Lok Sabha Question No. 6280 (UNSTARRED), answered on 2026-04-02
Subject: Low Levels of Processing of Agricultural Produce
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: Ms Sayani Ghosh

## GOVERNMENTOF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA UNSTARRED QUESTION NO. 6280

ANSWERED ON 02 ND  APRIL, 2026

## LOW LEVELS OF PROCESSING OF AGRICULTURAL PRODUCE

## 6280. MS.  SAYANI GHOSH:

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

- (a) whether the Government has assessed the persistently low levels of processing of agricultural produce in the country with only about two percent of fruits and vegetables, six percent of poultry  are  processed  despite  India  being  among  the  world's  largest  producers  of  these commodities and if so, the details thereof;
- (b) whether the Government has examined the economic and income loss arising from such low value addition and if so, the details thereof including its impact on farmers' incomes, employment generation and export competitiveness;
- (c) whether it is a fact that post-harvest losses of perishable agricultural produce are estimated at twenty to thirty percent, largely due to inadequate cold chain infrastructure, packhouses and refrigerated logistics and if so, the details thereof;
- (d ) the availability and capacity of cold chains, warehouses, food parks, and processing infrastructure, State/UT-wise;
- (e) whether any regional imbalances or infrastructure deficits have been identified and if so, the details thereof; and
- (f) whether  the  Government  has  assessed  the  constraints  faced  by  Micro,  Small  and  Medium Enterprises (MSMEs) which constitute a large share of food processing units and if so, the details thereof?

## ANSWER

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

(a): To  assess  the  value  addition  in  various  agricultural  commodities,  the  Ministry  of  Food Processing Industries (MoFPI) has conducted study to determine the level of processing, titled 'Study to Determine the Level of Food Processing in India' in 2021 through Deloitte. The available studies on level of processing are periodic in nature and do not provide year-wise estimates. The details of the extent of processing for the various category/commodities covered in the study are as below:

## Level of Processing in India (%)

| Category/ Commodity   | Year    | Year    | Year    |
|-----------------------|---------|---------|---------|
|                       | 2010-11 | 2015-16 | 2018-19 |
| Paddy                 | 69.7    | 82.5    | 92.3    |
| Wheat                 | 55.3    | 70.1    | 78.0    |

| Coarse Cereals                  |   20.0 |   28.3 |   29.4 |
|---------------------------------|--------|--------|--------|
| Cereals (Overall)               |   51.1 |   63.7 |   68.8 |
| Gram                            |   29.3 |   59.6 |   80.4 |
| Arhar                           |   31.6 |   51.3 |   51.7 |
| Other Pulses                    |   40.5 |   58.1 |   53.8 |
| Pulses (Overall)                |   34   |   57.4 |   61.8 |
| Foodgrains                      |   49.3 |   63.2 |   68.2 |
| Groundnut                       |    8.1 |   17.5 |   43.7 |
| Mustard                         |   56.5 |   36   |   32.5 |
| Other Oilseeds                  |   87.9 |   79.9 |   61.5 |
| Oilseeds (Overall)              |   60.1 |   49.5 |   49.8 |
| Fruits                          |    1.6 |    2.9 |    4.5 |
| Potatoes &Onion                 |    1.1 |    2   |    3.2 |
| Other Vegetables                |    2.7 |    2.4 |    2.4 |
| Fruits and Vegetables (Overall) |    1.9 |    2.5 |    3.3 |
| Milk                            |   17.2 |   20.1 |   21.1 |
| Eggs &Poultry                   |    3.5 |    7.4 |   11.6 |
| Meat                            |   18.6 |   22.7 |   34.2 |
| Animal Husbandry                |    8.7 |   12.7 |   18.7 |
| Fish                            |    2.8 |    8.3 |   15.4 |

Source: Study to determine the level of Food Processing in India 2021

(b) to (c): MoFPI supports the creation and expansion of the processing/preservation capacity through implementation  of  various  schemes  viz.  Central  Sector  umbrella  scheme-  Pradhan  Mantri  Kisan Sampada  Yojana  (PMKSY),  Centrally  sponsored  "PM  Formalization  of  Micro  Food  Processing Enterprises  (PMFME)  Scheme"  and  Central  Sector  Production  Linked  Incentive  Scheme  for  Food Processing Industries (PLISFPI). These schemes aim for the overall development of food processing sector, including creation of modern infrastructure with efficient supply chain management from farm gate to retail outlet, reduce post-harvest losses and wastages and create higher value-addition, providing better  returns  to  farmers,  creation  of  employment  opportunities,  reducing  wastage,  increasing  the processing level and enhancing the export of the processed foods.

