Lok Sabha Question No. 802 (UNSTARRED), answered on 2025-12-04
Subject: Start-ups in Food Processing Sector
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: Shri K Sudhakaran

## GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA UNSTARRED QUESTION NO. 802

ANSWERED ON 04 TH  DECEMBER, 2025

## START-UPS IN FOOD PROCESSING SECTOR

## 802. SHRI K SUDHAKARAN:

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

- (a) the  key  schemes  incentives  and  financial  assistance  currently  available  to  promote startups in the food-processing sector;
- (b) the number of start-ups and micro food-processing units that have benefited under these schemes during the last five years with specific figures for Kerala, scheme-wise and State-wise;
- (c) the total funds sanctioned and released under Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) scheme, Pradhan Mantri Kisan SAMPADA Yojana  (PMKSY), Priority  Sector  Lending  and  NABARD's  Food  Processing  Fund during this period including allocations to Kerala's districts such as Kannur, Kasaragod and Thiruvananthapuram;
- (d) whether any assessment has been conducted on the impact of these schemes in enabling entrepreneurship, value-addition and employment, if so, the details thereof; and
- (e) whether  the  Government  proposes  to  expand  credit  access,  incubation  support  and processing facilities in Kerala to further strengthen start-ups in this sector, if so, the details thereof?

## ANSWER

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

(a) & (b): In order to promote and ensure overall development of Food Processing Industries, 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). MoFPI is also implementing a Centrally sponsored scheme namely PM Formalization  of  Micro  Food  Processing  Enterprises  (PMFME)  scheme.  Ministry  provides subsidy/incentives to the eligible entities including startups under these schemes.

The  details  of  incentives  available  under  these  schemes  of  MoFPI  are  given  at Annexure-I and the details of food processing projects sanctioned by MoFPI under the said three scheme across the country including Kerala is given at Annexure-II.

- (c): State/UT-wise allocation  of  funds  are  not  made  under  PMKSY  &  PLISFPI. However, year-wise  total  budget  allocation  &  utilization  of  funds  since  2020-21  under PMKSY, PLISIFPI & PMFME and also the Centre share of funds under PMFME scheme since 2020-21 to Kerala are at Annexure-III.

As per information provided by Reserve Bank of India, the year wise total disbursement and outstanding for food processing in state of Kerala under Priority Sector is as under-

| Credit to Food Processing Industries under Priority Sector Lending- State of Kerala (Rs in crores)   | Credit to Food Processing Industries under Priority Sector Lending- State of Kerala (Rs in crores)   | Credit to Food Processing Industries under Priority Sector Lending- State of Kerala (Rs in crores)   |
|------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------|
|                                                                                                      | Disbursement                                                                                         | Outstanding                                                                                          |
| As on March 2020                                                                                     | 7254                                                                                                 | 5475                                                                                                 |
| As on March 2021                                                                                     | 5387                                                                                                 | 5029                                                                                                 |
| As on March 2022                                                                                     | 4691                                                                                                 | 4903                                                                                                 |
| As on March 2023                                                                                     | 4231                                                                                                 | 5286                                                                                                 |

| As on March 2024   |   6361 |   6097 |
|--------------------|--------|--------|
| As on March 2025   |   3987 |   4886 |

With a view to promote food processing industry in the organised sector on a cluster basis, GoI instituted the Food Processing fund (FPF) with a corpus of Rs.2000 crore during 2014-15 in NABARD for providing affordable credit for establishment of designated food parks notified by MoFPI from time to time and setting up of food processing units therein.

As per information provided by NABARD, no fund has been disbursed under FPF during the last 5 years in the State of Kerala. During the year 2020-21, a term loan of Rs 10 crore was sanctioned to ESAF Swasraya Multi State Agro Cooperative Society Limited which was later withdrawn by the promoter.

