Lok Sabha Question No. 3248 (UNSTARRED), answered on 2026-03-12
Subject: New Food Processing Units
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: Smt. Shambhavi, Shri Rajesh Verma, Shri Mukeshkumar Chandrakaant Dalal, Dr. Lata Wankhede, Shri Arun Bharti, Shri Atul Garg

## GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA UNSTARRED QUESTION NO. 3248

ANSWERED ON 12 TH  MARCH, 2026

## NEW FOOD PROCESSING UNITS

## 3248.  SHRI ARUN BHARTI:

SHRI MUKESHKUMAR CHANDRAKAANT DALAL:

SHRI ATUL GARG:

SHRI RAJESH VERMA:

DR. LATA WANKHEDE:

SMT. SHAMBHAVI:

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

- (a) whether the Government is encouraging the establishment of new food processing units across all States to enhance value addition and promote agri-based industrial growth, if so, details thereof;
- (b) the details of the policy support, including incentives, credit facilitation and regulatory simplification, being provided for setting up these units particularly in Jamui, Khagaria, Samastipur, Sagar, Ghaziabad and Surat Lok Sabha Constituencies;
- (c) the  details  of  issued  guidelines  or  model  frameworks  to  adopt  in  scaling  up  food processing infrastructure and enterprises;
- (d) the  details  of  technical  assistance  and  skill  development  programmes  extended  to support entrepreneurs and workers in the food processing sector; and
- (e) whether these initiatives are expected to strengthen the food processing ecosystem, link farmers with markets and create employment opportunities nationwide, if so, the details thereof?

## ANSWER

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

(a)  : In  order  to  promote  and  ensure  overall  development  of  Food  Processing  Industries including value addition of food products & promotion of agri-based industries, Ministry of Food Processing Industries (MoFPI) has been incentivizing setting up/ expansion of related infrastructure, 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) Scheme across the country.

(b) & (c): MoFPI provides subsidy/incentives to the eligible entities, as per scheme guidelines across the country including Jamui, Khagaria, Samastipur, Sagar, Ghaziabad and Surat Lok Sabha Constituencies. The details of incentives available under these schemes of MoFPI are given at Annexure.

To facilitate scaling up of food processing infrastructure and enterprises, MoFPI issues, from time to time, detailed guidelines for its schemes, based on the stakeholders' consultations. Guidelines  include  model  frameworks,  basic  eligibility  conditions,  documents  required, evaluation criteria etc. for availing grant-in-aid for setting up of food processing units.

(d) & (e) : Under the Capacity Building component of the PMFME Scheme, MoFPI provides assistance for training of Trainers, District Resource Persons, Entrepreneurs and various other groups for Entrepreneurship Development Skilling (EDP+) & product specific skilling to meet the  requirement  of  food  processing  industry.  The  scheme  also  envisages  strengthening backward and forward linkages, provision of common facilities, incubation centres, training, marketing & branding.

MoFPI, through its two autonomous Institutions namely, National Institute of Food Technology  Entrepreneurship  &  Management,  Kundli,  Haryana  (NIFTEM-K)  &  National Institute  of  Food  Technology  Entrepreneurship  &  Management,  Thanjavur,  Tamil  Nadu (NIFTEM-T), also provide handholding support, mentorship, training, access to facilities such as Pilot Plant, NABL-accredited Food Testing Labs, incubation services, quality testing, R&D support, networking opportunities, etc.

All  these  schemes  are  implemented across the country and aim towards creation of modern infrastructure with efficient supply chain management from farm gate to retail outlet which  includes  storage,  transportation,  creation  of  market  linkages  etc.,  thereby  help  in reducing post-harvest losses and facilitating enhance farmer incomes and creating off-farm employment opportunities.

As  on  31.12.2025,  4.69  lakh  direct/  indirect  employment  opportunities  have  been generated from the operational projects under component schemes of PMKSY, 5.18 lakh direct and indirect employment opportunities has been generated under PMFME scheme and 3.29 lakh direct/ indirect employment opportunities has been generated under PLISFPI across the country.

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## ANNEXURE REFERRED TO IN REPLY TO PART (b) & (c) OF THE LOK SABHA UNSTARRED  QUESTION  NO.  3248  FOR  ANSWER  ON  12 TH   MARCH,  2026 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%ofequipment cost.                                                                                                            |

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                             |                                  | 22 2022- 23 2023- 24 2024- 25 2025- 26 2026- 27 | 22 2022- 23 2023- 24 2024- 25 2025- 26 2026- 27                                                                                                      | 22 2022- 23 2023- 24 2024- 25 2025- 26 2026- 27                                                                                                      | 22 2022- 23 2023- 24 2024- 25 2025- 26 2026- 27                                                                                                      | 22 2022- 23 2023- 24 2024- 25 2025- 26 2026- 27                                                                                                      | 22 2022- 23 2023- 24 2024- 25 2025- 26 2026- 27                                                                                                      |
| Category/ Segments   | Segment                    | Min. CAGR                                                                    | Max. CAGR                             |                                  | 2021-                                           |                                                                                                                                                      |                                                                                                                                                      |                                                                                                                                                      |                                                                                                                                                      |                                                                                                                                                      |
| 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%                                                                                                                                                   |
|                      | 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                                    | 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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