Lok Sabha Question No. 288 (STARRED), answered on 2026-03-12
Subject: Harnessing Potential of Tamil Nadu in Food Processing Sector
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: Shri C N Annadurai

## GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA STARRED QUESTION NO. *288

ANSWERED ON 12 TH  MARCH, 2026

## HARNESSING POTENTIAL OF TAMIL NADU IN FOOD PROCESSING SECTOR *288. SHRI C N ANNADURAI:

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

- (a) whether the Government recognises the significant potential of Tamil Nadu in the food processing sector in view of its diversified agricultural base, strong  dairy,  fisheries, poultry and horticulture production and its proximity to major domestic and export markets and if so, the details thereof;
- (b) the details of Central schemes and investments supporting food processing capacity, value addition and infrastructure creation in the State;
- (c) whether  gaps  persist  in  cold  chain  coverage,  primary  processing,  packaging  and export- oriented facilities despite the State's potential and if so, the details thereof;
- (d) whether any assessment has been undertaken to examine constraints faced by farmers, Farmer Producer Organisations (FPOs) and Micro, Small and Medium Enterprises (MSMEs) in accessing technology, credit and market linkages and if so, the details thereof; and
- (e) whether  the  Government  proposes  targeted  interventions  to  fully  harness  Tamil Nadu's food processing potential, reduce post-harvest losses and enhance farmer incomes and employment and if so, the details thereof?

## 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.  *288  FOR  ANSWER  ON  12 TH   MARCH,  2026  REGARDING 'HARNESSING  POTENTIAL  OF  TAMIL  NADU  IN  FOOD  PROCESSING SECTOR'

(a) to (e): In view of its rich agricultural produce base, strong dairy, fisheries, poultry and horticulture production and its proximity to major domestic and export markets, Tamil Nadu has  potential  to  develop  strong  Food  Processing  Sector.  Ministry  of  Food  Processing Industries (MoFPI) incentivizes entrepreneurs to establish related Industries 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 including Tamil Nadu.  Through these schemes, MoFPI supports food processing sector by providing grant-in-aid for creation of cold chain facilities; processing, packaging and export-oriented facilities across the country including Tamil Nadu.

Under component schemes of PMKSY,  MoFPI  provides  financial assistance to entrepreneurs  selected  on  the  basis  of  Expression  of  Interest  (EoI)  issued  from  time  to time.  MoFPI has sanctioned 104 food processing projects with approved grant in aid of Rs 485.96 crores under various component schemes of PMKSY in the State of Tamil Nadu, till 31.12.2025.

Under PMFME Scheme, Ministry provides financial, technical and business support for setting up/ upgradation of micro food processing enterprises. A total of 17,869 micro food processing enterprises have been approved with subsidy of Rs 410.20 crores under PMFME Scheme in the State of Tamil Nadu till 31.12.2025.

PLISFPI  is,  inter  alia,  intended  to  support  creation  of  global  food  manufacturing champions and support Indian brands of food products in international market. Food  processing projects at 19 locations with committed investments of Rs 389.53 crores have been approved under various categories of the PLISFPI scheme in the State of Tamil Nadu.

MoFPI  has  undertaken  several  assessments  from  time  to  time  to  identify  the challenges faced by farmers, Farmer Producer Organizations (FPOs), including Micro, Small and  Medium  Enterprises  (MSMEs).  Based  on  the  recommendations  emerging  from  such assessments, the Ministry periodically reviews and undertakes appropriate policy interventions  and  scheme-related  measures  for  the  overall  development  of  the  food processing sector.

MoFPI, through its schemes, provides grant-in-aid/incentives to the eligible entities including Farmer Producer Organizations (FPOs) and Micro, Small & Medium Enterprises (MSMEs), all over the country, including Tamil Nadu. 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.

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