Parliament Question: Global Hub for Food Processing

GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES LOK SABHA UNSTARRED QUESTION NO. 3366 ANSWERED ON 12TH MARCH, 2026 GLOBAL HUB FOR FOOD PROCESSING

3366. SHRI PRADYUT BORDOLOI:

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

(a) the details regarding the long term strategy to position India as a global hub for food processing and food ingredients beyond Financial Year 2026 targets;

(b) the steps taken by the Government to support sustainable packaging, eco-friendly processing technologies and green supply chains in the food processing sector;

(c) the details regarding performance of the Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme, State-wise;

(d) the number of employees working under such enterprises and the profits achieved during the Financial Year 2024-25;

(e) the number of jobs created so far in the food processing sector as a result of Government schemes; and

(f) whether the North Eastern Region is lagging behind in terms of food processing, if so, the details thereof along with the reasons for the same and the measures taken by the Government to improve the state of food processing in the region and deal with the challenges faced therein? ANSWER THE MINISTER OF STATE FOR FOOD PROCESSING INDUSTRIES (SHRI RAVNEET SINGH)

(a): 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 Scheme viz. Pradhan Mantri Kisan SAMPADA Yojana (PMKSY), Production Linked Incentive Scheme for Food Processing Industry (PLISFPI) and a Centrally sponsored PM Formalization of Micro Food Processing Enterprises (PMFME) Scheme across the country. These schemes are not region or state specific but demand driven.in nature.

(b): MoFPI supports use of renewable source of energy viz. Solar, Bio-mass, Wind, etc. in the schemes and provides financial assistance for incorporating renewable/alternate energy technologies in food processing units, with a maximum permissible cost of ₹35 lakh per project under component schemes of PMKSY. Under component schemes of PMKSY, consent to operate(CTO) issued by the concerned state Pollution board/Agency in respect of Water and Air, is mandatory for release of Grant-In-Aid/Subsidy to the approved projects. Further, Project Implementation Agency (PIA) has to comply with the requirements of Cold Chain infrastructure as per the directions of Ministry of Environment, Forest & Climate Change, Government of India with respect to use of Non-ODS (Non- Ozone Depleting Substances) and low GWP (Low Global Warming Potential) refrigerants-based energy efficient cooling systems.

Further, to encourage sustainable food processing through adoption of green technologies, one of the focus pillar was “Sustainable and Net Zero in Food Processing, in the 4th edition of World Food India 2025, organized by MoFPI during 25-28 September, 2025 in Bharat Mandapam, New Delhi. It aimed to promote resource efficiency, waste reduction, energy efficiency and environmentally friendly packaging solutions across the sector.

National Institute of Food Technology, Entrepreneurship & Management -Thanjavur under MoFPI has made efforts to promote and develop sustainable packaging technology through development of biodegradable plastics, safe and environment friendly packaging solutions from biopolymers such as poly lactic acid (PLA), starch, nano fibres etc.

(c) to (e): Under PMFME Scheme, Loans for 1,72,707 micro food processing enterprises with approved subsidy of Rs. 5009.61 crore and Seed capital for 3,76,326 Self Help Group members have been sanctioned. 76 proposals for Incubation centres and 25 proposals for Branding & Marketing have been approved. The State-wise details are at Annexure.

As on 31.12.2025, 5.18 lakh direct and indirect employment opportunities have been generated under PMFME scheme, out of which 1.52 lakh direct and indirect employment has been generated in FY 2024-25 across the country. Data regarding profits achieved by these enterprises is not maintained at MoFPI level.

Further, as on 31.12.2025, 4.69 lakh direct/ indirect employment opportunities have been generated from the operational projects under component schemes of PMKSY and 3.29 lakh direct/ indirect employment opportunities has been generated under PLISFPI across the country.

(f): In order to ensure overall development of Food Processing Sector and to help it face various challenges, MoFPI is implementing PMKSY Scheme, PLISFPI and PMFME scheme across the country including North Eastern Region (NER). Further, in order to encourage entrepreneurs in the food processing sector from NER, the following preferential provisions have been made in component scheme guidelines of PMKSY-

(i) Net Worth requirement reduced to amount equal to grant sought, in comparison to 1.5 times for general areas;

(ii) Term Loan requirement reduced to 10% of eligible project cost, in comparison to 20% for general areas;

(iii) Equity requirement reduced to 10%of eligible project cost, in comparison to 20% for general areas;

(iv) Quantum of grant at enhanced level of 50% of eligible project cost, in comparison to 35% for general areas (Subject to the maximum ceiling under respective sub-schemes);(v) Requirement of minimum project cost reduced to Rupees One Crore, in comparison to rupees Three Crores in for general areas in case of Creation / Expansion of Food Processing & Preservation Capacities (CEFPPC) Scheme projects [for other schemes, no such criteria is fixed] Further, under PMKSY & PMFME Scheme, 10% of the budget allocation, is earmarked for NER.