(d): The PMKSY has largely achieved its objectives and the evaluation studies conducted for the relevant component schemes of PMKSY have concluded substantial benefit to the farmers from assisted  projects.  The  evaluation  study  of  Integrated  Cold  Chain  and  Value  Addition Infrastructure  Scheme  under  PMKSY,  conducted  by  M/s  NABARD  Consultancy  Limited (NABCONS) in Year 2020, has estimated that captive projects under the scheme have resulted in increase in farm-gate prices by 12.38 % and each project is estimated to benefit more than 9500  farmers.  The  evaluation  study  of  Scheme  for  Creation  of  Infrastructure  for  Agro Processing Clusters under PMKSY, conducted by M/s Quality Council of India in Year 2025, has  estimated  to  benefit  2.5  lakh  farmers  and  90,000  direct/indirect  employment  on operationalization of approved projects. The evaluation study of Creation / Expansion of Food Processing & Preservation Capacities under PMKSY, conducted by M/s BDO India LLP in Year 2025, has estimated to benefit 1.87 lakh farmers and 2,23,919 direct/indirect employment on operationalization of approved projects.

The evaluation study of PMFME Scheme, conducted by M/s BDO India LLP in Year 2025,  has  reported  that  scheme  has  been  able  to  support  entrepreneurship,  value  addition, formalization, reduced wastage, investment and employment in food processing of the country and has achieved better livelihood and income for the micro food entrepreneurs.

(e): All the three schemes are not region specific but demand driven and are implemented across  the  country  including  Kerala.  Ministry  provides  subsidy/incentives  to  the  eligible entities including startups under these schemes. MoFPI also support startups through its two autonomous Institutions namely, National Institute of Food Technology Entrepreneurship & Management,  Kundli,  Haryana  (NIFTEM-K)  and  National  Institute  of  Food  Technology Entrepreneurship & Management, Thanjavur, Tamil Nadu (NIFTEM-T) across the country. The Institutes 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. to these Startups.

*****

## ANNEXURE REFERRED TO IN REPLY TO PART (a) & (b) OF THE LOK SABHA UNSTARRED  QUESTION  NO.  802  FOR  ANSWER  ON  4 TH  DECEMBER,  2025 REGARDING 'START-UPS IN FOOD PROCESSING SECTOR'

## 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   | 100% grants-in-aid for Govt. organizations For Private organizations/ entities: grant-in-aid of @ 50% of the eligible cost                                                                                                                                        | For Private organizations/ entities: grant-in-aid of @ 70% of the eligible cost                                                                                                                                                                                            |
|        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.                                                                                                            |

## Incentives available under Production Linked Incentive Scheme for Food Processing Industry (PLIS-FPI)

- i. The  beneficiary  should  achieve  minimum  year  on  year  sales  growth  of  10%  for claiming incentive under Category-I, Category-II and Millet-Based Products components of the Scheme. Under Category -I component, the companies have to make committed investments to increase their production capacities.  If a company does not make  the  committed  investment  upto  end  of  2023-24,  it  is  not  eligible  to  receive incentives under the Scheme.
- ii. Under Category-III, i.e., Branding and Marketing component, a company is eligible for financial incentives @ 50% of expenditure incurred on Branding & Marketing abroad subject  to  a  maximum  of  3%  of  Sales  of  food  products  or  Rs  50  crore  per  year, whichever is less.  The minimum expenditure should be Rs. 5 crore over a period of five years.

## 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.

*****

## ANNEXURE REFERRED TO IN REPLY TO PART (a) & (b) OF THE LOK SABHA UNSTARRED  QUESTION  NO.  802  FOR  ANSWER  ON  4 TH  DECEMBER,  2025 REGARDING 'START-UPS IN FOOD PROCESSING SECTOR'

