Lok Sabha Question No. 2248 (UNSTARRED), answered on 2026-02-12
Subject: Food Processing Units and Projects in Kerala
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: Shri Benny Behanan

## GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA

## UNSTARRED QUESTION NO. 2248

ANSWERED ON 12 TH  FEBRUARY, 2026

## FOOD PROCESSING UNITS AND PROJECTS IN KERALA

## 2248.  SHRI BENNY BEHANAN:

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

- (a) whether the Government has taken note that several food processing units and projects in Kerala, particularly in fruit, vegetable, fish, meat, spice, coconut and value-added agriculture  sectors,  are  operating  below  capacity  or  have  failed  to  take  off  due  to inadequate  infrastructure,  high  input  costs  and  limited  market  access  and  if  so,  the details thereof;
- (b) whether the Government has reviewed the State-wise utilisation of central schemes such  as  the  Prime  Minister  Formalisation  of  Micro  Food  Processing  Enterprises (PMFME) scheme, Mega Food Parks and cold chain infrastructure schemes and if so, the details thereof along with specific reference to Kerala and the reasons for delays and underutilisation;
- (c) whether the Government acknowledges that weak linkages between farmers, fisherfolk and food processing units in Kerala have resulted in post-harvest losses, price volatility and reduced income realisation especially during seasonal gluts and if so, the details thereof; and
- (d) whether  the  Government  proposes  any  Kerala-specific,  time-bound  interventions  to address the above issues, if so, the details thereof?

## ANSWER

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

(a): Ministry  of  Food  Processing  Industries  (MoFPI),  through  its  schemes,  is  helping strengthening of food processing/ preservation infrastructure with efficient supply chain and modernization/ capacity enhancement of food processing units across the country including Kerala.

MoFPI  is  incentivizing  setting  up  of  food  processing  industries  including  fruit, vegetable, fish, meat, spice, coconut and value-added agriculture sectors through its Central Sector  Pradhan  Mantri  Kisan  SAMPADA  Yojana  (PMKSY)  Scheme,  Production  Linked Incentive  Scheme  for  Food  Processing  Industry  (PLISFPI)  and  a  Centrally  sponsored  PM Formalization of Micro Food Processing Enterprises (PMFME) scheme.

As on 31.12.2025, MoFPI has approved 38 food processing projects under component schemes of PMKSY, 8478 micro food processing enterprises under PMFME scheme and 10 projects under PLISFPI in Kerala.

(b): Robust institutional mechanism has been put in place at National, State and District levels  for  effective  utilization  and  implementation  of  the  PMFME  scheme. At  the  national level,  Inter-Ministerial  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. Ministry conducts regular meetings with States/ UTs, lending banks, State Level Bankers Committee (SLBC)  and  other  stakeholders  for  timely  fund  utilisation  and  monitoring  the  progress  of implementation of the Scheme.

Securing  various  statutory  clearances  and  utility  provisions  for  Food  Processing Industry takes significant time adversely affecting its implementation schedule.

MoFPI  has  taken  various  measures  for  timely  implementation  of  these  projects, including projects approved under  Mega Food Parks and cold chain infrastructure schemes, which  include  (i)  Dashboard  for  monitoring  the  progress  of  the  projects;  (ii)  Regularly review with the promoters to help remove bottlenecks in implementation; (iii) Assessing the progress of projects though site visits to prevent delays in their completion; (iv) Issues taken up with the Banks/ Financial Institutions to expedite sanction and disbursement of term loan to  the  projects;  (v)  Penal  provisions  on  the  promotors  in  case  of  delayed  completion  of projects;  (vi)  MoFPI,  on  the  request  of  project  implementing  agencies,  also  took  up  the matter with the concerned department of State Government and their agencies for smooth and timely implementation.

The Mega Food Park Scheme has been discontinued by the Ministry since 01.04.2021.

(c) & (d): In order to help it face various challenges and ensure overall development of Food Processing  Sector,  MoFPI,  through  its  schemes,  extends  financial  support  to  prospective entrepreneurs  for  setting  up  of  different  kinds  of  food  processing  units,  as  per  respective scheme guidelines across the country including Kerala.

All these help in creation of linkage between farmers & food processors and thereby increasing the income of the farmers and reducing post-harvest losses.

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