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. The ODOP are identified by States / UTs based on the agriculture production, raw material availability, perishability of the product etc. All districts of the North Eastern Region

(NER) have been covered under the ODOP approach, with each district identifying one product based on its local strengths for focused support and value addition under the PMFME Scheme.

All these schemes are implemented across the country and 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.

*****Annexure ANNEXURE REFERRED TO IN REPLY TO PART (c) TO (e) OF THE LOK SABHA UNSTARRED QUESTION NO. 3366 FOR ANSWER ON 12TH MARCH, 2026 REGARDING “GLOBAL HUB FOR FOOD PROCESSING” Performance of PMFME Scheme Approve Number Number d Grant Number Approve of of Self Amount Approved in Aid of of Micro d Subsidy Number Approve Help Sanctione Grant in Branding Food of Micro of d S.No Group d to SHG Aid of & State/UT Processin Food Approved Branding . (SHG) members Incubatio Marketin g Processin Incubatio & members (Rs in n Centre g Sanctione g (Rs in n Centre Marketin sanctione Cr.) (Rs in cr.) Projects d (Nos.) cr.) g d (Rs in Projects cr.) 1 Andaman And Nicobar Islands 18 1.03 110 0.42 0 0.00 0 0.00 2 Andhra Pradesh 8651 137.81 36926 139.88 2 6.11 2 0.78 3 Arunachal Pradesh 149 9.26 2524 6.56 0 0.00 0 0.00 4 Assam 5194 58.97 33454 100.43 1 2.75 0 0.00 5 Bihar 28648 660.88 24254 86.30 2 4.81 1 0.59 6 Chandigarh 5 0.21 0 0.00 0 0.00 0 0.00 7 Chhattisgarh 1442 62.49 10914 14.13 2 5.50 0 0.00 Dadra And Nagar Haveli And Daman And 8 Diu 12 0.42 13 0.02 0 0.00 0 0.00 9 Delhi 378 8.98 0 0.00 2 4.67 0 0.00 10 Goa 141 5.40 2077 7.77 1 2.03 1 1.04 11 Gujarat 1217 78.26 7185 18.39 0 0.00 0 0.00 12 Haryana 1737 110.76 1675 6.10 0 0.00 1 2.71 13 Himachal Pradesh 2628 63.57 15602 58.67 3 8.84 0 0.00 14 Jammu And Kashmir 2121 43.20 1114 3.97 3 7.80 0 0.00 15 Jharkhand 4665 94.82 6158 20.72 0 0.00 3 2.48 16 Karnataka 8402 315.18 19054 74.91 14 32.17 5 5.30 17 Kerala 8478 221.96 6802 21.49 1 2.75 0 0.00 18 Ladakh 96 4.58 412 1.15 2 5.50 2 0.82 19 Madhya Pradesh 13221 442.85 13733 43.46 3 9.88 0 0.00 20 Maharashtra 27360 810.63 53857 192.67 3 7.27 4 4.53 21 Manipur 310 21.69 421 1.52 0 0.00 0 0.0022 Meghalaya 237 4.07 4285 13.06 1 2.75 0 0.00 23 Mizoram 67 2.56 2641 10.11 1 2.75 0 0.00 24 Nagaland 440 7.84 3797 6.90 1 2.43 0 0.00 25 Odisha 3075 91.35 31195 93.05 1 1.85 0 0.00 26 Puducherry 203 4.52 1986 7.68 0 0.00 1 1.58 27 Punjab 3108 266.83 1404 4.36 1 3.45 2 4.33 28 Rajasthan 1444 85.11 7857 27.03 8 23.11 0 0.00 29 Sikkim 66 1.78 1275 5.07 2 4.92 2 1.86 30 Tamil Nadu 17869 410.20 31174 119.37 4 8.78 1 0.15 31 Telangana 7345 106.23 24502 95.92 3 8.43 0 0.00 32 Tripura 286 7.05 4278 16.26 1 2.65 0 0.00 33 Uttar Pradesh 22060 803.30 8511 25.97 14 46.91 0 0.00 34 Uttarakhand 1087 33.49 9349 31.27 0 0.00 0 0.00 35 West Bengal 547 32.39 7787 28.37 0 0.00 0 0.00 Total 172707 5009.67 376326 1282.99 76 208.11 25 26.17 *****