**Executive Summary**
This document presents the Ministry of Food Processing Industries' (MoFPI) answer to Lok Sabha Unstarred Question No. 116 regarding the development of modern jaggery processing infrastructure. It outlines the government's efforts to promote the jaggery processing sector through various central sector schemes, focusing on modernization, compliance with food safety standards, and enhanced market access. The answer references activities up to December 31, 2025.
**Key Points / Main Content**
* **Government Initiatives:**
* MoFPI is incentivizing the establishment and expansion of jaggery processing infrastructure through central sector schemes:
* Pradhan Mantri Kisan SAMPADA Yojana (PMKSY) Scheme
* Production Linked Incentive Scheme for Food Processing Industry (PLISFPI)
* Centrally Sponsored – Pradhan Mantri Formalization of Micro Food Processing Enterprises (PMFME) Scheme.
* Schemes are demand-driven and not region/state-specific.
* Projects must comply with Food Safety and Standards Authority of India (FSSAI) regulations.
* **Financial Support:**
* MoFPI provides financial support to entrepreneurs for setting up/expanding jaggery processing units with modern technologies, according to scheme guidelines.
* As of December 31, 2025, MoFPI has approved grants of Rs 17.07 crores for 5 jaggery processing units under the Creation/ Expansion of Food Processing & Preservation Capacities (CEFPPC) scheme of PMKSY.
* Rs. 102.31 crore in subsidy has been granted to 3528 micro food processing units for jaggery processing under PMFME Scheme.
* Grants up to 50% are available for branding and marketing support to FPOs/SHGs/Cooperatives or a Special Purpose Vehicle of Micro Food Processing Enterprises under the PMFME Scheme.
* **One District One Product (ODOP) Approach:**
* The ODOP approach under the PMFME Scheme is adopted to promote local industries, including jaggery.
* Jaggery and allied products have been identified as ODOP in 19 districts.
**Impact Analysis**
**Entrepreneurs and Jaggery Processing Units**
* **Impact:** Beneficiaries can establish or expand jaggery processing units with financial assistance and modern technologies.
* **Action Required:** Adhere to respective scheme guidelines to avail financial support and comply with FSSAI regulations.
**Farmers and FPOs/SHGs/Cooperatives**
* **Impact:** Beneficiaries have opportunities to enhance income through value chain development, branding, and marketing support.
* **Action Required:** Avail grants for branding and marketing support under the PMFME Scheme.
**Consumers**
* **Impact:** Improved access to safe and high-quality jaggery products that meet international food safety and quality standards.
* **Action Required:** Be aware of ODOP products available in 19 districts.
Key Entities Referenced
Ministry of Food Processing Industries (MoFPI): The primary ministry responsible for promoting the food processing sector, including jaggery processing industries.
Food Safety and Standards Authority of India (FSSAI): The regulatory authority that jaggery processing units must comply with.
Pradhan Mantri Formalization of Micro Food Processing Enterprises (PMFME) Scheme: A centrally sponsored scheme for formalizing micro food processing enterprises, including those involved in jaggery production.
Pradhan Mantri Kisan SAMPADA Yojana (PMKSY) Scheme: A central sector scheme to promote food processing through the creation and expansion of food processing and preservation capacities.
Production Linked Incentive Scheme for Food Processing Industry (PLISFPI): A scheme to incentivize production and promote the food processing industry, including jaggery processing.
GOVERNMENT OF INDIA
MINISTRY OF FOOD PROCESSING INDUSTRIES
LOK SABHA
UNSTARRED QUESTION NO. 116
ANSWERED ON 29TH JANUARY, 2026
DEVELOPMENT OF MODERN JAGGERY PROCESSING INFRASTRUCTURE
116. SHRI EATALA RAJENDER:
Will the Minister of FOOD PROCESSING INDUSTRIES be pleased to state:
(a) whether the Government has designed jaggery hubs and related projects in various
States to comply with the regulations of the Food Safety and Standards Authority of
India (FSSAI) and to meet international food safety and quality standards and if so, the
details thereof;
(b) whether such new jaggery processing units incorporate modern technologies such as
controlled firing processes with constant stirring for the production of jaggery in both
lump and powder forms, with the objective of creating modern facilities and
significantly reducing production costs compared to traditional methods and if so, the
details thereof;
(c) whether the Government has taken steps through these projects to promote increased
demand, branding and unique labelling of Geographical Indication (GI)-tagged jaggery,
and to enhance income and livelihood opportunities for farmers and if so, the details
thereof;
(d) whether the Government has taken note of the growing demand for pure jaggery powder
and the limitations of the existing system in producing pure jaggery powder and
whether new facilities and technologies are being implemented to effectively meet this
demand; and
(e) if so, the details and present status of such jaggery hubs, facilities and technologies
implemented across various States and if not, the reasons therefor?
ANSWER
THE MINISTER OF STATE FOR FOOD PROCESSING INDUSTRIES
(SHRI RAVNEET SINGH)
(a) to (e): In order to promote food processing sector including jaggery processing industries
across the country, Ministry of Food Processing Industries (MoFPI) has been incentivizing
setting up/expansion of related infrastructure through its Central Sector schemes namely
Pradhan Mantri Kisan SAMPADA Yojana (PMKSY) Scheme, Production Linked Incentive
Scheme for Food Processing Industry (PLISFPI) and Centrally Sponsored – Pradhan Mantri
Formalization of Micro Food Processing Enterprises (PMFME) Scheme. These schemes are
not region or state specific but demand driven. These projects are required to comply with the
Food Safety and Standards Authority of India (FSSAI) regulations and are encouraged to align
with international food safety and quality standards for improved market access including
exports.MoFPI extends financial support to prospective entrepreneurs for setting up/ expansion
of jaggery processing units with modern and improved technologies, as per respective scheme
guidelines.
As on 31.12.2025, MoFPI has approved 5 jaggery processing units with approved
grants in aid of Rs 17.07 crores in the country under Creation/ Expansion of Food Processing
& Preservation Capacities (CEFPPC), a component scheme of PMKSY and 3528 micro food
processing units for jaggery processing with subsidy amount of Rs. 102.31 crore in the country
under PMFME Scheme.
Grants upto 50% for branding and marketing support to groups of FPOs/ SHGs/
Cooperatives or a Special Purpose Vehicle of Micro Food Processing Enterprises is available
under related component of PMFME Scheme.
In order to promote local industries including jaggery, One District One Product
(ODOP) approach under PMFME Scheme has been adopted to reap the benefit of scale in terms
of procurement of inputs, availing common services and marketing of products. It provides the
framework for value chain development and alignment of support infrastructure. Under
PMFME Scheme, Jaggery and allied products has been identified as ODOP in 19 districts of
the country.
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