MoFPI estimates post-harvest losses from time to time for various agri-produces in the country through commissioning of studies based on primary surveys. Two studies were commissioned by the Ministry through (i) Indian Council of Agriculture Research (ICAR) -Central Institute of Post-Harvest Engineering  &  Technology  (CIPHET),  2015  with  reference  year  2012-14  and  (ii)  NABARD Consultancy Service Pvt. Ltd (NABCONS), 2022 with reference year 2020-22. As per the findings of the studies, the estimated percentage of Post-Harvest losses of perishable crops covered in the study is placed below:

| Crops/ Commodities   | Estimated Percentage Loss       | Estimated Percentage Loss   |
|----------------------|---------------------------------|-----------------------------|
|                      | As per ICAR-CIPHET study (2015) | As per NABCONS study (2022) |
| Fruits               | 6.70-15.88                      | 6.02-15.05                  |
| Vegetables           | 4.58-12.44                      | 4.87-11.61                  |

However, there is some level of post-harvest losses and wastage and rare instances of selling of produce at  less  than  optimal  prices  due  to  less  than  optimal  processing  capacity  and  cold  storages, constraints at the farm gate level, climate volatility, etc. To address the above issues and holistic end to end  development  of  food  processing  sector,  the  MoFPI  supports  the  creation  and  expansion  of  the processing/preservation  capacity  through  implementation  of  various  schemes  viz. Central  Sector umbrella  scheme-  Pradhan  Mantri  Kisan  Sampada  Yojana  (PMKSY),  Centrally  sponsored  "PM Formalization of Micro Food Processing Enterprises (PMFME) Scheme" and Central Sector Production Linked Incentive Scheme for Food Processing Industries (PLISFPI).

So far no specific assessment has been done by MoFPI to examine income loss due to low level of processing.

## (d): The details are placed at Annexure-I.

(e): The Indian cold storage and food processing industry has experienced growth, mainly increasing demand for perishable goods and advancements in technology. However, there are some deficiencies particularly in sectors and states. Addressing these infrastructure gaps is vital for reducing post-harvest losses, enhancing food security, and fostering the growth of the agricultural sector. MoFPI so far has not conducted any specific study on identifying overall regional imbalances or infrastructure deficits.

(f): The Government is aware that MSMEs constitute a significant share of food processing units in the country and face a number of constraints that affect their growth and competitiveness. These include challenges relating to access to finance, modern technology, quality and packaging infrastructure, cold chain and storage facilities, compliance with food safety standards, skilled manpower, branding and marketing, and market linkages. To address these issues, MoFPI is implementing a centrally sponsored "PM Formalisation of Micro food processing Enterprises (PMFME) Scheme" for providing financial, technical and business support for setting up of new/ upgradation of micro food processing enterprises in the country. The scheme is operational for a period of five years from 2020-21 to 2025-26 with an outlay of Rs. 10,000 Crore. The scheme aims to enhance the competitiveness of existing individual micro-enterprises in the unorganized segment of the food processing industry and promote formalization of the sector.

*****

ANNEXURE  REFERRED  TO  IN  REPLY  TO  PART  (d)  OF  LOK  SABHA  UNSTARRED QUESTION  NO.  6280  FOR  ANSWER  ON  02 ND  APRIL,  2026  ON  'LOW  LEVELS  OF PROCESSING OF AGRICULTURAL PRODUCE'

