Lok Sabha Question No. 393 (STARRED), answered on 2026-03-19
Subject: Development of Food Processing Facilities
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: Shri Dharmendra Yadav

## GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA STARRED QUESTION NO. *393

ANSWERED ON 19 TH  MARCH, 2026

## DEVELOPMENT OF FOOD PROCESSING FACILITIES

## *393.  SHRI DHARMENDRA YADAV:

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

- (a) the reasons for the farmers not being able to get fair prices for their produce and a large quantities of fruits, vegetables and other agricultural produce being wasted due to lack of  processing  facilities  despite  announcement  of  numerous  schemes  and  substantial Budgetary allocations to promote the food processing sector in the country;
- (b) the  details  of  the  funds  allocated  and  actually  spent  for  development  of  the  food processing  sector  during  the  last  five  years,  year-wise  including  the  number  of processing  units  established,  the  number  of  farmers  associated  therewith  and  the employment opportunities generated therefrom;
- (c) whether complaints regarding delays in execution, incomplete projects and according unfair benefits to private companies have been reported in mega food facilities parks, cold storage facilities and other value addition projects;
- (d) if  so,  the details of the investigations carried out by the Government along with the findings thereof; and
- (e) the concrete steps taken by the Government to provide fair prices to farmers for their produce,  strengthen  food  processing  infrastructure  and  to  ensure  transparency  and accountability in the said sector?

## ANSWER

## THE MINISTER OF FOOD PROCESSING INDUSTRIES (SHRI CHIRAG PASWAN)

- (a) to (e): A statement is laid on the Table of the House.

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## STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  TO  (e)  OF  STARRED QUESTION  NO.  †*393  FOR  ANSWER  ON  19 TH   MARCH,  2026  REGARDING 'DEVELOPMENT OF FOOD PROCESSING FACILITIES'

(a) & (b) : 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) and  a Centrally sponsored scheme namely PM Formalization of Micro Food Processing Enterprises (PMFME) scheme across the country.

These schemes 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.

Year-wise total allocation & funds utilized under PMKSY, PLISFPI & PMFME from 2020-21 to 2024-25 across the country are given at Annexure-I. The details of the number of projects  operational,  the  number  of  farmers  benefitted  and  the  number  of  direct/indirect employment generated from 2020-21 to 2024-25 across the country are given at Annexure-II.

(c)  &  (d): MoFPI  has  not  received  any  specific  complaint  regarding  delays  in  execution, incomplete projects and according unfair benefits to private companies.

(e). In  order  to  ensure  fair  prices  to  farmers  for  their  produce,  every  year,  Government intervenes through fixing Minimum Support Prices (MSPs) for 22 mandated agricultural crops, based on the recommendations of Commission for Agricultural Costs & Prices (CACP), after considering the views of State Governments and Central Ministries/Departments concerned.

For strengthening food processing infrastructure in the country, MoFPI is implementing three schemes namely, PMKSY, PLISFPI and PMFME.

Under PMKSY, financial assistance is provided to the eligible applicants selected on the  basis  of  Expression  of  Interest  (EoI)  issued  from  time  to  time.  Selection  of  suitable proposals is done as per the Scheme guidelines, based on the merit, through dedicated portal and transparent appraisal process as per the predefined criteria. The selection process involves appraisal & scrutiny of proposals at multiple levels, and grants to assisted projects is disbursed immediately after achieving prescribed benchmarks within budgetary constraints.

Under the PMFME scheme, a robust institutional mechanism has been put in place at National, State and District levels for transparent implementation. At the national level, InterMinisterial Empowered Committee (IMEC) has been constituted as a policy making body to give overall direction, guidance for implementation of the scheme and monitor & review its progress and performance. Further, all the States/ UTs have appointed State Nodal Agencies (SNAs), constituted State Level Approval Committees (SLACs) & District Level Committees (DLCs)  for  implementation  of  the  scheme.  Online  portal  has  also  been  developed  for submission of applications, approval and release of subsidy under the scheme.

ANNEXURE REFERRED TO IN REPLY TO PART (a) & (b) OF THE LOK SABHA STARRED  QUESTION  NO.  †*393  FOR  ANSWER  ON  19 TH   MARCH,  2026 REGARDING 'DEVELOPMENT OF FOOD PROCESSING FACILITIES'

## Details of funds allocated and funds utilized in PMKSY & PLISFPI & PMFME schemes of MoFPI

(Rs in Crores)

|                                   | 2020-21                           | 2020-21   | 2021-22   | 2021-22   | 2022-23   | 2022-23   | 2023-24   | 2023-24   | 2024-25   | 2024-25   |
|-----------------------------------|-----------------------------------|-----------|-----------|-----------|-----------|-----------|-----------|-----------|-----------|-----------|
| Scheme                            | R.E.                              | A.E.      | R.E.      | A.E.      | R.E.      | A.E       | R.E.      | A.E       | R.E.      | A.E       |
| PMKSY 750.00                      | 667.05                            | 791       | 713.49    |           | 673.00    | 561.92    | 745       | 630       | 540.12    | 666.20    |
| PLISFPI Scheme started in 2021-22 | PLISFPI Scheme started in 2021-22 | 10        | 9.27      |           | 801       | 489.83    | 1150      | 590.50    | 700       | 450.49    |
| PMFME 400                         | 394.59                            | 399       | 326.46    |           | 290       | 274.76    | 800       | 778.84    | 1200      | 1023.10   |

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ANNEXURE REFERRED TO IN REPLY TO PART (a) & (b) OF THE LOK SABHA STARRED  QUESTION  NO.  †*393  FOR  ANSWER  ON  19 TH   MARCH,  2026 REGARDING 'DEVELOPMENT OF FOOD PROCESSING FACILITIES' (i) PMKSYThe details are as under-

| Year    |   No of projects operational |   Number of farmers benefitted |   Number of direct/ indirect employment generated |
|---------|------------------------------|--------------------------------|---------------------------------------------------|
| 2020-21 |                          107 |                         603562 |                                            115869 |
| 2021-22 |                          153 |                         358365 |                                            135054 |
| 2022-23 |                          115 |                         223355 |                                             88599 |
| 2023-24 |                           85 |                         223861 |                                             70253 |
| 2024-25 |                           69 |                         124744 |                                             46999 |

(ii) PMFMEThe details are as under-

| Year    | No of Micro food enterprises sanctioned   | Number of direct/ indirect employment generated   |
|---------|-------------------------------------------|---------------------------------------------------|
| 2020-21 | 0                                         | 0                                                 |
| 2021-22 | 3,218                                     | 9,654                                             |
| 2022-23 | 28,492                                    | 85,476                                            |
| 2023-24 | 54,594                                    | 1,63,782                                          |
| 2024-25 | 50,875                                    | 1,52,625                                          |

(iii)  PLISFPIMoFPI has  approved  168  applicants  at  275  locations  of  the  country  under various  categories  of  the  scheme  and  all  are  operational.  So  far,  3.29  lakh  direct/  indirect employment has been generated under the scheme.

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