## Number of projects approved under PMKSY, PLISFPI and PMFME schemes of MoFPI since inception of the scheme

|   S. No. | State/UT                           |   No. of approved projects under PMKSY |   No. of approved Micro Food Processing Enterprises under PMFME |   No. of approved applications at different locations under PLISFPI |
|----------|------------------------------------|----------------------------------------|-----------------------------------------------------------------|---------------------------------------------------------------------|
|        1 | Andaman & Nicobar                  |                                      2 |                                                              18 |                                                                   0 |
|        2 | Andhra Pradesh                     |                                     76 |                                                            8087 |                                                                  38 |
|        3 | Arunachal Pradesh                  |                                     12 |                                                             136 |                                                                   0 |
|        4 | Assam                              |                                    102 |                                                            4600 |                                                                   4 |
|        5 | Bihar                              |                                     15 |                                                           27723 |                                                                   7 |
|        6 | Chandigarh                         |                                      0 |                                                               5 |                                                                   0 |
|        7 | Chhattisgarh                       |                                     10 |                                                            1280 |                                                                   1 |
|        8 | Dadar &Nagar Haveli and Daman &Diu |                                      1 |                                                              12 |                                                                   0 |
|        9 | Delhi                              |                                     22 |                                                             363 |                                                                   0 |
|       10 | Goa                                |                                      2 |                                                             137 |                                                                   1 |
|       11 | Gujarat                            |                                    109 |                                                            1010 |                                                                  32 |
|       12 | Haryana                            |                                     99 |                                                            1633 |                                                                   9 |
|       13 | Himachal Pradesh                   |                                     44 |                                                            2537 |                                                                   4 |
|       14 | Jammu &Kashmir                     |                                     41 |                                                            1938 |                                                                   2 |
|       15 | Jharkhand                          |                                      2 |                                                            4250 |                                                                   2 |
|       16 | Karnataka                          |                                     98 |                                                            7724 |                                                                  21 |
|       17 | Kerala                             |                                     54 |                                                            7937 |                                                                  10 |
|       18 | Ladakh                             |                                      0 |                                                              90 |                                                                   0 |
|       19 | Lakshadweep                        |                                      0 |                                                               0 |                                                                   0 |
|       20 | Madhya Pradesh                     |                                     51 |                                                           11944 |                                                                  10 |
|       21 | Maharashtra                        |                                    244 |                                                           26172 |                                                                  41 |
|       22 | Manipur                            |                                      8 |                                                             308 |                                                                   0 |
|       23 | Meghalaya                          |                                     10 |                                                             227 |                                                                   0 |
|       24 | Mizoram                            |                                      4 |                                                              56 |                                                                   0 |
|       25 | Nagaland                           |                                      4 |                                                             429 |                                                                   0 |
|       26 | Odisha                             |                                     30 |                                                            2732 |                                                                   5 |
|       27 | Puduchery                          |                                      2 |                                                             192 |                                                                   0 |
|       28 | Punjab                             |                                     76 |                                                            3021 |                                                                   9 |
|       29 | Rajasthan                          |                                     55 |                                                            1351 |                                                                   6 |
|       30 | Sikkim                             |                                      1 |                                                              65 |                                                                   0 |
|       31 | Tamil Nadu                         |                                    156 |                                                           17210 |                                                                  20 |
|       32 | Telangana                          |                                     67 |                                                            7266 |                                                                  13 |
|       33 | Tripura                            |                                      9 |                                                             248 |                                                                   0 |
|       34 | Uttar Pradesh                      |                                     99 |                                                            1037 |                                                                  27 |
|       35 | Uttarakhand                        |                                     59 |                                                           20575 |                                                                   7 |
|       36 | West Bengal                        |                                     55 |                                                             431 |                                                                   9 |

*****

ANNEXURE  REFERRED  TO  IN  REPLY  TO  PART  (c)  OF  THE  LOK  SABHA UNSTARRED  QUESTION  NO.  802  FOR  ANSWER  ON  4 TH  DECEMBER,  2025 REGARDING 'START-UPS IN FOOD PROCESSING SECTOR'

## 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       |
| 750.00                            | 667.05                            | 791       |           |           | 713.49673.00561.92 | 745              | 666.20    | 630       | 540.12            | PMKSY     |
| PLISFPI Scheme started in 2021-22 | PLISFPI Scheme started in 2021-22 | 10        |           | 9.27      | 801                | 489.831150590.50 |           |           | 700               | 450.49    |
| 400                               | 394.59                            | 399       |           | 326.46    | 290                | 274.76 800       |           |           | 778.8412001023.10 | PMFME     |

R.E.-Revised Estimates, A.E.- Actual Expenditure

## Funds released to Kerala under PMFME Scheme since 2020-21

(Rs in Crores)

| State   |   2020-21 |   2021-22 |   2022-23 |   2023-24 |   2024-25 |
|---------|-----------|-----------|-----------|-----------|-----------|
| Kerala  |     10.13 |      3.46 |      3.98 |     29.52 |     31.27 |

*****