1. State wise distribution of Cold Storages as on 31.01.2026 in the Country

| S. No.   | Name of the State              |   Number. |   Capacity (MT) |
|----------|--------------------------------|-----------|-----------------|
| 1        | Andaman & Nicobar Islands (UT) |         4 |            2210 |
| 2        | Andhra Pradesh & Telangana     |       480 |         1996340 |
| 3        | Arunachal Pradesh              |         2 |            6000 |
| 4        | Assam                          |        45 |          212662 |
| 5        | Bihar                          |       316 |         1490200 |
| 6        | Chandigarh (UT)                |         7 |           12462 |
| 7        | Chhattisgarh                   |       132 |          586863 |
| 8        | Delhi                          |        97 |          129857 |
| 9        | Goa                            |        29 |            7705 |
| 10       | Gujarat                        |      1032 |         4086046 |
| 11       | Haryana                        |       388 |          891494 |
| 12       | Himachal Pradesh               |        89 |          181318 |
| 13       | Jammu & Kashmir                |       102 |          404814 |
| 14       | Jharkhand                      |        60 |          250077 |
| 15       | Karnataka                      |       271 |          930379 |
| 16       | Kerala                         |       202 |           96655 |
| 17       | Lakshadweep (UT)               |         1 |              15 |
| 18       | Madhya Pradesh                 |       341 |         1498651 |
| 19       | Maharashtra                    |       672 |         1259932 |
| 20       | Manipur                        |         2 |            4500 |
| 21       | Meghalaya                      |         4 |            8200 |
| 22       | Mizoram                        |         3 |            4071 |
| 23       | Nagaland                       |         5 |            8150 |
| 24       | Orissa                         |       182 |          579321 |
| 25       | Pondicherry (UT)               |         4 |             185 |
| 26       | Punjab                         |       780 |         2642715 |
| 27       | Rajasthan                      |       192 |          661876 |
| 28       | Sikkim                         |         2 |            2100 |
| 29       | Tamil Nadu                     |       188 |          399690 |
| 30       | Telangana                      |       117 |          627131 |
| 31       | Tripura                        |        14 |           46354 |
| 32       | Uttar Pradesh                  |      2489 |        15101408 |
| 33       | Uttrakhand                     |        62 |          206848 |
| 34       | West Bengal                    |       517 |         5952997 |
|          |                                |      8831 |        40289226 |

(Source:  Directorate  of  Marketing  and  Inspection  (DMI)  upto  2009,  National  Horticulture  Board (NHB), National  Horticulture  Mission  (NHM),  Horticulture  Mission  for  North  East  &  Himalayan States (HMNEH)) and MoFPI

## 2. The details of the total number of warehouses registered under Warehousing Development and Regulatory Authority

| Sl. No.   | State Name                               |   Total no. of active warehouses registered with WDRA |   Capacity in MT |
|-----------|------------------------------------------|-------------------------------------------------------|------------------|
| 1         | Andaman And Nicobar Islands              |                                                     0 |                0 |
| 2         | Andhra Pradesh                           |                                                   269 |          3329187 |
| 3         | Arunachal Pradesh                        |                                                     0 |                0 |
| 4         | Assam                                    |                                                    10 |           137218 |
| 5         | Bihar                                    |                                                   140 |           803464 |
| 6         | Chandigarh                               |                                                     0 |                0 |
| 7         | Chhattisgarh                             |                                                   215 |          2430958 |
| 8         | Delhi                                    |                                                     2 |            32458 |
| 9         | Goa                                      |                                                     0 |                0 |
| 10        | Gujarat                                  |                                                   331 |          2192937 |
| 11        | Haryana                                  |                                                   252 |          4436898 |
| 12        | Himachal Pradesh                         |                                                     3 |             8850 |
| 13        | Jammu And Kashmir                        |                                                    23 |           175966 |
| 14        | Jharkhand                                |                                                    35 |           294860 |
| 15        | Karnataka                                |                                                    79 |           999630 |
| 16        | Kerala                                   |                                                    20 |           144602 |
| 17        | Ladakh                                   |                                                     0 |                0 |
| 18        | Lakshadweep                              |                                                     0 |                0 |
| 19        | Madhya Pradesh                           |                                                  3548 |         19369664 |
| 20        | Maharashtra                              |                                                   417 |          2941813 |
| 21        | Manipur                                  |                                                     0 |                0 |
| 22        | Meghalaya                                |                                                     0 |                0 |
| 23        | Mizoram                                  |                                                     0 |                0 |
| 24        | Nagaland                                 |                                                     1 |            13000 |
| 25        | Odisha                                   |                                                   101 |           895400 |
| 26        | Puducherry                               |                                                     1 |             7350 |
| 27        | Punjab                                   |                                                    92 |          2465921 |
| 28        | Rajasthan                                |                                                   482 |          4312019 |
| 29        | Sikkim                                   |                                                     0 |                0 |
| 30        | Tamil Nadu                               |                                                   838 |          1882299 |
| 31        | Telangana                                |                                                   220 |          2845586 |
| 32        | Dadra And Nagar Haveli And Daman And Diu |                                                     0 |                0 |
| 33        | Tripura                                  |                                                     1 |            11277 |
| 34        | Uttarakhand                              |                                                     8 |            62143 |
| 35        | Uttar Pradesh                            |                                                   301 |          4798429 |
| 36        | West Bengal                              |                                                    50 |           559402 |
|           | Total                                    |                                                  7439 |         55151331 |

Source: WDRA

## 3. The details of the processing infrastructure created through the various component schemes of PMKSY including the food parks

