in international markets. By 31 st December, 2025, 169 applications have been approved under the scheme, with beneficiaries reporting investments of ₹9,207 crore and incentives disbursed amounting to ₹2,162.55 crore.

Furthermore, to provide comprehensive support for establishing or upgrading micro food processing enterprises assistance is provided through PMFME scheme. As of 31st December 2025,  1,72,707  individual  Micro  Food  Processing  Enterprises  approved  for  credit  linked assistance amounting to Rs. 5009.61 Cr, 3,76,326 SHG members approved for Rs 1282.98 Cr and 76 Incubation centres with outlay of Rs 208.10 Cr.

(c): MoFPI  monitors  the  performance  of  its  schemes/programmes  on  a  quarterly  basis  by monitoring  key  indicators.  For  PMKSY,  indicators  like  number  of  food  processing  / preservation  units  operationalized,  total  agro-produce  processing  and  preservation  capacity added and total employment generated due to food processing & preservation/expansion are monitored.  Under  the  PMFME  Scheme,  indicators  include  number  of  micro  enterprises assisted in the current year, number of Self Help Groups (SHG) members supported under the scheme,  number  of  women  micro  enterprises  supported  under  the  scheme  and  additional employment opportunity generated. Further, number of applicants supported, Sales (including exports)  by  supported  applicants  and  Additional  employment  generated  by  the  supported applicants (nos.) over and above the previous year for PLIFPI Scheme.

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