**Executive Summary**
This document is a response from the Minister of State for Food Processing Industries to questions raised in Lok Sabha regarding establishing processing units for banana products in Bahraich Lok Sabha Constituency. The response details the existing schemes and their application, specifically the "Pradhan Mantri Kisan Sampada Yojana (PMKSY)," and clarifies that the ministry does not set up food processing industries directly. The response was delivered on December 4th, 2025.
**Key Points / Main Content**
* **Pradhan Mantri Kisan Sampada Yojana (PMKSY):**
* The Ministry of Food Processing Industries (MoFPI) implements PMKSY, a central sector umbrella scheme, since 2017-18.
* Under Operation Greens component of PMKSY, financial assistance is provided:
* 35% of eligible project cost for General Areas.
* 50% for projects in Difficult Areas.
* Also 50% for projects involving SC/ST, FPOs, and SHGs.
* Assistance is for value chain development of 10 fruit crops, 11 vegetable crops, and shrimp in identified production clusters.
* **Banana Production Clusters:**
* The Ministry has identified 8 Banana clusters across 23 districts in 5 states based on horticultural production data (see Annexure).
* Gorakhpur, Kushi Nagar, Maharajganj, Fatehpur, and Kaushambi districts have been identified as banana production clusters in Uttar Pradesh.
* **Role of Ministry:**
* The Ministry does not set up food processing industries directly.
* The Ministry encourages the growth of the food processing sector by implementing various schemes under PMKSY to develop food processing infrastructure and set up food processing units.
* Schemes are demand-driven; proposals are invited through Expression of Interest (EOI).
* Proposals are scrutinized and approved for financial assistance based on scheme guidelines.
* **Current Status:**
* The Ministry has not sanctioned any project for Banana processing in these clusters in Uttar Pradesh under Operation Greens scheme so far.
**Impact Analysis**
**Stakeholder: Banana Farmers in Bahraich Lok Sabha Constituency**
* **Impact:** The response clarifies that while the government doesn't directly establish processing units, it offers financial assistance through PMKSY for projects that aim to improve the value chain of banana production, including processing. However, no projects have been sanctioned specifically for banana processing in Uttar Pradesh.
* **Action Required:** Explore opportunities to form or participate in FPOs or SHGs to potentially access the higher rate of financial assistance (50%). Submit proposals through Expression of Interest (EOI) for projects that meet the scheme guidelines of PMKSY.
**Stakeholder: Food Processing Industry Investors**
* **Impact:** The document outlines the government's approach to supporting the food processing industry, particularly for banana products, through financial assistance under the PMKSY scheme.
* **Action Required:** Review the PMKSY scheme guidelines and consider submitting proposals for establishing or upgrading banana processing units, especially in the identified production clusters.
**Stakeholder: State Government of Uttar Pradesh**
* **Impact:** The state government is part of the consultation process for identifying production clusters. The identified banana clusters within the state could benefit from increased investment in food processing infrastructure.
* **Action Required:** Collaborate with the Ministry of Food Processing Industries and encourage local stakeholders to submit proposals for projects that align with the PMKSY scheme guidelines.
Key Entities Referenced
Pradhan Mantri Kisan Sampada Yojana (PMKSY): A central sector umbrella scheme implemented by the Ministry of Food Processing Industries to develop food processing infrastructure.
Ministry of Food Processing Industries: The Indian government ministry responsible for implementing schemes related to food processing.
Operation Greens: A component of the PMKSY scheme focusing on the value chain development of specific crops, including bananas.
Uttar Pradesh: An Indian state where banana production clusters are being considered under the Operation Greens scheme.
Lok Sabha: The lower house of the Parliament of India where the question about banana cultivation was raised.
GOVERNMENT OF INDIA
MINISTRY OF FOOD PROCESSING INDUSTRIES
LOK SABHA
UNSTARRED QUESTION NO: †821
ANSWERED ON 04TH DECEMBER, 2025
CULTIVATION OF BANANA IN BAHRAICH
†821. DR. ANAND KUMAR:
Will the Minister of FOOD PROCESSING INDUSTRIES be pleased to state:
a) whether the Government has any scheme for the establishment and promotion of processing
units for products derived from banana plants and banana fruit in Bahraich Lok Sabha
Constituency keeping in view the fact that it has large-scale banana cultivation but producers
do not receive fair value in absence of any related processing unit and if so, the details thereof;
and if not, the reasons therefor; and
b) whether the Government would consider any scheme for establishing such processing units
so that farmers of the region may obtain fair prices and new employment opportunities may
also be generated and if so, the reaction of the Government thereto?
ANSWER
THE MINISTER OF STATE FOR FOOD PROCESSING INDUSTRIES
(SHRI RAVNEET SINGH)
a) & (b) The Ministry of Food Processing Industries (MoFPI) has been implementing a
central sector umbrella scheme called “Pradhan Mantri Kisan Sampada Yojana (PMKSY)”
since 2017-18 across the country. Under Operation Greens component of PMKSY scheme, the
Ministry is providing financial assistance at the rate of 35% of the eligible project cost for
projects in General Areas, and 50% for projects in Difficult Areas, as well as for projects
involving SC/ST, FPOs (Farmer Producer Organizations), and SHGs (Self-Help Groups) for
value chain development of 10 fruit crops, 11 vegetable crops and shrimp in the identified
production clusters. The production clusters for these crops are identified based on the
horticultural production data provided by the Ministry of Agriculture and Farmers Welfare, in
consultation with the Horticulture Departments of the respective states. Based on these criteria,
the Ministry has identified 8 Banana clusters spread across 23 districts in 5 states in the country.
The details of these production clusters are at Annexure. Out of these, Gorakhpur, Kushi
Nagar, Maharajganj, Fatehpur and Kaushambi districts have been identified as production
clusters for Banana in Uttar Pradesh.
Further, the Ministry of Food Processing Industries does not set up any food processing
industry on its own, but to encourage the growth of the food processing sector, the Ministry is
implementing various schemes for development of food processing infrastructure and setting
up of food processing units through various component schemes of Pradhan Mantri Kisan
Sampada Yojana (PMKSY). The schemes are demand driven and proposals under the schemes
are invited through Expression of Interest (EOI). The Proposals are scrutinised as per
provisions of scheme guidelines and eligible applications are approved for financial assistance.
So far, the Ministry has not sanctioned any project for Banana processing in these clusters in
Uttar Pradesh under Operation Greens scheme.
*****ANNEXURE
ANNEXURE REFERRED TO IN PART (a) AND (b) OF LOK SABHA UNSTARRED
QUESTION NO. †821 ANSWERED ON 04.12.2025 REGARDING ‘CULTIVATION OF
BANANA IN BAHRAICH’
Production Clusters for Banana under Operation Greens Scheme
S.
State Production Cluster
No.
Cluster-1- Kadapa, Anantapur
Andhra
1 Cluster-2-East Godawari, West Godawari, Visakhapatanam,
Pradesh
Vizianagaram
2 Gujrat Cluster-1-Bharuch, Anand, Narmada, Surat, Chhotaudepur, Vadodara,
3 Maharashtra Cluster-1-Jalgaon
Cluster-1- Erode, Coimbatore
4 Tamil Nadu
Cluster-2-Tuticorin, Theni, Madurai
Cluster-1-Gorakhpur, Kushi Nagar, Maharajganj
5 Uttar Pradesh
Cluster-2- Fatehpur, Kaushambi