Figures in lakh metric tonnes/Annum

| S.No   | State              |    APC |   BFL |     CC |   CEFPPC |   MFP |    OG |
|--------|--------------------|--------|-------|--------|----------|-------|-------|
| 1      | Andaman & Nicobar  |  0     | 0     |   0.27 |     0    |  0    |  0    |
| 2      | Andhra Pradesh     |  0.15  | 0     |   5.73 |     7.28 |  1.88 |  2.98 |
| 3      | Arunachal Pradesh  |  0     | 0     |   0.11 |     2.28 |  0.24 |  0    |
| 4      | Assam              |  1.003 | 0.3   |   0.04 |    11.22 |  0    |  0.06 |
| 5      | Bihar              |  0.23  | 0     |   6.75 |     1.61 |  0.6  |  0    |
| 6      | Chandigarh         |  0     | 0     |   0    |     0    |  0    |  0    |
| 7      | Chhattisgarh       |  0.3   | 0.014 |   0    |     1.47 |  0.42 |  0    |
| 8      | D&N Haveli and D&D |  0     | 0     |   0    |     0.05 |  0    |  0    |
| 9      | Delhi              |  0     | 0     |   0    |     0    |  0    |  0    |
| 10     | Goa                |  0     | 0     |   0    |     0.06 |  0    |  0    |
| 11     | Gujarat            |  1.47  | 0.508 |  11.93 |     4.05 |  0.32 |  2.85 |
| 12     | Haryana            |  0.396 | 0     |   7.28 |     3.79 |  0.11 |  0    |
| 13     | Himachal Pradesh   |  0     | 0.08  |   0.99 |     1.89 |  0.43 |  0.06 |
| 14     | Jammu &Kashmir     |  0     | 0.089 |   0.45 |     1.84 |  0.02 |  0    |
| 15     | Jharkhand          |  0     | 0     |   0    |     0    |  0    |  0    |
| 16     | Karnataka          |  0.08  | 0.22  |   7.25 |     4.51 |  1.6  |  0.24 |
| 17     | Kerala             |  0.13  | 0.27  |   1.01 |     1.18 |  0.36 |  0    |
| 18     | Ladakh             |  0     | 0     |   0    |     0    |  0    |  0    |
| 19     | Lakshadweep        |  0     | 0     |   0    |     0    |  0    |  0    |
| 20     | Madhya Pradesh     |  0.57  | 0.015 |   3.05 |     7.02 |  1.97 |  0.35 |
| 21     | Maharashtra        |  2.81  | 0.698 |  51.65 |    24.73 |  0.85 |  2.11 |
| 22     | Manipur            |  0     | 0     |   0    |     0.01 |  0.59 |  0    |
| 23     | Meghalaya          |  0     | 0     |   0    |     0.13 |  0.18 |  0    |
| 24     | Mizoram            |  0     | 0     |   0.32 |     0    |  0.07 |  0    |
| 25     | Nagaland           |  0     | 0     |   0.39 |     0    |  0.19 |  0    |
| 26     | Odisha             |  0.54  | 0     |   2.95 |     2.04 |  1.18 |  0    |
| 27     | Puduchery          |  0     | 0     |   0    |     0    |  0    |  0    |
| 28     | Punjab             |  1.18  | 0.17  |   5.85 |     2.54 |  2.04 |  0.24 |
| 29     | Rajasthan          |  0.345 | 0.158 |   3.96 |     3.89 |  0.8  |  0    |
| 30     | Sikkim             |  0     | 0     |   0    |     0    |  0    |  0    |
| 31     | Tamil Nadu         |  4.11  | 0.734 |   7.32 |     5.54 |  0.1  |  0.46 |
| 32     | Telangana          |  1.656 | 0     |  12.31 |    11.41 |  0.61 |  0    |
| 33     | Tripura            |  0     | 0     |   0    |     1.03 |  0.07 |  0    |
| 34     | Uttar Pradesh      |  0.15  | 1.01  |   8.74 |     9.03 |  0    |  0.8  |
| 35     | Uttarakhand        |  0     | 0.75  |   4.62 |     3.21 |  0.78 |  0    |
| 36     | West Bengal        |  0     | 0     |   4.56 |     4.09 |  0    |  0    |
|        | Total              | 15.12  | 5.016 | 147.53 |   115.86 | 15.41 | 10.15 |

CC-Integrated Cold Chain & Value Addition Infrastructure, CEFPPC-Creation/ Expansion of Food Processing and Preservation Capacities, OG-Operation Greens, APC-Creation of Infrastructure for Agro Processing  Clusters,  MFP-Mega  Food  Parks  (discontinued  w.e.f.  01.04.2021)  and  CBFLCreation of Backward and Forward Linkages (discontinued w.e.f. 01.04.2021).

*****