Lok Sabha Question No. 1071 (UNSTARRED), answered on 2026-02-05
Subject: Growth and Export Promotion of FPI
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: Shri Tejasvi Surya

## GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA UNSTARRED QUESTION NO. 1071

ANSWERED ON 05 TH  FEBRUARY, 2026

## GROWTH AND EXPORT PROMOTION OF FPI

## 1071.    SHRI TEJASVI SURYA:

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

- (a) the projected growth of India's Food Processing Industry (FPI) over the next two years along with the major factors driving this growth;
- (b) the role of Government schemes such as the Production Linked Incentive (PLI) Scheme and Pradhan Mantri Kisan Sampada Yojana (PMKSY) in supporting this expansion;
- (c) the steps being taken to promote the rapidly growing organic food market, particularly for farmers and MSMEs;
- (d) the measures undertaken to strengthen processing, storage and cold chain infrastructure to reduce post-harvest losses,
- (e) the  estimated  employment  generation  and  export  growth  expected  from  the  food processing sector during the Financial Year 2026; and
- (f) the strategies in place to increase exports of value-added and organic food products, and the expected impact on farmers' income and India's share in global food markets?

## ANSWER

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

(a): The  Gross  Value  Added  (GVA)  data  is  released  by  the  Ministry  of  Statistics  and Programme Implementation. Based on the previous data on the GVA of the Food Processing Industries (FPI) Sector, the GVA FPI Sector is projected to reach ₹2.43 lakh crore over the next two  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)  to  (d): The  Ministry  of  Food  processing  Industries  (MoFPI)  supports  the  creation  and expansion of the processing/preservation capacity through implementation of various schemes for  the  overall  development  of  food  processing  sector,  including  creation  of  modern infrastructure with efficient supply chain management from farm gate to retail outlets, to reduce post-harvest losses and to increase the level of processing. The schemes being implemented by MoFPI are as follows:

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, 4,04,062 applications have been sent to banks and 1,72,707 loans have been sanctioned with term loan amount of Rs. 14.19 thousand crores. Seed Capital support has been sanctioned for 3,74,819 women SHG members amounting to Rs. 1277.45 Crore.  Additionally, the programme has successfully trained 693 Master Trainers, 1,312 District Level Trainers, and 1,36,723 beneficiaries across 36 States and Union Territories.

With creation of food processing infrastructure under the above schemes, the demand for farm produce, which is raw material for food processing industries, increases leading to better prices to farmers including MSMEs and increasing farm gate profitability. The above scheme has  significantly  contributed  at  micro  level  (farmers  and  cold  chain  owners)  by  increasing income through better price realization, value addition and wastage reduction etc. across the country. The assistance under aforementioned schemes and programmes is also available for the organic food products.

(e): As per  the  latest  report  of Annual  Survey  of  Industries  (ASI)  for  the  year  2023-24 released  by  Ministry  of  Statistics  and  Programme  Implementation  (MoSPI),  the  estimated employment is projected to reach 26,63,809 by the financial year 2026-27 considering CAGR of  last  8  years.  Further,  as  per  the  data  released  by   Directorate  General  of  Commercial Intelligence & Statistics (DGCI&S) under Ministry of Commerce and Industry, the expected export growth of food processing industry is projected to reach USD 12,006.92 million by the financial year 2026-27 considering CAGR of last 8 years.

(f): Agricultural and Processed Food Products Export Development Authority (APEDA) under  Ministry  of  Commerce  and  Industries  provides  financial  assistance  for  export  of APEDA's scheduled products to its registered exporters. Financial assistance is provided under Agriculture and Processed Foods Export Promotion Scheme of APEDA for the 15 th  Finance Commission Cycle (2021-22 TO 2025-26) in three broad areas, namely

- i. Scheme for infrastructure Development
- ii. Scheme for Quality Development
- iii. Scheme for Market Promotion

Further, APEDA is implementing the National Programme for Organic Production (NPOP). The  programme  involves  the  accreditation  of  certification  bodies,  standards  for  organic production,  promotion  of  organic  farming  and  marketing,  etc.  Under  NPOP,  operators  are certified as per their scope of operation such as production, processing and trading. In order to have  greater  visibility  of  the  Indian  exporters,  food  producers  and  engaging  new  business partners in the global market, APEDA provides opportunities to them to market their products in International and domestic trade fairs.  APEDA develops a vibrant Indian pavilion during the trade  fairs  inviting  participant  exporters  for  various  international  and  national  trade  event organized  by APEDA. A  dedicated  export  promotion  forum  is  established  by APEDA  for specific products to streamline efforts and resources towards boosting exports.